The Meteoric Rise of Keto

Fast weight loss, an endorsement from the Kardashians, and a powerful online following. Yes, we’re talking about the keto diet.  Interest in the high-fat, low-carbohydrate lifestyle has surged in recent years. Spikes in Google searches for the word “keto” also point to consumers’ increasing interest in the diet. The ketogenic diet represents a significant yet potentially challenging market opportunity for food and beverage developers. Here we take a deep dive!

What is Keto?

The keto diet is a high fat, yet highly restrictive diet which is designed to induce a state of ketosis; your body burns fat for energy, rather than glucose – by restricting the amount of glucose available to your body. Those on a ketogenic diet dramatically reduce their carb consumption, and are required to obtain 75% of their daily calories from fat, 20% from protein and just 5% from carbohydrates. Starchy carbohydrates such as bread, rice and pasta are forbidden. Milk, sugar, and the majority of fruit and root vegetables are also off the menu. 

Mainstream Potential

Food and beverage manufactures are becoming increasingly interested in the mainstream potential of new keto products. The vast array of celebrity endorsements of the diet have been a big driver for its growth. Successful athletes such as LeBron James and Tim Tebow have endorsed the diet. As have Vanessa Hudgens, The Kardashians and Adriana Lima. Furthermore, the diet is said to have health benefits, which is a big lure for consumers. These benefits include weight loss, and possibly reducing the risk or severity of diseases such as type 2 diabetes and epilepsy. According to a study published in August 2013 the European Journal of Clinical Nutrition, there is evidence that the keto diet can also reduce acne. Conversely there is evidence to suggest that the keto diet can cause low blood pressure, kidney stones, constipation, and numerous nutrient deficiencies.

Interestingly, 25% of sports nutrition products introduced in 2019 had a “keto claim”. New cereals, snacks and soft drinks with a keto claim grew 150%, 169% and 212% respectively last year. There is certainly a demand for conveniently packaged products which meet the diet’s rigorous demands. 

'What Is Keto?' - One of the Most Googled Questions

According to a CNN roundup, the question “what is keto?" was one of the most searched questions on Google in 2019, with a collective 20,387 keywords ranking, as well as a combined average monthly search volume of 623,050 for all related terms. Moreover, 10% of all 200 of the most popular searches related to “diets”, are in direct relation to the Keto diet. You cannot doubt the public’s appetite and curiosity for it.  

Food and Beverage Products

The global keto diet market size is expected to reach USD 14.75 billion by 2027, according to a new report by Grand View Research. Rising obesity across the globe is said to be a crucial factor boosting the predicted market growth. The keto snacks product segment is expected to be the fastest-growing product segment with a CAGR of 6.1% from 2020 to 2027. And the keto supplements product segment maintained the largest share of the market, with more than 50% in 2019. The leading manufacturers in the keto diet market include Ample Foods, Danone, Nestle, Pruvit Ventures, Perfect Keto and Know Brainer Foods. 

If your keto food and beverage company is looking to scale and grow via ERP solutions, traceability and demand planing software, get in touch with Cashmere today.