The protein hydrolysates market is projected to grow at a CAGR of 8.1%, in terms of value, from 2016 to reach USD 738.2 Million by 2022. The multifunctional nature of protein hydrolysates, ease of incorporation in a wide range of applications, increase in the demand for high-protein food, and an increase in the consumption of premium products are the factors driving the protein hydrolysates market growth. Rising awareness with regard to the importance of high-nutrition food and the rise in the number of applications among the global population, fuels the demand for protein hydrolysates.
The protein hydrolysates market has been segmented by type into milk protein hydrolysates, plant protein hydrolysates, and animal protein hydrolysate. Milk protein hydrolysates have emerged as the most widely used owing to their multifunctional properties and their vast applications in infant formula, sports nutrition, dietary supplements, and nutraceuticals.
Based on source, the animal segment is estimated to hold the largest share in 2016. The global demand for protein hydrolysates from milk is higher than the plant source. Factors such as high-protein content in animal sources such as milk are drivers for the animal source in the protein hydrolysates market.
The protein hydrolysates market has been segmented on the basis of application into infant nutrition, sports nutrition, dietary supplements, and nutraceuticals. Protein hydrolysates have been gaining importance in the infant nutrition segment because of growing concerns arising due to milk allergy/intolerance toward lactose among infants, which drive the demand for low-lactose, high-protein infant nutrition. New developments provide a platform for the development of newer applications for protein hydrolysates
North America is estimated to account for the largest share of the global protein hydrolysates market, in terms of both value and volume, in 2016. Consumer preference toward healthy and premium food ingredients is the major driver attributed to this dominance. Also, significant presence of end-user manufacturing companies translates to creating huge demand for protein hydrolysates in the region.
Protein hydrolysates require high investment in innovations and product development, which increases their production cost. Protein hydrolysates from similar sources offering similar functionalities are facing competition due to technological advancements and cost efficiency. This is the major restraining factor for the global protein hydrolysates market growth.
The leading players that dominated the protein hydrolysates market include Abbott Nutrition (U.S.), Koninklijke DSM N.V. (Netherlands), Kerry Group (Ireland), FrieslandCampina (Netherlands), and Arla Foods (Denmark).
The key players have been exploring the market in new regions by adopting acquisitions, expansions, investments, new product launches, agreements, and joint ventures as their preferred strategies. They have been investing in intensive R&D activities and also adopting expansions and acquisitions as a mode to enhance their product offerings and capture a larger market share, thus increasing the demand for protein hydrolysates.
