Weight-loss Drugs Surge Demand for Protein-Rich Whey, Prices Jump 90%
London: Global dairy companies and food producers are significantly increasing investments to address the rising demand for protein-rich whey. This surge is largely attributed to the growing popularity of weight-loss medications and a shift towards healthier eating habits. Whey has become a crucial ingredient in various food products aimed at consumers focused on preventing muscle loss.
According to data from StoneX consultancy, the price of whey protein concentrate with 80% protein content (WPC 80) has soared nearly 90% over the past year, reaching 20,000 euros ($23,410) per metric ton. This increase far surpasses price hikes in other dairy sectors, including powdered milk and cheese. While heightened health awareness and an aging population have contributed to rising whey prices, the GLP-1 trend is identified as the primary driver of demand, as indicated by discussions with industry professionals.
Luis Cubel, managing director of Arla Foods Ingredients, emphasized the need for the industry to adapt to the ongoing strong demand for whey proteins, particularly as GLP-1 medications gain traction. He raised questions about the potential for tapping into additional volumes to meet this demand.
Dairy producers, including Arla Foods, known for Lurpak butter, and FrieslandCampina from the Netherlands, are expanding their whey production capabilities. Concurrently, food companies are diversifying their protein-rich product lines, with notable examples being Danone’s Oikos yogurt and Bel Group’s Babybel Protein.
Weight-loss Drugs Drive Protein Appetite
Kristen Coady, chief innovation and brand officer at Dairy Farmers of America (DFA), noted that users of weight-loss drugs are increasingly seeking protein, which is driving innovation within the industry. DFA, the largest dairy farm collective in the U.S., recently launched MULU, a cottage cheese product enriched with whey that contains 18 grams of complete protein per half-cup serving, significantly higher than the typical 12 to 13 grams found in standard products.
Coady remarked on the overwhelming demand for dairy proteins, highlighting the popularity of cottage cheese as a catalyst for DFA’s increased investments in cultured dairy capabilities. The company has shifted production sites in Pennsylvania and New Mexico from fluid milk to meet this demand.
Health and wellness retailer iHerb has observed substantial growth in products related to GLP-1, particularly in the U.S. market. Hyeyoung Moon, iHerb’s Chief Revenue Officer, pointed out that customers are actively seeking ways to mitigate the side effects associated with GLP-1 medications. She noted a rise in searches related to GLP-1 and an increase in female customers looking for supplements to help preserve muscle mass, moving beyond the traditional demographic of gym-goers.
High-end Whey Race
John Lancaster, head of EMEA dairy and food consulting at StoneX, indicated that the food industry currently lacks the infrastructure to meet the demand for high-protein whey concentrates and isolates. He highlighted a significant shortage of capacity to convert whey into the products required by the market.
Guus Aerts, Global Director for Marketing and Product Strategy at FrieslandCampina, stated that the protein boom has prompted the company to invest heavily in advanced whey processing. FrieslandCampina finalized its acquisition of Wisconsin Whey Protein, a U.S.-based producer of whey protein isolates, in January and has since doubled the capacity at its Dutch Borculo plant.
For dairy companies, enhancing the quality of whey is essential as food producers develop high-protein versions of yogurt, cottage cheese, beverages, and snacks. FrieslandCampina recently announced an investment exceeding 90 million euros to accelerate its growth in high-value whey proteins.
Marion Bucas, marketing director at Lactalis Ingredients, part of the world’s largest dairy company, acknowledged that dairy proteins represent a significant opportunity. She noted that while dairy proteins are the highest quality available, there will be considerable efforts required to find substitutes to meet the growing demand.
Seeking Alternative Protein-rich Ingredients
The demand for protein-rich ingredients such as peas and lentils is providing struggling U.S. farmers with a vital new revenue stream. At the same time, biotechnology firms specializing in alternative proteins through precision fermentation are attracting significant investment.
French startup Verley, which utilizes fungi fermentation to produce protein aimed at muscle recovery, described the impact of GLP-1 on the traditionally slow-moving food sector as “insane.” Co-founder and CEO Stephane Mac Millan remarked on the rapid changes in the U.S. market over the past two to three years, indicating that this has pressured the entire food industry to reformulate products.
Another French startup, Standing Ovation, which has secured investments from Danone and Bel Group, is focused on producing casein proteins and anticipates launching its products this year. Co-founder Romain Chayot mentioned that 80% of their product development is centered on high-protein solutions, noting the booming market for high-protein yogurt, cheese, and beverages due to GLP-1.
While analysts caution that precision fermentation remains too costly for widespread adoption at this time, the high prices of whey present new opportunities. However, consumer skepticism regarding taste remains a challenge. Peter McGuinness, CEO of Bel Group’s North America division, emphasized that while dairy protein is inherently delicious, the current protein race has led to a loss of flavor.
Source: www.emirates247.com
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Published on 2026-05-05 14:36:00 • By the Editorial Desk
