Protein Hydrolysate Market

Protein Hydrolysate Market Size

The global Protein Hydrolysate Market size was valued at USD 3,567.0 million in 2023 and is projected to grow from USD 3,742.6 million in 2024 to USD 5,500.7 million by 2031, exhibiting a CAGR of 5.66% during the forecast period. The market is growing rapidly due to the increasing demand for functional foods and nutritional supplements. The rising focus on health and balanced diet has led to the pressing need for protein-rich products.

In the scope of work, the report includes products offered by companies such as Arla Foods Ingredients Group, Glanbia plc, Kerry Group plc, Fonterra Co-Operative Group Limited, AMCO Proteins, Novonesis Group, ADM, FrieslandCampina, Tatua Co-operative Dairy Company Limited, and AgriLife.

The protein hydrolysate market is experiencing significant expansion, with a strong presence across multiple industries, including food and beverages, sports nutrition, infant nutrition, and healthcare.

• For instance, in July 2024, Arla Foods obtained approval from the Food and Drug Administration (FDA) to incorporate whey protein hydrolysates into infant formula. This approval marks a major step toward addressing allergies and gut discomfort in infants, offering a valuable solution for both parents and healthcare professionals.

Protein hydrolysates are valued for their rapid absorption, muscle recovery benefits, and overall health support. The increasing consumer demand for functional foods and supplements is reshaping the market landscape. Technological advancements play a key role in enhancing the development and application of protein hydrolysates, facilitating their integration across various sectors and supporting the market's growth trajectory.

The market refers to the industry involved in producing and selling proteins that have been broken down into smaller parts called peptides or amino acids, making them easier for the body to absorb. These hydrolysates are widely used in foods, beverages, dietary supplements, and animal feed. There is a growing demand for plant-based and alternative proteins, along with increased awareness of functional foods.

Consumers are seeking products with added health benefits, fueling demand for digestible and functional protein sources across various sectors. Additionally, the market is subject to regulations, particularly those set by the U.S. Food and Drug Administration (FDA, to ensure the safety, quality, and efficacy of the products.

Analyst’s Review

The protein hydrolysate market is evolving rapidly as manufacturers increasingly prioritize innovation and sustainability. Companies are capitalizing on the demand for plant-based options, catering to vegan and vegetarian consumers by investing in research and development to create more effective and bioavailable products. Advanced processing technologies are being leveraged to maintain protein integrity, ensuring superior quality.

Additionally, strategic partnerships and acquisitions are becoming crucial for expanding product portfolios and reaching emerging markets. Manufacturers are not only improving formulations but also focusing on education and strategic marketing to meet the diverse and growing needs of health-conscious consumers worldwide.

Protein Hydrolysate Market Growth Factors

The protein hydrolysate market is witnessing robust growth due to increased health consciousness among consumers and a growing emphasis on fitness and wellness, which is fueling the demand for protein-rich foods. Protein hydrolysates, known for their easy digestibility, play an essential role in meeting this demand.

The expanding sports nutrition industry is further contributing to this expansion, as athletes increasingly seek high-quality, fast-absorbing proteins for muscle recovery. Additionally, manufacturers are investing heavily in research and development to create new formulations, flavors, and applications. These innovations cater to diverse consumer preferences, thus boosting market growth.

• In November 2024, Arla introduced a new hydrolysate, Lacprodan DI-3092, designed to enhance taste. With its mild, milky flavor and low viscosity, this hydrolysate is ideal for use in medical nutrition products. It allows for higher protein content than most medical foods currently on the market, thereby improving both taste and nutritional value.

Despite its growth prospects, the market faces challenges such as disruptions in the raw material supply chain due to environmental factors and geopolitical tensions.

To address these issues, manufacturers can diversify their supplier base and establish a more resilient supply chain system. Additionally, strict adherence to food safety and quality control protocols is essential for maintaining product standards. Manufacturers must prioritize quality assurance to safeguard their reputation and consumer trust. By addressing these challenges, companies can ensure consistent production and sustain long-term growth in the competitive market.

Protein Hydrolysate Industry Trends

One significant trend in the protein hydrolysate market is the growing collaboration with the pharmaceutical industry. As consumers become more health-conscious and seek targeted nutritional solutions, protein hydrolysates are increasingly incorporated into therapeutic diets and medical treatments. These products are being recognized for their potential benefits in managing chronic conditions like diabetes, obesity, and muscle degeneration.

The pharmaceutical industry’s involvement has also opened doors for protein hydrolysates to be developed as nutraceuticals, offering therapeutic value beyond basic nutrition. This collaboration not only broadens the scope of protein hydrolysates but also positions them as essential components in personalized healthcare solutions.

Another key trend is the shift toward regional sourcing of protein ingredients. Driven by sustainability concerns and the need to reduce dependency on global supply chains, manufacturers are focusing on sourcing protein locally. This trend is particularly important as consumers and businesses alike look to minimize their environmental impact by reducing transportation emissions and supporting local economies.

Regional sourcing also ensures better traceability and transparency in the supply chain, which is increasingly demanded by consumers seeking ethical, sustainable, and high-quality products. Manufacturers are responding by investing in localized production, fostering sustainability while meeting consumer expectations for responsible sourcing.

Segmentation Analysis

The global market has been segmented based on source, application, form, and geography.

By Source

Based on source, the market has been segmented into plant-based, animal, and microbial. The animal segment led the protein hydrolysate market in 2023, reaching a valuation of USD 2,101.0 million.

Animal-based protein hydrolysates are known for their high-quality protein content, making them beneficial for supporting immune health, promoting tissue repair, and enhancing muscle recovery. They are commonly used in clinical nutrition and dietary supplements.

The growth of the segment is fueled by the increasing demand for premium, easily absorbed protein sources, particularly among health-conscious populations and aging individuals. Additionally, their application in medical foods for treating malnutrition and muscle-wasting conditions further contributes to segmental expansion.

By Application

Based on application, the market has been bifurcated into food processing industry, infant nutrition, sports nutrition, functional foods, dietary supplements, animal feed, and others. The food processing industry secured the largest revenue share of 30.23% in 2023.

Protein hydrolysates in the food processing industry enhance nutritional value, improve texture, and act as natural flavor enhancers. They are commonly used in protein-fortified snacks, beverages, and meals. The expansion of the segment is propelled by the rising demand for functional foods, clean-label products, and healthier, easily digestible protein sources among health-conscious consumers.

By Form

Based on end use, the market has been classified into powder and liquid. The liquid segment is poised to witness significant growth, registering a robust CAGR of 6.02% through the forecast period.

Liquid protein hydrolysates are increasingly used in the beverage and food industries due to their easy availability and ability to provide quickly absorbed protein. They enhance the nutritional content of liquid foods, smoothies, and dietary supplements. Moreover, these hydrolysates are further used in functional beverages to support immune health and aid digestion.

The growth of the segment is fueled by the demand for convenient, high-protein, and digestible products. This demand is further propelled by consumer interest in fitness, personalized nutrition, and on-the-go solutions. Additionally, the ability of these products to be easily incorporated into liquid formats supports their rising popularity.

Protein Hydrolysate Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

North America protein hydrolysate market accounted for a substantial share of around 37.25% in 2023, with a valuation of USD 1,328.7 million. This growth is largely attributed to high demand in industries such as sports nutrition, healthcare, and food processing. The region’s well-established fitness culture highlights the need for protein-based products for muscle recovery and overall health.

Additionally, increasing health awareness, advancements in research and development, and a growing preference for functional foods boost regional market growth. Robust healthcare infrastructure and a rising trend toward clean-label, high-quality protein products further contribute to expansion of the North America market.

Asia-Pacific is forest to witness significant growth, recording a CAGR of 6.70% through the forecast period. This growth is mainly bolstered by rising health awareness, increasing disposable incomes, and a growing demand for nutritional products.

The region's expanding dietary supplement sectors are creating a strong demand for easily digestible proteins. Additionally, the rising popularity of plant-based diets and functional foods in countries such as China and India is fueling regional market growth. Increasing adoption of protein hydrolysates in healthcare and infant nutrition further contributes to the rapid expansion of the regional market.

Competitive Landscape

The global protein hydrolysate market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions.

Strategic initiatives, including investments in R&D activities, the establishment of new manufacturing facilities, and supply chain optimization, could create new opportunities for market growth.

List of Key Companies in Protein Hydrolysate Market

• Arla Foods Ingredients Group
• Glanbia plc
• Kerry Group plc
• Fonterra Co-Operative Group Limited
• AMCO Proteins
• Novonesis Group
• ADM
• FrieslandCampina
• Tatua Co-operative Dairy Company Limited
• AgriLife

Key Industry Developments

• June 2024 (Expansion): Nu-Tek BioSciences, a leading manufacturer of essential raw materials for cell culture media in pharmaceutical development, partnered with IMCD for the distribution of its peptones and hydrolysates in Europe and Asia Pacific. This collaboration enhances Nu-Tek's market presence and reinforces its position as a leader in providing animal-free ingredients, meeting the growing demand for sustainable and ethical products in the industry.
• September 2024 (Expansion): Loopworm, an Indian insect protein producer, obtained key certifications, including ISO 22000, GMP+, and HACCP, for its Loopworm factory in Bangalore, which has an annual production capacity of 6,000 tons. These certifications ensure the safety, quality, and industry compliance of Loopworm’s insect-based protein for pet food and animal feed. With these credentials, Loopworm is well-positioned to strengthen its global presence and meet the growing demand for sustainable protein sources in these markets.

The global protein hydrolysate market is segmented as:

By Source

• Plant-Based
  • Soya
  • Peas
  • Wheat
  • Rice
• Animal
• Dairy Protein Hydrolysates
  • Whey Protein Hydrolysates
  • Casein Protein Hydrolysates
• Meat Protein Hydrolysates
  • Bovine (Beef) Protein Hydrolysates
  • Poultry Protein Hydrolysates
• Fish Protein Hydrolysates
• Egg Protein Hydrolysates
• Others
• Microbial

By Application

• Food Processing Industry
  • Bakery & Confectionery
  • Snacks & Savory
  • Ready-to-eat Meals
  • Soups & Sauces
  • Others
• Infant Nutrition
• Sports Nutrition
• Functional Foods
• Dietary Supplements
• Animal Feed
• Others

By Form

• Powder
• Liquid

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America