(Yicai) June 5 -- Whey powder prices have doubled since the start of last year due to growing demand for protein supplements amid the boom in the weight-loss drug market.

The price of whey powder has been continuously increasing since 2024, with that of some products accelerating suddenly since the start of last year, raising market concerns, a representative from an international dairy company told Yicai.

China's whey imports fell 8.6 percent to 222,000 tons in the first four months of this year from a year ago, but the average price rose 17 percent to USD1,409 per ton, according to a report from the China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce and Animal By-Products.

Imported whey includes different types with varying price increases, Yicai found. WPC 80 (whey protein concentrate containing 80 percent protein) and WPI 90 (whey protein isolate containing 90 percent protein) have seen the biggest price jump, with the latter product mainly used in fitness and protein supplements.

"Some raw material prices have doubled compared to last year," a representative from a nutrition company in Shanghai said to Yicai. The price of WPI 90 has doubled, while that of WPC 80 has nearly doubled, the person noted.

In addition, several fitness supplement brands have raised the prices of their whey protein powder products, with that of a five-pound container from a well-known brand surging to CNY458 from CNY369 (USD67.60 from USD54.50) since last December.

The soaring WPC 80 and WPI 90 prices are not primarily due to the Chinese market, but instead to the US market, according to a representative from a whey manufacturer. China accounts for less than 5 percent of global demand for the two products, but the weight-loss drug boom has rapidly increased demand for protein supplement products, leading to a surge in demand for whey powders and consequently triggering a global shortage of raw materials, the person said.

Glucagon-like peptide-1 agonists help people lose weight by suppressing appetite and delaying gastric emptying. However, their side effects lead consumers to significantly reduce the intake of high-calorie meals and snacks, so doctors often recommend supplementing with protein to maintain good health.

In addition, whey powder is one of the main raw materials for infant formula, including D90 and WPC 80, accounting for 30 percent to 40 percent or even higher of total milk powder.

The whey powder price surge has also put pressure on milk powder producers, with several companies saying they can still bear the cost increase without adjusting prices in the short term, but if whey costs remain high for an extended period, they might adjust prices.

From the perspective of production capacity supply, the short-term imbalance between international whey supply and demand is unlikely to change, and price fluctuations will continue for some time, said Song Liang, an independent dairy analyst. In the medium to long term, whey prices may remain at a high level, Song noted.

Against this backdrop, the cost pressure on some smaller milk powder brands with thinner profit margins will increase rapidly, while price competition will further intensify, Song pointed out.

Editor: Martin Kadiev