The protein hydrolysates market has seen considerable growth due to a variety of factors.
• The market for protein hydrolysates has seen substantial growth in the past few years. The market is projected to expand from $4.24 billion in 2024 to $4.67 billion in 2025, reflecting a compound annual growth rate (CAGR) of 10.1%.
The historical growth can be linked to factors such as the increased demand for nutritional supplements, the surge in infant nutrition requirements, the rising popularity of functional foods, advancements in the technology used for hydrolysis, and the significant growth of the sports nutrition sector.
The protein hydrolysates market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of protein hydrolysates is projected to experience robust expansion in the years to come. It's slated to reach a valuation of $6.75 billion by 2029, with a compound annual growth rate (CAGR) of 9.7%.
This anticipated upswing during the forecast period can be credited to various factors such as the increasing focus on digestive health, an upsurge in food allergy cases, the growing expansion of plant-based protein hydrolysates, a rising elderly population, and sustainability movements. Several key trends expected to emerge during the forecast period include a transition towards plant-based protein hydrolysates, the adoption of clean-label and organic products, technological progress, usage in innovative applications, regional expansion particularly in the Asia-Pacific region, and tailored nutrition approaches.
The protein hydrolysates market is poised for growth, largely due to the rising consumer inclination towards plant-based diets. This shift in dietary preferences stems from heightened health consciousness, as people look to ward off diseases associated with lifestyle and environmental worries, prompting many to opt for sustainable food choices to offset the effects of animal farming on the environment. Protein hydrolysates, derived from plant sources, cater to this growing demand with their simple-to-digest, high-quality protein alternatives. This gives food producers the means to develop nutritionally sound and enticing plant-based products such as meat substitutes, dairy replacements, and functional foods. As per a report published by The Plant-Based Foods Association in May 2024, U.S. retail sales of plant-based foods hit $8.1 billion in 2023, marking a rise from $7.5 billion in 2021. Thus, the escalating consumer preference for plant-based diets is set to stimulate the expansion of the protein hydrolysates market.
The protein hydrolysates market covered in this report is segmented –
1) By Type: Animal Protein Hydrolysates, Plant Protein Hydrolysates
2) By Form: Powder, Liquid
3) By Process: Acid And Alkaline Hydrolysis, Enzymatic Hydrolysis
4) By Application: Dietary Supplements, Infant Formula, Sports Nutrition, Clinical Nutrition, Food And Beverages
Subsegments:
1) By Animal Protein Hydrolysates: Milk Protein Hydrolysates, Collagen Protein Hydrolysates, Meat Protein Hydrolysates, Fish Protein Hydrolysates, Egg Protein Hydrolysates
2) By Plant Protein Hydrolysates: Soy Protein Hydrolysates, Wheat Protein Hydrolysates, Rice Protein Hydrolysates, Pea Protein Hydrolysates, Corn Protein Hydrolysates
Major companies operating in the protein hydrolysates market are focusing on advancements in protein hydrolysis technology, such as single-source whey protein hydrolysate, to enhance product efficacy, improve digestibility, and meet the growing demand for high-quality, easily absorbed protein supplements. Single-source whey protein hydrolysate is a highly processed form of whey protein that has been broken down into smaller peptides for faster absorption and improved digestibility. For instance, in November 2024, Arla Foods., a Denmark-based producer of dairy products, launched a new whey protein hydrolysate called Lacprodan DI-3092, aimed at enhancing peptide-based medical nutrition. This innovative ingredient delivers 10 grams of high-quality protein per 100 ml, significantly exceeding the typical 6-7 grams found in similar products. Designed to minimize bitterness, it addresses a common challenge in medical nutrition, thereby improving patient compliance. The hydrolysate features a high degree of hydrolysis (16-22%) and low lactose content, making it suitable for individuals with gastrointestinal issues.
Major companies operating in the protein hydrolysates market are:
• Cargill Incorporated
• Nestlé S.A.
• Archer Daniels Midland Company (ADM)
• BASF SE
• Abbott Laboratories
• Danone S.A.
• Merck KGaA
• Arla Foods Ingredients
• Reckitt Benckiser
• Royal FrieslandCampina N.V
• Fonterra Co-operative Group
• Ajinomoto Co. Inc.
• Kerry Group plc
• Agropur Cooperative
• Savencia Fromage & Dairy
• Darling Ingredients
• Glanbia plc
• Roquette Frères
• Symrise AG
• Azelis Holding S.A.
• Hilmar Cheese Company
• Novozymes SA
• Tatua Cooperative Dairy Company
• Bioiberica S.A.U.
• Nutricia Advanced Medical Nutrition
• AOAC INTERNATIONAL
• A. Costantino & C. S.p.A.
North America was the largest region in the protein hydrolysates market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the protein hydrolysates market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.