Protein Hydrolysate Ingredients Market Report 2026

The protein hydrolysate ingredients market size has grown strongly in recent years. It will grow from $3.62 billion in 2025 to $3.86 billion in 2026 at a compound annual growth rate (CAGR) of 6.7%. The growth in the historic period can be attributed to growth in sports nutrition consumption, expansion of protein-enriched food products, increasing demand for clinical nutrition solutions, rising awareness of muscle recovery benefits, advancements in protein processing technologies.

The protein hydrolysate ingredients market size is expected to see strong growth in the next few years. It will grow to $4.99 billion in 2030 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to increasing demand for precision nutrition ingredients, rising adoption of hydrolysates in medical nutrition, expansion of functional beverage applications, growing investments in protein innovation, increasing focus on allergen-reduced formulations. Major trends in the forecast period include increasing use of enzyme-hydrolyzed proteins, rising demand for fast-absorbing sports nutrition ingredients, growing application in clinical and infant nutrition, expansion of functional food formulations, enhanced focus on digestibility and bioavailability.

The increasing adoption of plant-based proteins is anticipated to drive the growth of the protein hydrolysate ingredients market in the coming years. Plant-based proteins are sourced from plants such as legumes, grains, and seeds and serve as nutritious and sustainable alternatives to animal-derived proteins. Demand for plant-based proteins is rising as consumers increasingly adopt healthier dietary habits, favoring options that are lower in saturated fats and cholesterol while delivering essential nutrients without many of the health risks associated with animal-based products. Protein hydrolysate ingredients are particularly valuable in plant-based formulations as they improve nutritional value and functional performance by breaking proteins into smaller peptides through enzymatic hydrolysis, thereby enhancing digestibility and nutrient absorption. For instance, in October 2024, according to a report published by The Good Food Institute Europe, a Belgium-based non-profit organization, plant-based meat continued to expand, recording a 3.4% increase in sales volume and an 18.2% rise in sales value between 2022 and 2023. Therefore, the growing popularity of plant-based proteins is fueling the expansion of the protein hydrolysate ingredients market.

Leading companies operating in the protein hydrolysate ingredients market are prioritizing the development of innovative solutions, including whey protein hydrolysate products, to strengthen nutritional offerings and address diverse consumer requirements. Whey protein hydrolysate (WPH) is a form of whey protein that undergoes partial hydrolysis, a process that breaks long protein chains into smaller peptide fragments and amino acids. For example, in November 2024, Arla Foods Ingredients, a Denmark-based producer of protein supplements, introduced Lacprodan DI-3092, a new whey protein hydrolysate formulated to support peptide-based medical nutrition. The ingredient delivers 10 g of protein per 100 ml, exceeding the typical 6-7 g found in comparable products, and is designed to reduce bitterness. Featuring a high degree of hydrolysis (16-22%) and low lactose content, it is well suited for individuals with impaired gastrointestinal function or reduced nutrient absorption. Lacprodan DI-3092 is UHT-stable and available in both ready-to-drink and ready-to-mix powder formats, helping address challenges related to taste, texture, and protein concentration in medical nutrition.

In February 2025, Symrise AG, a Germany-based provider of protein hydrolysate ingredients, partnered with Hudson's Bay Company (HBC) to expand its health-focused portfolio by incorporating HBC’s clinically validated and sustainably sourced salmon-based marine proteins, collagens, and oils, thereby strengthening its presence in human health and pet nutrition. Through this collaboration, Symrise aims to enhance its protein hydrolysate ingredient offerings by integrating HBC’s human-grade marine hydrolysates, leveraging expanded enzymatic hydrolysis capabilities, and broadening its global market reach across both human health and pet nutrition segments. Hudson's Bay Company (HBC) is a Norway-based company specializing in sustainable marine-derived proteins and bioactive ingredients for nutrition and health applications.

Major companies operating 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., Akola Chemicals Limited.

North America was the largest region in the protein hydrolysate ingredients market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the protein hydrolysate ingredients 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 hydrolysate ingredients market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

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/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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