Rising whey prices put infant formula costs under pressure
Whey prices have risen by about 47% as demand grows and processing capacity remains constrained. Infant formula producers may absorb part of the increase, but the UK market shows that manufacturing costs can reach consumers quickly.
Whey inflation reaches infant nutrition
Persistent increases in whey prices are raising production-cost concerns for infant formula manufacturers, although specialists expect a greater immediate impact on sports and adult nutrition. FoodNavigator reports that demand has been strengthened by the popularity of high-protein diets and by consumers using GLP-1 medicines who seek satiety and protection against muscle loss.
Rabobank figures cited by the publication indicate that whey prices have risen by approximately 47%. Tom Booijink, senior dairy specialist for Europe and Africa at RaboResearch Food & Agribusiness, said prices for higher-end whey proteins had increased sharply over the preceding months and showed no sign of easing.
Whey is used in protein bars, shakes, meal replacements and yoghurt, as well as infant formula. That breadth of demand exposes essential nutrition products to competition for both raw material and specialised processing capacity.
A critical ingredient that cannot simply be reduced
Cow’s milk contains approximately 80% casein and 20% whey protein. Infant formula typically targets a ratio closer to 40:60 for casein and whey to resemble the protein composition of human milk, making whey one of the category’s most important protein ingredients, Booijink told FoodNavigator.
Professor Seamus O’Mahony, head of the School of Food and Nutritional Sciences at University College Cork, said whey supplies high-quality protein and essential amino acids, including tryptophan, that support infant growth and development. Manufacturers use it as demineralised whey, whey protein concentrate, whey protein isolate or hydrolysed whey protein.
Demineralisation removes excess minerals such as sodium and chloride that babies would otherwise struggle to metabolise. The ingredient entered infant nutrition in the 1960s and has been used for more than 60 years. Whey protein isolate is also used in specialised products, including lactose-free formulas.
Formula makers have little scope to respond by lowering whey content. O’Mahony said dilution would not be considered because formula may be a baby’s sole source of nutrition and regulations tightly control total protein and the profile of essential amino acids.
Processing capacity is the main constraint
Booijink expects the effect on infant formula to remain low to moderate. He identified the principal bottleneck not as liquid whey availability, but as limited capacity to turn it into high-protein ingredients such as WPC80 and whey protein isolate, or WPI.
Producing these ingredients requires ultrafiltration and microfiltration equipment, substantial capital and specialist expertise. Prices for WPC80 and WPI have increased much more than the roughly 47% rise in whey, indicating that processing capacity is tighter than the supply of the raw by-product. High prices have already prompted investment in additional capacity, which Booijink expects to ease constraints over time.
Infant formula’s comparatively high margins may allow producers to absorb part of the increase. Annual reports and other public information from Danone, Nestlé and FrieslandCampina show that infant-nutrition margins are considerably higher than in many dairy categories, according to Booijink. Whether costs reach shoppers will depend on manufacturers’ pricing power and competitive position.
UK experience highlights consumer risk
The UK Competition and Markets Authority said in a 2025 report that limited incentives to compete on price meant manufacturers and retailers faced little pressure to protect customers from higher manufacturing costs, which had largely been passed through quickly and fully. FoodNavigator said recent figures showed UK infant formula prices rising by as much as 45% between January and March 2026. A Swansea University study found that higher prices were pushing some families into debt and feeding practices they knew could harm their babies.
The CMA identified possible government interventions, including price caps. Booijink argued that caps could reduce the incentive to invest and prolong the underlying capacity shortage. For producers and buyers, the central issue is therefore the pace at which new WPC80 and WPI plants become available. Until capacity catches up, sports nutrition should face the strongest direct pressure, while formula manufacturers must decide how much of the higher ingredient bill to absorb.