“According to a new report published by Introspective Market Research, Protein Hydrolysate Market by Source, Form, and Application, The Global Protein Hydrolysate Market Size Was Valued at USD 1.1 Billion in 2023 and is Projected to Reach USD 1.6 Billion by 2032, Growing at a CAGR of 5.2% From 2024–2032.”

The Protein Hydrolysate Market is witnessing steady growth due to increasing demand for easily digestible and high-nutritional protein ingredients across food & beverages, sports nutrition, infant nutrition, and pharmaceutical industries. Protein hydrolysates are proteins that have been partially or fully hydrolyzed into peptides and amino acids, offering faster absorption, improved solubility, and reduced allergenicity compared to intact proteins.

These ingredients are widely used in nutritional supplements, clinical nutrition products, functional foods, and animal feed formulations. The rising consumer focus on health, fitness, muscle recovery, and preventive healthcare has significantly increased the adoption of protein hydrolysates in sports and medical nutrition.

Additionally, advancements in enzymatic hydrolysis technologies and growing awareness of personalized nutrition are further supporting market expansion. With increasing applications across diverse end-use industries and rising demand for clean-label and functional ingredients, the protein hydrolysate market is expected to maintain consistent growth throughout the forecast period.

Market Segmentation

The Protein Hydrolysate Market is segmented into Source, Form, and Application.
By Source, the market is categorized into Animal Protein, Plant Protein, and Microbial Protein.
By Form, the market is categorized into Powder and Liquid.
By Application, the market is categorized into Food & Beverages, Sports Nutrition, Infant Formula, Clinical Nutrition, Animal Feed, and Pharmaceuticals.

Growth Driver

One of the primary growth drivers of the protein hydrolysate market is the increasing demand for sports and clinical nutrition products worldwide. Rising health consciousness, growing participation in fitness activities, and increasing prevalence of lifestyle-related disorders have fueled demand for high-quality protein supplements. Protein hydrolysates offer faster digestion and absorption, making them ideal for muscle recovery, medical nutrition, and infant formulations. Additionally, the growing aging population and rising cases of malnutrition are driving demand for easily digestible protein sources, further accelerating market growth.

Market Opportunity

A significant market opportunity lies in the expanding demand for plant-based protein hydrolysates. With the rise of veganism, lactose intolerance, and sustainable food preferences, manufacturers are increasingly focusing on plant-derived protein hydrolysates such as soy, pea, and wheat proteins. These alternatives offer similar functional benefits while aligning with clean-label and environmental sustainability trends. Technological advancements in hydrolysis processes are also enabling improved taste, solubility, and nutritional profiles, creating new growth avenues for manufacturers across emerging economies.

Detailed Segmentation

Protein Hydrolysate Market, Segmentation

The Protein Hydrolysate Market is segmented on the basis of Source, Form, and Application.

Source

The Source segment is further classified into Animal Protein, Plant Protein, and Microbial Protein. Among these, the Animal Protein sub-segment accounted for the highest market share in 2023. Animal-based protein hydrolysates, such as whey and casein, are widely used due to their superior amino acid profile, high bioavailability, and extensive application in sports and clinical nutrition. Strong demand from the fitness industry and established production infrastructure continue to support this segment’s dominance.

Form

The Form segment is further classified into Powder and Liquid. Among these, the Powder sub-segment accounted for the highest market share in 2023. Powdered protein hydrolysates offer longer shelf life, ease of transportation, and wide application in supplements, infant formula, and functional foods. Their versatility and cost-effectiveness make them the preferred choice among manufacturers and end-users across multiple industries.

Some of The Leading/Active Market Players Are-

• Archer Daniels Midland Company (U.S.)
• Kerry Group plc (Ireland)
• Cargill, Incorporated (U.S.)
• BASF SE (Germany)
• Koninklijke DSM N.V. (Netherlands)
• Ingredion Incorporated (U.S.)
• Glanbia plc (Ireland)
• Tate & Lyle PLC (U.K.)
• Arla Foods Ingredients Group (Denmark)
• Roquette Frères (France)
• FrieslandCampina Ingredients (Netherlands)
• Ajinomoto Co., Inc. (Japan)
• Darling Ingredients Inc. (U.S.)
• AMCO Proteins (U.S.)
• and other active players.

Key Industry Developments

In March 2024, a leading global ingredient manufacturer expanded its protein hydrolysate production capacity to meet rising demand from sports and clinical nutrition sectors.
This expansion aims to strengthen supply chains, improve product availability, and support the growing demand for high-performance protein ingredients across North America and Europe.

In July 2023, a major food ingredient company launched a new plant-based protein hydrolysate solution targeting clean-label and vegan nutrition products.
The launch focuses on improved taste, digestibility, and functional performance, catering to the increasing demand for sustainable and allergen-free protein alternatives.

Key Findings of the Study

• Animal-based protein hydrolysates dominated the market in 2023
• Powder form remains the most preferred format globally
• North America held a significant market share due to strong sports nutrition demand
• Rising health awareness and clinical nutrition needs are key growth drivers

More Info:- https://introspectivemarketresearch.com/reports/protein-hydrolysate-market/

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