The present invention relates to a process by which whey permeates or blends thereof can be converted to a modified whey powder (MWP) having low mineral content, low hygroscopicity, and advantageous organoleptic properties using a combination of ion-exchange demineralization and crystallization. The modified whey powder thus obtained is suitable for dry applications in the production of food products. Furthermore, the present invention relates to a modified whey powder (MWP) obtainable by said process and to products comprising said modified whey powder (MWP), such as confectionery, biscuits, and powdered soft drinks.