The Hut Group (THG), parent company of sports nutrition powerhouse Myprotein, has reported a significant drop in profits as whey protein prices reach record highs.

The company expects profits for the first half of 2025 to fall to £24 (USD32.6) million, down from £37.1 (USD50.4) million in the same period last year — a £13 (USD17.7) million hit directly linked to raw material costs.

Whey is now among the most in-demand ingredients in the sports nutrition category.

Holding the Line on Price

THG announced rather than pass the cost onto consumers, that they will absorb the increase, positioning the move as a long-term investment in brand strength and customer loyalty.

“We believe keeping our pricing competitive will drive market share growth,” the company stated, highlighting plans for 10–12% revenue growth in its nutrition division in the second half of the year.

Myprotein — which sells in more than 80 countries — accounts for roughly a third of THG’s total revenue.

Ripple Effect Across the Sports Nutrition Category

The surge in whey prices is not unique and is being felt by all sports supplement brands globally.

Private-label manufacturers have begun adjusting their price lists, whilst some have taken a similar approach to THG to absorb price increase with an unknown outlook. . We expect to see brands quietly reduce pack sizes or likely reformulate with alternative proteins to maintain margins.

Brands are announcing increases, impacting retailers and the consumer.

Outlook for 2025

Analysts expect whey prices to remain volatile through the rest of the year, driven by dairy supply constraints, global demand growth, and currency fluctuations. For brands, the challenge will be maintaining product quality, pricing competitiveness, and innovation speed in an environment where input costs are unpredictable. We are following closely.

For now, THG’s strategy is clear: hold pricing steady, protect market share, and ride out the storm — a move that could either cement customer loyalty or test profit resilience if cost pressures persist.

Market Watch: Whey Protein in 2025. What we expect to see in the whey market in 2025.

Current Price Trends:

• Global whey protein concentrate (WPC 80) prices are up 18–22% year-on-year.
• Whey protein isolate (WPI) has risen even faster, with some markets reporting 25%+ increases in supplier quotes.

Supply Factors:

• Dairy herd reductions in Europe and Oceania have impacted raw milk supply.
• Export demand from Asia — particularly China — driving up global competition.

Brand & Manufacturer Response:

• Reformulations: We expect to see some brands shifting protein and blends, including adding milk protein for better margins, and consumer pricing.
• Downsizing: Subtle reductions in pack sizes to keep retail price points stable.
• Price Pass-Throughs: Mid-tier brands introducing incremental price rises rather than large jumps.

Forecast:

• We expect to see continued price volatility through Q4 2025, with potential easing in mid-2026 as and when the dairy supply stabilizes.