Why are the prices of whey protein powder I’m buying still rising, even though raw material costs have already fallen?

[14] Impact Whey’s 5 kg package has consistently been priced at £169.99; the recent discounts were routine. In 2024, prices did dip temporarily—but THG’s 2024 Annual Report [15] explains the nutrition segment’s revenue decline as follows: ‘primarily due to a one-off reduction in ASPs, driven by elevated online promotional activity to clear legacy branded stock during the rebrand.’ In Chinese: ‘mainly due to a one-time drop in average selling prices, resulting from intensified online promotions to clear old-packaged inventory during the rebranding process.’ From my analysis, when raw material prices fell previously, the first beneficiaries were company profits—not consumers. The 2024 price dip was explicitly stated by the company as a strategic move to clear legacy inventory amid packaging renewal—not a direct pass-through of lower input costs. As for whether Tmall retail prices in China dropped in 2023, I haven’t found data on that, so I won’t speculate. Now consider the current round. According to THG’s full-year 2025 announcement [16] , the nutrition segment’s gross profit per £100 of sales fell from £5.9 in 2024 to £4.7 in 2025. The company stated: ‘we made the strategic decision in the second half to absorb some of these costs’—i.e., it chose to bear part of the cost pressure itself. And indeed, it did. By H1 2026, following price increases, gross profit per £100 of sales rose to £7.9 (up from £3.9 year-on-year), and gross margin (revenue minus cost of goods sold) improved from £43.4 to £44.6 per £100 of sales. The company attributes this improvement not only to price hikes but also to product mix optimization, licensing income, and the UK’s exemption of certain protein powders from VAT starting January 2026. Still, THG’s target baseline for the nutrition segment remains £12 gross profit per £100 of sales—a goal it has yet to reach. Compare with peers: Glanbia—the parent company of Optimum Nutrition (ON Gold Standard)—reported in its H1 2026 earnings release [17] that its sports nutrition segment generated £12.6 gross profit per £100 of sales, versus £12.7 in the prior-year period—essentially flat. Glanbia stated: ‘Inflation in whey input costs was largely offset by pricing actions, cost savings,’ meaning price adjustments and cost-cutting largely neutralized rising whey costs.

Global and China Hydrolyzed Isolate Whey Protein Market Size and Development Trends Report (2026–2032)

According to statistics and forecasts by QYResearch (Beijing QY Intelligence Co., Ltd.), the global hydrolyzed isolate whey protein market reached USD 2.955 billion in 2025 and is projected to reach USD 4.405 billion by 2032, growing at a compound annual growth rate (CAGR) of 5.9% (2026–2032). Regionally, the Chinese market has evolved rapidly in recent years: its 2025 market size was USD ___ million, accounting for approximately ___% of the global total; it is expected to reach USD ___ million by 2032, representing ___% of the global market. The U.S. tariff policy introduced in 2025 has brought significant uncertainty to the global economic landscape. This report will deeply analyze how the latest tariff adjustments—and national response strategies—may impact competitive dynamics, regional economic interlinkages, and supply chain restructuring within the hydrolyzed isolate whey protein market. Hydrolyzed Whey Protein Isolate (WPH) is a premium whey protein supplement produced via enzymatic hydrolysis, which breaks down long-chain proteins into smaller peptides for faster absorption and improved digestibility. In 2025, global WPH production totaled approximately 86,898 metric tons, with an average market price of USD 34,000 per ton. Factory-level gross profit per ton stood at approximately USD 9,520, yielding a gross margin of 28%. A single production line operating at full capacity produces roughly 750 tons annually. Downstream demand primarily originates from pharmaceuticals, dietary supplements, and functional foods & beverages. Infant formula containing extensively hydrolyzed whey protein isolate maintains amino acid bioavailability while reducing allergenicity. The U.S. leads this market, supported by its mature sports nutrition industry, high health awareness, and advanced manufacturing capabilities. From a consumption perspective, ___ is currently the world’s largest market, holding ___% of global share in 2025; followed by ___ and ___, with ___% and ___%, respectively. Looking ahead, ___ is expected to register the fastest growth, achieving a CAGR of approximately ___% between 2026 and 2032. On the production side, North America and Europe are two major manufacturing hubs, commanding ___% and ___% of global output in 2025, respectively. Going forward, ___ is forecast to maintain the highest growth rate, reaching ___% of global share by 2032. By product type, ready-to-drink (RTD) formulations hold a prominent position and are projected to account for ___% of the market by 2032. In terms of application, functional foods and beverages held approximately ___% share in 2025 and are expected to grow at a CAGR of approximately ___% over the coming years. Among manufacturers, key global players in hydrolyzed isolate whey protein include Glanbia plc (US), THG (The Hut Group) (UK), Dymatize (US), Isopure (US), and MuscleTech (US). In 2025, the top-tier global manufacturers were ___, ___, and ___, collectively holding approximately ___% of market share; mid-tier manufacturers—including ___, ___, ___, and ___—together accounted for ___% of the market. This report investigates global and Chinese market capacity, production volume, sales volume, sales revenue, pricing, and future trends for hydrolyzed isolate whey protein.

THG Forecasts 2026 Core Profit Above Market Expectations on Nutrition Demand

17 hours ago

THG forecasts 2026 adjusted core profit of £103 million, exceeding expectations due to strong nutrition demand and favorable whey protein pricing. Shares rose 10% after reporting Q3 revenue growth and securing lower whey costs.

reuters

2026-10-15

THG Forecasts 2026 Core Profit Above Market Expectations on Nutrition Demand

THG Forecasts 2026 Core Profit Above Market Expectations on Nutrition Demand

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