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    Milk Protein Hydrolysate Market

    ID: MRFR/F-B & N/25593-HCR
    128 Pages
    Snehal Singh
    September 2025

    Milk Protein Hydrolysate Market Research Report By Application (Infant Formula, Food & Beverages, Dietary Supplements, Pharmaceuticals, Cosmetics), By Type (Whey Protein Hydrolysate, Casein Protein Hydrolysate, Soy Protein Hydrolysate), By Degree of Hydrolysis (Low Degree, Medium Degree, High Degree), By End-user (Infants, Adults, Elderly, Sportspersons) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2034.

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    Milk Protein Hydrolysate Market Summary

    The Global Milk Protein Hydrolysate Market is projected to grow from 1.8 USD Billion in 2024 to 3.23 USD Billion by 2035.

    Key Market Trends & Highlights

    Milk Protein Hydrolysate Key Trends and Highlights

    • The market is expected to witness a compound annual growth rate (CAGR) of 5.45% from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 3.23 USD Billion, indicating robust growth potential.
    • In 2024, the market is valued at 1.8 USD Billion, reflecting a strong foundation for future expansion.
    • Growing adoption of milk protein hydrolysate in infant nutrition due to increasing health awareness is a major market driver.

    Market Size & Forecast

    2024 Market Size 1.8 (USD Billion)
    2035 Market Size 3.23 (USD Billion)
    CAGR (2025-2035) 5.45%

    Major Players

    Royal DSM, EHOA Protein Products, American Dairy Products Institute, Fonterra Cooperative Group, Arla Foods Ingredient Group, FrieslandCampina Ingredient, Carbery Food Ingredients, Lactalis Ingredients, Milk Specialties Global, FNZ Dairies, Kerry Group, MD Foods, Glanbia Nutritionals, Ingredia Dairy Ingredients

    Milk Protein Hydrolysate Market Trends

    Key Market Trends

    The Milk Protein Hydrolysate Market is driven by increasing demand for the ingestion of protein-rich foods and beverages, surveilling the health benefits of milk proteins, and the rise in income. Furthermore, the rise in the consumption of dairy alternatives is also helping boost the market.

    Emerging Opportunities in the Market

    Future development opportunities in the hydrolysates market, particularly milk protein hydrolysate, include the introduction of novel and quality items such as protein bars, powders and supplements. In further developments, the market is extensively carried along by the rising need for hydrolyzed milk proteins in clinical nutrition, infant formula and pet foods.

    Trends in Recent Times

    Spates on the recent developments in the milk protein hydrolysate market include increased acceptance of cleaner labels, growing need for hypoallergenic and lacto-free products and the growing use of novel hydrolysis technologies. Further, the market is being shaped by the increasing prevalence of personalized nutrition, and factors such as ingredient transparency and the traceability of ingredients are becoming more of a priority.

    The increasing consumer preference for protein-rich diets, coupled with the rising demand for functional foods, indicates a robust growth trajectory for the global milk protein hydrolysate market.

    U.S. Department of Agriculture

    Milk Protein Hydrolysate Market Drivers

    Market Growth Projections

    The Global Milk Protein Hydrolysate Market Industry is projected to experience substantial growth over the next decade. With an anticipated market value of 1.8 USD Billion in 2024, the industry is expected to expand to 3.23 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 5.45% from 2025 to 2035, reflecting the increasing demand for protein-rich products across various sectors, including infant nutrition and sports supplements. The market's expansion is indicative of broader trends in health and wellness, as consumers increasingly prioritize nutritional quality in their dietary choices.

    Expansion in Infant Nutrition Sector

    The Global Milk Protein Hydrolysate Market Industry is significantly influenced by the expansion of the infant nutrition sector. With a rising number of parents seeking specialized formulas for infants with allergies or intolerances, the demand for hydrolyzed protein products is increasing. These products are designed to be easily digestible and are often recommended by pediatricians. The market's growth is expected to be substantial, with projections indicating an increase to 3.23 USD Billion by 2035. This trend underscores the importance of milk protein hydrolysate in providing safe and nutritious options for infants, thereby driving industry growth.

    Growing Awareness of Health Benefits

    There is a growing awareness of the health benefits associated with milk protein hydrolysates within the Global Milk Protein Hydrolysate Market Industry. Consumers are increasingly informed about the advantages of hydrolyzed proteins, such as improved digestibility and enhanced absorption rates. This awareness is further fueled by educational campaigns and health initiatives promoting protein intake for various demographics, including athletes and the elderly. As a result, the market is poised for growth, with projections suggesting a rise in demand as consumers seek healthier dietary options that incorporate milk protein hydrolysates.

    Rising Demand for Nutritional Products

    The Global Milk Protein Hydrolysate Market Industry experiences a notable surge in demand for nutritional products, particularly among health-conscious consumers. This trend is driven by an increasing awareness of the benefits associated with protein consumption, including muscle recovery and overall wellness. As a result, the market is projected to reach 1.8 USD Billion in 2024, reflecting a growing inclination towards protein-rich diets. The rise in fitness culture and the popularity of dietary supplements further contribute to this demand, indicating a robust growth trajectory for the industry in the coming years.

    Increased Application in Sports Nutrition

    The Global Milk Protein Hydrolysate Market Industry is witnessing increased application in the sports nutrition sector. Athletes and fitness enthusiasts are increasingly turning to protein hydrolysates for their rapid absorption and effectiveness in muscle recovery. This trend is supported by a growing fitness culture and the rising popularity of sports supplements. The demand for high-quality protein sources is expected to drive the market's growth, with projections indicating a significant increase in market value over the next decade. This shift towards specialized nutrition products highlights the evolving landscape of dietary preferences and the role of milk protein hydrolysates in meeting these needs.

    Technological Advancements in Processing Techniques

    Technological advancements in processing techniques play a crucial role in the Global Milk Protein Hydrolysate Market Industry. Innovations in hydrolysis methods enhance the efficiency and quality of protein hydrolysates, making them more appealing to manufacturers and consumers alike. These advancements allow for the production of customized protein profiles tailored to specific dietary needs, thereby expanding the application range of milk protein hydrolysates. As the industry adapts to these technological changes, it is likely to witness a compound annual growth rate (CAGR) of 5.45% from 2025 to 2035, indicating a promising future driven by innovation.

    Market Segment Insights

    Milk Protein Hydrolysate Market Application Insights

    This growth can be attributed to the rising demand for hydrolyzed milk proteins in various applications, including infant formula, food beverages, dietary supplements, pharmaceuticals, and cosmetics. Infant Formula: Hydrolyzed milk proteins are widely used in infant formula as they are easier to digest and hypoallergenic, making them suitable for babies with cow's milk allergies or sensitivities. The growing demand for specialized infant formula, particularly in emerging markets, is driving the growth of this segment.

    Food Beverages: Milk protein hydrolysates are increasingly used as functional ingredients in food and beverage products due to their nutritional value, emulsifying properties, and ability to enhance texture and flavor.The rising popularity of protein-enriched food and beverages, as well as the growing demand for plant-based alternatives, is fueling the growth of this segment. Dietary Supplements: Hydrolyzed milk proteins are a popular ingredient in dietary supplements, particularly those targeted towards athletes, bodybuilders, and individuals seeking to improve their overall health.

    The growing awareness of the benefits of protein supplements, coupled with the increasing availability of hydrolyzed milk protein powders, is driving the growth of this segment.Pharmaceuticals: Milk protein hydrolysates are used in pharmaceutical applications as excipients, drug delivery systems, and active ingredients. Their biocompatibility, solubility, and ability to enhance drug bioavailability make them valuable in the development of various therapeutic products. Cosmetics: Hydrolyzed milk proteins are gaining popularity in the cosmetics industry due to their moisturizing, anti-aging, and skin-soothing properties.

    They are used in a range of skincare products, including facial creams, lotions, and hair care products, to improve skin texture, reduce wrinkles, and promote healthy hair growth.Overall, the Milk Protein Hydrolysate Market is poised for significant growth over the coming years, driven by the increasing demand for hydrolyzed milk proteins across various applications. The growing awareness of their nutritional and functional benefits, coupled with the rising prevalence of food allergies and intolerances, is expected to continue to fuel the growth of this market.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Milk Protein Hydrolysate Market Type Insights

    The Milk Protein Hydrolysate Market is segmented by Type as Whey Protein Hydrolysate, Casein Protein Hydrolysate, and Soy Protein Hydrolysate. Whey Protein Hydrolysate dominated the market in 2023, accounting for a revenue share of around 60%, owing to its high nutritional value and wide range of applications in the food and beverage industry. Casein Protein Hydrolysate is projected to register a steady growth rate during the forecast period, due to its slow digestion and satiating properties.

    Soy Protein Hydrolysate is expected to witness a significant growth rate, attributed to its increasing adoption in plant-based food products and dietary supplements.The Milk Protein Hydrolysate Market is expected to reach a valuation of around USD 2.6 billion by 2032, expanding at a CAGR of 5.48%.

    Milk Protein Hydrolysate Market Degree of Hydrolysis Insights

    The Milk Protein Hydrolysate Market segmentation by Degree of Hydrolysis comprises Low Degree, Medium Degree, and High Degree. Low Degree Hydrolysate segment held the largest market share in 2023, owing to its wide application in infant formula and other dairy products. Medium Degree Hydrolysate segment is projected to witness the fastest growth during the forecast period, due to its increasing use in medical nutrition and sports nutrition products.

    High Degree Hydrolysate segment is expected to gain traction in the coming years, driven by its hypoallergenic properties and potential health benefits.This growth can be attributed to the increasing demand for protein-based products, the growing awareness of the health benefits of milk protein hydrolysates, and the expanding applications of these products in various industries.

    Milk Protein Hydrolysate Market End-user Insights

    The Milk Protein Hydrolysate Market segmentation by end-user is expected to showcase significant growth potential in the coming years. Infants hold a major share in the market, owing to the increasing demand for hypoallergenic and easily digestible formula. In 2023, the infant segment accounted for around 45% of the Milk Protein Hydrolysate Market revenue. Adults and elderly populations are also expected to contribute to market growth due to the rising prevalence of lactose intolerance and digestive issues.

    Sportspersons are another key end-user segment, driven by the demand for protein supplements to enhance performance and recovery.The Milk Protein Hydrolysate Market data suggests that the end-user segment will continue to shape the market dynamics, influencing product innovation and marketing strategies.

    Get more detailed insights about Milk Protein Hydrolysate Market Research Report Forecast Till 2034

    Regional Insights

    The Milk Protein Hydrolysate Market is primarily driven by the growing demand for functional foods and beverages, along with the increasing prevalence of lactose intolerance and milk allergies. Regionally, North America and Europe collectively accounted for over half of the global market revenue in 2023, with North America holding a slightly larger share driven by the presence of major market players and high consumer awareness.

    APAC region is anticipated to exhibit the highest growth rate, owing to the rising disposable income and changing dietary habits in countries like China and India.South America and MEA are expected to witness steady growth, supported by the increasing demand for fortified food products.

    Milk Protein Hydrolysate Market Regional Insights

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Key Players and Competitive Insights

    Major players in the market are focused on launching new products and expanding their product lines in order to gain a competitive edge. For instance, in February 2023, Glanbia launched PROTIUMreg; WPH500PRO, a new native whey protein hydrolysate ingredient suitable for use in sports nutrition and active lifestyle products. Leading players in the market are also investing in research and development to develop new, improved products that cater to the needs of their target customers. For instance, in March 2023, Arla Foods Ingredients announced that it had introduced a new whey protein hydrolysate, Lacprodanreg; HYDRO.365.

    This product is designed to deliver sustained energy release, better recovery after exercise, and reduced muscle soreness. Overall, the Market industry is likely to expand in the foreseeable future, driven by the increasing demand for protein supplements and the growing popularity of sports nutrition products.Arla Foods Ingredients is a prominent global supplier of whey protein hydrolysates. The company’s extensive product portfolio encompasses a wide range of products, including native whey protein hydrolysates, whey protein isolate hydrolysates, and enzymatic whey protein hydrolysates.

    Arla Foods Ingredients is highly focused on research and development, and the company invests in new product development on a continuous basis. Arla Foods Ingredients’ products are used across numerous applications, such as sports nutrition, infant formula, and clinical nutrition.

    FrieslandCampina is another leading player in the Market. The company offers a broad range of whey protein hydrolysates, such as native whey protein hydrolysates, whey protein isolate hydrolysates, and enzymatic whey protein hydrolysates. FrieslandCampina is a highly established player in the European market and is expanding its footprint in North America and Asia. FrieslandCampina’s products are utilized for a variety of applications, such as sports nutrition, infant formula, and clinical nutrition.

    Key Companies in the Milk Protein Hydrolysate Market market include

    Industry Developments

    The Milk Protein Hydrolysate Market is projected to reach USD 2.6 billion by 2032, exhibiting a CAGR of 5.48% during the forecast period. Increasing demand for dairy alternatives and the growing popularity of hydrolyzed proteins in infant nutrition are key factors driving market growth. Additionally, rising consumer awareness about the health benefits of milk protein hydrolysate, such as improved digestion and absorption, is further boosting demand.Recent developments in the market include the launch of new products with added functional ingredients, such as probiotics and prebiotics.

    Key players are also focusing on expanding their geographical presence and investing in research and development to enhance product offerings. Partnerships and collaborations between manufacturers and distributors are becoming increasingly common to capitalize on market opportunities.

    Future Outlook

    Milk Protein Hydrolysate Market Future Outlook

    The Milk Protein Hydrolysate Market is projected to grow at a 5.45% CAGR from 2024 to 2035, driven by rising health consciousness and demand for functional foods.

    New opportunities lie in:

    • Develop specialized formulations for sports nutrition targeting athletes and fitness enthusiasts.
    • Expand distribution channels in emerging markets to capture new consumer segments.
    • Invest in innovative processing technologies to enhance product quality and reduce costs.

    By 2035, the Milk Protein Hydrolysate Market is expected to achieve substantial growth, reflecting evolving consumer preferences and industry advancements.

    Market Segmentation

    Milk Protein Hydrolysate Market Type Outlook

    • Low Degree
    • Medium Degree
    • High Degree

    Milk Protein Hydrolysate Market End-user Outlook

    • North America

    Milk Protein Hydrolysate Market Regional Outlook

    • North America
    • Europe
    • South America
    • Asia Pacific
    • Middle East and Africa

    Milk Protein Hydrolysate Market Application Outlook

    • Whey Protein Hydrolysate
    • Casein Protein Hydrolysate
    • Soy Protein Hydrolysate

    Milk Protein Hydrolysate Market Degree of Hydrolysis Outlook

    • Infants
    • Adults
    • Elderly
    • Sportspersons

    Report Scope

    Report Attribute/Metric Details
    Market Size 2024 1.80(USD Billion)
    Market Size 2025 1.89(USD Billion)
    Market Size 2034 3.06(USD Billion)
    Compound Annual Growth Rate (CAGR) 5.5% (2025 - 2034)
    Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Base Year 2023
    Market Forecast Period 2025 - 2034
    Historical Data 2019 - 2023
    Market Forecast Units USD Billion
    Key Companies Profiled Royal DSM, EHOA Protein Products, American Dairy Products Institute, Fonterra Cooperative Group, Arla Foods Ingredient Group, FrieslandCampina Ingredient, Carbery Food Ingredients, Lactalis Ingredients, Milk Specialties Global, FNZ Dairies, Kerry Group, MD Foods, Glanbia Nutritionals, Ingredia Dairy Ingredients
    Segments Covered Application, Type, Degree of Hydrolysis, End-user, Regional
    Key Market Opportunities Infant nutrition Sports nutrition Functional foods
    Key Market Dynamics Growing demand for sports nutrition Increasing prevalence of food allergies Technological advancements Rising health awareness Expanding applications in pharmaceuticals
    Countries Covered North America, Europe, APAC, South America, MEA

    FAQs

    What is the estimated market size of the Milk Protein Hydrolysate Market in 2023?

    The Milk Protein Hydrolysate Market is estimated to be around USD 1.89 billion in 2025.

    What is the projected CAGR of the Milk Protein Hydrolysate Market from 2024 to 2032?

    The Milk Protein Hydrolysate Market is projected to grow at a CAGR of 5.5% from 2025 to 2034.

    Which region is expected to hold the largest market share in the Milk Protein Hydrolysate Market?

    North America is expected to hold the largest market share in the Milk Protein Hydrolysate Market.

    Which application segment is expected to hold the largest market share in the Milk Protein Hydrolysate Market?

    The Infant Nutrition segment is expected to hold the largest market share in the Milk Protein Hydrolysate Market.

    Who are some of the key competitors in the Milk Protein Hydrolysate Market?

    Some of the key competitors in the Milk Protein Hydrolysate Market include Glanbia Plc, FrieslandCampina Ingredients, and Carbery Group.

    What are some of the factors driving the growth of the Milk Protein Hydrolysate Market?

    The growing demand for infant nutrition products and the increasing prevalence of lactose intolerance are some of the factors driving the growth of the Milk Protein Hydrolysate Market.

    What are some of the challenges faced by the Milk Protein Hydrolysate Market?

    The high cost of production and the stringent regulatory requirements are some of the challenges faced by the Milk Protein Hydrolysate Market.

    What are some of the opportunities for the Milk Protein Hydrolysate Market?

    The increasing demand for clean label products and the growing popularity of plant-based milk alternatives are some of the opportunities for the Milk Protein Hydrolysate Market.

    What are some of the key trends in the Milk Protein Hydrolysate Market?

    The growing focus on personalized nutrition and the increasing adoption of e-commerce platforms are some of the key trends in the Milk Protein Hydrolysate Market.

    What is the expected market size of the Milk Protein Hydrolysate Market in 2032?

    The Milk Protein Hydrolysate Market is expected to reach USD 3.06 billion by 2034.

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