Milk Protein Hydrolysate Market Outlook from 2024 to 2034

The global Milk Protein Hydrolysate industry is estimated to be worth USD 1.1 billion by 2024 and projected to reach USD 2.2 billion by 2034, reflecting a CAGR of 7.0% over the assessment period 2024 to 2034.

Milk protein hydrolysate from the other can be defined as a milk protein that has undergone hydrolysis to form smaller peptides. It enhances its solubility and at the same time makes it very usable in numerous applications including, infant formulas, sports nutrition, and clinical diet merchandise.

The global adoption rate of milk protein hydrolysate is rising fairly quickly because of increased awareness of people’s health and the emphasis on consuming products containing purine. It is manufacturers to put a lot of effort into achieving a better quality of hydrolyzed products from enzymatically hydrolysis typically with a predetermined functional property.

Processing methods are also in fashion, with such ideas as plant-based meat coming to market. Besides, relations with medical and nutritional experts also make the products even more diverse as they turn into compliance with some nutritional standards.

Advancements in health consciousness and consumption of quality-claimed health products as a result of raised disposable income have made this market appealing in the Asia Pacific region, and therefore to enlarge its sales of its related products, companies are looking forward to extending their presence in this sector.

Attributes Description
Estimated Global Milk Protein Hydrolysate Industry Size (2024E) USD 1.1 billion
Projected Global Milk Protein Hydrolysate Industry Value (2034F) USD 2.2 billion
Value-based CAGR (2024 to 2034) 7.0%

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Key Industry Highlights

Rise in Customer Engagement Proves to Be the Boiler for Functional Foods.

There are considerable indications that the food and beverages industry is under pressure to adopt functional foods, particularly milk protein hydrolysates. Customers also need products that promote and understand the welfare of their health, including digestion and muscle performance.

This trend is most apparent in food supplements, athletic nutrition, and dietary supplements therefore forcing the producers to diversify products that are useful to consumers and complementary to their nutrition.

Revolutionizing quality of Milk Protein Hydrolysate.

In the past few years, hydrolysis techniques especially enzymatic breakdown have improved significantly in the milk protein hydrolysate field. Better production methods increase the value of the resulting hydrolysates and expand their applicability and utilization in such products as formulas for infants and patients in clinical settings. These novelties refer to targeted protein constructions, responding to particular nutritional needs and demands.

Milk protein hydrolysates in maturation.

Milk protein hydrolysates are becoming increasingly popular in healthcare solutions including those best suited for restricted diets. The most common application of non-woven fabrics are in babywear and geriatric products, and items for post-surgery or sickness use. This escalating awareness of some of the benefits it provides is leading to increased pressures on manufacturers to formulate these products to cater to different health ailments and or dietary needs.

2019 to 2023 Global Milk Protein Hydrolysate Sales Analysis Compared to Demand Forecasts for 2024 to 2034

The global market has observed 6.5% (CAGR 2019 to 2023), with Where value of USD 0.8 Billion in 2019 increased to USD 1.1 Billion in 2023. Lifting in customer consciousness about health and nutritional value the demand for protein-based foods especially among exercising people has also gone up.

This growth can also be seen especially in the segment of infant nutrition products, wherein the milk protein hydrolysate is hypoallergenic to treat allergic or intolerant infants. Further, the growth in sports nutrition, with people looking for proteins for muscle recovery, has also driven the traffic. Products are being taken to another level where mutual company concentrates on product differentiation by coming up with different formulas for various consumption.

At present, the global market value for the year 2024 stands at USD 1.1 Billion. With the current and future forecast factors, it has been predicted to make USD 2.2 Billion by 2034 (CAGR - 7.0%). Many Sheer forces are at present in the global market and playing roles as growth dynamic trends.

Hence, one of the very significant factors that significantly influence the propensity for demand for milk protein hydrolysate is the increasing interest and demand for health and wellness products particularly due to increased intakes of protein-based foods and drinks.

This trend is well visible in a segment of infant nutrition, where currently there is a high demand for hypoallergenic products due to increased consumption of cow’s milk products, which results in various types of allergies and intolerance. There is also an upward trend in the sports nutrition segment in which athletes and other freaks require good-quality proteins for the repair and construction of muscles.

Nandini Roy Choudhury
Nandini Roy Choudhury

Principal Consultant

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Market Concentration

Tier 1 entails global manufacturers of home appliances that currently control a vast market share and to which the products are widely distributed. These companies, therefore, focus on research and development, which is enhancing innovation in milk protein hydrolysates. This is because they already have well-established brand images as well as deeper pockets to make them control the market.

Tier 2 consists of entrants that are showing explosive growth in the milk protein hydrolysate market. Such firms may, therefore, confine themselves to one or two special application areas or specific geographic locations. Thanks to the manufacturer's flexibility and high sensitivity to consumer desires, they increase their market share constantly.

The third tier is held by small organizations and regional players, which helps to sustain the competition in the market. Such companies are usually domestic or naive with a focus on quality and individual approach. Thus the value they provide to consumers and their contribution to market competition is of less capital but extensive.

Country-wise Insights

The following table shows the estimated growth rates of the top three territories. The USA, China, and Japan are set to exhibit high consumption, recording CAGRs of 7.3%, 7.5%, and 6.9%, respectively, through 2034.

Countries CAGR 2024 to 2034
Japan 6.9%
China 7.5%
The USA 7.3%

How is the USA Market Shaping for Milk Protein Hydrolysate?

The key market of milk protein hydrolysate in the United States is being built up vigorously due to increasing consumer awareness of the benefits of a healthy lifestyle and the need for high-quality protein.

The segment of nutrition of infants is one of the most developed ones as paying attention to food allergens requires hypoallergenic formulas. Also, there is growth in the sector of sports nutrition where athletes and people who constantly attend the gym use milk protein hydrolysate because of easy digestion and quick rebound rate in muscles.

Improvement in the value and supply chain in production technology of milk protein hydrolysate has improved and is readily available in the market to manufacturers. In addition, the clean-label product concern has made brands add milk protein hydrolysate in functional foods and supplements.

This is for the reason that as consumers become more conscious of sustainability, firms that practice proper sourcing and production should be able to penetrate through the profitable advantage. However, it can be argued that the growth of the protein hydrolysate in the USA will be steep in tendency as can be observed from general tendencies in health and wellness.

What Trends and Drivers Are Uplifting the Milk Protein Hydrolysate Market in Germany?

One of the major trends is a gradually increasing consumers’ concern with their health and proper nutrition, which leads to the demand for protein in food designer infant beverages, and sports nutrition. People and mothers in particular are very much aware of food allergies, particularly in early childhood therefore remain very interested in milk with milk protein hydrolysate.

Also, the trend towards clean-label products is on the rise in customers who would prefer to see simple and clear names for the food they consume and the beverages they take. This has ensured that manufacturers include milk protein hydrolysate in several functional foods which have enhanced their value.

Technological enhancements in the production procedures are also a strong force driving production technologies as they enhance the production efficiency and the quality of the milk protein hydrolysate.

Furthermore, consumers in Germany are being increasingly selective in where they buy products from due to a rise in the importance of sustainability and environmentally friendly practices. Overall, macro trends in the area of health, advances in product development, and sustainability drivers create a strong foundation for the growth of milk protein hydrolysate in Germany.

What About Asian Countries like China's market for Milk Protein Hydrolysate?

The Chinese market for milk protein hydrolysate and in other Asian countries in general faces an immense demand generated by several factors. The following could be considered as the main factors: The awareness of parents regarding food allergies among babies and intolerances to certain types of food increase the demand for infant nutrition products.

Such a trend is observed more actively in the districts where there is an increase in the level of health consciousness. Additionally, the number of middle-income consumers in China is increasing and consumers throughout China despite their income are willing and capable of spending on such superior products as nutrition products, including milk protein hydrolysate.

There is also growth in the sports nutrition industry because many people engage in sporting activities and therefore require supplements, mostly proteins after working out. Furthermore, a series of Food Safety and Improved Nutrient Enhancement steps in China looks positive attitudes for the makeover in dairy players including MIPH.

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Category-Wise Insights

Manufacturers Focus on Sports Nutrition, Clinical Nutrition, and Infant Nutrition Application for Higher Sales

Segment Sports Nutrition (By Application)
Value Share (2024) 39.6%

Of all the functional applications of milk protein hydrolysate, the infant nutrition sector has been rapidly growing in the global market. This boom is mainly attributed to the increasing incidence of food allergies and intolerances in young infants and thus the need for hypoallergenic-fous quelques formulates.

Milk protein hydrolysate is also preferred because of its higher digestibility coupled with its nutrition quality which makes it suitable for use in infant formula for sensitive infants. At the same time, the application of sports nutrition is receiving the same level of attention, as more athletes and individuals who want an improved physique start using protein supplements for muscle gain recovery and improvement.

The maturing focus toward health and fitness and the shift in demand towards slightly superior quality easy digestible proteins have fueled the application of milk protein hydrolysate in this segment. In clinical nutrition, the use of milk protein hydrolysate is increasingly popular, especially in treating patients with certain nutritional needs because of their disease or after surgery.

Further, even as animal feed especially swine, poultry, cattle, equine, and pet nutrition emerges as a growth segment, it is not as big as infant & sports nutrition at the current juncture. Nevertheless, growth is expected to occur in this area due to the growing emphasis being placed on advanced livestock feed and pet feed formulations.

Surging Use of Enzymatic Hydrolysis Technology

Segment Food & Beverage (By Application)
Value Share (2024) 69.0%

In the first place, this technology improves the adsorption and biological availability of proteins for people with delicate digestion and those who have food intolerances including infants. The capability of enzymatic hydrolysis for formulating hypoallergenic conditions is another feature that boosts it up, especially in the infant nutrition line.

Also, consumers are looking for clean-label products that have undergone as little processing as possible. This is in line with this trend because enzymatic hydrolysis which breaks proteins down naturally and does not use chemicals to do this will suit the health-conscious customer.

This process has also become more efficient due to the technological development of enzymatic hydrolysis to be favorable to large-scale production of quality milk protein hydrolysate. This efficiency leads to reduced cost and hence better profitability since a business’s main aim is to minimize cost and maximize revenue.

In addition, the increasing tag on functional foods and tailored diets is rapidly boosting the markets for specialized proteins, which can be produced using enzymatic hydrolysis more efficiently. Due to the increased number of applications, as manufacturers work to satisfy the variety of consumer demands this technology will continue to grow and expand the milk protein hydrolysate market.

Competition Outlook

The scenario of competition for the milk protein hydrolysate industry in Global is competitive and is also changing. The market is highly concentrated with large companies possessing substantial capital investment to fuel R&D initiatives to improve the designs and performance of the product. There is a new wave of firms introducing different products that appeal to specific niches and unique uses in the athletic support field, nutritional supplements, and the healthcare sector.

Technological changes that are continuing to take place in enzymatic hydrolysis developments have influenced competitive strategies through the development of customized solutions to fit particular consumer needs. Also, manufacturers and suppliers are equally allying with different firms and healthcare organizations to access larger markets.

The increase in demand for functional protein ingredients for food applications will put pressure on the protein supplements market as new players, technologies, and products arrive at the market mid-section.

For instance

  • In 2024, FrieslandCampina Ingredients has secured EU Novel Food approval for its Hyvital Whey HA 300 protein hydrolysate for its use in infant and follow-on formulas. This product is useful in the feeding of infants especially those with allergies or digestive problems increases the potential investment opportunities for manufacturers in line with the improving consumption rates of hydrolyzed protein in infant foods.
  • In 2024, Arla Foods Ingredients received the nod from the United States Food and Drug Administration to use whey protein hydrolysates for allergy management and improving gut comfort in infants through use in infant formulae. It includes only the specifically approved products from the Peptigen® and Lacprodan® families which opens up new possibilities for infants with cow’s milk allergy and/or gastrointestinal disorder.s

Leading Brands

  • Fonterra Co-operative Group Ltd.
  • Kerry Ingredients
  • Meiji Holdings
  • MILEI
  • Friesl and Campina DMV B.V.
  • AMCO Proteins
  • Nestle S.A
  • Morinaga Milk Industry Co. Ltd.
  • Cargill Inc.
  • Lactalis Group
  • Others

Key Segments of the Report

By Form:

As per Form, the industry has been categorized into Form and Paste.

By Product Type:

As per product type, the industry has been categorized into Whey and Casein.

By Technology:

As per Technology, the industry has been categorized into Acid Hydrolysis and Enzymatic Hydrolysis.

By Application:

As per Application, the industry has been categorized into Sports Nutrition, Clinical Nutrition, Infant Nutrition, and Animal Feed (Swine, Poultry, Cattle, Equine, and Pet).

By Region:

Industry analysis has been carried out in key countries of North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa.

Frequently Asked Questions

What is the current value of the Milk Protein Hydrolysate industry?

The global industry is estimated at a value of USD 1.1 billion in 2024.

At what rate did the sales of Milk Protein Hydrolysate grow between 2019 and 2023?

Sales increased at 6.3% CAGR between 2019 and 2023.

Who are the leading manufacturers of Milk Protein Hydrolysate?

Some of the leaders in this industry include Fonterra Co-operative Group Ltd., Kerry Ingredients, Meiji Holdings, MILEI, Friesl and Campina DMV B.V., AMCO Proteins, Nestle S.A, Morinaga Milk Industry Co. Ltd., Cargill Inc., and Lactalis Group.

Which region will garner a significant value share by 2034?

The North American territory is projected to hold a revenue share of 40.6% over the forecast period.

At what CAGR is the global forecast to grow from 2024 to 2034?

The industry is projected to grow at a forecast CAGR of 7.0% from 2024 to 2034.

Table of Content
  • 1. Executive Summary
  • 2. Industry Introduction, including Taxonomy and Market Definition
  • 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments
  • 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections
  • 5. Pricing Analysis
  • 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034
    • 6.1. Product
    • 6.2. Application
    • 6.3. Technology
    • 6.4. Form
  • 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Product
    • 7.1. Whey
    • 7.2. Casein
  • 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application
    • 8.1. Sports Nutrition
    • 8.2. Clinical Nutrition
    • 8.3. Infant Nutrition
    • 8.4. Animal Feed
      • 8.4.1. Swine
      • 8.4.2. Poultry
      • 8.4.3. Cattle
      • 8.4.4. Pet
  • 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Technology
    • 9.1. Acid Hydrolysis
    • 9.2. Enzymatic Hydrolysis
  • 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Form
    • 10.1. Powder
    • 10.2. Paste
  • 11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
    • 11.1. North America
    • 11.2. Latin America
    • 11.3. Western Europe
    • 11.4. Eastern Europe
    • 11.5. East Asia
    • 11.6. South Asia & Pacific
    • 11.7. MEA
  • 12. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
  • 13. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
  • 14. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
  • 15. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
  • 16. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
  • 17. South Asia & Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
  • 18. MEA Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
  • 19. Sales Forecast 2024 to 2034 by Product, Application, Technology, and Form for 30 Countries
  • 20. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
  • 21. Company Profile
    • 21.1. Fonterra Co-operative Group Ltd.
    • 21.2. Kerry Ingredients
    • 21.3. Meiji Holdings
    • 21.4. MILEI
    • 21.5. Friesl and Campina DMV B.V.
    • 21.6. AMCO Proteins
    • 21.7. Nestle S.A
    • 21.8. Morinaga Milk Industry Co. Ltd.
    • 21.9. Cargill Inc.
    • 21.10. Lactalis Group
    • 21.11. Others
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