Whey Cheese Market to Reach USD 21.6 Billion by 2035 Amid Rising Demand for Functional Dairy Ingredients

The global whey cheese market is witnessing remarkable growth, driven by increasing consumer preference for protein-rich, functional, and sustainable dairy products. According to recent research, the market is expected to reach USD 21.6 billion by 2035, up from USD 10.5 billion in 2024, marking a robust compound annual growth rate (CAGR) of 6.8% during the forecast period from 2025 to 2035.

Rising Demand for Functional and Protein-Rich Foods Fuels Market Expansion

The growth trajectory of the whey cheese market is primarily fueled by the surge in demand for high-protein diets and functional foods. Whey cheese, a versatile dairy ingredient, is increasingly used in nutritional supplements, sports nutrition products, bakery items, and processed foods due to its superior protein content and functional benefits. Consumers are now more conscious about incorporating proteins that support muscle growth, weight management, and overall health, positioning whey cheese as a preferred choice in both developed and emerging economies.

Additionally, the ongoing trend toward clean-label, natural, and minimally processed ingredients has accelerated adoption. Manufacturers are responding with innovative whey cheese formulations that cater to diverse dietary preferences, including lactose-reduced and organic options. These developments are expected to reinforce consumer confidence and expand market penetration over the next decade.

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Competitive Landscape and Strategic Initiatives

Key players in the whey cheese industry include Agropur Cooperative, Hilmar Cheese Company, Davisco Foods International, Meggle Group, Glanbia Nutritionals, Lactalis Ingredients, FrieslandCampina, Leprino Foods, and DMK Group. These companies are leveraging technological advancements, product innovation, and strategic investments to strengthen their market positions and meet the rising global demand for functional dairy ingredients.

Hilmar Cheese Company, a notable player in the sector, inaugurated a $600 million state-of-the-art plant in Dodge City, Kansas, in March 2025. This facility focuses on converting local milk into 40-lb blocks of American-style cheese and premium whey proteins. The plant created nearly 250 skilled jobs while incorporating advanced technologies such as closed-loop water recycling and high-efficiency energy systems. This strategic expansion enhances Hilmar's production capacity and positions the company to cater to growing international demand.

Similarly, Lactalis Ingredients announced a multi-billion-euro investment in its Mayenne, France, factory to modernize whey-powder processing and reduce carbon emissions. Completed in March 2025, the facility upgrade includes high-efficiency heat-recovery systems, smart water-reuse loops, and a next-generation drying tower. These improvements have enhanced throughput while reducing energy consumption, reinforcing Lactalis's status as the world's largest whey supplier and supporting its commitment to halving greenhouse-gas intensity by 2030.

Market Drivers: Innovation, Health Trends, and Sustainability

Innovation in whey cheese processing and product applications remains a key growth driver. Manufacturers are increasingly adopting advanced separation and drying techniques to produce high-quality whey proteins with enhanced functional properties. These proteins are widely utilized in nutritional bars, meal replacements, dairy desserts, and beverages, offering manufacturers opportunities to diversify product portfolios.

Health-conscious consumer trends continue to shape market demand. Whey cheese, rich in essential amino acids and bioactive compounds, is increasingly incorporated into functional foods aimed at improving immunity, gut health, and muscle recovery. This heightened health awareness, coupled with the growing fitness and wellness industry, has catalyzed the adoption of whey cheese in sports nutrition and dietary supplements.

Sustainability and environmental responsibility are also critical drivers. Companies are investing in eco-friendly production processes, energy-efficient facilities, and waste-reduction technologies to meet regulatory requirements and consumer expectations. Initiatives like water recycling, energy recovery, and greenhouse-gas emission reductions not only enhance operational efficiency but also position whey cheese manufacturers as environmentally responsible brands.

Regional Insights and Growth Opportunities

North America and Europe continue to dominate the global whey cheese market, supported by established dairy industries, high consumer awareness, and strong demand for protein-enriched foods. The Asia-Pacific region, however, is projected to register the highest growth rate due to rising urbanization, increasing disposable incomes, and expanding food processing industries. Countries like China, India, and Japan are witnessing a surge in demand for whey-based products, particularly in functional foods and nutritional supplements, creating lucrative opportunities for both domestic and international manufacturers.

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Future Outlook

With continuous product innovation, strategic investments, and rising consumer awareness, the global whey cheese market is poised for sustained growth. The industry's focus on functional, protein-rich, and sustainable products aligns with evolving consumer preferences, ensuring a promising trajectory over the forecast period. Companies that prioritize innovation, operational efficiency, and environmental stewardship are likely to maintain a competitive edge and capture a significant share of the growing global market.

Recent Developments Highlight Industry Momentum

Hilmar Cheese Company inaugurated a $600 million advanced production facility in Dodge City, Kansas, expanding capacity for American-style cheese and premium whey proteins while creating nearly 250 jobs.
Lactalis Ingredients invested billions in modernizing its Mayenne, France, factory with energy-efficient drying towers, water-reuse systems, and heat-recovery technology, reinforcing its position as the largest whey supplier globally.
These strategic developments underscore the industry's commitment to innovation, sustainability, and meeting global demand for high-quality whey cheese products.

Conclusion

As the global market for whey cheese surges toward USD 21.6 billion by 2035, manufacturers are strategically positioned to capitalize on the growing demand for functional and protein-rich dairy ingredients. With robust investments, technological innovations, and a focus on sustainability, the industry is well-equipped to navigate evolving consumer preferences and deliver long-term growth.

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