Protein Hydrolysate Ingredient Market

Protein Hydrolysate Ingredient Market Outlook from 2024 to 2034

In its updated version of the protein hydrolysate ingredient market, Future Market Insights (FMI) estimates total market valuation to reach USD 669.3 million in 2024. Global sales of protein hydrolysate ingredients are set to surge at 7.3% CAGR, accumulating a total revenue of USD 1,399.1 million by 2034.

Global Protein Hydrolysate Market Overview

Demand is rising rapidly owing to widening applications in sports nutrition, food & beverages, clinical nutrition, dietary supplements, and infant formula. These ingredients are often used to fortify products with protein.

With consumers prioritizing health and wellness, the demand for protein hydrolysate ingredients will grow significantly. These hydrolysates find usage across a collection of products, embodying adaptability, nutritional efficacy, and broad market potential.

Since consumers are increasing their search for personalized dietary solutions, protein hydrolysates are emerging as a breath of relief with their versatility and adaptability. The industry growth is driven by increasing knowledge about individualized nutrition through social media. Thereby, placing protein hydrolysates as a prominent player in the quest for customized, nutritionally optimized, and effective food and beverage formulations.

The progressive shift toward plant-based or vegan diets is also promoting the sales of protein hydrolysates extracted from alternative sources like rice and peas. Likewise, the product is being integrated into functional foods and beverages as consumers are showing interest in nutritious and convenient options. This is projected to spark frequent product sales.

A notable restraint in the protein hydrolysate industry is the potential for allergic reactions. People with allergenic sensitivities usually refrain from consuming protein hydrolysates. Despite research and development and focus on advancements while formulating hypoallergenic products, concerns persist, thus restricting the wide adoption of protein hydrolysates.

Addressing allergenic risks through continuous research and development is key to overcoming this restraint. It will also help companies in ensuring broader accessibility and acceptance among consumers with diverse health considerations.

The protein hydrolysates ingredient market presents opportunities for innovation and differentiation. Players are focusing on creating advanced enzymatic processes to ensure efficient production. Thus, meeting the rising demand for sustainable and clean-label options.

Players are also considering tailoring formulations to expand their application areas, such as sports nutrition and infant formulas. This allows them to serve the specific market segments. Further consistent research into new extraction methods and protein sources is also focused on aligning with sustainability goals. Thus, enabling manufacturers to stand at the forefront of environmentally friendly practices and consumer preferences.

Historical Protein Hydrolysate Ingredient Sales Outlook Vs. Future Forecast

Global protein hydrolysate ingredient market rose from 2019 to 2023, at a CAGR of 5.3%. The market, throughout the historical period, was driven by emerging awareness about the advantages of protein hydrolysates across multiple end use sectors. The demand has been prominent in infant formula and bakery and confectionery sectors.

Over the forecast period, the market is projected to accelerate at a 7.3% CAGR, to reach a total of USD 1,399.1 million by 2034. In continuing years, the demand for personalized nutrition is projected to intensify and manufacturers can expect a rise in product sales. Lucrative segments for the future are anticipated to be sports nutrition, infant formulas, and clinical nutrition.

The growth in the sector is forecast to be led by technological progress in extraction methods and enzymatic processes. This progress is projected to be instrumental in the wider availability of protein hydrolysates, thus meeting the rising global demand.

A rising focus on hypoallergenic protein hydrolysates is anticipated to address concerns regarding allergies and intolerances. Subsequently, continuous improvements in enzymatic hydrolysis techniques are expected to result in cleaner and more efficient protein hydrolysate production.

Nandini Roy Choudhury

Principal Consultant

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Country-wise Insights

The table below shows the estimated growth projection of the top nations. China and the United States are set to emerge as lucrative markets for manufacturers, recording CAGRs of 8.4% and 8.1%, respectively, through 2034.

The section below displays the predicted protein hydrolysate market revenue in leading countries. The United States and China will remain the top consumers, generating revenues worth US$ 600.9 million and US$ 105.4 million, respectively, in 2034.

Soaring Demand for Personalized Nutrition Raising Product Sales in United States

The sales of protein hydrolysate ingredients in the United States are rising rapidly due to rising consumer preference for personalized nutrition. A string of factors like rising health consciousness, and increasing consumer base for tailored dietary solutions are positively influencing the demand for protein hydrolysates across myriad applications.

The protein hydrolysate ingredients have multiple sources like plants, milk, and meat, and sit well with the varied preferences of the American consumer base. Additionally, advances in extraction methods and the development of hypoallergenic formulations address advanced health concerns, further amplifying market growth.

With applications spanning sports nutrition, infant formulas, and clinical nutrition, the United States stands at the forefront of protein hydrolysate consumption. As per the latest analysis, demand for protein hydrolysate ingredients in the nation is set to rise at 8.1% CAGR, with total market valuation reaching US$ 600.9 million by 2034.

Clean Label and Sustainable Trends in Germany Fueling Demand

Germany’s protein hydrolysate ingredient market is experiencing a steady CAGR of 4.6%, and the trend is set to persist through 2034. This can be attributed to escalating awareness of the pivotal role of protein in optimal nutrition.

The regional market is driven by shifting preferences for sustainable and clean-label products. Likewise, the increasing popularity of plant-based diets and surging interest in functional foods is expected to lead to climbing protein hydrolysate ingredient sales.

German customers typically focus on quality and have discerning taste, due to which protein hydrolysate players are observing consistent product sales. They are expanding into varied applications like functional foods and sports nutrition due to consumer acceptance. This upward trajectory is indicative of the dynamic shift toward nutritionally enriched choices, positioning protein hydrolysates as a cornerstone in Germany's evolving dietary landscape.

Escalating Demand for Functional Foods Triggering Sales in China

China is emerging as a highly remunerative market for protein hydrolysates globally. The latest analysis estimates China's protein hydrolysate ingredient industry to thrive at 8.4% CAGR, totaling revenue worth US$ 105.4 million by 2034.

The growing demand for functional foods and a health-conscious consumer base are propelling growth of protein hydrolysate ingredient market in China. Chinese consumers, increasingly focused on holistic well-being, are embracing protein hydrolysates derived from diverse sources, including plants and meat.

The market growth is further amplified by the integration of protein hydrolysates into traditional Chinese medicine and a burgeoning sports nutrition sector. With a shift towards cleaner labels and sustainable practices, manufacturers are well-positioned to capitalize on the immense market potential.

As China solidifies its position as a global nutritional powerhouse, protein hydrolysates stand at the forefront, reflecting a harmonious blend of tradition and modern nutritional preferences. Hence, a robust CAGR has been predicted for China market through 2034.

Category-wise Insights

An in-depth understanding of top segments is necessary for protein hydrolysate ingredient manufacturers to stay relevant in the market and improve their success chances. For this purpose, FMI’s updated version sheds some light on leading categories in the section below.

Milk-based protein hydrolysate ingredients will remain high in demand, contributing a revenue share of 62.2% by the end of the forecast period. Based on form, powdered ingredients are becoming widely used, accounting for a prominent share of 97.2% in 2034. By end-use, the sports nutrition category will hold a market share of 33% in 2034.

Milk-based Protein Hydrolysate Remains Highly Sought-after Type

As per the latest analysis, the milk segment is forecast to thrive at 7.3% CAGR, generating revenue worth US$ 867.3 million by 2034. This can be attributed to the widespread application versatility and nutritional significance of milk-based protein hydrolysate.

The growth in this segment is increasing as people wish to benefit from the high protein content and varied amino acids present in the milk. These benefits of milk facilitate multiple physiological functions. This ingredient type is used across end uses like clinical nutrition, infant formulas, and sports nutrition. Thus, reflecting its adaptability across diverse age groups and health requirements. Further, advances in enzymatic processes ensure efficient extraction and yield of high-quality milk protein hydrolysates.

Protein Hydrolysate Powder Becoming Widely Consumed Form

The demand for powdered protein hydrolysate ingredients is rapidly increasing, exhibiting a CAGR of 7.4% through the forecast period. This sector is predicted to reach USD 1357.0 million by 2034. This segment is dominating the form category due to its convenience, versatility, and ease of use across various food and beverage products. The powdered protein hydrolysates provide longer shelf life and stability and are appropriate for applications like infant formulas, clinical nutrition, and sports nutrition.

The adaptability of powder forms enables manufacturers to create easily consumable and precisely measured products. This aligns with the growing trend of on-the-go and portion-controlled consumption. The powder segment also responds effectively to consumer preferences for cleaner labels. This is because it often involves minimal processing and serves as a concentrated source of bioavailable protein.

The powdered form enhances the market's appeal across a broad spectrum of dietary needs, facilitating the integration of protein hydrolysates into a diverse array of products. Thus, it will retain its dominance in the market through 2034.

Protein Hydrolysate Ingredient Usage Remains High in Sports Nutrition

The sports nutrition players continue to significantly use protein hydrolysate ingredients to develop their formulas. The sports nutrition segment is projected to increase at a 7.7% CAGR over the forecast period. This segment is anticipated to reach USD 461.6 million in 2034.

This segment is expanding due to the continuous consumer demand for diets that elevate performance and productivity. Further, many gymgoers are seeking formulas that rapidly improve their protein absorption, which positively impacts the segment.

Since protein hydrolysates carry ample acid content and are quick to digest, market players are developing solutions suitable for target groups like athletes and fitness enthusiasts. This is because this consumer group is dedicated to investing in products that promote optimal muscle recovery and growth.

Since fitness culture is continuously gaining traction, the sports nutrition segment is expected to maintain its dominance in the market. Over the forecast period, the segment share is expected to come around 33% by 2034.

Competitive Landscape

The top players in the industry include FrieslandCampina, Arla Foods Ingredients, and Kerry Group. They are focusing on creating new solutions with improved nutritional profiles and functionality. This is going to make it easy for players to meet specific dietary needs like lactose intolerance and veganism to meet the growing demand for protein-rich ingredients.

Many industry players are investing in advanced enzymatic processes and exploring diverse protein sources to stay at the market forefront. Additionally, they are using strategies like acquisitions, partnerships, collaborations, and distribution agreements to increase their revenue and improve their global footprint.

Recent Updates

• Optimum Nutrition, an Illinois-based company, launched Clear Protein in October 2023, to meet the rising consumer demand for high-quality nutritional products.
• Kerry Group, an Ireland-based food and beverage player, announced in 2022, that it is coming into a merger with a biotech company named c-Lecta, which specializes in protein hydrolysates. This collaboration is projected to improve Kerry’s position in the protein hydrolysate ingredient market.

Key Players in Global Protein Hydrolysate Ingredient Market Report

• Arla Food Ingredients
• Costantino & C. spa
• Armor Proteins
• Kerry Group Plc
• Glanbia Plc
• Carbery Group Limited
• Davisco Foods International, Inc.
• Hilmar Ingredients
• Friesl and Campina N.V.
• Tate & Lyle plc
• Abbott Laboratories
• Agropur Inc.
• Danone S.A.
• Fonterra Co-operative Group Limited

Protein Hydrolysate Ingredient Market Segmentation

By Ingredient Type:

• Milk
• Whey
• Casein
• Plant
• Meat

By Form:

• Powder
• Liquid

By End-use:

• Infant Formula
• Clinical Nutrition
• Sports Nutrition
• Bakery & Confectionery
• Sauces & Spreads
• Others

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia
• Oceania
• Middle East & Africa