India’s Whey Gap Exposes Dairy Processing Challenge

India’s rapidly growing demand for whey protein is exposing a major structural gap in the country’s dairy industry, as the world’s largest milk producer continues to rely heavily on imports for supplement-grade whey. According to industry experts cited by Business Standard, India still imports nearly 80-90% of its whey protein requirements despite producing over 239 million tonnes of milk annually.

The key challenge lies in India’s dairy processing structure, which remains focused largely on liquid milk, paneer, curd and ghee rather than large-scale cheese manufacturing that generates “sweet whey” used in sports nutrition and protein supplements. Stellapps Technologies CEO Ranjith Mukundan said cheese contributes less than 3% of India’s milk pool, limiting domestic whey generation capacity.

Experts from Parag Milk Foods, Milky Mist Dairy Food and nutrition companies noted that producing supplement-grade whey requires advanced filtration systems, spray drying infrastructure, strong cold-chain systems and globally aligned quality standards. Mukundan estimated that a whey protein concentrate plant may require investments of ₹60-100 crore, while whey protein isolate facilities could need ₹150-250 crore in capital expenditure.

India is projected to import around 23,000 tonnes of whey protein in 2025, nearly 20% higher than the previous year, amid surging demand for protein-rich foods, sports nutrition and wellness products. Industry executives said whey protein concentrate prices have increased sharply from around ₹700-800 per kg until 2024 to over ₹2,000-2,300 per kg currently, while whey isolate prices have nearly tripled in the past two years due to global supply shortages, freight costs, currency pressures and rising international demand.

Despite the challenges, dairy industry leaders believe the current supply crunch could accelerate investment in domestic cheese production, whey processing and value-added protein products, potentially transforming India from a major whey importer into a credible global producer over the next five years.

Source: Dairynews7x7 24 May, 2026 Read full story here