Chobani sets sights on Australia's $1.2bn milk drinks market

Chobani is making one of its biggest moves beyond the yoghurt aisle in Australia, launching a high-protein drinks range into a $1.2 billion milk-based beverages market growing at double digits.

The US-founded dairy heavyweight will launch Chobani High Protein Yogurt Drinks through 7-Eleven nationally and On The Run in South Australia from 30 September, before expanding into Woolworths, Coles and independent and convenience retailers from November.

The move puts Chobani into increasingly direct competition with Australia's established dairy giants, including Bega Group, which dominates the milk-based beverage category through brands including Dare, Big M and Dairy Farmers. The opportunity is significant.

Australia's milk-based beverages category generated $1.2 billion in retail sales in the 12 months to 28 December 2025, according to Circana data published by Bega, growing 12% year on year. Bega held a 45% share of the category, making it the market leader. Its yoghurt business, by comparison, held a 24% share of a $2.26 billion category.

Chobani's new range will offer 20g or 30g of naturally occurring protein from fresh milk, with no milk powders, added sugar or artificial sweeteners. The lactose-free drinks will initially be available in six flavours.

The launch comes as Australia's appetite for high-protein food moves decisively beyond its traditional fitness and sports nutrition audience.

ANZ data shows Australian drinking milk sales have recorded consistent monthly growth since September 2025, driven heavily by fresh flavoured milk, a category encompassing many high-protein milk shakes and drinks.

High-protein milk itself has grown at an average annual rate of 8.7% over the past five years, according to Euromonitor, as Australian consumers increasingly seek functional benefits from dairy products. 

That shift is already changing where Australia's major dairy producers are investing.

Bega has expanded its high-protein portfolio with products including Dairy Farmers protein smoothies and Masters 36g protein flavoured milk, while the company said increased demand for high-protein and “better for you” products contributed to growth in its branded business during FY26.

Saputo Dairy Australia last week also launched high-protein products under its Devondale and Liddells brands, offering 50% more protein than its standard long-life milk.

Zoey Saunders, SDA general manager of marketing and Food Service, said as more consumers prioritise health and nutrition, higher protein options continue to be actively sought in shoppers’ everyday purchasing choices.

"We're seeing sustained consumer demand for convenient, high-protein food and drink options, and our new range provides a simple way to meet that demand,” she said.

“Devondale and Liddells high-protein long-life milk give shoppers more choice in a format that fits easily into everyday routines.”

Rabobank has described protein as one of the strongest structural growth areas in global dairy, with protein-focused products growing considerably faster than conventional dairy categories.

In Australia, that opportunity is particularly significant because declining domestic milk production is encouraging producers to extract more value from a limited supply of milk protein through higher-value products including protein beverages and yoghurt.

For Chobani, the move represents a significant expansion of an Australian business built overwhelmingly around yoghurt.

Founder Hamdi Ulukaya brought the company to Australia in 2011 through the acquisition of Bead Foods, the manufacturer behind Gippsland Dairy. Chobani subsequently expanded its Dandenong South manufacturing operation and says it became Australia's number one yoghurt brand after launching Chobani Flip locally in 2017.

The company is now using that dairy footprint and its established association with high-protein yoghurt to move into a neighbouring category where consumer demand is accelerating.

It also puts Chobani into a substantially different competitive set. Rather than fighting primarily for space in the yoghurt fridge, its new drinks will sit against established flavoured milk and high-protein brands backed by Bega and other major dairy producers.

And there are signs the protein boom has further to run.

Recent Rabobank analysis found Australian consumers are increasingly prioritising protein for health, satiety, weight management, muscle maintenance and healthy ageing, with high-protein dairy products growing faster than their conventional counterparts.

What began as a product attribute largely associated with gyms and sports nutrition is increasingly becoming a mainstream FMCG battleground. Chobani now wants a considerably bigger piece of it.