The average U.S. supermarket now has 38,708 products advertising their protein content, according to NielsenIQ, a market research company. But the eagerness to appeal to ingredient-focused shoppers is causing shortages of food-grade whey protein and pushing prices to new records.
“Demand is very firm and seemingly outpacing supply for right now,” said Kathleen Wolfley, vice president of Ever.Ag Insights, a data provider and consulting company for the agriculture industry.
Wholesale prices for whey protein began rising in 2024, and the pace accelerated last year and so far this year, Wolfley said.
Whey protein concentrate with 80% protein – the type often used by food makers and supplement companies as a booster – is trading on the dairy commodities market at more than $13 per pound in the U.S., up 250% from a year ago, according to Ever.Ag. Whey protein isolate, a more refined vesion that contains at least 90% protein, is 150% more expensive than last year, the company said.
That’s raising prices for consumers. U.S. prices for whey protein concentrate powder have increased by around 15% over the past year, while more premium whey isolate powder has seen steeper gains, according to Datasembly, a price-tracking company.
It’s a similar story in Europe. In late May, 80% whey protein concentrate hit a new record average of 26,450 euros ($30,518) per metric ton, a price more than double from less than a year earlier, according to DCA Market Intelligence, a Netherlands-based commodity pricing firm.
Here’s what’s happening with whey protein and when strained supplies might be alleviated.
Milk contains two proteins: casein and whey. During the cheese-making process, the casein – which forms solid curds – is separated from the liquid whey, which is dried to form a powder. Every pound of cheese yields nine pounds of whey, according to the U.S. Department of Agriculture.
“There simply isn’t enough product for the U.S. customer, and exports have therefore been paused as much as possible,” said Jasper Endlich, a Vesper dairy analyst.
China is seeking more whey protein from Europe, which also is seeing shortages thanks to reduced U.S. exports, Endlich said.
Tight supplies and higher costs have caused some manufacturers to increase the prices consumers pay for protein powder or protein-enriched products.
Now Foods, an Illinois-based maker of health foods and nutritional supplements, said tubs of whey protein powder are consistently the biggest seller in its sports nutrition category. But after two years of paying more for raw ingredients, the company raised the price of its own whey protein products earlier this year.
Bryan Morin, the sports brand manager at Now, said the company doesn’t anticipate further price increases on whey protein powder this year. It’s trying to absorb some of its increased costs by cutting back on discounts. It’s also considering expanding its portfolio to include products made with milk protein concentrate, a powder that contains less whey and is cheaper.
“From our perspective, broader market dynamics continue to indicate a tight and evolving protein landscape,” Morin said.
Wolfley, at Ever.Ag, said manufacturers are investing in whey protein production, which should eventually improve supplies. But the relief won’t be immediate.
“The supply-demand dynamics could start to improve, but I don’t know if that’s a tomorrow dynamic or within a year. Some of these things are going to take time,” Wolfley said.
