Milk Protein Hydrolysate Market Size – By Product, Form, Technology, End Use Analysis, Share, Growth Forecast, 2025-2034

Milk Protein Hydrolysate Market Size

The global milk protein hydrolysate market size was valued at USD 2.9 billion in 2024 and is estimated to grow at a CAGR of over 8.7% from 2025 to 2034. Milk protein hydrolysates are gaining traction in infant nutrition, sports supplements, and medical nutrition, thanks to their superior digestibility and bioavailability. These hydrolysates find their way into hypoallergenic formulas and functional foods, bolstering muscle recovery, immune health, and overall wellness.
 

The upward trajectory of this trend is fueled by a growing health consciousness, a surge in demand for high-protein diets, and an appetite for specialized nutrition products. Moreover, innovations like enzymatic hydrolysis in production techniques, coupled with heightened research on bioactive peptides derived from milk proteins, are propelling market growth, especially in the realms of sports nutrition and infant formulas.
 

The milk protein hydrolysate industry is witnessing robust growth, primarily driven by the surging demand for digestible and allergen-free protein sources, with a keen focus on infant and sports nutrition. As health awareness rises and high-protein diets gain traction, consumers are gravitating towards functional foods that promise benefits beyond mere sustenance. Technological advancements in hydrolysis are not only refining the production of bioactive peptides but also amplifying their use in niche dietary products.
 

Furthermore, with an aging population and a rise in chronic diseases, there's an escalating demand for medical nutrition solutions, bolstering the market's expansion. Highlighting the industry's dynamism, in November 2022, Arla Foods Ingredients made waves in the healthy beverage arena with its groundbreaking Refreshing Fermented Protein drink. Harnessing the prowess of 100% whey-based hydrolysates, notably Lacprodan HYDRO.365 and Nutrilac FO-8571, the product sets a new benchmark in the quality of fermented protein beverages.

Milk Protein Hydrolysate Market Trends

In the milk protein hydrolysate industry, ongoing innovations are centered on refining hydrolysis processes to boost the yield and functionality of bioactive peptides. With advancements in enzymatic hydrolysis techniques, producers can achieve more controlled and efficient outputs, leading to hydrolysates with customized nutritional profiles tailored for specific applications.
 

Furthermore, expanding research into microbial fermentation and ultrasonic hydrolysis is paving the way for cleaner, more sustainable production methods. Innovations in encapsulation technology are enhancing the stability and delivery of these hydrolysates across various formulations. This progress is propelling their adoption in a range of sectors, from functional foods and infant nutrition to medical applications.
 

However, the milk protein hydrolysate market grapples with high production costs. The intricate processes essential for hydrolysis, including enzymatic treatment and purification, inherently elevate manufacturing expenses. These expenses are compounded by the necessity for premium raw materials and rigorous quality control measures, all aimed at ensuring product safety and efficacy. Regulatory challenges further complicate the landscape. The market contends with stringent regulations, especially around labeling and health claims tied to hydrolysates.
 

Manufacturers face intricate approval processes to substantiate these claims, a journey that can be both time-intensive and financially burdensome. Moreover, the need to comply with a patchwork of regional regulations—each with its own standards and requirements—adds another layer of complexity. Such hurdles can stifle the market's growth, particularly for smaller firms or newcomers, making it a challenge to compete, innovate, and sustain profitability.
 

Milk Protein Hydrolysate Market Analysis

The milk protein hydrolysate industry is witnessing a surge in demand for clean-label, allergen-free, and easily digestible protein sources, especially in infant and sports nutrition. Consumers increasingly prioritize products that provide targeted health benefits, including muscle recovery and immune support. Looking ahead, there's a notable trend towards plant-based hydrolysates, spurred by the growing vegan movement and heightened sustainability concerns.
 

Furthermore, the evolution of personalized nutrition is set to shape product development, leading to hydrolysates customized for individual health requirements. Lastly, as applications in medical nutrition expand, particularly for aging populations, this sector is poised for significant growth.
 

The whey protein hydrolysate (WPH) segment was valued at USD 706.5 million in 2024, and it is anticipated to expand 8.9% of CAGR during 2025 to 2034. Whey protein hydrolysate (WPH) leads the market, thanks to its superior digestibility, rapid absorption, and high bioavailability of essential amino acids, especially branched-chain amino acids (BCAAs). These attributes position WPH as the top choice in sports nutrition, aiding in muscle recovery and enhancing performance.
 

Furthermore, WPH's hypoallergenic nature and low lactose content render it ideal for infant formulas and medical nutrition, bolstering its market dominance. Extensive research backing WPH's advantages, combined with heightened consumer awareness and established manufacturing methods, solidifies its preeminent status over other milk protein hydrolysates.
 

The milk protein hydrolysate market from powder segment dominated around USD 1.5 billion in 2024 and gained 9.1% CAGR from 2025 to 2034. Due to their versatility and convenience, powdered milk protein hydrolysates lead the market. The preference for powdered form stems from its extended shelf life, ease of transport, and compatibility with diverse formulations. These include infant formulas, sports supplements, and functional foods.
 

The powder allows for precise dosing and seamless integration into a broad spectrum of products. Moreover, producing and storing the powdered format proves more cost-effective than its liquid counterpart. These benefits solidify the powdered form as the preferred choice for manufacturers, reinforcing its market dominance and extensive application across various sectors.
 

The milk protein hydrolysate market from autolytic hydrolysis segment held over USD 1.1 billion in 2024. Autolytic hydrolysis leads the market because it is efficient and natural. This method uses the enzymes in milk proteins to break them down into smaller peptides, reducing the need for extra chemicals or enzymes. It offers a controlled and gentle process, keeping the hydrolysates' bioactivity and nutritional quality intact.
 

The process also lowers the risk of unwanted by-products, making it ideal for high-quality hydrolysates used in infant formula and medical nutrition. Its compatibility with clean-label requirements and lower environmental impact further increases its market appeal.
 

The food & beverages segment reached USD 823.8 million in 2024. The milk protein hydrolysate market is primarily led by the food and beverage sector, which extensively utilizes hydrolysates to enhance product functionality and nutritional profiles. Hydrolysates, known for their superior digestibility and solubility, find prime applications in sports drinks, protein bars, and fortified foods. In the realm of infant nutrition, hydrolysates play a pivotal role in hypoallergenic formulas, ensuring healthy growth and development.
 

The sector's relentless pursuit of innovative, health-centric products fuels continuous growth and investment in milk protein hydrolysates, solidifying their leading status. Moreover, the rising consumer inclination towards protein-enriched and functional foods amplifies the significance of this segment.
 

The U.S. milk protein hydrolysate market size recorded around USD 488 million in 2024 and expected to grow at 8% CAGR through 2034. The U.S. leads the North American market, bolstered by its advanced healthcare infrastructure and heightened consumer awareness of nutritional products. A significant demand for specialized dietary supplements further fuels this dominance. The region's thriving sports nutrition sector and an increasing preference for allergen-free infant formulas also play pivotal roles in driving market growth.
 

Moreover, the U.S. capitalizes on its robust R&D capabilities and technological advancements in hydrolysis processes, fostering product development and innovation. The presence of major industry players in the region cements its leadership position. Additionally, regulatory support and a high disposable income bolster the U.S. market's dominance, facilitating the widespread adoption of milk protein hydrolysates.
 

Milk Protein Hydrolysate Market Share

Leading the milk protein hydrolysate industry are companies such as Tatua Co-operative Dairy Company, Arla Foods Ingredients Group, and FrieslandCampina DMV, boasting extensive product portfolios and robust distribution networks. Leveraging their dairy processing expertise, these firms provide a diverse range of hydrolysates, specifically designed for infant nutrition, sports supplements, and medical applications.
 

Meanwhile, AMCO Proteins and Hilmar Ingredients prioritize innovation and quality, utilizing advanced hydrolysis techniques to cater to distinct customer requirements and adhere to regulatory standards. A. Costantino & C. Spa and Ba’emek Advanced Technologies bring specialized technologies and niche products to the table. The competitive landscape is marked by continuous R&D efforts, strategic partnerships, and technological investments aimed at enhancing product functionality and addressing shifting consumer demands. Competition is driven by key factors such as product differentiation, cost-efficiency, and adaptability to regulatory changes across diverse markets.
 

Milk Protein Hydrolysate Market Companies

Major players operating in the milk protein hydrolysate industry are:

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

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.
   

This milk protein hydrolysate market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) & volume (Kilo Tons) from 2021 to 2034, 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
  • 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
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa