
Whey protein inventories in the U.S. have dropped about 50% since 2023 due to surging demand driven by diet trends and increased use of GLP-1 weight-loss drugs, which require higher protein intake to prevent muscle loss. The dairy industry's processing capacity is limited because whey is a byproduct of cheese production, and expanding infrastructure takes years and significant investment. This supply-demand imbalance has pushed whey protein prices up to $14 per pound and caused nationwide shortages. While new manufacturing capacity is planned, experts expect prices to moderate gradually over the next few years rather than crash.