Inside India's whey problem: Plenty of milk, not enough protein supply

Despite abundant milk supply, India still imports most of its whey protein as domestic dairy processing struggles to match rising demand

India’s demand for whey protein is rising sharply as more consumers turn to protein-rich diets, sports nutrition and wellness products. Yet this growing appetite has exposed a striking paradox: despite being the world’s largest milk producer since 1998, India still depends heavily on imports to meet its whey protein demand.

 

Industry experts say the gap lies not in milk production, but in the kind of dairy products India has traditionally focused on. The country’s dairy sector has long been centred around liquid milk, curd, paneer and ghee, while supplement-grade whey is generated primarily through large-scale cheese manufacturing.

 

Western markets built strong cheese-processing ecosystems decades ago and, with them, the infrastructure needed to produce high-quality whey at scale.

   

Now, as protein consumption accelerates and rising global prices make imports more expensive, many in the industry believe the current supply crunch could become a turning point for Indian dairy companies to strengthen domestic whey production.

 

Why milk abundance does not mean whey abundance

 

“Milk volume and supplement-grade whey are two completely different conversations,” said Ranjith Mukundan, CEO and co-founder of Stellapps Technologies, an end-to-end dairy technology solutions company.

 

According to him, most Indian dairy plants produce paneer, ghee, dahi or liquid milk, which generate acid whey rather than the sweet whey used in sports nutrition products.

 

“That comes from cheese, which is still under three percent of our milk pool,” he said.

 

This structural mismatch explains why India can be one of the world’s largest milk producers and among the fastest-growing whey importers at the same time.

 

Akshali Shah, executive director at Parag Milk Foods, echoed the concern. She said India’s dairy industry has historically focused on fresh dairy consumption, unlike Western markets where cheese production developed much earlier.

 

“Since whey is generated during cheese manufacturing, countries with mature cheese industries naturally built whey-processing ecosystems alongside them,” Shah said.

 

Even today, much of India’s processed milk is converted into traditional dairy products rather than hard cheeses, said Sushil Khaitan, Founder of Pure Nutrition and DeAge. As a result, Indian brands still rely on imports for nearly 90 per cent of the high-quality whey used in supplements.

 

Dr K Rathnam, whole-time director and CEO of Milky Mist Dairy Food Limited, said whey generation remains limited because India has traditionally not been a large cheese-consuming market.

 

What holds India back from making supplement-grade whey

 

Experts point to the lack of specialised processing infrastructure and consistent milk quality.

 

Producing supplement-grade whey requires advanced membrane filtration, ultra-filtration, spray drying and rigorous quality control systems. Shah noted that building such capabilities requires long-term investment and globally benchmarked quality standards.

 

Mukundan argued that the problem starts even before milk reaches the factory.

 

“Premium whey needs premium milk first,” he said, pointing to issues such as high somatic cell counts, antibiotic residues and cold chain gaps.

 

He also highlighted regulatory concerns. According to him, India’s whey protein concentrate and milk protein concentrate standards still need stronger harmonisation with global Codex norms, which affects international credibility.

 

The investments required are also substantial.

 

Mukundan estimated that a whey protein concentrate plant can cost Rs 600 million to Rs 1,000 million, while a whey protein isolate facility may require investments between Rs 1,500 million and Rs 2,500 million. However, he stressed that the real challenge lies in securing a steady supply of sweet whey and building upstream infrastructure.

 

Rathnam said Milky Mist Dairy Food Limited currently generates nearly 2 million litres of whey per day from cheese and paneer operations, although scaling supplement-grade production still requires major investment in filtration and processing systems.

 

Rising import prices reshape the whey market

 

India’s dependence on imported whey has become more expensive over the past two years.

 

According to Mukundan, supplement-grade whey imports account for nearly 80-85 per cent of India’s requirement. He estimates India could import close to 23,000 tonnes of whey protein in 2025, roughly 20 per cent higher than the previous year.

 

Aman Puri, Founder of Steadfast Nutrition, said over 95 per cent of the whey used by Indian nutraceutical companies is imported from the United States, Europe, New Zealand and Australia.

 

Experts say prices have risen sharply because of global supply disruptions, freight challenges, currency depreciation and increasing worldwide demand for protein supplements.

 

Khaitan said whey protein concentrate prices have risen from nearly Rs 700-800 per kg until 2024 to over Rs 2,000-2,300 per kg now. He added that whey isolate prices have nearly tripled over the past two years.

 

Puri estimated that input costs have increased by 200-250 per cent over the last 24 months, partly due to geopolitical tensions and a global surge in demand driven by higher protein awareness and the growing use of weight-loss drugs.

 

The impact is visible in consumer pricing as well.

 

“Consumer MRPs are up fifteen to twenty five per cent,” Mukundan said, adding that some brands are quietly shifting to whey blends or plant-protein alternatives to defend lower price points.

 

Still, not every company believes higher prices are driving consumers away. Puri said loyal customers are continuing to prioritise quality over pricing.

 

The domestic manufacturing opportunity

 

Despite the challenges, many in the industry believe rising whey prices have strengthened the case for domestic manufacturing.

 

“Indian brands have historically relied heavily on imported whey ingredients, leaving them exposed to international commodity cycles, freight costs, and currency fluctuations,” Shah said.

 

At the same time, protein consumption in India is rising rapidly. Shah pointed to industry estimates suggesting nearly 73 per cent of Indians are protein deficient, while whey protein already contributes more than 80 per cent of the global sports nutrition segment.

 

"As per data from MarkNtel, the whey protein market was valued at $92.03 million in 2023 and is anticipated to reach $125.2 million by 2030," shared Khaitan, reflecting the scale of the opportunity.

 

Mukundan believes India could eventually become a credible whey producer if the next few years are handled correctly.

 

For that to happen, experts say India must scale cheese production, invest in advanced processing plants and strengthen milk quality systems at the farm level. Policy support and globally aligned standards will also be critical.

 

“This is a window, not a destination,” Mukundan said. “If we get the next five years right, India flips from the world’s largest whey importer to a credible net producer.”