Summary
- Global demand for whey protein ingredients, including whey protein concentrate (WPC) and whey protein isolate (WPI), continues to outpace supply, driving strong market pressure and price stability.
- Major ingredient suppliers such as Actus Nutrition, Fonterra, Glanbia, Arla Foods Ingredients, Idaho Milk Products, Wisconsin Whey Protein, and Tirlán are making significant protein capacity expansion investments.
- New and expanded whey processing facilities across the US, Europe, and New Zealand are boosting advanced dairy protein production and supporting the growth of high‑protein food and beverage applications.
- The ongoing dairy protein supply–demand imbalance, alongside commodity oversupply, is pushing ingredient companies to scale up WPC/WPI manufacturing capacity to avoid missed commercial opportunities.
Demand for advanced dairy protein ingredients such as whey protein concentrates (WPC) and whey protein isolates (WPI) continues to outpace supply.
Ingredient suppliers are booking orders for months ahead – with some dairy companies looking to position caseinates as an alternative to whey in food and beverage applications.
This demand-supply imbalance is good for suppliers’ bottom end as it secures a stable price and premium positioning for the sought-after ingredients, all while giving dairy product manufacturers a profitable diversification avenue.
The latter is particularly crucial as some commodity prices have come under pressure due to the global dairy oversupply situation.
But missing out on orders means missed business opportunities – and emerging price sensitivities are giving those in the whey game a strong incentive to bulk up their production capacities.
So how are some of the industry’s main players investing?
Actus Nutrition boosts footprint
Ingredient supplier Actus Nutrition closed a deal for a 99,000 sq.ft. whey protein processing facility from Foremost Farms USA last May.
In addition to the added factory capacity, Actus forged a long-term partnership with Foremost Farms to support expansion of both companies’ protein capabilities.
Based in Sparta, Wisconsin, the factory is the seventh owned by Actus, in addition to sites in California, Idaho, Nebraska, Illinois and Minnesota.
Fonterra’s advanced proteins roll out
Fonterra has expanded its Studholme powder plant to bolster its dairy protein production capacity.
The New Zealand co-op invested AUS$75m (US$50.1m) in the expansion, which commenced in 2024 in response to growth opportunities in the global high-protein dairy category.
In 2026, the first advanced proteins, including WPCs, will be manufactured on site and serve Fonterra’s global customers.
Glanbia expands WPI
The protein major behind Optimum Nutrition is adding 10 million pounds (around 4,500 MT) of WPI capacity through a joint venture with its US partners Southwest Cheese based in Clovis, New Mexico.
The added capacity will come on stream in 2027, according to Glanbia CEO High McGuire, who announced the investment during the company’s November 2025 Capital Markets day.
Arla strengthens WPC
Arla’s ingredient arm has strategically added dairy protein capacity in multiple markets in recent years.
In 2022, the company forged a co-manufacturing partnership with UK dairy co-op First Milk to produce a WPC ingredient.
In 2025, Arla Foods Ingredients strengthened its US production capacity for whey protein ingredients through a contract manufacturing agreement with South Dakota-based Valley Queen. Commencing this winter (2025/26), the factory is producing Arla’s microparticulated WPC ingredient formulated for high-protein food and beverage applications.
The company is also switching to ingredient production at its Arnico dairy in Videbæk, Denmark – a strategic move away from producing early life nutrition products at the site – with the first test production expected in January 2027.
Idaho’s isolate investment
Idaho Milk Products injected $200m into building a powder blending and ice cream facility.
Set to complete in early 2026, the new powder blending plant will play a part in protein isolate production by improving capacity for processing the industrial-grade protein powder into the final, market-ready product.
Company CEO Daragh Maccabee said: “We work hard every day to maintain our position as a global leader in milk protein concentrates and isolates. The inclusion of a blending facility in the new plant creates new ways to service our customers and add to the benefits of our vertically integrated model.”
The facility will be operational in May 2026.
Wisconsin Whey expands
Recently acquired by Dutch multi-national FrieslandCampina Ingredients, Wisconsin Whey Protein is expanding its WPI factory to unlock additional capacity.
The project is completing in early 2026 and will bring Wisconsin Whey’s annual WPI production capacity to 22 million pounds (about 10,000 metric tons).
As much as 13 million pounds (nearly 6,000 metric tons) of WPI will be manufactured at the new plant.
Tirlán’s premium whey investment
Ireland’s Tirlán (formerly Glanbia Ireland and Glanbia Co-operative) has committed €126m (around $146m in current currency terms) to bolster its premium whey ingredient production.
This is the biggest added-value investment for the company, highlight the potential in growing the production and supply of premium whey products – particularly given Irish dairy’s already premium positioning on global markets.
The new facility, which will be water neutral and carbon efficient, is expected to be operational by mid-2027.
