FT reveals new goldmine for food industry

The food industry has found a new source of profit in what used to be considered waste. Amid a boom in protein products, companies are turning whey and meat-processing byproducts into expensive ingredients, according to the Financial Times (FT).

So, the Dutch cooperative FrieslandCampina stopped selling whey proteins for animal feed and intends to use them more actively to produce concentrates for human nutrition.

To boost production, FrieslandCampina has announced three investment projects in the Netherlands worth €50-100 million each over the past three years.

Protein is necessary for the body to grow and repair muscles, form tissues, produce hormones and maintain immunity. A healthy person is recommended to consume about 0.8 g of protein per 1 kg of body weight per day, athletes for gaining muscle mass - 1.5-2.2 g.

Protein supplements are powders and other high-protein foods that help make up for its lack in the diet. They are whey, casein, egg, beef and vegetable. Whey protein is popular due to its good digestibility and amino acid composition. However, the main source of protein remains conventional food: meat, fish, eggs, dairy products and legumes.

Demand for whey is growing faster than supply, and prices have more than tripled in two years, the publication notes. In September, a kilogram of whey protein concentrate with a protein content of 80% cost €23,875 in Europe, and a more purified isolate with a protein content of at least 90% - €30,749. Two years ago, prices were €6,475 and €8,350 respectively.

“Right now, prices are at all-time highs and there’s a lot of pressure in this market,” Simply Good Foods CEO Joseph Skalzo, whose company makes protein snacks and bars, said in June. According to him, the rise in price of whey and milk protein creates difficulties for business.

Protein is increasingly added to familiar products - from snacks to drinks. However, herbal whey substitutes have drawbacks: they can dissolve worse, have a more pronounced taste or yield in texture, the FT notes.

The prospects for the boom remain a matter of debate. Nutrition researchers point out that protein deficiency is rare in the U.S., although supplemental intake may be beneficial for some groups, such as the elderly. Eating high-protein foods can also displace fruits, vegetables and other sources of essential nutrients.

Despite these doubts, FrieslandCampina expects long-term growth in demand, including through the spread of weight loss drugs. According to Gus Aerts, the company’s director of marketing and product strategy, the impact of the protein boom on the food industry is just beginning to show.