Protein Hydrolysates Market 2025: The Critical Role of Increasing Consumer Preference For Plant-Based Diets Propels Market Growth Due To Rising Health Awareness And Sustainability Concerns Driver in Industry Evolution

How large is the protein hydrolysates market, and what is its growth trajectory?

The protein hydrolysates market size has grown rapidly in recent years. It will grow from $4.24 billion in 2024 to $4.67 billion in 2025 at a compound annual growth rate (CAGR) of 10.1%. The growth in the historic period can be attributed to growing demand for nutritional supplements, rising infant nutrition needs, functional food popularity, advancements in hydrolysis technology, and the sports nutrition boom.

The protein hydrolysates market size is expected to see strong growth in the next few years. It will grow to $6.75 billion in 2029 at a compound annual growth rate (CAGR) of 9.7%. The growth in the forecast period can be attributed to a growing focus on digestive health, rising prevalence of food allergies, expansion in plant-based protein hydrolysates, a growing geriatric population, and sustainability trends. Major trends in the forecast period include a shift to plant-based protein hydrolysates, clean-label and organic products, technological advancements, incorporation in novel applications, regional growth in Asia-Pacific, and precision nutrition.

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What are the key forces behind the protein hydrolysates market's growth in recent years?
Increasing consumer preference for plant-based diets is expected to propel the growth of the protein hydrolysates market going forward. The growing consumer preference for plant-based diets is driven by increased health awareness, as people seek to prevent lifestyle-related diseases, and environmental concerns, with many choosing sustainable food options to mitigate the impact of animal agriculture on climate change. Protein hydrolysates are highly useful for the increased consumer preference for plant-based diets, as they provide easily digestible, high-quality protein alternatives derived from plant sources, enabling food manufacturers to create nutritionally balanced and appealing plant-based products such as meat substitutes, dairy alternatives, and functional foods. For instance, in May 2024, according to a report published by The Plant-Based Foods Association, a US-based trade association representing the plant-based food industry, plant-based foods accounted for $8.1 billion in U.S. retail sales in 2023, with an increase from $7.5 billion in 2021. Therefore, increasing consumer preference for plant-based diets will fuel the growth of the protein hydrolysates market.

What are the major segments of the protein hydrolysates market?
The protein hydrolysates market covered in this report is segmented –
1) By Type: Animal Protein Hydrolysates, Plant Protein Hydrolysates
2) By Form: Powder, Liquid
3) By Process: Acid And Alkaline Hydrolysis, Enzymatic Hydrolysis
4) By Application: Dietary Supplements, Infant Formula, Sports Nutrition, Clinical Nutrition, Food And Beverages

Subsegments:
1) By Animal Protein Hydrolysates: Milk Protein Hydrolysates, Collagen Protein Hydrolysates, Meat Protein Hydrolysates, Fish Protein Hydrolysates, Egg Protein Hydrolysates
2) By Plant Protein Hydrolysates: Soy Protein Hydrolysates, Wheat Protein Hydrolysates, Rice Protein Hydrolysates, Pea Protein Hydrolysates, Corn Protein Hydrolysates

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Which companies dominate the protein hydrolysates market?
Major companies operating in the protein hydrolysates market are Cargill Incorporated, Nestlé S.A., Archer Daniels Midland Company (ADM), BASF SE, Abbott Laboratories, Danone S.A., Merck KGaA, Arla Foods Ingredients, Reckitt Benckiser, Royal FrieslandCampina N.V, Fonterra Co-operative Group, Ajinomoto Co. Inc., Kerry Group plc, Agropur Cooperative, Savencia Fromage & Dairy, Darling Ingredients, Glanbia plc, Roquette Frères, Symrise AG, Azelis Holding S.A., Hilmar Cheese Company, Novozymes SA, Tatua Cooperative Dairy Company, Bioiberica S.A.U., Nutricia Advanced Medical Nutrition, AOAC INTERNATIONAL, A. Costantino & C. S.p.A.

What major trends will shape the protein hydrolysates market during the forecast period?
Major companies operating in the protein hydrolysates market are focusing on advancements in protein hydrolysis technology, such as single-source whey protein hydrolysate, to enhance product efficacy, improve digestibility, and meet the growing demand for high-quality, easily absorbed protein supplements. Single-source whey protein hydrolysate is a highly processed form of whey protein that has been broken down into smaller peptides for faster absorption and improved digestibility. For instance, in November 2024, Arla Foods., a Denmark-based producer of dairy products, launched a new whey protein hydrolysate called Lacprodan DI-3092, aimed at enhancing peptide-based medical nutrition. This innovative ingredient delivers 10 grams of high-quality protein per 100 ml, significantly exceeding the typical 6-7 grams found in similar products. Designed to minimize bitterness, it addresses a common challenge in medical nutrition, thereby improving patient compliance. The hydrolysate features a high degree of hydrolysis (16-22%) and low lactose content, making it suitable for individuals with gastrointestinal issues.

What are the key regional dynamics of the protein hydrolysates market, and which region leads in market share?
North America was the largest region in the protein hydrolysates market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the protein hydrolysates market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

What Does The Protein Hydrolysates Market Report 2025 Offer?
The protein hydrolysates market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.

Protein hydrolysates refer to mixtures of amino acids, peptides, and proteins that are obtained by breaking down larger protein molecules through hydrolysis. Hydrolysis involves the use of enzymes, acids, or other chemical methods to cleave the peptide bonds in proteins, resulting in smaller, more easily digestible components.

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