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KANSAS CITY — Whey Protein Prices Surge Due to Increased Consumer Demand
Consumer interest in protein has led to a reduced whey supply, resulting in higher prices. As a response, beverage and bar manufacturers are exploring alternatives like proteins from pea and fava beans and other dairy proteins besides whey. However, these alternatives may not fully match the taste, texture, and nutritional qualities of whey protein.
Whey protein concentrate (WPC) 34 was trading at $2.40 to $2.70 per lb on Oct. 9, compared to $1.70 per lb a year ago. Prices for WPC 80 have risen even more, reaching $10.50 per lb on Oct. 6, up nearly 88% from a year ago, according to a US dairy market outlook from Jasper Endlich, a dairy analyst at Vesper.
“So, pricing spiked,” said Dennis Reid, vice president of marketing and specialty ingredients for Osage Food Products. “We hit an all-time high on WPI (whey protein isolate) and WPC. That’s just now starting to show signs of relief.”
Finding a suitable replacement for whey protein presents challenges. “It’s the most functional,” Reid explained. “It’s a complete protein — PDCAAS of 1.0. It has good flavor, color, and is easy to formulate with to achieve a high protein content in a product.”
Identifying Alternatives
Osage Food Products has introduced a line of plant protein systems as a dairy protein substitute, including proteins from peas, rice, and canola. These ingredients have protein-digestibility-correct amino acid scores (PDCAAS) of 1.0, matching dairy proteins. The ingredient system tailors protein type and grade for specific functionalities, such as beverages or baked goods.
Osage Food Products has partnered with Revyve, a Dutch food ingredients company, to incorporate yeast proteins into their blends. These blends, which also include pea and fava bean protein isolates, offer a PDCAAS of 1.0 and are suitable for beverage applications due to their solubility. Reid mentioned that these blends deliver functionality akin to whey protein.
Pea protein specialist Puris in Minneapolis has developed ingredient systems that reduce the earthy, grassy, and beany flavors associated with traditional pea proteins. This innovation allows for higher protein levels without a thick, chalky texture in beverages, enabling developers to create protein-rich formulations while minimizing the need for textural additives.
Brands are shifting towards using blends instead of relying solely on whey protein. Dairy blends may include egg albumin, micellar casein, calcium caseinate, and ultrafiltered milk. Vegetable proteins like pea, soy, and rice are less common due to flavor challenges.
Packaging as a Strategic Factor
With the increased value of whey protein, processors are urged to prioritize packaging protection. Kevin Geason from Tosca Services emphasized the importance of safeguarding whey protein during transportation and storage. Durable packaging solutions, like reusable crates and pallets, can prevent product loss and maintain quality.
Processors should evaluate the total cost of their packaging and transportation systems to ensure efficiency and minimize avoidable losses. Labor costs make up a significant portion of packaging-related expenses, with durable crates offering better protection compared to traditional corrugated packaging.
Market Dynamics and Future Outlook
The global whey protein market is projected to grow at a compound annual rate of 8% from 2025 to 2034, reaching $26.04 billion. Ready-to-drink protein beverages and fortified products are driving this growth, with whey protein finding applications in various functional foods and snacks.
Factors like fluctuations in dairy markets, changes in milk/cheese production, and increasing consumer demand for high-protein products contribute to the rise in whey protein prices. Competition for protein ingredients further intensifies pricing pressures.
As demand for protein continues to rise, processors must navigate supply chain challenges to ensure a stable and cost-effective protein supply chain.