Protein Hydrolysates Market Size and Outlook 2030

Report Description

Forecast Period	2026-2030
Market Size (2024)	USD 921.85 Million
CAGR (2025-2030)	7.70%
Fastest Growing Segment	Milk
Largest Market	Asia Pacific
Market Size (2030)	USD 1438.65 Million

Market Overview

The Global Protein Hydrolysates Market, valued at USD 921.85 Million in 2024, is projected to experience a CAGR of 7.70% to reach USD 1438.65 Million by 2030. Protein hydrolysates are protein derivatives obtained through the enzymatic or chemical breakdown of proteins into smaller peptides and amino acids, enhancing their digestibility and functional properties for various applications. The global market for these specialized ingredients is significantly driven by increasing consumer health consciousness and the rising demand for protein-enriched functional foods and dietary supplements across all age demographics. Additionally, the expansion of specific nutrition segments, particularly sports, clinical, and infant nutrition, substantially supports market growth due to the superior bioavailability and reduced allergenicity of hydrolysates.

The market’s expansion benefits from the availability of diverse protein sources. For instance, according to the Food and Agriculture Organization of the United Nations, global whey protein production, a key raw material for hydrolysates, reached 2.1 million tons in 2023. However, a notable impediment to market growth is the volatility in raw material prices, which can significantly impact production costs and overall profitability for manufacturers.

Key Market Drivers

The growing global focus on health and wellness profoundly influences the protein hydrolysates market, with consumers actively seeking nutritional products to support their well-being. This heightened health consciousness drives demand for ingredients offering superior digestibility, bioavailability, and specific functional benefits, which protein hydrolysates readily provide. Individuals are increasingly recognizing protein's essential role in muscle maintenance, weight management, and overall vitality, leading to a broader integration of protein-rich options into daily diets. According to Cargill's 2025 Protein Profile, released in April 2025, 61% of Americans reported increasing their protein intake in 2024, a notable rise from 48% in 2019. This trend extends beyond traditional health enthusiasts to the general population, where protein hydrolysates are incorporated into a diverse range of functional foods and beverages, including fortified yogurts, nutritional bars, and ready-to-drink supplements, thereby expanding their market reach.

The sports nutrition sector represents another critical growth catalyst for protein hydrolysates due to the continuous pursuit of enhanced athletic performance and accelerated recovery among athletes and active consumers. The rapid absorption rate of hydrolysates, coupled with their reduced allergenic potential, makes them highly desirable for pre-workout, intra-workout, and post-workout formulations, aiding in muscle repair and growth. Furthermore, the diversification of protein sources within sports nutrition is evident. According to the U. S. Department of Agriculture (USDA), the consumption of plant-based protein in the U. S. surged by approximately 11% from 2021 to 2023, reflecting a growing preference for diverse and sustainable protein options, including plant-based hydrolysates, within this segment. This expanding application landscape is further supported by strategic industry developments, as exemplified by Tessenderlo group's August 2023 joint venture with Hainan Xiangtai Group, aimed at enhancing the production and commercialization of fish collagen peptides. This initiative highlights ongoing innovation and investment in specialized hydrolysate types to meet evolving market demands.

Download Free Sample Report

Key Market Challenges

The volatility in raw material prices represents a significant impediment to the sustained growth of the global protein hydrolysates market. Unpredictable fluctuations in the cost of primary protein sources, such as whey and soy, introduce considerable instability into manufacturing expenses. This directly impacts production budgeting and erodes overall profitability for manufacturers. Such price uncertainty complicates strategic planning, making it difficult for companies to forecast costs and set competitive product prices, which can deter investment in new production capabilities or product innovation. For example, according to the United States Department of Agriculture, total whey protein concentrate production in the U. S. was 495 million pounds in 2024, a decline of 1.9 percent compared to 2023, which reflects the challenges posed by supply and cost dynamics on production output. These fluctuating input costs can also necessitate price adjustments for finished hydrolysate products, potentially impacting market demand as end-user industries face higher ingredient expenses.

Key Market Trends

The adoption of sustainable sourcing and production practices is becoming a prominent driver in the global protein hydrolysates market as environmental stewardship gains consumer and regulatory importance. This trend encompasses the shift towards eco-friendly raw material acquisition, optimized manufacturing processes to reduce waste and energy consumption, and transparent supply chains. According to the Good Food Institute, the fermentation sector, which contributes to sustainable protein ingredient production, experienced a 16 percent rise in the number of companies globally in 2023. These practices not only align with corporate social responsibility goals but also cater to a growing segment of environmentally conscious consumers. Further highlighting this commitment, Donaldson and PolyPeptide partnered in Q2 2024 to enhance sustainability in peptide manufacturing through the implementation of solvent recovery technology, demonstrating tangible industry efforts towards greener operations.

The development of targeted bioactive peptide solutions represents another significant market trend, moving beyond general nutritional benefits to offer specific physiological effects. Innovations in hydrolysis technologies enable the precise cleavage of proteins, yielding peptides with proven health-promoting properties such as anti-hypertensive, immune-modulating, or cognitive-enhancing attributes. According to the Good Food Institute Europe, European companies developing alternative proteins, including those derived from plants, fermentation, and cell cultivation, attracted investments totaling EUR 289 million in the first half of 2024. This substantial investment facilitates research into and commercialization of specialized peptide solutions. For instance, Designs for Health launched Performance Peptides™ in October 2024, a plant-based bioactive peptide solution specifically formulated to support muscle strength, endurance, and recovery, showcasing the market's focus on highly specialized and functional offerings.

Segmental Insights

The Milk segment is a key and rapidly expanding area within the Global Protein Hydrolysates Market. This significant growth is primarily driven by the increasing demand for specialized nutritional products. Specifically, milk protein hydrolysates are crucial in infant nutrition for developing hypoallergenic and easily digestible formulas, addressing the rising prevalence of food allergies and intolerances among infants. Furthermore, the sports and clinical nutrition sectors increasingly adopt milk protein hydrolysates due to their enhanced digestibility, superior amino acid profile, and fast absorption rates, which support muscle recovery and cater to individuals with compromised digestive systems. The technological advancements in enzymatic hydrolysis have further improved product functionality and taste, aligning with growing consumer preferences for high-quality, clean-label ingredients.

Regional Insights

Asia Pacific stands as the leading region in the global protein hydrolysates market, primarily driven by increasing health consciousness and a growing demand for functional and nutritional foods. This dominance is significantly fueled by the robust expansion of the sports nutrition and infant nutrition industries across the region, especially the rising adoption of hypoallergenic infant formulas in populous nations such as China and India. Furthermore, rising disposable incomes and evolving dietary preferences contribute to the elevated consumption of protein-rich products. A strong agricultural base also provides crucial raw materials, while supportive regulatory bodies like the National Health Commission of China and the Ministry of Food and Drug Safety in South Korea facilitate market development and product clearances.

Recent Developments

In October 2025, ZXCHEM GROUP officially launched Biotide Proteins, a new dedicated company focused on advancing animal and plant-based protein solutions. This strategic move was designed to cater to the evolving demands of the global nutrition, food, and supplement industries. Biotide Proteins aimed to provide tailored functional protein ingredients, including various hydrolyzed options such as 100% hydrolyzed pea protein and brown rice protein, reinforcing the parent company's commitment to innovation and growth in the specialized protein market.

In August 2024, Fonterra, a leading dairy company, announced plans to significantly enhance its production capabilities at the Studholme facility located on New Zealand's South Island. The expansion aimed at increasing the output of premium protein ingredients, reinforcing Fonterra's strategic position in the international dairy and specialized protein markets. This development was poised to support the growing demand for high-quality protein components, including various forms of protein hydrolysates, vital for numerous applications across global nutrition sectors.

In July 2024, Arla Foods Ingredients introduced a new portfolio of whey protein hydrolysates specifically designed for infant nutrition applications. These advanced hydrolysates were developed through proprietary enzymatic processes to offer reduced allergenic potential and superior digestibility for sensitive infants. This product launch by Arla Foods Ingredients catered directly to the growing demand for specialized infant formulas, highlighting ongoing innovation within the global protein hydrolysates market to meet specific dietary needs and improve nutritional outcomes.

In May 2024, Glanbia plc, a global nutrition group, collaborated with a prominent European enzyme manufacturer to develop innovative plant-based protein hydrolysates. This strategic partnership focused on utilizing pea and rice proteins to create specialized hydrolysates, targeting the expanding vegan sports nutrition market. The initiative aimed to produce ingredients with enhanced solubility and improved taste profiles, addressing key consumer preferences within the protein hydrolysates sector for plant-derived options. This collaboration underscores the increasing industry focus on diverse protein sources for functional food applications.

Key Market Players

Kerry Group Plc.
Nestle S.A.
Arla Foods AMBA
AMCO Proteins, Inc.
Royal FrieslandCampina N.V.
Fonterra Co-Operative Group Limited
Parabel Nutrition Inc.
Healy Group
ADM Company
Danone Trading ELN B.V.

By Type	By Source	By Form	By Process	By Application	By Region
Milk Meat Marine Plant Eggs Others	Animals Plants Microbes	Liquid Powder	Enzymatic Hydrolysis Alkaline Hydrolysis	Animal Feed Infant Nutrition Clinical Nutrition Sports Nutrition Dietary Supplements Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Protein Hydrolysates Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Protein Hydrolysates Market, By Type:

o Milk

o Meat

o Marine

o Plant

o Eggs

o Others

Protein Hydrolysates Market, By Source:

o Animals

o Plants

o Microbes

Protein Hydrolysates Market, By Form:

o Liquid

o Powder

Protein Hydrolysates Market, By Process:

o Enzymatic Hydrolysis

o Alkaline Hydrolysis

Protein Hydrolysates Market, By Application:

o Animal Feed

o Infant Nutrition

o Clinical Nutrition

o Sports Nutrition

o Dietary Supplements

o Others

Protein Hydrolysates Market, By Region:

o North America

§ United States

§ Canada

§ Mexico

o Europe

§ France

§ United Kingdom

§ Italy

§ Germany

§ Spain

o Asia Pacific

§ China

§ India

§ Japan

§ Australia

§ South Korea

o South America

§ Brazil

§ Argentina

§ Colombia

o Middle East & Africa

§ South Africa

§ Saudi Arabia

§ UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Protein Hydrolysates Market.

Available Customizations:

Global Protein Hydrolysates Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global Protein Hydrolysates Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Protein Hydrolysates Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Type (Milk, Meat, Marine, Plant, Eggs, Others)

5.2.2. By Source (Animals, Plants, Microbes)

5.2.3. By Form (Liquid, Powder)

5.2.4. By Process (Enzymatic Hydrolysis, Alkaline Hydrolysis)

5.2.5. By Application (Animal Feed, Infant Nutrition, Clinical Nutrition, Sports Nutrition, Dietary Supplements, Others)

5.2.6. By Region

5.2.7. By Company (2024)

5.3. Market Map

6. North America Protein Hydrolysates Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Type

6.2.2. By Source

6.2.3. By Form

6.2.4. By Process

6.2.5. By Application

6.2.6. By Country

6.3. North America: Country Analysis

6.3.1. United States Protein Hydrolysates Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Type

6.3.1.2.2. By Source

6.3.1.2.3. By Form

6.3.1.2.4. By Process

6.3.1.2.5. By Application

6.3.2. Canada Protein Hydrolysates Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Type

6.3.2.2.2. By Source

6.3.2.2.3. By Form

6.3.2.2.4. By Process

6.3.2.2.5. By Application

6.3.3. Mexico Protein Hydrolysates Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Type

6.3.3.2.2. By Source

6.3.3.2.3. By Form

6.3.3.2.4. By Process

6.3.3.2.5. By Application

7. Europe Protein Hydrolysates Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Type

7.2.2. By Source

7.2.3. By Form

7.2.4. By Process

7.2.5. By Application

7.2.6. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Protein Hydrolysates Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Type

7.3.1.2.2. By Source

7.3.1.2.3. By Form

7.3.1.2.4. By Process

7.3.1.2.5. By Application

7.3.2. France Protein Hydrolysates Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Type

7.3.2.2.2. By Source

7.3.2.2.3. By Form

7.3.2.2.4. By Process

7.3.2.2.5. By Application

7.3.3. United Kingdom Protein Hydrolysates Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Type

7.3.3.2.2. By Source

7.3.3.2.3. By Form

7.3.3.2.4. By Process

7.3.3.2.5. By Application

7.3.4. Italy Protein Hydrolysates Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Type

7.3.4.2.2. By Source

7.3.4.2.3. By Form

7.3.4.2.4. By Process

7.3.4.2.5. By Application

7.3.5. Spain Protein Hydrolysates Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Type

7.3.5.2.2. By Source

7.3.5.2.3. By Form

7.3.5.2.4. By Process

7.3.5.2.5. By Application

8. Asia Pacific Protein Hydrolysates Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Type

8.2.2. By Source

8.2.3. By Form

8.2.4. By Process

8.2.5. By Application

8.2.6. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Protein Hydrolysates Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Type

8.3.1.2.2. By Source

8.3.1.2.3. By Form

8.3.1.2.4. By Process

8.3.1.2.5. By Application

8.3.2. India Protein Hydrolysates Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Type

8.3.2.2.2. By Source

8.3.2.2.3. By Form

8.3.2.2.4. By Process

8.3.2.2.5. By Application

8.3.3. Japan Protein Hydrolysates Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Type

8.3.3.2.2. By Source

8.3.3.2.3. By Form

8.3.3.2.4. By Process

8.3.3.2.5. By Application

8.3.4. South Korea Protein Hydrolysates Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Type

8.3.4.2.2. By Source

8.3.4.2.3. By Form

8.3.4.2.4. By Process

8.3.4.2.5. By Application

8.3.5. Australia Protein Hydrolysates Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Type

8.3.5.2.2. By Source

8.3.5.2.3. By Form

8.3.5.2.4. By Process

8.3.5.2.5. By Application

9. Middle East & Africa Protein Hydrolysates Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Type

9.2.2. By Source

9.2.3. By Form

9.2.4. By Process

9.2.5. By Application

9.2.6. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Protein Hydrolysates Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Type

9.3.1.2.2. By Source

9.3.1.2.3. By Form

9.3.1.2.4. By Process

9.3.1.2.5. By Application

9.3.2. UAE Protein Hydrolysates Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Type

9.3.2.2.2. By Source

9.3.2.2.3. By Form

9.3.2.2.4. By Process

9.3.2.2.5. By Application

9.3.3. South Africa Protein Hydrolysates Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Type

9.3.3.2.2. By Source

9.3.3.2.3. By Form

9.3.3.2.4. By Process

9.3.3.2.5. By Application

10. South America Protein Hydrolysates Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Type

10.2.2. By Source

10.2.3. By Form

10.2.4. By Process

10.2.5. By Application

10.2.6. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Protein Hydrolysates Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Type

10.3.1.2.2. By Source

10.3.1.2.3. By Form

10.3.1.2.4. By Process

10.3.1.2.5. By Application

10.3.2. Colombia Protein Hydrolysates Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Type

10.3.2.2.2. By Source

10.3.2.2.3. By Form

10.3.2.2.4. By Process

10.3.2.2.5. By Application

10.3.3. Argentina Protein Hydrolysates Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Type

10.3.3.2.2. By Source

10.3.3.2.3. By Form

10.3.3.2.4. By Process

10.3.3.2.5. By Application

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Protein Hydrolysates Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Kerry Group Plc.

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Nestle S.A.

15.3. Arla Foods AMBA

15.4. AMCO Proteins, Inc.

15.5. Royal FrieslandCampina N.V.

15.6. Fonterra Co-Operative Group Limited

15.7. Parabel Nutrition Inc.

15.8. Healy Group

15.9. ADM Company

15.10. Danone Trading ELN B.V.

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

What was the market size of the Global Protein Hydrolysates Market in 2024?

Which is the dominating region in the Global Protein Hydrolysates Market?

Which is the fastest growing segment in the Global Protein Hydrolysates Market?

What is the expected growth rate of the Global Protein Hydrolysates Market?