Protein Hydrolysates Market worth $4.3 billion by 2028 - Exclusive Report by MarketsandMarkets™

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The animal source dominates the source segment in the protein hydrolysates market.

The surge in demand for animal-sourced protein hydrolysates can be attributed to a confluence of factors reshaping the food and nutrition landscape. These hydrolysates, derived through the process of protein hydrolysis, wherein proteins are broken down into smaller peptides and amino acids, are gaining popularity for their superior bioavailability and digestibility. Compared to plant-based alternatives, animal proteins are recognized for their robust nutrient profile and amino acid diversity. This has propelled their adoption in sports nutrition, where enthusiasts and athletes leverage the rapid absorption and muscle recovery benefits of protein hydrolysates. Furthermore, the functional and sensory properties of these hydrolysates, such as improved solubility and emulsification, make them invaluable for food manufacturers aiming to enhance product textures and sensory appeal. Medical nutrition, particularly for the elderly and those with specific dietary needs, also contributes to the rising demand. As the global population ages, the versatile applications of animal-sourced protein hydrolysates are increasingly recognized for supporting muscle maintenance and overall health.

The enzymatic hydrolysis segment within the protein hydrolysates market emerged as a pivotal force in 2022, steering the market's momentum.

Enzymatic hydrolysis of protein hydrolysates has witnessed a surge in demand across various industries, primarily owing to its manifold benefits and versatile applications. One key driver behind this trend is the increased bioavailability achieved through enzymatic hydrolysis. By breaking down proteins into smaller peptides and amino acids, this process facilitates easier absorption in the digestive system, leading to improved utilization of essential nutrients.

The growing popularity of nutritional supplements and functional foods has further fueled the demand for enzymatically hydrolyzed protein. The unique functional properties of protein hydrolysates make them ideal for incorporation into a wide range of food and beverage products, enhancing their nutritional content and overall quality.

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In Europe, the protein hydrolysates market witnesses significant advancement as major industry players make strategic moves through mergers, acquisitions, and partnerships.

The European protein hydrolysates market is experiencing growth driven by an increased consumption of whey protein hydrolysate, particularly in infant nutrition, due to the rising instances of protein deficiency among infants and young children. Key players in the European market include Koninklijke DSM NV. (Netherlands), FrieslandCampina (Netherlands), Arta Foods (UK), and Tate & Lyle plc (UK).

Despite being considered a slow-growing market for animal-sourced protein hydrolysates, the region has seen a rise in plant-sourced proteins such soy, wheat, and vegetable proteins as substitutes for animal sources, primarily due to increasing prices for animal based proteins. Additionally, the European population's inclination towards healthier lifestyles necessitates a focus on addressing consumer concerns regarding allergies and safety issues by protein hydrolysates manufacturers. Consumers are increasingly preferring plant-sourced proteins such as wheat protein due to the higher prices of animal-sourced alternatives.

In Western Europe, where developed economies predominate, the industrial base is larger, leading to a higher number of end-user industries for protein, including food & beverage, pharmaceutical, and cosmetic manufacturers. The market in this region is nearing maturity, resulting in a comparatively lower growth rate over the next five years. On the other hand, Eastern Europe presents an emerging market with more growth opportunities. The region's rapid growth, coupled with an increasing demand for protein-rich food products, positions Eastern Europe as a significant player in the coming years. For instance, in November 2023, Azelis Group (Belgium) has entered into a distribution agreement with BENEO (Germany), a leading manufacturer of functional ingredients for the food, feed, and pharmaceutical industries, to expand its nutritional, clean, and responsible portfolio for Food and Nutrition in India and Bangladesh.

Key Market Players

The key players in this market include Azelis Group (Belgium), Frieslandcompina (Netherlands), Tatua (New Zealand), Arla Foods amba (Denmark), ADM (US).

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