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Protein demand is a generation-defining opportunity for U.S. dairy

Michael Dykes

Michael Dykes, president and CEO of the International Dairy Foods Association, contributes this column bimonthly for Cheese Market News®.

Across grocery aisles, fitness social media feeds and export markets, one truth is cutting through the noise: consumers want more protein. That appetite — domestic and abroad — is a golden opportunity for the U.S. dairy industry to do what it does best: meet demand with high-quality nutrition while creating value from all milk components.

The International Dairy Foods Association estimates that from 2025 to 2027, the U.S. dairy industry will bring online more than $3.8 billion in new cheese, whey and powder processing capacity. That investment is not speculative — it’s a vote of confidence in durable demand for protein. Third-party outlooks point the same way, with analysts expecting new U.S. cheese and whey capacity to expand materially through 2026. This expansion will strengthen America’s ability to meet rising global demand for dairy ingredients, while new plants or expansions will lead to an increase of over 1 billion pounds of cheese capacity by early 2027.

Why the surge? Start with health-conscious consumers. From high school athletes to people focused on weight management to older adults aiming to preserve strength, protein has become a daily non-negotiable — and dairy proteins are the gold standard. Whey and casein deliver complete amino acid profiles, including leucine for muscle protein synthesis, in formats that fit modern life: shakes, bars, ready-to-mix (RTM) powders, and high-protein yogurts and drinkables. A telling shift is underway across the supply chain, too: What was once considered a byproduct is now a profit center. High-protein whey output is climbing as manufacturers capture more value from every hundredweight.

Consumer behavior keeps reinforcing the trend. Think protein shakes topping shoppers’ lists during Amazon Prime Day, double-digit year-over-year gains for RTM powders, even amid price inflation, and fuller parking lots at fitness centers. The signal is consistent: Households are putting their food dollars toward foods and beverages that deliver more protein per serving, and dairy is ready to serve.

Global markets add another tailwind. USDA’s mid-year trade outlook projects robust demand for dairy in the second half of 2025. U.S. dairy exports are tracking higher as buyers seek reliable nutrition at scale. Over the medium term, reputable international monitors also forecast growth in whey trade. The United States and European Union together supply more than 40% of world exports. As new trade deals continue to be struck, there is an opportunity for U.S. plants to capitalize on these positive winds, as well as efficient and flexible production, to solidify competitive advantages and grow the U.S. economy.

Emerging economies are amplifying the story. Southeast Asia, India and Sub-Saharan Africa will be key drivers of global dairy demand growth over the next decade. Fueled by rising incomes, population growth and urbanization, these regions continue to rapidly increase demand for affordable, nutrient-dense foods. Dairy proteins — from milk powders to whey ingredients — are positioned to play a central role in meeting these growing nutrition needs. For U.S. dairy, this indicates a clear long-term opportunity to build market presence where population growth is strongest and where protein gaps remain widest.

This moment also provides a valuable chance to tell a more complete dairy nutrition story. Protein is a powerful door-opener, but the full suite of dairy products like cheese, milk and cultured dairy provide 13 essential nutrients in one affordable package. These products support bone health, immunity, energy metabolism, satiety and healthy aging. That’s a message that resonates across life stages: fueling recovery for Gen Z athletes, staying fit for busy Millennials, and preserving strength and independence for Boomers. As we engage consumers and policymakers, let’s keep connecting protein to the broader benefits of dairy’s unique nutrient matrix.

Protein demand — at home and abroad — isn’t a fad; it’s a fundamental shift in how consumers assign value to food. U.S. dairy has the scale, science and ingenuity to lead. By marrying processing investments with smart innovation and clear nutrition communication, our industry can meet the moment — delivering the protein people want and the broader dairy nutrition they need. That’s good for consumers, good for farmers and processors, and good for America’s role on the global stage.

CMN

The views expressed by CMN’s guest columnists are their own opinions and do not necessarily reflect those of Cheese Market News®.

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