Dairy Protein Hydrolysate Market - Forecasts from 2025 to 2030

The Global Dairy Protein Hydrolysate Market is expected to grow at a CAGR of 5.81%, reaching a market size of US$1.27 billion in 2030 from US$964.552 million in 2025.

Dairy protein hydrolysate is a protein extracted from milk that has been hydrolyzed, i.e., a protein consisting of highly organized chains of amino acids broken down into simpler and smaller chains called peptides. So, it is a milk-derived protein formed through hydrolysis, and it is tailored to specific applications, functions, and different markets.

Numerous factors are driving the market growth of dairy protein hydrolysate. Consumers are becoming more health-conscious, demanding various nutritional products that can help them in bridging the nutritional deficiency. This increase in demand for dairy protein hydrolysate is also positively impacted by the growth of consumers' disposable income. At the same time, the rising demand for infant nutrition is leading the market growth of dairy protein hydrolysate. Moreover, the benefits offered by dairy protein through the process of hydrolysis, like a faster absorption rate than intact protein as it is tailored to specific requirements, is leveraging dairy protein hydrolysate demand in infants, athletes, elderly people, and fitness enthusiasts' consumers.

The global dairy protein hydrolysate market has been classified based on product, form, technology, application, and geography. Based on the product, the market has been segmented into whey protein and casein, with whey protein having the largest share in the global dairy protein hydrolysate market. Based on form, the global dairy protein hydrolysate market has been segmented into powder and paste, dominated by powder form due to its convenience and other reasons. The global dairy protein hydrolysate market has been bifurcated by technology into acid hydrolysis and enzymatic hydrolysis. By application, the global market has been classified as sports nutrition, infant nutrition, clinical nutrition, andanimal feed. The market is segmented into five key regions of the world- Asia-Pacific, North America, South America, Europe, and the Middle East.

Global Diary Protein Hydrolysate Market Drivers

The growing demand by theinfant segment will be driving the market growth

There is an increasing demand for nutritional food by the infant segment of the market. The risingnumber of women in the working population is increasing the dependence on ready-made nutritional food for infants. This is leading to anincrease in demand for dairy protein hydrolysate of milk formula.

Global Diary Protein Hydrolysate Market Geographical Outlook

North America will continue to hold the largest share in the forecast period.

Geographically, the global dairy protein hydrolysate market is classified into five major regional markets- North America, South America, Europe, the Middle East and Africa (MEA), and Asia-Pacific (APAC).

North America accounted for a significant global dairy protein hydrolysate market share. The growth of this regional market is attributed to rising demand across the United States and Canada. Increasing health awareness among people in this region and shifting consumer preference towards nutritional products to maintain overall health and well-being is boosting the North American dairy protein hydrolysates market. High demand for energy bars and energy shakes across restaurants and homes to promote fat loss and weight management is further contributing to the regional market expansion. Asia-Pacific is projected to experience a significant growth rate (CAGR) during the forecast period.

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Report Coverage:

• Historical data & forecasts from 2022 to 2030
• Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
• Competitive Positioning, Strategies, and Market Share Analysis
• Revenue Growth and Forecast Assessment of segments and regions including countries
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The Global Diary Protein Hydrolysate market is segmented and analyzed as follows:

By Type

• Whey
• Casein

By Form

• Powder
• Paste

By Application

• Sports Nutrition
• Infant Nutrition
• Clinical Nutrition
• Animal Feed

By Geography

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