Milk Protein Hydrolysate Market - By Product, By Form (Powder, Paste) By Technology (Acid Hydrolysis, Enzymatic Hydrolysis, Microbial Fermentation, Autolytic hydrolysis, Ultrasonic Hydrolysis), By End use & Forecast, 2024-2032

Milk Protein Hydrolysate Market Size

Milk Protein Hydrolysate Market size achieved USD 2.67 billion in 2023 and will grow at 8.7% CAGR from 2024 to 2032. Milk protein hydrolysates are increasingly applied in infant nutrition, sports supplements, and medical nutrition due to their enhanced digestibility and bioavailability. They are used in hypoallergenic formulas and functional foods to support muscle recovery, immune health, and overall wellness.
 

The growth trend is driven by rising health consciousness, demand for high-protein diets, and the need for specialized nutrition products. Innovation in production techniques, such as enzymatic hydrolysis, and increasing research on bioactive peptides from milk proteins are further fueling market expansion, particularly in the sports nutrition and infant formula sectors.
 

The growth of the milk protein hydrolysate industry is driven by the rising demand for easily digestible and allergen-free protein sources, particularly in infant and sports nutrition. Increasing health awareness and the popularity of high-protein diets contribute to this trend, as consumers seek functional foods that offer health benefits beyond basic nutrition. Advances in hydrolysis technology enhance the production of bioactive peptides, boosting their application in specialized dietary products. Additionally, the growing aging population and prevalence of chronic diseases are propelling demand for medical nutrition solutions, further supporting market growth.
 

For instance, in November 2022, Arla Foods Ingredients revolutionized the healthy beverage sector with its innovative launch of the Refreshing Fermented Protein drink. The product leverages the full potential of 100% whey-based hydrolysates, specifically Lacprodan HYDRO.365 and Nutrilac FO-8571, elevating the quality of fermented protein beverages.
 

Ongoing innovation in the milk protein hydrolysate market focuses on optimizing hydrolysis processes to enhance the yield and functionality of bioactive peptides. Advances in enzymatic hydrolysis techniques allow for more controlled and efficient production, resulting in hydrolysates with tailored nutritional profiles for specific applications. Additionally, research into microbial fermentation and ultrasonic hydrolysis is expanding possibilities for cleaner and more sustainable production methods. Innovations in encapsulation technology are improving the stability and delivery of these hydrolysates in various formulations, driving their use in diverse sectors, including functional foods, infant nutrition, and medical applications.
 

High production costs are a significant pitfall in the milk protein hydrolysate market. The complex and specialized processes required for hydrolysis, such as enzymatic treatment and purification, drive up manufacturing expenses. These costs are further elevated by the need for high-quality raw materials and stringent quality control measures to ensure product safety and efficacy. Additionally, regulatory challenges pose another hurdle. The market faces strict regulations around labeling, particularly concerning health claims associated with hydrolysates. Manufacturers must navigate complex approval processes to validate these claims, which can be time-consuming and costly. Compliance with diverse regional regulations also adds complexity, as different markets have varying standards and requirements. These challenges can limit the market's expansion, especially for smaller companies or new entrants, making it difficult to compete and innovate while maintaining profitability.
 

Milk Protein Hydrolysate Market Trends

The current trend in the milk protein hydrolysate industry is the increasing demand for clean-label, allergen-free, and easily digestible protein sources, particularly in infant and sports nutrition. Consumers are seeking products that offer specific health benefits, such as muscle recovery and immune support. Upcoming trends include the growing use of plant-based hydrolysates as alternatives, driven by the rise of veganism and sustainability concerns. Additionally, advancements in personalized nutrition are expected to influence product development, with hydrolysates tailored to individual health needs. The expansion of applications in medical nutrition, especially for aging populations, is also anticipated to drive future growth.  
 

Milk Protein Hydrolysate Market Analysis

By product, whey protein hydrolysate (WPH) segment will capture USD 1.39 billion and demonstrate a 8.9% CAGR till 2032. Whey protein hydrolysate (WPH) dominates the market due to its superior digestibility, rapid absorption, and high bioavailability of essential amino acids, particularly branched-chain amino acids (BCAAs). These properties make WPH the preferred choice in sports nutrition for muscle recovery and performance enhancement. Additionally, WPH's hypoallergenic potential and minimal lactose content make it suitable for infant formulas and medical nutrition, further driving its dominance. The extensive research supporting WPH's benefits, coupled with widespread consumer awareness and established manufacturing processes, reinforces its leading position in the market compared to other milk protein hydrolysates.
 

By form, powder segment will expand to USD 3.1 billion and garner 9.1% CAGR till 2032. Powdered milk protein hydrolysates dominate the market due to their versatility and convenience in various applications. The powder form is preferred for its extended shelf life, ease of transport, and compatibility with different formulations, including infant formulas, sports supplements, and functional foods. It allows for precise dosing and integration into a wide range of products. Additionally, the powdered format facilitates cost-effective production and storage compared to liquid forms. These advantages make powder the go-to choice for manufacturers, driving its dominance in the market and supporting its widespread use across multiple sectors.
 

By technology, autolytic hydrolysis segment will expand to USD 2.18 billion and garner 8.8% CAGR up to 2032. Autolytic hydrolysis dominates the market due to its efficiency and natural process. This method uses the milk proteins' inherent enzymes to break down proteins into smaller peptides, minimizing the need for additional chemical or enzymatic agents. It offers a more controlled and gentle approach, preserving the bioactivity and nutritional quality of the hydrolysates. The process also reduces the risk of introducing unwanted by-products, making it suitable for producing high-quality hydrolysates for sensitive applications like infant formula and medical nutrition. Its compatibility with clean-label requirements and reduced environmental impact further enhance its appeal in the market.
 

By end use, food & beverages segment will expand to USD 1.60 billion and garner 8.7% CAGR between 2024 and 2032. The food and beverage sector dominates the milk protein hydrolysate market due to its extensive application in enhancing product functionality and nutritional profiles. Hydrolysates are favored for their improved digestibility and solubility, making them ideal for use in sports drinks, protein bars, and fortified foods. In infant nutrition, they are crucial for hypoallergenic formulas that support healthy growth and development. The sector's demand for innovative, health-focused products drives continuous growth and investment in milk protein hydrolysates, reinforcing their dominant position. Additionally, consumer trends toward protein-enriched and functional foods further bolster the prominence of this segment.
 

North America milk protein hydrolysate industry will record 8.1% CAGR and surpass USD 1.87 billion by 2032. North America dominates the market due to its advanced healthcare infrastructure, high consumer awareness of nutritional products, and significant demand for specialized dietary supplements. The region's robust sports nutrition sector and the growing preference for allergen-free infant formulas drive market growth. Additionally, North America benefits from strong R&D capabilities and technological advancements in hydrolysis processes, which enhance product development and innovation. Major industry players are based in this region, further solidifying its leadership. Regulatory support and high disposable income also contribute to North America's market dominance, supporting widespread adoption of milk protein hydrolysates.
 

Milk Protein Hydrolysate Market Share

In the milk protein hydrolysate industry, companies like Tatua Co-operative Dairy Company Limited, Arla Foods Ingredients Group P/S, and FrieslandCampina DMV B.V. lead with extensive product portfolios and strong distribution networks. These firms leverage their expertise in dairy processing to offer a range of hydrolysates tailored for infant nutrition, sports supplements, and medical applications. AMCO Proteins and Hilmar Ingredients focus on innovation and quality, emphasizing advanced hydrolysis techniques to meet specific customer needs and regulatory standards. A. Costantino & C. Spa and Ba’emek Advanced Technologies Ltd. contribute with specialized technologies and niche products. The competitive landscape is characterized by ongoing R&D efforts, strategic partnerships, and investments in technology to enhance product functionality and meet evolving consumer demands. Key factors driving competition include product differentiation, cost-efficiency, and the ability to adapt to regulatory changes across various markets.
 

Milk Protein Hydrolysate Market Companies

Top companies operating in the industry include:

• Tatua Co-operative Dairy Company Limited
• Arla Foods Ingredients Group P/S
• AMCO Proteins
• FrieslandCampina DMV B.V.
• A. Costantino & C. Spa
• Ba’emek Advanced Technologies Ltd.
• Hilmar Ingredients
• Havero Hoogwegt
• Milk Specialties Global
•  Agropur Cooperative
• Glanbia Nutritionals
• Armor Proteines
• Kerry Ingredients
• Lactalis Group
   

Milk Protein Hydrolysate Industry News

• In March 2023, Arla Foods Ingredients' Peptigen IF-3080, a milk protein hydrolysate designed for infant formula, received official approval from the European Union. In February 2022, the EU introduced new regulations mandating a safety and suitability assessment for all protein hydrolysates used in formula products, post which the European Food Safety Agency (EFSA) opined that IF-3080 was safe & suitable for use in EU infant formulas and follow-on formulas.
   
• In December 2022, Kerry unveiled a novel tool, known as KerryNutri Guide, that has the capability to evaluate a broad spectrum of food and beverage items in accordance with various front-of-pack nutrition labeling systems, directing users toward achieving a more favorable rating.
   

The milk protein hydrolysate market research report includes in-depth coverage of the industry, with estimates and forecasts in terms of revenue and volume (USD Billion) (Kilo Tons) from 2024 to 2032, for the following segments:

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Market, By Product

• Whey protein hydrolysate (WPH)
• Casein hydrolysate (CPH)
• Total milk protein hydrolysate
• Lactoferrin hydrolysate
• Immunoglobulin hydrolysate
• Alpha-lactalbumin hydrolysate
• Beta-lactoglobulin hydrolysate

Market, By Form

• Powder
• Paste

Market, By Technology

• Acid Hydrolysis
• Enzymatic Hydrolysis
• Microbial Fermentation
• Autolytic hydrolysis
• Ultrasonic Hydrolysis

Market, By End use

• Food & Beverages
  • Food & Beverages
  • Infant nutrition
  • Sports nutrition
  • Bakery & Food Ingredients
  • Beverages
  • Others
• Animal feed
  • Poultry
    • Broilers
    • Layers
  • Swine
  • Cattle
  • Aquaculture
    • Salmon
    • Trouts
    • Shrimps
    • Others
  • Equine
  • Pet
• Pharmaceutical
  • Pharmaceutical Formulations
  • Clinical nutrition
  • Others
• Cosmetics & Personal Care
  • Skincare
  • Haircare
  • Others
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Denmark
  • Netherlands
  • Poland
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Vietnam
  • New Zealand
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • Saudi Arabia
  • UAE
  • South Africa
  • Rest of MEA