LIVE MARKETS-Health trends, weight-loss drugs to fuel protein market boom, Barclays says

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HEALTH TRENDS, WEIGHT-LOSS DRUGS TO FUEL PROTEIN MARKET BOOM, BARCLAYS SAYS

In an era where consumers are increasingly mindful of what they eat, protein has emerged as the undisputed champion of the food industry - one Barclays expects will keep 'protein winners' positioned for growth in 2026.

Barclays analysts estimate global protein demand could rise by 37%, adding roughly $650 billion in incremental value to a market they currently peg at about $1.7 trillion globally.

They attribute the boom to two key trends: the mainstream adoption of health and wellness priorities and the rising use of GLP-1 weight management medications, which can increase protein consumption as people aim to preserve muscle mass.

Barclays' analysis suggests the companies it identifies as 'Protein Winners' have consistently outperformed peers, achieving both 2.1% higher volume growth on average over the past four quarters and superior share price performance.

In Europe, top picks include Mowi MOWI.OL and Glanbia GL9.I, that supply salmon and dairy ingredients, and Novonesis NSISb.CO and Danone DANO.PA, that provide protein platforms and yogurts products.

In the U.S., Tyson Foods TSN.N, JBS NV JBS.N, JBS.N and Hormel Foods HRL.N are standout global operators with broad meat and prepared foods portfolios.

Pilgrim's Pride Corp PPC.O, PPC.O, Smithfield Foods SFD.O and BellRing Brands BRBR.N, BRBR.N are also positioned to benefit from protein-focused growth across multiple categories including dairy, seafood, and ready-to-drink products.

To capitalize on this booming market, major manufacturers such as Nestlé NESN.S and Coca-Cola KO.N are investing billions in expanded production capacity.

Barclays also notes that protein-rich snacks are growing 1.3 times faster than the overall snacks market, and that North America alone accounted for an estimated 35% of global protein ingredient sales.

Meanwhile, Barclay's pharma team believes that pricing erosion and U.S. policy reform are pushing GLP-1s toward a mass-market, which could further lift the protein market.
Overall, the firm argues the protein trend is still under-appreciated by markets and even if growth rates normalize quarter to quarter, the longer-term shift towards protein as a functional part of mainstream diets could create attractive investment opportunities.

(Ragini Mathur)

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