Protein Hydrolysate Ingredient Market: Beverage Fortification, Protein-Enriched Drinks & Market Forecast

According to IMARC Group's latest research publication, global protein hydrolysate ingredient market size reached USD 3.7 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 5.3 Billion by 2033, exhibiting a growth rate (CAGR) of 4.13% during 2025-2033.

How AI is Reshaping the Future of Protein Hydrolysate Ingredient Market

• Enzymatic Process Optimization Through Neural Networks: Machine learning models analyze temperature, pH levels, enzyme concentrations, and reaction time to predict the optimal degree of hydrolysis, boosting production efficiency.
• Automated Quality Control and Peptide Analysis: Computer vision combined with machine learning enables real-time inspection of protein hydrolysate batches, detecting variations in color, viscosity, and molecular composition that indicate quality deviations.
• Predictive Analytics for Bioactive Peptide Discovery: AI platforms analyze vast protein databases and enzymatic hydrolysis patterns to predict which peptide sequences will exhibit antimicrobial, antioxidant, or anti-inflammatory properties before laboratory testing.

Analyze Updated 2026 Market Size & Trends

Protein Hydrolysate Ingredient Industry Overview:

The infant formula sector drives substantial demand as manufacturers respond to rising cases of cow's milk allergies and digestive sensitivities in infants. Regulatory bodies including the FDA approved extensively hydrolyzed whey proteins for infant formula applications in July 2024, enabling brands to address allergy management and gut comfort without increasing consumer costs. These specialized formulations allow protein content up to 10 grams per 100ml while maintaining superior taste profiles compared to previous hypoallergenic products.

Protein Hydrolysate Ingredient Market Trends & Drivers

Sports nutrition and active lifestyle sectors are experiencing explosive growth as athletes and fitness enthusiasts increasingly recognize protein hydrolysates as superior recovery ingredients. These hydrolyzed proteins offer faster absorption and quicker amino acid delivery to muscles compared to intact proteins, making them ideal for post-workout supplements and performance beverages.

Plant-based protein hydrolysates are transforming the market landscape as vegan and allergen-conscious consumers drive demand for alternatives to dairy-derived ingredients. Soy protein hydrolysates generated approximately USD 946.7 million in revenue during 2024, while pea protein hydrolysates are gaining significant traction across sports nutrition and functional food applications.

Clinical nutrition applications are expanding as healthcare providers recognize protein hydrolysates for supporting patients with digestive challenges, malnutrition, and recovery needs. Extensively hydrolyzed proteins enable better tolerance in individuals with compromised gastrointestinal function, making them essential ingredients in medical nutrition products and enteral feeding solutions.

Leading Companies Operating in the Global Protein Hydrolysate Ingredient Industry:

• A. Costantino & C. spa.
• Abbott Laboratories
• Agropur
• AMCO Proteins
• Arla Foods Ingredients Group P/S
• Armor Proteines S.A.S
• Carbery Group Limited
• Cargill, Incorporated
• Fonterra Co-Operative Group Limited
• FrieslandCampina Ingredients
• Glanbia plc
• Hilmar Cheese Company, Inc.
• Kerry Group plc
• Nestlé S.A.

Protein Hydrolysate Ingredient Market Report Segmentation:

By Type:

• Milk Protein Hydrolysate
• Whey
• Casein
• Plant Protein Hydrolysate
• Soy
• Others
• Animal Protein Hydrolysate

Milk protein hydrolysate represents the largest segment, driven by established use in infant nutrition and medical dietary formulations with over 48% market share.

By Product Form:

• Powder
• Liquid
• Bar

Powder format exhibits clear dominance due to longer shelf life, easier transportation, and versatile application across supplement and food manufacturing.

By Application:

• Infant Formula
• Sports Nutrition
• Clinical Nutrition
• Others

Infant formula holds the largest market share at approximately 43%, supported by clinical acceptance of hypoallergenic formulations and regulatory approvals for specialty nutrition.

Regional Insights:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

North America dominates with approximately 38.4% of global revenue, driven by strong demand for clinical nutrition, sports formulations, and regulatory support for high-purity protein ingredients.

Recent News and Developments in Protein Hydrolysate Ingredient Market

• July 2024: Arla Foods Ingredients received FDA approval for four whey protein hydrolysates from its Peptigen and Lacprodan series for use in the US infant formula market. This regulatory clearance specifically targets cow's milk allergy management and gut comfort applications, streamlining integration into infant formulas without impacting consumer costs and marking a significant advancement in addressing pediatric nutritional challenges.
• November 2024: Arla Foods Ingredients launched Lacprodan DI-3092, an extensively hydrolyzed whey protein designed for medical nutrition applications. This innovative ingredient allows for 10 grams of protein per 100ml, significantly exceeding previous industry standards while maintaining a superior taste profile with mild, milky flavor and low viscosity ideal for medical food products.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.