PUBLISHER: Global Market Insights Inc. | PRODUCT CODE: 1885797
PUBLISHER: Global Market Insights Inc. | PRODUCT CODE: 1885797
The Global Next-Generation Protein Hydrolysates Market was valued at USD 900 million in 2024 and is estimated to grow at a CAGR of 10% to reach USD 2.3 billion by 2034.

Demand for tailored nutrition is accelerating product adoption as consumers and healthcare practitioners increasingly seek ingredient profiles aligned with metabolic needs, dietary sensitivities, and specialized nutrition programs. Globally expanding preventive health initiatives and digitally guided diet systems are encouraging the inclusion of fast-absorbing peptide ingredients in personalized formulations. Rising health consciousness and the popularity of functional foods continue to reinforce market momentum. National reports across multiple regions highlight ongoing growth in protein-fortified foods and beverages, creating opportunities for hydrolysates due to their high digestibility and reduced allergenic potential. Brands are incorporating these peptides into ready-to-drink formulas, nutrition beverages, fortified snacks, and clinical dietary products to appeal to wellness-focused buyers and clean-label priorities. Higher investment in self-care and broader retail access to protein-rich foods are supporting this shift. Advances in precision fermentation also influence market development by enabling consistent peptide structures, higher purity levels, and stronger bioactivity while decreasing dependency on variable conventional raw material sources.
| Market Scope | |
|---|---|
| Start Year | 2024 |
| Forecast Year | 2025-2034 |
| Start Value | $900 Million |
| Forecast Value | $2.3 Billion |
| CAGR | 10% |
The precision fermentation segment accounted for USD 405 million in 2024. This approach holds a sizable share because producers rely on its ability to deliver uniform, functional peptides with enhanced absorption properties. The method's scalability, reduced batch variation, and compatibility with clean-label specifications have made it a favored route for applications in medical nutrition, performance formulas, and specialty protein categories.
The plant-based hydrolysates segment reached USD 360 million in 2024. This segment commands a large share as developers work to meet rising interest in allergen-friendly, sustainable, and clean-label proteins. A wide portfolio of soy, pea, wheat, and rice hydrolysates enables efficient production and supports tailored amino acid compositions for lifestyle beverages, sports products, and metabolic nutrition. Their rapidly commercialized neutral-flavor and highly soluble varieties are strengthening vegan and flexitarian product lines across established and emerging brands.
North America Next-Generation Protein Hydrolysates Market held 38% share in 2024, with the United States contributing most of this share. Growth is supported by a mature nutrition sector, strong demand for clinical nutritional solutions, and the presence of multiple sports and performance nutrition companies. Advancements in hydrolyzed proteins for medical diets, especially for older adults and individuals recovering from medical procedures, are driving additional uptake. Rising interest in clean-label proteins that are easy to digest and suitable for those with sensitivities further reinforces market expansion.
Leading names in the Next-Generation Protein Hydrolysates Market include Glanbia Nutritionals, Kerry Group plc, DSM-Firmenich, FrieslandCampina Ingredients, Arla Foods Ingredients, Tessenderlo Group, Perfect Day, Geltor, GEA, Carbery, NiHTEK, Fonterra, and Kemin Industries. Companies competing in the Next-Generation Protein Hydrolysates Market are strengthening their positions by expanding R&D pipelines, building long-term partnerships, and investing in scalable production systems. Many firms are advancing precision fermentation and enhanced hydrolysis techniques to deliver peptides with predictable functionality, improved absorption, and consistent purity. Strategic collaborations with nutrition brands, healthcare organizations, and formulation specialists help accelerate product testing and commercial deployment. Manufacturers are also diversifying raw material sources to stabilize supply chains and broaden their clean-label offerings.