Protein trend boosts demand for milk powder and whey powder

The popularity of high-protein products is affecting the European dairy market. Prices for skimmed milk powder and whey powder are significantly higher than a year ago. According to DCA Market Intelligence, strong demand and limited supply are both contributing factors. The protein trend is increasing demand, but it is not the only cause.

Milk powder price reaches highest level since 2022

DCA’s benchmark for skimmed milk powder in Northwest Europe is at its highest level since 2022. Since the summer, the price has increased by around 25 percent. Compared with last year, the increase is more than 40 percent.

Demand is strong within Europe and in export markets. At the same time, only limited volumes are available for immediate delivery. European milk production typically declines at this time of year. This leaves less fresh milk available for processing.

More buyers also returned after the quieter summer period. Producers remain cautious about offering large volumes. As a result, available product is quickly absorbed by the market.

Skimmed milk powder is used in chocolate, ice cream and dairy drinks. It is also used in confectionery, bakery products and prepared foods.

Whey powder rises even faster

Whey powder has also become significantly more expensive over the past year. DCA’s benchmarks are 59 to 94 percent higher. The exact percentage depends on the intended use. DCA distinguishes between whey powder for food and animal feed.

Powder intended for animal feed is usually cheaper than powder for human consumption. In week 37, that price gap had almost disappeared for milk powder. DCA sees a similar pattern in whey powder.

Whey is a byproduct of cheese production. The liquid can then be dried into whey powder. Whey can also be processed into protein concentrates, including WPC80 and WPI90. These ingredients are used in sports nutrition, protein bars, yogurt, desserts, infant formula and medical nutrition.

At these high prices, buyers are becoming more selective. Food manufacturers are also taking a closer look at alternative protein sources.

Dcamarketintelligence.com