Hydrolyzed Whey Protein Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Hydrolyzed Whey Protein Market Report is Segmented by Product Form (Capsulated, Powdered), Degree of Hydrolysis (Low, Medium, High), Application (RTE/RTC Food Products, Sport/Performance Nutrition, Baby Food and Infant Formula, Elderly Nutrition and Medical Nutrition, and More), and Geography (North America, Europe, Asia Pacific, South America, Middle East and Africa). The Market Forecasts are Provided in Terms of Value (USD).

Hydrolyzed Whey Protein Market Size and Share

Hydrolyzed Whey Protein Market Summary
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Compare market size and growth of Hydrolyzed Whey Protein Market with other markets in Food & Beverage Industry

Hydrolyzed Whey Protein Market Analysis by Mordor Intelligence

The Hydrolyzed Whey Protein Market is valued at USD 141.72 million in 2025 and is projected to reach USD 196.85 million by 2030, growing at a CAGR of 6.79% during the forecast period. The market's growth is driven by increasing consumer awareness regarding health and fitness, coupled with the rising demand for high-protein dietary supplements. Additionally, the expanding application of hydrolyzed whey protein in sports nutrition, infant formula, and clinical nutrition further fuels its adoption. The growing prevalence of lifestyle-related diseases, such as obesity and diabetes, has also led to a surge in demand for functional foods and beverages, where hydrolyzed whey protein plays a significant role. Furthermore, the market benefits from advancements in production technologies, which have improved the efficiency and quality of hydrolyzed whey protein products. The increasing preference for clean-label, organic, and sustainable food products is another factor propelling market growth. Key players in the industry are focusing on product innovation and strategic partnerships to cater to the evolving consumer demands. 

Key Report Takeaways

  • By product form, powdered variants led with 72% revenue share in 2024; capsulated formats are projected to record the highest CAGR at 8.40% through 2030.
  • By degree of hydrolysis, low-DH products accounted for 52% of the hydrolyzed whey protein market share in 2024, while high-DH products are expected to expand the fastest at an 8.10% CAGR to 2030.
  • By application, sports/performance nutrition commanded 78.58% of the hydrolyzed whey protein market size in 2024 and is set to progress at a 7.32% CAGR through 2030.
  • By geography, North America held 56.75% of global revenue in 2024 and is forecast to grow at 7.29% CAGR during 2025-2030.

Segment Analysis

By Product Form: Powdered Dominance Drives Market Efficiency

In 2024, powdered hydrolyzed whey protein captures a commanding 72% of the market share, thanks to its superior shelf stability, cost-effective transportation, and versatile applications spanning infant formula, sports nutrition, and clinical uses. The segment's dominance is bolstered by manufacturing efficiencies in spray-drying technology, which allow for large-scale production without compromising protein integrity. These efficiencies not only reduce production costs but also ensure consistent quality, making powdered hydrolyzed whey protein a preferred choice for manufacturers and end-users alike. While capsulated forms hold a smaller market share, they are witnessing the fastest growth, projected at an 8.40% CAGR from 2025 to 2030. This surge is fueled by a growing consumer preference for convenient, portion-controlled delivery formats, especially in sports nutrition and dietary supplements. The portability and ease of use of capsulated forms further enhance their appeal, particularly among active individuals and those with busy lifestyles.

Historical growth comparisons highlight a trend towards premiumization, with capsulated formats becoming increasingly popular among health-conscious consumers. These consumers prioritize precise dosing and enhanced bioavailability. Meanwhile, liquid concentrate formats find their niche in medical nutrition, where the need for immediate consumption justifies their higher production costs. Addressing previous challenges, Arla has developed UHT-stable formulations, paving the way for broader adoption of liquid formats. These advancements in UHT technology ensure that liquid concentrates maintain their nutritional integrity and safety during heat treatment, overcoming a significant barrier to their wider acceptance in the market.

Hydrolyzed Whey Protein Market: Market Share by Product Type
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Note: Segment shares of all individual segments available upon report purchase

By Degree of Hydrolysis: Low-DH Products Balance Function and Taste

In 2024, low-degree hydrolysis products command a 52% market share, striking an ideal balance between functionality and taste. These products, commonly used in infant formulas and functional beverages, preserve enough protein structure to minimize bitterness while enhancing digestibility over intact proteins. Their widespread adoption is attributed to their ability to meet the dual demands of nutritional efficacy and consumer preference for palatable options. Meanwhile, high-DH variants, primarily used in clinical nutrition for their superior bioavailability, are witnessing the fastest growth at an 8.10% CAGR through 2030, even if taste is secondary. The increasing prevalence of chronic illnesses and aging populations globally has driven the demand for clinical nutrition products, further boosting the growth of high-DH variants.

Medium-DH products cater to niche markets, especially in sports nutrition, where there's a push for quick absorption without sacrificing flavor. This segment reaps the rewards of advancements in enzymatic processing, allowing for meticulous control over the degree of hydrolysis. For instance, Arla's Lacprodan DI-3092 showcases how refined enzymatic techniques can yield high protein concentrations (10g per 100ml) while ensuring taste remains palatable through careful hydrolysis management. The growing interest in fitness and active lifestyles has also contributed to the demand for medium-DH products, as they align with consumer preferences for effective and enjoyable sports nutrition solutions.

By Application: Sports Nutrition Leads with Clinical Segments Emerging

In 2024, Sports/Performance Nutrition commands a dominant 78.58% market share and is projected to maintain a robust 7.32% CAGR through 2030. This growth underscores its widespread acceptance, not just among elite athletes but also among recreational sports enthusiasts and fitness aficionados. Research reveals that the type of exercise plays a pivotal role in shaping consumption trends, with a notable surge in demand for quickly absorbed protein sources, particularly among those engaged in endurance and strength training. Endurance athletes often prefer protein sources that aid in muscle recovery and energy replenishment, while strength trainers prioritize proteins that support muscle repair and growth, driving innovation in product formulations tailored to these specific needs. 

Regulatory nods, like the FDA's recent clearance of Arla's hydrolysates, are bolstering applications in Baby Food and Infant Formula, paving the way for more hypoallergenic product formulations. This regulatory support has encouraged manufacturers to explore advanced protein hydrolysates and other specialized ingredients, enabling the creation of products that address specific dietary needs, such as lactose intolerance and allergies, in infants. Meanwhile, segments like Elderly Nutrition and Medical Nutrition are witnessing a surge, fueled by an aging population and mounting clinical evidence underscoring the importance of protein supplementation in preserving muscle health. The growing focus on healthy aging and the increasing prevalence of age-related muscle loss (sarcopenia) are further propelling demand in these segments, encouraging manufacturers to develop targeted nutritional solutions. 

Hydrolyzed Whey Protein Market: Market Share by Application
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Geography Analysis

In 2024, North America dominates the hydrolyzed whey protein market with a 56.75% market share and is expected to maintain its leadership with a 7.29% CAGR through 2030. This growth is driven by robust regulatory frameworks that ensure product quality and safety, alongside a mature sports nutrition market that continues to expand. Significant capacity investments by key players in the region further strengthen its position, enabling the development of innovative products to meet evolving consumer demands. The increasing adoption of hydrolyzed whey protein in fitness and wellness applications also contributes to the region's sustained growth.

Europe benefits significantly from EFSA regulatory approvals, which enhance consumer trust and facilitate market expansion. The region's well-established infant formula market plays a crucial role, with companies like FrieslandCampina gaining approval for specific protein hydrolysates tailored for infant applications. This regulatory support, combined with a growing focus on health and nutrition, drives the adoption of hydrolyzed whey protein across various end-user industries. Additionally, the rising trend of clean-label and high-protein products further propels market growth in Europe.

In the Asia-Pacific region, demand for hydrolyzed whey protein is surging, driven by heightened consumer awareness of protein-rich diets and the effects of globalization. Younger consumers, influenced significantly by social media, are increasingly gravitating towards flavored variants. Additionally, the market is buoyed by smaller packaging formats that cater to regional preferences for convenience and affordability. China and Indonesia have emerged as top global importers of whey powders in 2024, with import values reaching USD 811.09 million and USD 209.53 million, respectively, as reported by ITC Trade Map [3]Source: ITC Trade Map, "Import Value of Whey Powder (HS Code: 0404)", www.trademap.org. Meanwhile, South America and the Middle East and Africa represent emerging markets with significant potential. These regions are witnessing a rise in health consciousness and an expanding middle-class population, creating opportunities for hydrolyzed whey protein manufacturers to tap into new consumer segments.

Hydrolyzed Whey Protein Market CAGR (%), Growth Rate by Region
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Competitive Landscape

The hydrolyzed whey protein market, rated at a moderate concentration level of 6 out of 10, demonstrates a balanced competitive environment. This market is shaped by the presence of large dairy processors with integrated supply chains and specialized ingredient manufacturers focusing on high-value applications. The technical complexity of hydrolysis processes creates significant barriers to entry, limiting new participants. However, these complexities also provide opportunities for differentiation, particularly through the development of proprietary enzyme systems and expertise in specific applications, which allow companies to stand out in this competitive landscape.

Market dynamics reveal a bifurcation between two distinct strategies. On one side, volume-focused players prioritize cost efficiency to compete in broader markets. On the other side, specialty producers target high-margin niches by offering customized peptide profiles designed for specific functional benefits. Companies such as Arla Foods and Glanbia are leveraging vertical integration strategies to secure raw material supplies and maintain stringent quality control. This approach ensures consistency and reliability in their production processes, giving them a competitive edge. Meanwhile, smaller players like Carbery Group are concentrating on proprietary hydrolysis technologies that enable the production of unique bioactive peptides, catering to specialized market demands.

Innovation is a key driver in this market, with increased patent activity centered around enzyme systems that address critical challenges. For instance, advancements in enzyme technologies are focused on reducing bitterness, a common limitation of hydrolyzed whey protein, while preserving its functional properties. These innovations aim to expand the applicability of hydrolyzed whey protein across a wider range of products and consumer segments. As a result, the market is witnessing a shift toward solutions that balance functionality and sensory appeal, enabling broader adoption and growth opportunities in the forecast period.

Hydrolyzed Whey Protein Industry Leaders

  1. Kerry Group PLC

  2. Glanbia PLC

  3. Arla Foods AMBA

  4. Agropur Cooperative

  5. Fonterra Co-operative Limited

  6. *Disclaimer: Major Players sorted in no particular order
Hydrolyzed Whey Protein Market
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Recent Industry Developments

  • March 2025: Hilmar Cheese Company inaugurated its USD 600 million production facility in Dodge City, Kansas, featuring advanced cheese and whey processing capabilities with emphasis on sustainability and carbon-neutral operations by 2050.
  • November 2024: Arla Foods Ingredients launched Lacprodan DI-3092, a new whey protein hydrolysate for peptide-based medical nutrition offering 10g protein per 100ml while addressing taste challenges through optimized enzymatic processing
  • November 2024: Arla Foods Ingredients completed the acquisition of Volac's Whey Nutrition business following UK Competition and Markets Authority approval, significantly enhancing WPI production capabilities and market position.

Table of Contents for Hydrolyzed Whey Protein Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Hypo-Allergenic Infant-Formula Boom
    • 4.2.2 Growing Demand in Sports Nutrition
    • 4.2.3 Growing Demand from Clinical Nutrition and Elderly Population for Muscle Health
    • 4.2.4 Expansion of Functional Food and Beverage Market
    • 4.2.5 Trend Toward Clean-Label Products
    • 4.2.6 Rising Health and Fitness Consciousness
  • 4.3 Market Restraints
    • 4.3.1 Availability of Alternative Protein Sources
    • 4.3.2 Bitterness of High-DH Hydrolysates Limiting its Use
    • 4.3.3 High Production Costs
    • 4.3.4 Milk Allergies and Sensitivities
  • 4.4 Supply-Chain Analysis
  • 4.5 Regulatory Outlook
  • 4.6 Technological Outlook
  • 4.7 Porter's Five Forces Analysis
    • 4.7.1 Threat of New Entrants
    • 4.7.2 Bargaining Power of Buyers
    • 4.7.3 Bargaining Power of Suppliers
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Intensity of Competitive Rivalry

5. MARKET SIZE AND GROWTH FORECASTS (VALUE AND VOLUME)

  • 5.1 By Product Form
    • 5.1.1 Capsulated
    • 5.1.2 Powdered
  • 5.2 By Degree of Hydrolysis
    • 5.2.1 Low
    • 5.2.2 Medium
    • 5.2.3 High
  • 5.3 By Application
    • 5.3.1 RTE/RTC Food Products
    • 5.3.2 Sport/Performance Nutrition
    • 5.3.3 Baby Food and Infant Formula
    • 5.3.4 Elderly Nutrition and Medical Nutrition
    • 5.3.5 Personal Care and Cosmetics
  • 5.4 By Geography
    • 5.4.1 North America
    • 5.4.1.1 United States
    • 5.4.1.2 Canada
    • 5.4.1.3 Mexico
    • 5.4.1.4 Rest of North America
    • 5.4.2 Europe
    • 5.4.2.1 United Kingdom
    • 5.4.2.2 Germany
    • 5.4.2.3 France
    • 5.4.2.4 Italy
    • 5.4.2.5 Spain
    • 5.4.2.6 Russia
    • 5.4.2.7 Rest of Europe
    • 5.4.3 Asia Pacific
    • 5.4.3.1 China
    • 5.4.3.2 Japan
    • 5.4.3.3 India
    • 5.4.3.4 South Korea
    • 5.4.3.5 Australia
    • 5.4.3.6 Rest of Asia Pacific
    • 5.4.4 South America
    • 5.4.4.1 Brazil
    • 5.4.4.2 Argentina
    • 5.4.4.3 Rest of South America
    • 5.4.5 Middle East and Africa
    • 5.4.5.1 Saudi Arabia
    • 5.4.5.2 United Arab Emirates
    • 5.4.5.3 Turkey
    • 5.4.5.4 South Africa
    • 5.4.5.5 Rest of Middle East and Africa

6. Competitive Landscape

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles {(includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products & Services, and Recent Developments)}
    • 6.4.1 Arla Foods AMBA
    • 6.4.2 Glanbia PLC
    • 6.4.3 Kerry Group PLC
    • 6.4.4 Fonterra Co-operative Group Limited
    • 6.4.5 Agropur Cooperative
    • 6.4.6 AMCO Proteins
    • 6.4.7 Carbery Group Ltd.
    • 6.4.8 Hilmar Cheese Company, Inc.
    • 6.4.9 Milk Specialties Global
    • 6.4.10 Saputo Inc.
    • 6.4.11 Griffith Foods Inc.
    • 6.4.12 Cargill, Incorporated
    • 6.4.13 Archer Daniels Midland Company
    • 6.4.14 Roquette Frères
    • 6.4.15 Royal FrieslandCampina N.V.
    • 6.4.16 Mead Johnson Nutrition
    • 6.4.17 Maker's Nutrition LLC
    • 6.4.18 Abbott Laboratories
    • 6.4.19 Merck KGaA
    • 6.4.20 Amway Corporation

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

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Global Hydrolyzed Whey Protein Market Report Scope

Hydrolyzed whey protein is whey protein that has been partially pre-digested, making it easier and faster for the body to absorb. This is achieved through a process called hydrolysis, where enzymes break down the protein into smaller peptides. The hydrolyzed whey protein market is segmented into product type, degree of hydrolysis, application and geograohy. Based on product type, the market is segmented into capsulated, and powdered. Based on degree of hydrolysis, the market is segmented into low, medium and high. Based on application, the market is segmented into RTE/RTC food products, sport performance nutrition, baby food and infant formula, elderly nutrition and medical nutrition and personal care and cosmetics. By geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle-East and Africa. For each segment, market sizing and forecast have been done based on value (USD million).

By Product Form Capsulated
Powdered
By Degree of Hydrolysis Low
Medium
High
By Application RTE/RTC Food Products
Sport/Performance Nutrition
Baby Food and Infant Formula
Elderly Nutrition and Medical Nutrition
Personal Care and Cosmetics
By Geography North America United States
Canada
Mexico
Rest of North America
Europe United Kingdom
Germany
France
Italy
Spain
Russia
Rest of Europe
Asia Pacific China
Japan
India
South Korea
Australia
Rest of Asia Pacific
South America Brazil
Argentina
Rest of South America
Middle East and Africa Saudi Arabia
United Arab Emirates
Turkey
South Africa
Rest of Middle East and Africa
By Product Form
Capsulated
Powdered
By Degree of Hydrolysis
Low
Medium
High
By Application
RTE/RTC Food Products
Sport/Performance Nutrition
Baby Food and Infant Formula
Elderly Nutrition and Medical Nutrition
Personal Care and Cosmetics
By Geography
North America United States
Canada
Mexico
Rest of North America
Europe United Kingdom
Germany
France
Italy
Spain
Russia
Rest of Europe
Asia Pacific China
Japan
India
South Korea
Australia
Rest of Asia Pacific
South America Brazil
Argentina
Rest of South America
Middle East and Africa Saudi Arabia
United Arab Emirates
Turkey
South Africa
Rest of Middle East and Africa
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Key Questions Answered in the Report

What is the current value of the hydrolyzed whey protein market?

The hydrolyzed whey protein market stood at USD 141.72 million in 2025 and is projected to reach USD 196.85 million by 2030.

Which application segment holds the highest share?

Sports/performance nutrition leads with 78.58% revenue share, reflecting widespread consumer adoption and premium pricing.

Why are high-degree hydrolysates growing faster despite taste issues?

Clinical and medical-nutrition buyers prioritize rapid amino-acid absorption over flavor, pushing high-DH products at an 8.10% CAGR even as processors refine bitterness-masking techniques.

What regulatory changes have propelled infant-formula demand?

The FDA and EFSA both authorized specific whey protein hydrolysates for hypo-allergenic formulas in 2024, opening significant new formulation territory.

Page last updated on: July 6, 2025

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