BENGALURU, Feb. 27 -- Soaring whey prices are reshaping India's fast-growing protein supplement market, squeezing margins and forcing companies to redraw their growth strategies as demand continues to rise.

Global supply tightness, surging demand from sports nutrition and packaged food manufacturers and logistics constraints have pushed whey protein isolate and concentrate prices to multi-year highs. India, which imports a large share of its whey from the US, Europe and New Zealand, is additionally exposed to currency volatility.

Over the past year, raw whey costs have climbed almost 70% to as much as Rs.3,000 per kg, intensifying pressure across the value chain, according to suppliers who spoke to Mint. As a result, retail whey protein...