High whey prices create opening for alternatives

KANSAS CITY — Consumer interest in protein has led to a reduced whey supply, resulting in higher prices.

In response, beverage and bar manufacturers are seeking alternatives like proteins from pea and fava beans and other dairy proteins besides whey, but those protein sources may not meet the taste, texture and nutrition traits of whey protein.

Whey protein concentrate (WPC) 34 was trading at $2.40 to $2.70 per lb on Oct. 9, which compared with $1.70 per lb a year ago. Prices for WPC 80 have shot up even more, rising to $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 the commodity intelligence platform Vesper.

“So, pricing spiked,” said Dennis Reid, vice president of marketing and specialty ingredients for Osage Food Products, St. Louis. “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 replacement for whey protein may be difficult.

“It’s the most functional,” Reid said. “It’s a complete protein — PDCAAS of 1.0. It has good flavor, has good color. It’s the easiest one to formulate with to get a high degree of protein in a product.”

Identifying alternatives

Proteins, mostly dairy proteins, account for about 75% of Osage Food Products’ business, Reid said.

About four years ago the company introduced a line of plant protein systems that may be used in place of dairy protein, including whey protein. The ingredient system initially featured protein from peas, rice and canola. Reid said many of the ingredients have protein-digestibility-correct amino acid scores (PDCAAS) of 1.0, the highest score, and the same as dairy proteins.

The ingredient system selects the type of protein and the grade of each protein source to deliver targeted functionality, such as for a beverage or a baked food, Reid said.

Photo: USDA

Osage Food Products recently began collaborating with Revyve, a Dutch food ingredients company that produces yeast proteins. Several blends from Osage Food Products now contain yeast protein, pea protein isolates and fava bean protein isolates. One blend has a PDCAAS of 1.0 and works in beverage applications because of its solubility.

“It would deliver functionality more along the lines of a whey protein,” Reid said.

Yeast proteins may have an earthy, grainy taste, which works in certain flavor profiles like chocolate and caramel, he said.

“Where it’s been tricky is more pure-play flavors like vanilla,” Reid said. “We’ve had trouble masking it and putting it in a vanilla right now. Our canola system works way better in vanilla.”

In pea protein, Minneapolis-based Puris uses technology to develop ingredient systems that deliver a clear sensory profile with reduced earthy, grassy and beany flavor notes often associated with traditional pea proteins, said Kushal Chandak, vice president of research and development for Puris.

Higher protein levels may be achieved without a thick and chalky texture in beverages, which allows developers to create protein-dense formulations while reducing dependence on gums and other texture-modifying ingredients, Chandak said.

Pea protein historically has cost less per lb than whey, he added, although shifts in supply and demand may cause either ingredient to be priced at a premium.

Brands are reformulating and using blends instead of whey alone, Vesper’s Endlich said. Dairy ingredients besides whey in the blends may include egg albumin, micellar casein, calcium caseinate and ultrafiltered milk. Vegetable proteins like pea, soy and rice appear less often as they are limited by flavor issues, Endlich said.

Reid said ultrafiltered milk can be difficult to acquire since ultrafiltered milk protein beverages have increased in number and reduced the supply of ultrafiltered milk.

Packaging as an alternative

Since whey protein has become a more valuable ingredient, processors may want to do more to protect it.

“A pallet of WPC 80 is worth far more than it was two years ago,” said Kevin Geason, director of sales and dairy supply chain expert for Tosca Services, LLC, which offers reusable crates, bins and pallets. “So, a cracked pallet, a collapsed stack, a torn bag or a load rejected at receiving costs real money per lb. Processors tend to watch the product closely and treat the secondary and bulk packaging as a commodity, but that’s where a lot of avoidable loss sits.”

He said processors should look at the total cost of their packaging and transportation systems rather than treating packaging as a standalone procurement expense. Analysis from Tosca found labor accounts for 30% to 40% of total packaging-related costs in processing lines. Corrugated packaging may contribute to throughput problems, product damage and inefficient freight utilization, Geason said.

“In comparison, a durable crate holds up better in the rack and on the truck than a mixed pool of one-way corrugated packaging in varying condition,” he said. “For a high-value protein ingredient, a safer and more consistent load also supports the food safety record that customers expect.”

Multiple factors

Custom Market Insights, Austin, Texas, forecasts the global whey protein market to have a compound annual growth rate of 8% from 2025 to 2034, rising to $26.04 billion from $13.52 billion. Ready-to-drink shakes and beverages that provide protein fortification have become common, according to Custom Market Insights, while whey protein is increasing in use in functional foods and snacks like protein bars, cookies, cereal and yogurt.

Will demand keep whey protein prices elevated?

“The price of whey is affected by a number of factors, including fluctuations in dairy markets, changes in milk/cheese production, growing consumer demand for high-protein products and broader supply chain dynamics,” Chandak said. “As demand for protein continues to grow across sports nutrition, weight management and healthy aging categories, competition for protein ingredients creates additional pressure on prices.”

An increase in beef prices and more consumers taking GLP-1 medications are reasons for the rise in whey protein prices, said Brian Quinn, chief product officer of Quoreka, which provides trading and risk technology for commodity businesses. Followers of the Atkins diet sparked interest in protein early this century, leading to an increase in beef sales, but that’s not happening in 2026 because of higher beef prices, he said.

Dairy cooperatives want to bring in more supply, but cattle feed is in short supply, including for dairy cows, Quinn said. The fertilizer needed to grow feed crops is increasing in price, he added.

Cheese plays a factor, too. Whey is a byproduct of cheese production.

“Cheese output is growing only modestly, and processors face a built-in constraint: producing more cheese solely to generate whey adds volume to the cheese market and puts downward pressure on cheese values,” Geason said.