Globally, there’s increasing consumer demand for protein, but the dairy industry is struggling to keep up. Products like smoothies and protein shakes are popular among athletes and older adults, leading food companies to introduce protein-rich items across various categories. However, this surge in demand has resulted in a shortage of food-grade whey protein, pushing prices to record highs.
Currently, wholesale prices for whey protein are expected to rise further in 2024, with whey protein concentrate prices increasing by 250% compared to last year. In Europe, prices have also doubled in less than a year. This rise in costs is attributed to reduced milk consumption and a strong market for cheese, leading to fewer exports as domestic demand grows.
The demand is exacerbated by the popularity of GLP-1 weight loss drugs, prompting the need for additional protein in diets to maintain muscle during weight loss. Manufacturers are responding by increasing prices of protein powders and enriched products. Some companies are looking to alternatives like milk protein concentrate but warn that relief in supply won’t be immediate, with new production facilities planned for completion in the coming years. Overall, while supply challenges remain, efforts to boost production might mitigate shortages in the long run.
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