Protein Hydrolysates Market by Product Type (Milk, Meats, Marine, Plant, Egg, Yeast), Application (Infant, Sports, Clinical Nutrition, Weight Management, Dietary Supplements, Animal Feed, FnB), Source, Process, Form and Region - Global Forecast to 2028
[298 Pages Report] The global protein hydrolysates market is on a trajectory of significant expansion, with an estimated value projected to reach USD 4.3 billion by 2028 from the 2023 valuation of USD 3.3 billion, displaying a promising Compound Annual Growth Rate (CAGR) of 5.6%. Protein hydrolysates are experiencing a surge in popularity across diverse applications due to their versatile benefits. These enzymatically or chemically processed protein fragments offer improved solubility and bioavailability, making them ideal for use in the food and beverage industry. In the food sector, protein hydrolysates enhance flavor, texture, and nutritional profiles, catering to the growing demand for functional and health-focused products. In recent times, there has been a protein hydrolysates consistent uptrend in the demand for nutritive protein products, spurred by various factors, and there are no indications of this trend slowing down.
Global rises in income levels have prompted consumers to seek higher-quality nutritive products, driving the demand for premium and specialty options. Shifting consumer preferences towards healthier, protein-rich diets have spurred interest in protein hydrolysates, including plant-based hydrolysates and meat based hydrolysates.
The evolving landscape of this market is marked by a broad array of choices, and the industry's future appears promising, with ongoing innovations and increasing consumer awareness of health and environmental concerns expected to play pivotal roles in shaping its trajectory.
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Market Dynamics
Drivers: Rising Demand for health & fitness and sport nutrition’s
The growing interest in sports and fitness has led to a significant rise in the demand for protein supplements and hydrolysates within the sports nutrition industry. As people increasingly participate in physical activities, there is a heightened awareness of the crucial role proper nutrition plays in supporting performance and recovery. Protein hydrolysates, valued for their quick absorption and easy digestion, have become a preferred choice for athletes and fitness enthusiasts seeking efficient post-exercise recovery.
A compelling illustration of the increasing demand for protein hydrolysates is evident in the efforts of Arla Foods Ingredients, a Denmark-based company. In October 2022, the company unveiled an innovative functional drink specifically crafted for sports nutrition needs. This ready-to-drink (RTD) sports nutrition solution incorporates Lacprodan SP-9213, a whey protein isolate recognized for its ability to maintain functionality when combined with electrolytes. This groundbreaking beverage addresses two vital aspects of sports nutrition: replenishing lost fluids with electrolytes and promoting muscle recovery through protein intake.
The Arla Foods Ingredients initiative serves as a prime example of the industry's response to the growing demand for protein hydrolysates. By introducing a specialized sports nutrition solution that blends essential protein components with electrolytes, the company not only meets the increasing market demand but also aligns with the evolving preferences of consumers engaged in sports and fitness activities. This trend signifies a broader shift toward specialized and scientifically formulated products within the sports nutrition sector, as consumers become more discerning about the nutritional content of their dietary supplements to optimize athletic performance and recovery.
Restraints:High manufacturing and research & development cost
The protein hydrolysates industry is confronted with a significant obstacle arising from the considerable expenses associated with production, impacting various facets of the manufacturing process. A primary contributor to these elevated costs is the procurement of raw materials, as protein hydrolysates often rely on high-quality proteins, and the cost of obtaining these premium inputs significantly influences the overall production budget. Furthermore, the production process involves specialized methods such as enzymatic hydrolysis, necessitating specific equipment and enzymes, thereby contributing further to production costs. The consistent quality of protein hydrolysates requires stringent quality control measures, including testing, monitoring, and adherence to industry regulations, adding to the overall financial burden.
Energy-intensive procedures, such as heating, cooling, and drying, contribute to substantial energy consumption, amplifying operational costs. Skilled labor is indispensable for maintaining the production of high-quality hydrolysates, and the recruitment and retention of qualified personnel, especially those with specialized knowledge, constitutes an additional cost factor. Sustaining competitiveness necessitates continuous investments in research, technology, and innovation to enhance production efficiency and align with industry trends. Achieving economies of scale proves to be a challenge in the protein hydrolysates market, particularly for smaller producers, leading to higher costs per unit and hindering overall cost reduction through bulk production. Additionally, intense market competition limits the ability of producers to pass on increased costs to consumers, placing pressure on profit margins and impeding the growth potential of companies grappling with high production costs. Addressing these challenges is crucial for the long-term sustainability and success of players in the protein hydrolysates market.
Opportunities: Rising growth of protein hydrolysates in the cosmetics
The incorporation of protein hydrolysates into the cosmetics and personal care industry presents a promising opportunity driven by increasing consumer interest in innovative beauty and wellness products. Tailored protein hydrolysates offer a versatile approach, improving moisture retention in skincare products by utilizing optimal molecular weights and customized formulations that cater to various skin types. Furthermore, the anti-aging and hair-strengthening properties of these personalized hydrolysates contribute to the creation of targeted solutions, facilitating the development of personalized anti-aging skincare items and specialized haircare formulations addressing concerns like breakage and damage.
The adaptability of these personalized hydrolysates with different cosmetic formulations ensures seamless integration into products such as creams, serums, shampoos, and conditioners, showcasing versatility in application. Their natural and sustainable characteristics align with shifting consumer preferences, placing emphasis on eco-friendly alternatives. An exemplar of this trend is the introduction of SESAQUA by Seiwa Kasei Co., Ltd. in December 2022, a 100% plant-derived skincare ingredient produced from upcycled sesame. This illustrates the potential for natural and sustainable innovations in the protein hydrolysates market. In essence, providing customized solutions not only sets companies apart in a competitive market but also addresses the growing demand for personalized and environmentally conscious beauty solutions..
Challenges: Disruptions in the supply chain
The protein hydrolysates market is currently confronting significant challenges due to disruptions in the supply chain and logistical issues. These hydrolysates, obtained through the enzymatic breakdown of proteins, play a crucial role in various industries, including food and beverages, pharmaceuticals, cosmetics, and animal feed.
The industry is particularly susceptible to disruptions in the sourcing of raw materials, as events like climate change, geopolitical tensions, or disease outbreaks in livestock can impact the availability and cost of essential ingredients such as whey, soy, or collagen. The manufacturing processes are precisely timed, and any interruptions in the supply chain, whether related to ingredients or equipment, can lead to production delays, hampering the industry's ability to meet market demand.
Moreover, logistical challenges like transportation delays, rising freight costs, and restrictions on the movement of goods can hinder the prompt delivery of protein hydrolysate products. This can affect just-in-time manufacturing processes and result in financial losses. Extended transportation times may also give rise to concerns about quality control and shelf life, potentially compromising the integrity of the final product. Market demand fluctuations further complicate matters, catching manufacturers off guard and potentially causing excess inventory or shortages.
There is also a risk to regulatory compliance, as changes in suppliers or manufacturing processes may require adjustments to quality control measures, leading to additional delays and costs. In response, companies in the protein hydrolysates market must implement strategic measures such as diversifying their supplier base, investing in advanced inventory management systems, and enhancing overall agility to effectively navigate these challenges. Collaboration with key stakeholders in the supply chain and staying informed about global events affecting raw material availability are crucial components of a resilient and adaptive approach.
Market Ecosystem
Animal is one of the source that accounted for the highest market share in 2022.
The surge in demand for animal-based protein hydrolysates is driven by heightened consumer awareness of health and wellness, coupled with a growing preference for functional and nutritional ingredients. This trend is particularly evident in the sports and nutritional supplement industry, where protein hydrolysates offer a swift and efficient source of amino acids, promoting quicker absorption for enhanced muscle growth and recovery.
However, ethical and environmental concerns associated with animal sourcing have prompted a simultaneous rise in plant-based alternatives. As consumers increasingly adopt vegetarian and vegan lifestyles, the industry is responding with plant-based protein hydrolysates. The market for protein hydrolysates is evolving to meet diverse consumer preferences, addressing both the demand for animal-derived options in conventional markets and the growing interest in sustainable and cruelty-free alternatives.
Asia Pacific Is The Fastest-Growing Market For Protein Hydrplysates Among The Regions.
The Asia Pacific market offers significant business prospects for protein hydrolysates manufacturers, driven by the increasing emphasis on health awareness in the region. This heightened awareness has led to a surge in demand for protein based products, supported by a growing number of manufacturers entering the market and introducing new products. Factors such as sustainability concerns and a heightened focus on health practices are key drivers of this shift.
The rising trend of embracing new dietary preferences and health-conscious choices is propelling the protein hydrplysates market in Asia Pacific. The region hosts a substantial number of major players in the protein hydrolysates industry, and these companies are actively seeking opportunities to strengthen their market positions. Strategies employed by these manufacturers include product launches, expanding production capacities, and engaging in partnerships and acquisitions with other industry players to enhance their geographical presence and establish dominance in the Asia Pacific protein hydrolysates sector. For instance in December 2022, Azelis, a global specialty chemicals distributor, has expanded its presence in Asia by opening its first office in Dhaka, Bangladesh. This move is part of Azelis' organic growth strategy to strengthen its footprint across the South Asian continent.
Key Market Players
The key players in this market include Azelis Group (Belgium), Frieslandcompina (Netherlands), Tatua (New Zealand), Arla Foods amba (Denmark), ADM (US).
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Report Metric |
Details |
Market size estimation |
2023–2028 |
Base year considered |
2022 |
Forecast period considered |
2023–2028 |
Units considered |
Value (USD), Volume (Ton) |
Segments covered |
By Product Type, by Applications, by Sources, by Process, by Form, And Region |
Regions covered |
North America, Europe, Asia Pacific, South America, and RoW |
Companies studied |
|
This research report categorizes the protein hydrolysates market, based on product type, applications, source, process, form and region.
Target Audience
- Processed food products manufacturers
- Restaurants, Food services
- Clinical Applications
- Sports Nutrient Applications
Protein Hydrolysates Products Market:
By Product Type
-
milk protein hydrolysates
- Whey
- Casein
-
Meat protein Hydrolysates
- Bovine
- Swine
- Poultry
-
Marine Protein Hydrolysates
-
Fish
- Tuna
- Cod
- Salmon
- Other Fish
- Algae
-
Fish
- Egg protein Hydrolysates
-
plant Protein Hydrolysates
- Soy
- Wheat
- Other Plant Protein
- Yeast Protein Hydrolysates
By Application
- Infant Nutrition
- Clinical Nutrition
- Weight Management
- Sports Nutrition
- Dietary Supplements
- Animal Feed
- Food & Beverage
By Source
- Animals
- Plants
- Microbial
By Process
- Acid/Alkaline Hydrolysis
- Enzymatic Hydrolysis
By Form
- Liquid
- Dry
Recent Developments
- In November 2023, Azelis Group (Belgium) has entered into a distribution agreement with BENEO (Germany), a leading manufacturer of functional ingredients for the food, feed, and pharmaceutical industries, to expand its nutritional, clean, and responsible portfolio for Food and Nutrition in India and Bangladesh.
- In November 2023, Azelis, a leading innovation service provider in the specialty chemicals and food ingredients industry, has announced a new partnership with Soy Austria for the Central European food and nutrition market. The collaboration aims to provide innovative, environmentally friendly solutions to customers and the food industry.
- In May 2023, Azelis, a global innovation service provider in specialty chemicals and food ingredients, has announced the acquisition of Gillco Ingredients in the USA. This strategic move strengthens Azelis' presence in the life sciences sector, particularly in the US food and nutrition market.
Frequently Asked Questions (FAQ):
What is the current size of the protein hydrolysates market?
The protein hydrolysates market is estimated at USD 3.3 Billion in 2023 and is projected to reach USD 4.3 Billion by 2028, at a CAGR of 5.6% from 2023 to 2028.
Which are the key players in the market, and how intense is the competition?
The key players in this market include ADM (US), Tatua (New Zealand), Azelis Group (Belgium), Armor Protéines (US), FrieslandCampina (Netherlands), Arla Foods amba (Denmark), Hofseth BioCare ASA (Norway), Kerry Group PLC (Ireland).
The protein hydrolysates market witnesses increased scope for growth. The market is seeing an increase in the number of mergers and acquisitions and new product launches. Moreover, the companies involved in the production of protein hydrolysates are investing a considerable proportion of their revenues in research and development activities.
Which region is projected to account for the largest share of the protein hydrolysates market?
The market is expected to dominate during the forecast period. The increasing interest in sports and fitness activities is boosting the demand for protein supplements, and hydrolysates are favored for their quick delivery of amino acids to support muscle recovery. As a result, manufacturers and suppliers in the protein hydrolysates are strategically positioning themselves to cater to this burgeoning market by introducing diverse product offerings and expanding distribution channels across the North America.
What kind of information is provided in the company profile section?
The company profiles mentioned above offer valuable information such as a comprehensive business overview, including details on the company's various business segments, financial performance, geographical reach, revenue composition, and the breakdown of their business revenue. Additionally, these profiles offer insights into the company's product offerings, significant milestones, and expert analyst perspectives to further explain the company's potential.
What are the factors driving the protein hydrolysates market?
The protein hydrolysates market is propelled by the rising demand for nutritional supplements, especially among fitness enthusiasts and athletes. These hydrolyzed proteins offer faster absorption and improved bioavailability, making them ideal for muscle recovery. Additionally, the growing awareness of the health benefits associated with protein consumption, such as weight management and enhanced immune function, further fuels market growth. Increasing research and development efforts to innovate and diversify protein hydrolysate products also contribute to the market's expansion. .
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The study involved five major segments in estimating the current size of the protein hydrolysates market. Exhaustive secondary research was done to collect information on the market, peer, and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
This research study involved the extensive use of secondary sources—directories and databases such as Bloomberg Businessweek and Factiva—to identify and collect information useful for a technical, market-oriented, and commercial study of the protein hydrolysates market.
In the secondary research process, various sources such as annual reports, press releases & investor presentations of companies, white papers, food journals, certified publications, articles from recognized authors, directories, and databases, were referred to identify and collect information.
Secondary research was mainly used to obtain key information about the industry’s supply chain, the total pool of key players, and market classification and segmentation as per the industry trends to the bottom-most level, regional markets, and key developments from both market- and technology-oriented perspectives.
Primary Research
Extensive primary research was conducted after obtaining information regarding the protein hydrolysates market scenario through secondary research. Several primary interviews were conducted with market experts from both the demand and supply sides across major countries of North America, Europe, Asia Pacific, South America, and the Rest of the World. Primary data was collected through questionnaires, emails, and telephonic interviews. The primary sources from the supply side included various industry experts, such as Chief X Officers (CXOs), Vice Presidents (VPs), Directors, from business development, marketing, research, and development teams, and related key executives from distributors, and key opinion leaders. Primary interviews were conducted to gather insights such as market statistics, data on revenue collected from the products and services, market breakdowns, market size estimations, market forecasting, and data triangulation. Primary research also helped in understanding the various trends related to protein hydrolysates, product type, application, source, process, form and region. Stakeholders from the demand side, such as processed food and functional food products manufacturers who manufacture the protein products were interviewed to understand the buyer’s perspective on the suppliers, products, and their current usage of hydrolyzed protein and the outlook of their business which will affect the overall market.
COMPANY NAME |
designation |
Cargill Incorporated (US) |
General Manager |
ADM (US) |
Sales Manager |
Arla Foods amba (Denmark) |
Manager |
Azelis Group (Belgium) |
Head of processing department |
Tatua (New Zealand) |
Marketing Manager |
FrieslandCampina (Netherlands) |
Sales Executive |
Hofseth BioCare ASA (Norway) |
Head - Research & Development |
Kerry Group PLC (Ireland) |
Manager |
Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the total size of the protein hydrolysates market. These approaches were also used extensively to determine the size of various subsegments in the market. The research methodology used to estimate the market size includes the following details:
- The key players in the industry and the overall markets were identified through extensive secondary research.
- All shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain final quantitative and qualitative data.
- The research included the study of reports, reviews, and newsletters of top market players, along with extensive interviews for opinions from leaders, such as CEOs, directors, and marketing executives.
Global Protein Hydrolysates Market: Bottom-Up Approach
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Global Protein Hydrolysates Market: Top-Down Approach
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the total market was split into several segments and subsegments. Data triangulation and market breakdown procedures were employed to estimate the protein hydrolysates market and arrive at the exact statistics for all segments and subsegments. The data was triangulated by studying numerous factors and trends from the demand and supply sides. The market size was also validated using both the top-down and bottom-up approaches.
Market Definition
Protein hydrolysates are a mixture of amino acids obtained by the hydrolysis process from various sources, namely, animals, plants, and microbes. They are primarily used in nutritional products, including infant nutrition, weight management, and animal feed.
In the hydrolysis process, protein hydrolysates are broken down into smaller fragments called peptides, which are easily absorbed by the body. They are hence also known as a pre-digested form of protein.
Apart from protein, there are several instant protein hydrolysates which also contain vitamins and minerals. Protein hydrolysates are also used as a flavor enhancing agent in food and feed.
Definition of protein by regulatory bodies or associations:
According to the FDA, “Protein is important for growth and development, and is also one of three macronutrients in food that provide calories, or "energy" for the body.”
According to the FAO, “Proteins are complex, organic compounds composed of many amino acids linked together through peptide bonds and cross-linked between chains by sulfhydryl bonds, hydrogen bonds, and van der Waals forces. There is a greater diversity of chemical composition in proteins than in any other group of biologically active compounds. The proteins in various animal and plant cells confer on these tissues their biological specificity.”
Definition of hydrolyzed foods by regulatory bodies or associations:
- According to the FDA, “A hydrolyzed food is one in which a food’s chemical components—such as proteins—are broken into smaller organic compounds by reaction with water. These reactions are often accelerated by enzymes. Examples of hydrolyzed foods include hydrolyzed soy protein and hydrolyzed wheat protein.
Key Stakeholders
- Protein hydrolysates manufacturers
- Protein hydrolysates importers and exporters
- Protein hydrolysates traders, distributors, and suppliers
- Raw material producers, suppliers, processors, and grain distillers
- Food additive manufacturers, importers, and exporters
- Food associations of several countries
- Research organizations and associations such as Food and Agriculture Organization (FAO), Food and Drug Administration (FDA), European Animal Protein Association (EAPA), Food Standards Australia New Zealand (FSANZ), European Food Safety Authority (EFSA), and United States Department of Agriculture (USDA)
-
Regulatory bodies such as
- US Food and Drug Administration (FDA)
- European Commission (EC)
- United States Department of Agriculture (USDA)
- Commercial research & development (R&D) institutions and financial institutions
- Food and Agriculture Organization (FAO)
- Intermediary suppliers such as wholesalers and dealers
Report Objectives
- To determine and project the size of the protein hydrolysates market with respect to the product type, applications, sources, process, form, and region in terms of value and volume over five years, ranging from 2023 to 2028.
- To identify the attractive opportunities in the market by determining the largest and fastest-growing segments across regions
- To provide detailed information about the key factors influencing market growth (drivers, restraints, opportunities, and challenges)
- To analyze the opportunities in the market for stakeholders and provide details of the competitive landscape for market leaders.
- To analyze the micro-markets with respect to individual growth trends, prospects, and their contribution to the total market.
- To identify and profile the key players in the protein hydrolysates market.
- To understand the competitive landscape and identify the major growth strategies adopted by players across the key regions.
- To provide insights on key product innovations and investments in the protein hydrolysates market.
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to company-specific scientific needs.
The following customization options are available for the report:
Product Analysis
- Product Matrix, which gives a detailed comparison of the product portfolio of each company.
Geographic Analysis
With the given market data, MarketsandMarkets offers customizations according to company-specific scientific needs.
- Further breakdown of the European protein hydrolysates market into its key countries.
- Further breakdown of the Rest of Asia Pacific protein hydrolysates market into its key countries.
Company Information
- Detailed analyses and profiling of additional market players (up to five)
Growth opportunities and latent adjacency in Protein Hydrolysates Market