Protein Hydrolysates Market Report 2026

The protein hydrolysates market size has grown strongly in recent years. It will grow from $4.63 billion in 2025 to $5.07 billion in 2026 at a compound annual growth rate (CAGR) of 9.5%. The growth in the historic period can be attributed to growth of nutritional supplement consumption, rising awareness of protein nutrition, expansion of infant formula production, increased use in clinical nutrition, availability of diverse protein sources.

The protein hydrolysates market size is expected to see strong growth in the next few years. It will grow to $7.25 billion in 2030 at a compound annual growth rate (CAGR) of 9.4%. The growth in the forecast period can be attributed to increasing demand for personalized nutrition, rising adoption of plant-based diets, expansion of functional food applications, growing focus on muscle recovery products, increased use in medical nutrition. Major trends in the forecast period include increasing use of enzymatic hydrolysis processes, rising demand for easily digestible protein ingredients, growing adoption in sports nutrition formulations, expansion of plant-based protein hydrolysates, enhanced focus on bioavailability and absorption.

The rising consumer preference for plant-based diets is expected to drive the growth of the protein hydrolysates market going forward. This shift toward plant-based eating is fueled by increasing health awareness, as consumers aim to reduce the risk of lifestyle-related diseases, as well as by environmental concerns, with many individuals choosing more sustainable food options to lessen the impact of animal agriculture on climate change. Protein hydrolysates play an important role in supporting plant-based diets by offering easily digestible, high-quality protein alternatives derived from plant sources. These ingredients enable food manufacturers to develop nutritionally balanced and appealing plant-based products, including meat substitutes, dairy alternatives, and functional foods. For example, in May 2024, according to a report by The Plant-Based Foods Association, a US-based trade association, plant-based foods generated $8.1 billion in U.S. retail sales in 2023. Therefore, the increasing consumer preference for plant-based diets is fueling the growth of the protein hydrolysates market.

Leading companies in the protein hydrolysates market are focusing on advancements in protein hydrolysis technology, such as single-source whey protein hydrolysate, to enhance product effectiveness, improve digestibility, and meet the rising demand for high-quality, easily absorbed protein supplements. Single-source whey protein hydrolysate is a highly processed form of whey protein broken down into smaller peptides for faster absorption and improved digestibility. For example, in November 2024, Arla Foods, a Denmark-based dairy producer, introduced a new whey protein hydrolysate, Lacprodan DI-3092, designed to improve peptide-based medical nutrition. This innovative ingredient delivers 10 grams of high-quality protein per 100 ml, significantly surpassing the typical 6-7 grams found in similar products. It is designed to minimize bitterness, which is a common challenge in medical nutrition, thereby improving patient compliance. The hydrolysate has a high degree of hydrolysis (16-22%) and low lactose content, making it suitable for individuals with gastrointestinal issues.

In January 2023, Butterfly, a US-based private equity firm, acquired Milk Specialties Global for an undisclosed amount. This acquisition allows Butterfly to expand its food sector portfolio by leveraging expertise in performance nutrition. The move is part of Butterfly's broader strategy to increase its presence in the food and nutrition industries. Milk Specialties Global is a US-based provider of human and animal nutrition products, including dairy-based proteins and functional ingredients such as protein hydrolysates.

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, A. Costantino & C. S.p.A.

North America was the largest region in the protein hydrolysates market in 2025. 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, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the protein hydrolysates market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The protein hydrolysates market consists of sales of products such as marine protein hydrolysates, meat protein hydrolysates, silk protein hydrolysates, egg protein hydrolysates, yeast protein hydrolysates, pet food, fermentation ingredients, and gluten-free protein hydrolysates. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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