3.5 billion dollars of protein powder was sold in the US in 2015.
6.6 billion is the projected sales by 2025.

An 88.6% market increase just in the US.

Was walking through a grocery store the other day and saw a product I had to double glance at.

Dunkin Donuts brand protein powder.

Dunkin, a brand which is easily the most unhealthy fast food chain, with the main product being fried dough selling a protein powder.

Saw that and had to do some writing on the market for protein powder and Dunkin as a whole, which would get something like this made.

First up, the profit margin on protein.

The supplement industry averages a 38% profit margin as a whole.

Protein powders are even higher, averaging over a 70% profit margin as a product itself.

Which does fit into Dunkin’s model, where they average 70-80% margins on coffee and franchise owners making an 8-12% profit, post management salary and franchise fees.

Dunkin selling coffee and donuts is in a higher margin section of food, so it’d make sense they’d want to try protein.

Two, Dunkin at home.

Dunkin has moved into retail, selling a line of ready to drink coffees, where they now make 2.3 billion dollars every year off them.

They’ve also been selling home brew coffee in retail since 2007, competing with Starbucks, McDonald’s and others in that space, having a presence in over 25,000 US stores.

Dunkin makes a lot of money selling coffee products outside of the franchise stores. Protein is an extension to what is becoming the core companies biggest source of profit.

Three, it’s actually not that weird.

Dunkin Donuts coffee when not being mixed with Milky Way’s or something nuts is pretty much just standard coffee. Nothing that unique or unhealthy to it.

Protein powders are basically milkshakes rebooted to help people gain muscle, but still often taste like just a chocolate milkshake.

If anyone said “coffee flavored protein”, nobody would think it’s weird. This is just weird due to it being a donut company selling protein.

Which is similar to Campbell’s, when they tried and failed to sell pasta sauce, where studies showed it the was the same as other jarred sauces, but consumers thought it was too loose like soup. The result was the rebranded it as Prego.

This is sort of the case here and kind of an interesting look at a weird product.