Protein Hydrolysate Ingredients Global Market Report 2025

The protein hydrolysate ingredients market size has grown strongly in recent years. It will grow from $3.41 billion in 2024 to $3.62 billion in 2025 at a compound annual growth rate (CAGR) of 6.3%. The growth in the historic period can be attributed to rising demand for infant nutrition, growing awareness about sports nutrition, increasing prevalence of lactose intolerance, rising health consciousness among consumers, and a growing elderly population globally.

The protein hydrolysate ingredients market size is expected to see strong growth in the next few years. It will grow to " $4.69 billion in 2029 at a compound annual growth rate (CAGR) of 6.7%. The growth in the forecast period can be attributed to increasing demand for clean-label and natural ingredients, rising investment in research and innovation, growing applications in animal feed and pet nutrition, increasing urbanization and disposable income, and the rising trend of vegan and plant-based diets. Major trends in the forecast period include advancements in enzymatic hydrolysis technology, integration of protein hydrolysates in sports nutrition, technology-driven extraction methods, developments in infant nutrition formulations, and advancements in clinical nutrition applications.

The forecast of 6.7% growth over the next five years reflects a modest reduction of 0.2% from the previous estimate for this market.This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US by raising costs for sports nutrition, as tariffs on hydrolyzed collagen from Brazil may increase prices for recovery supplements.The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The increasing demand for plant-based proteins is expected to drive the growth of the protein hydrolysate ingredients market. Plant-based proteins, sourced from plants such as legumes, grains, and seeds, provide a nutritious and sustainable alternative to animal-derived proteins. As more consumers adopt healthier eating habits, they are seeking alternatives that are lower in saturated fats and cholesterol, offering essential nutrients without the health risks often associated with animal-based products. Protein hydrolysate ingredients enhance the nutritional value and functionality of plant-based proteins by breaking down proteins into smaller peptides through enzymatic hydrolysis, improving digestibility and absorption. For example, a report from The Good Food Institute Europe, published in October 2024, highlights that plant-based meat sales grew by 3.4% in volume and 18.2% in value from 2022 to 2023. This trend indicates that the rising demand for plant-based proteins is fueling the growth of the protein hydrolysate ingredients market.

Key companies in the protein hydrolysate ingredients market are developing innovative solutions such as whey protein hydrolysate to improve nutritional products and meet various consumer needs. Whey protein hydrolysate (WPH) is a form of whey protein that has undergone partial hydrolysis, breaking protein chains into smaller peptides and amino acids. For instance, in November 2024, Arla Foods Ingredients, a Denmark-based producer of protein supplements, introduced Lacprodan DI-3092, a new whey protein hydrolysate aimed at enhancing peptide-based medical nutrition. This ingredient offers 10g of protein per 100 ml, surpassing the typical 6-7g found in similar products, and is designed to reduce bitterness. With a high degree of hydrolysis (16-22%) and low lactose content, it is well-suited for individuals with impaired gastrointestinal function or nutrient absorption. Lacprodan DI-3092 is UHT-stable and available in both ready-to-drink and ready-to-mix powder formats, addressing taste, texture, and protein content challenges in medical nutrition.

In December 2022, Butterfly, a US-based private equity firm, acquired Milk Specialties Global for an undisclosed amount. This acquisition is part of Butterfly's strategy to strengthen its position in the nutrition industry and accelerate growth by combining expertise and expanding product offerings in both human and animal nutrition. Milk Specialties Global, a US-based provider of milk protein hydrolysates, including whey protein hydrolysates and other protein hydrolysates derived from milk proteins, will help further enhance Butterfly's portfolio in the nutrition sector.

Protein hydrolysate ingredients are proteins that have been broken down into smaller peptides or amino acids through a process known as hydrolysis. This process uses water, heat, or enzymes to cleave the peptide bonds of the protein. These hydrolysate ingredients are widely used in sports nutrition products to support faster muscle recovery by improving the absorption of essential amino acids.

The main types of protein hydrolysate ingredients include whey protein hydrolysate, casein protein hydrolysate, milk protein hydrolysate, meat protein hydrolysate, and others. Whey protein hydrolysate (WPH) is a form of whey protein that has been partially hydrolyzed through enzymatic processing. It is available in different forms, such as powdered and liquid protein hydrolysates, and is used in a variety of applications, including sports nutrition, beverages, dairy products, and meat products. It serves a broad range of end-users, such as fitness enthusiasts and health-conscious individuals.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid implementation of U.S. tariffs and the resulting trade tensions in spring 2025 are having a notable impact on the food and beverage sector. Rising costs for imported ingredients such as olive oil, cheese, and tropical fruits are pressuring food manufacturers to either reformulate their products or absorb reduced profit margins. Beverage producers are similarly affected, with tariffs on aluminum cans driving up packaging costs. Meanwhile, retaliatory tariffs on U.S. agricultural exports like soybeans and pork are disrupting farm-to-processor supply chains. In response, companies are adjusting recipes, increasing local sourcing, and using commodity hedging strategies to manage price volatility.

The protein hydrolysate ingredients market research report is one of a series of new reports that provides protein hydrolysate ingredients market statistics, including protein hydrolysate ingredients industry global market size, regional shares, competitors with a protein hydrolysate ingredients market share, detailed protein hydrolysate ingredients market segments, market trends and opportunities, and any further data you may need to thrive in the protein hydrolysate ingredients industry. This protein hydrolysate ingredients market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Major players in the protein hydrolysate ingredients market are Cargill Incorporated, Archer-Daniels-Midland Company, Danone S.A., Merck KGaA, Arla Foods Ingredients Group P/S, Fonterra Co-operative Group Limited, Royal FrieslandCampina N.V., Ajinomoto Co. Inc., Agropur Cooperative, Ingredion Incorporated, AMCO Proteins LLC, Kerry Group plc, Glanbia plc, Azelis Group NV, Tate & Lyle PLC, Roquette Frères S.A., Carbery Group Limited, Davisco Foods International Inc., Titan Biotech Limited, Krishna Enzytech Pvt. Ltd., and Akola Chemicals Limited.

North America was the largest region in the protein hydrolysate ingredients market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in protein hydrolysate ingredients report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the protein hydrolysate ingredients market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The protein hydrolysate ingredients market consists of sales of infant nutrition, sports and clinical nutrition, functional foods and beverages, animal nutrition, and cosmetics and personal care. 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 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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