America can't get enough of protein. The dairy industry can't keep up

LivestreamMenuMake ItselectUSAINTLLivestreamSearch quotes, news & videosLivestreamWatchlistSIGN INCreate free accountMarketsBusinessInvestingTechPoliticsVideoWatchlistInvesting ClubPROLivestreamMenu To learn more about the CNBC CFO Council, visit cnbccouncils.com/cfo America's "protein-maxxing" obsession is stressing the dairy industry. Whey protein concentrate, once considered a cheap byproduct of the cheese manufacturing process, has become one of the most in-demand ingredients in the American diet. The surge is creating nationwide shortages, with some suppliers sold out for the latter half of the year, according to a USDA report from late April. U.S. whey protein end-of-month inventories have fallen by roughly half since 2023. "The market remains extremely tight, with product largely unavailable and buyers continuing to report difficulty securing supply," the USDA reported in a June 25 report. As a result, whey protein isolate prices have reached as high as $14 per pound. With the boom in use of GLP-1 weight loss drugs — which is poised to expand across many more Americans due to Medicare coverage — protein consumption is headed higher at least in the short term. Use of these drugs requires users to increase protein consumption to avoid muscle loss. And that continued expansion of weight-loss drug coverage comes at a time when protein is already in high demand among Americans in many consumable forms. "It's a multi-dimensional supply exercise," said Phil Plourd, dairy analyst at Ever.Ag. "Supply has grown, but it is hard for it to grow as fast as demand," he said. Because whey is a byproduct of cheesemaking, the dairy industry cannot build a whey plant in isolation, and the processing capacity to convert liquid whey into powder is constrained. Most existing facilities were built with the assumption of steady, predictable growth rather than a sharp spike. Additional specialized filtration infrastructure required for the process can take years to gain approval. "We have plenty of milk in the U.S. at the moment. We've had decent milk growth for more than a year and a half now. The issue is not milk from the farm," Ploud said. According to the International Food Information Council, around 70% of Americans now say they are trying to consume more protein, which is up from 59% four years ago. "Protein is riding a wave of popularity, powered by trends in weight management, fitness and healthy aging," said Wendy Reinhardt Kapsak, president & CEO of IFIC, in a press release. "Our data show it is the most sought-after nutrient, the most followed eating pattern, and the top characteristic consumers use to define a 'healthy' food." Chipotle recently released a "High Protein Menu." Starbucks added a high protein drink in 2025. Sweetgreen has had "protein plates" since 2023. Protein now shows up on the shelves of grocery stores in nearly every available food category. There are chips, waffles, pancakes, ice cream, and ready to drink coffee and other beverages. "We are going to see an evolution in how food companies access protein," said Plourd, pointing to Doritos Protein, which use casein as its protein ingredient. The TikTok and Instagram trend of "protein-maxxing" is pushing people to maximize their daily protein intake, often advising one gram per pound of body weight while cutting carbohydrates in order to get lean. The niche fitness hack has contributed to a nationwide reshaping of how Americans eat. But GLP-1 weight-loss drug users factor prominently within these broader trends supporting protein demand. Healthcare providers increasingly recommend higher protein intake to preserve lean muscle mass during weight loss, and whey protein is often the preferred option due to its amino acid profile and digestibility. Four major medical societies published a joint set of nutritional guidelines for patients on GLP-1 receptors, advising patients to consume more protein to help avoid muscle loss, though exercise is critical, too. "When you're on GLP-1s and a responder, you see a decline in the desire to eat or drink," said Dr. Fatima Cody Stanford, a co-author of the guidelines and an obesity medicine physician scientist at Massachusetts General Hospital. "We see a decline in lean muscle when patients are on GLP-1s, so we need to ramp up protein," she said. That has contributed to the appearance of protein in categories such as beverages. "People may realize it may be easier to drink their protein," she said. According to David Steven Jacoby, managing partner and supply chain and operations management practice leader at Boston Strategies, the structural lack of capacity in the protein supply chain is a function of suppliers needing to be sure of "bankable demand" — signed contracts — before they commit to financing, typically loans, to build new infrastructure. During a period of rising demand, when it is difficult for suppliers to set new contract terms, these structural capacity shortages can arise, he

America can't get enough of protein. The dairy industry can't keep up

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America can't get enough of protein. The dairy industry can't keep up

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