Weight loss drugs drive protein shortage as prices soar
Over the past decade, protein has transitioned from a relatively innocuous macronutrient to one of the most influential drivers shaping the Australian food and beverage market.
Once predominantly associated with gym buffs, its mainstream appeal has seen a vast uptick in recent times. Now, insatiable consumer demand has left whey protein suppliers scrambling to keep up – and GLP-1 weight loss drugs may be the driving force.
The cost of protein products has spiked as demand for whey soars. Getty Images
A cursory search for “protein” on Coles’ website returned over 800 related products, while the same search on Woolworths’ site returned over 400, respectively.
From protein Weetbix to protein Starbucks cold foam: This new wave of fitness-focussed food and beverage items is inescapable, and the growing demand has suppliers sweating.
Extracted from milk as a byproduct of the cheese-making process, whey is widely considered the ‘gold standard,’ of protein, encompassing all essential amino acids crucial for healthy bodily functions and muscle maintenance.
But there are fears the appeal of the easily absorbed, low-calorie option is leading to global shortages.
The latest data from OEC stated that in 2024, the United States remained Australia’s biggest whey supplier, exporting $16.8 million worth of the product to Aussie shores that year.
But according to a report by US Department of Agriculture’s Dairy Market News, some suppliers were already sold out of the sought-after product as of April 2026 – causing what little remained to shoot up in price exponentially.
“Some market contacts indicated that certain suppliers are sold out for the year,” the report stated.
“Additionally, there are indications that one manufacturer will cease production of WPC 34% after this summer, which is expected to further tighten availability once they go offline.”
Weight loss drugs may just be the driving force behind global whey protein shortages. iStock
Sydney-based business Performance Sports Nutrition has felt the pinch, noting a “constant” increase in pricing for whey-based products of late.
Boasting over 20 years’ experience in the sport nutrition business, owner Marc Melilo saw a notable spike over the past “five to six years” – but claimed the sharpest rise had come in recent times.
“It’s probably been the most dramatic in the last, say, two to three years with price increases. And they’re constant,” he told nine.com.au.
“There are the locally made products too, but they’ve also gone up [in price] because the raw material costs have gone up for manufacturers.”
Australia-based NutraLabs is one such manufacturer reporting a spike in costs for whey protein Concentrate (WPC) and Whey Protein Isolate (WPI).
Co-founder Danny Rotman described whey as one of the business’ most highly sought-after products – and its cost certainly reflected the demand.
“Prior to inflation really starting to take off, we’d locked in WPI – which is 90 per cent protein – for around about 12 to $13 a kilo,” he told Nine.com.au.
But by 2021, the price per kilo had risen to around $15. Today, according to Rotman, it sits at around $50 – more than tripling in price over the last five years.
He said the process of obtaining the protein from suppliers had become a dog fight, with established manufacturers often looking to lock in their supply at least six months in advance.
He noted smaller manufacturers found this process particularly difficult, especially businesses attempting to break into the increasingly lucrative market.
According to market research conducted by IMARC, Australia’s whey protein market saw a massive boom in 2025, reaching $162.8 million. In the years to 2034, it is projected to reach $245.2 million.
When asked about the demand driving this, Rotman put it down to increased awareness of whey protein’s health benefits – and the growing popularity of GLP-1 weight loss drugs.
A recent study by University of NSW Scientists found an estimated half a million Australians (about 2 per cent of the adult population) used GLP-1 medications like Ozempic, Wegovy and Mounjaro on a monthly basis in 2024-2025.
Since May 2020, total sales of GLP-1 RA in Australia increased almost tenfold, reaching approximately half a million units sold each month over the last two years.
“With the rise of the likes of Ozempic and other derivatives, people are becoming more and more conscious of the importance of protein – because Ozempic does lead to muscle loss,” Rotman said.
Medical professionals recommend prioritising protein intake while on specialised weight loss drugs, with a target of 1.2 to 1.6 grams of protein per kilogram of body weight each day (about double the standard recommendation).
This “perfect storm” of factors contributed to wholesale prices spiking, with the Whey market projected to grow 7.7 per cent through to 2033, per Food Navigator.
But suppliers across Australasia have since assured customers that they are taking necessary steps to accommodate this.
In a statement released to nine.com.au, Lactalis-Mainland Dairy said they were “investing in processing capacity and using milk as efficiently as possible to help meet this growing demand.”
“Overall, dairy is well-placed to continue playing a key role in meeting growing global protein needs.”
