The protein movement has evolved beyond a mere diet trend, establishing itself firmly in the healthy lifestyle category. As demand picks up, dairy markets have responded with incentives to produce more protein.
These days a “good source of protein” is the most common way Americans use to define a healthy food, according to the 2025 International Food Information Council Food & Health Survey. While consumers focused on the quantity of protein in their food choices, Abbi Prins, an agricultural commodities economist for CoBank, emphasized that quality is equally important.
“What’s interesting is this survey data aligns well with the Kansas State University Meat Demand Monitor data that’s published once a month,” she said. “Both sources found that taste and price are the top-valued attributes when consumers search to purchase food, especially in the protein space.”
Consumers also looked at other factors such as nutrition, health and convenience.
Markets respond to demand
Dry whey — a byproduct of cheese production commonly used in protein powders, bars and shakes — saw its price rise 44% year over year to 70 cents per pound in mid-April.
Production has shifted toward higher-protein products, such as whey protein concentrate with 50% to 89.9% protein content and whey protein isolate with over 90% protein content. Meanwhile, production of lower-protein WPC (25% to 49.9% protein) has been steadily declining since February 2024. Butterfat and protein prices experienced significant volatility over the past six months.
When it comes to dairy producers’ milk checks, protein took the lead over butterfat in September, and the spread went as wide as $1.31 per pound in November to as little as 7 cents per pound in March, according to Federal Milk Marketing Order data. However, compared to a year ago, butterfat prices are 22.9% lower, and protein is down just 15% as of March.
Dairy protein leads the way
Retail dairy sales were a record $80.5 billion in 2025, according to Circana sales data, and is the largest refrigerated category in the grocery store.
Prins said that three highlights for dairy sales growth were:
- cottage cheese
- ready-to-drink nutritional beverages
- yogurt
Both cottage cheese and ready-to-drink nutritional beverages were up by double digits at 14.3% and 10.7%, respectively, followed by an 8.8% rise in yogurt sales.
“These three segments still display strong signs of growth,” she said, “especially with the innovation and new product launches occurring already in 2026.”
Consumers pay a premium
Prins highlights that consumers, particularly those using GLP-1 weight loss drugs, are increasingly seeking high-quality protein and are prepared to pay a premium for it.
Households with GLP-1 users spend between $11 and $13 more per week on food-away-from-home expenditures than households with no GLP-1 users, according to research by Arizona State and Kansas State universities.
“The willingness-to-pay metric based on GLP-1 use is also quite different, with GLP-1 users having a mean willingness to pay of $14.76 per pound of ground beef,” Prins said. “This is nearly double the $7.64 per pound non-GLP-1 users are willing to pay.”
GLP-1 users are also willing to pay more per pound for other animal proteins, she noted:
- Pork chops. $6.34 (non-GLP-1) vs. $12.67 (GLP-1)
- Chicken breasts. $7.56 (non-GLP-1) vs. $12.80 (GLP-1)
Following a healthy lifestyle has put protein not only as a center plate offering, but also as a key component in snacks and small meals.
“Consumers continue to push for clean labeling, high-quality protein, nutrient-density, and low sugar and low-fat products to feed their families,” Prins said. “Dairy is well-positioned to meet the needs of consumers, and market incentives are in place starting at the dairy farm gate to continue to boost protein production.”