Global Protein Hydrolysate Ingredients Market to Exhibit a CAGR of 8.5% by 2031

Introduction

The high purity, bioavailability, and digestibility of protein hydrolysate, as compared to other forms of protein, i.e., isolates and concentrates, are among the essential characteristics increasing their demand. Seriosity-minded consumers worldwide have a favorable opinion of protein hydrolysates and a solid understanding of their benefits. This is increasing the popularity of protein hydrolysate additives.

The versatility of protein hydrolysates has led to their expanded use in end-user industries. In addition, the increasing demand for high-protein products has increased the use of protein hydrolysates. Positive application prospects in infant, sports, and therapeutic nutrition have boosted the need for protein hydrolysate ingredients.

Market Dynamics

Increase in Demand for Plant Protein-Based Products to Drive the Global Protein Hydrolysate Ingredients Market

Companies are targeting consumers by creating innovative products with organoleptic properties similar to real meat using modified technologies. These ingredients contain a combination of protein hydrolysate to achieve the desired flavor and texture. New compositional research and a modified high-technological process contribute to the expansion of the market for plant-based protein hydrolysate.

In addition, wheat proteins are the most widely used plant-based proteins in Europe, with hydrolyzed and textured wheat protein holding approximately 20% of the market share. Environmental/sustainability concerns and improved animal treatment are among the factors driving demand. As most athletes and active consumers seek alternative products while reducing their need for animal protein, pea, rice, hemp, and soy-based products have gained significance in recent years. In addition, several novel proteins, such as sacha inchi, quinoa, and water lentil, are showing up more frequently in protein blends, despite their ineffectiveness in promoting muscle growth. Soy protein is the most recognized plant-based protein source in the United States, accounting for 31%, followed by rice protein (23%), hemp protein (18%), pea protein (13%), and others. Consequently, the increasing preference for plant-based diets will drive the market for protein hydrolysate products in the coming years.

Escalating Usage of Clean-Label Ingredients to Provide Opportunities for the Global Protein Hydrolysate Ingredients Market

Consumer demand for food ingredients with clean labels is rising rapidly worldwide. They are highly concerned about the long-term effects of the ingredients they consume, including nutrition content and its effect on health, environmental sustainability, sourcing, and social responsibility. This has increased the demand for clean-label ingredients.

According to Cargill, 82% of global consumers believe it is essential to recognize the ingredients in the foods and beverages they purchase, and 81% believe a short and simple ingredient list is essential. The market is experiencing a surge in products with a slimming, clean-label, or on-the-go snack focus, such as sports protein bars and ready-to-drink sports protein. Consequently, manufacturers are employing a variety of strategies to penetrate this market. In addition, millennials and generation Z have a growing awareness of clean-label products; as a result, more and more manufacturers are positioning their products as clean-label ingredients, driving market growth.

Regional Insights

By region, the global protein hydrolysate ingredients market Is bifurcated into North America, Europe, Asia-Pacific, South America, Middle East & Africa. 

North America accounted for the largest market share and is estimated to grow at a CAGR of 6.9% during the forecast period. Consumers in the United States have an ongoing demand for palatable beverages with the necessary nutritional benefits. The increased adoption of plant-based protein foods and beverages due to consumer awareness of the benefits of a plant-based diet is among the prominent factors driving the growth of plant-based protein beverages nationwide. In recent years, plant protein hydrolysates derived from soy, lentils, and beans have gained popularity, despite the continued dominance of animal protein among the country's population. This is a result of the high penetration of vegan, protein-based products on the retail market and the increased consumer awareness of the health benefits and weight management associated with these products. Confirmation by the United States Department of Agriculture (USDA) that soy protein reduces the risk of heart disease has significantly boosted the US market. It has increased the demand for additional vegan proteins.

Europe is the second largest region. It is anticipated to reach a predicted value of USD 2600 million in 2031, recording a CAGR of 8%. Due to the increased demand from fitness-conscious populations, Germany is one of the fastest-growing markets in Europe for protein components. In Germany, younger generations have shown more interest in high-quality protein components. This has ultimately contributed to the increase of protein isolates and hydrolysates sales. For instance, FrieslandCampina introduced its most recent invention in whey protein hydrolysates in 2017. It is anticipated that "Nutri Whey Hydro" would strengthen the dairy protein portfolio of hydrolyzed and intact proteins designed for lifestyle nutrition and performance. In addition, the increasing demand for plant-based sources such as soy protein hydrolysate can be ascribed to its numerous health benefits, which include a reduction in the risk of obesity. It also wonderfully coincides with veganism. Germany is one of the countries with the most significant percentage of vegans worldwide. In 2016, Germany introduced more vegan food products than any other nation; around 18% of all vegan products introduced globally were introduced in Germany. Thus, the market represents the high rise of plant-based and dairy-based hydrolyzed protein sources, primarily driven by customer preference for fitness and environmentally friendly sports nutrition sources.

Asia-Pacific is the third largest region. In 2019, the Chinese consumed over CNY 115 billion worth of vitamins and dietary supplements, according to SEO China Agency, due to rising disposable incomes and rising health consciousness among the Chinese middle class. Consequently, the expansion of the market for protein hydrolysate ingredients in the Chinese dietary supplements industry is anticipated to drive market expansion over the forecast period. The increasing demand for sports nutrition products containing protein hydrolysate is supported by government policy; the National Fitness Policy of the State Council from 2016-2020 encouraged Chinese citizens to engage in physical activity and sports to promote public health. Consumers in China are increasingly concerned with their health and physical appearance. Middle-class millennials, who view a healthy lifestyle as a sign of success, have been mainly influenced by the fitness boom, driving the demand for high-protein diets and protein supplements, such as protein hydrolysate.

Key Highlights

• The global protein hydrolysate ingredients market was worth USD 4544 million in 2022. It is anticipated to reach an expected value of USD 9470 million in 2031, recording a CAGR of 8.5% during the forecast period (2022-2031).
• By type, the global protein hydrolysate ingredients market is segmented into milk protein hydrolysate (whey, casein), plant protein hydrolysate (soy, other plant protein hydrolysates), and animal protein hydrolysate. Milk protein hydrolysate dominated the global protein hydrolysate ingredients market and is estimated to exhibit a CAGR of 6.9% during the forecast period. Within the milk protein hydrolysate, whey accounted for the largest market share and is estimated to grow at a CAGR of 7.5% during the forecast period.
• Based on application, the global protein hydrolysate ingredients market Is divided into food and beverage (functional food and beverage, infant nutrition), sports nutrition, and medical and clinical nutrition. The food and beverage segment held for the largest market share and is estimated to exhibit a CAGR of 6.9% during the forecast period. Within the food and beverage segment, the infant nutrition segment accounted for the largest market share and is estimated to grow at a CAGR of 6.7% during the forecast period. 

Competitive Players

Competitive Landscape

Key players in the global protein hydrolysate ingredients market are Arla Foods Ingredients Group PS, Fonterra Co-operative Group Limited, Royal FrieslandCampina NV, Kerry Group, Tate & Lyle PLC, Milk Specialties Group, AMCO Proteins, Agropur Inc., Cargill Inc., A. Costantino & C. spa

Recent Developments

Market News

• November 2022 - First Milk, a British dairy co-op, announced today that it has partnered with Arla Foods Ingredients to produce a specialized whey protein powder at its Lake District Creamery.
• October 2022 - Arla Foods Ingredients has introduced a new concept combining whey protein and electrolytes, addressing two of the most crucial sports nutrition objectives.
• August 2022 - Arla Foods Ingredients demonstrates how its new protein ingredient Lacprodan® BLG-100 (purified beta-lactoglobulin), can benefit people suffering from Chronic Kidney Disease (CKD).

Segmentation

Global Protein Hydrolysate Ingredients Market: Segmentation

By Type

• Milk Protein Hydrolysate
• Whey
• Casein
• Plant Protein Hydrolysate
• Soy
• Other Plant Protein Hydrolysates
• Animal Protein Hydrolysate

By Application

Food and Beverage

• Functional Food and Beverage
• Infant Nutrition
• Sports Nutrition
• Medical and Clinical Nutrition

By Region

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa