Global Protein Hydrolysate Ingredients Market Growth, Share, Size, Trends and Forecast (2024 - 2030)

The global protein in infant formula market is segmented primarily by source, type, form, and region. By source, the market is divided into animal-based and plant-based proteins. Animal-based proteins, particularly whey and casein, dominate the market due to their high bioavailability and closer resemblance to human milk. However, plant-based proteins, derived from soy and other sources, are gaining traction due to rising concerns over lactose intolerance, allergies, and the growing trend towards veganism and sustainability.

In terms of type, the market is segmented into standard, follow-on, and specialty formulas. Standard formulas, intended for infants from birth up to 12 months, form the bulk of the market due to their widespread use. Follow-on formulas cater to older infants and are often fortified with additional nutrients to support continued growth. Specialty formulas, which address specific health issues such as allergies, lactose intolerance, and digestive problems, represent a smaller but rapidly growing segment, driven by increasing awareness and diagnosis of infant health conditions.

The market can also be segmented by form, including powder, liquid concentrate, and ready-to-use formulas. Powdered formulas dominate the market owing to their longer shelf life, lower cost, and ease of transportation and storage. Liquid concentrates, though more convenient than powdered forms, are less popular due to their higher cost and shorter shelf life. Ready-to-use formulas, which offer the highest level of convenience, are preferred in hospital settings and by parents who prioritize ease of use despite their premium price.

Geographically, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. North America and Europe lead the market due to high disposable incomes, advanced healthcare infrastructure, and greater awareness of infant nutrition. The Asia-Pacific region is witnessing rapid growth, driven by rising birth rates, urbanization, and increasing middle-class incomes, particularly in countries like China and India. Latin America and the Middle East & Africa are emerging markets with significant potential, fueled by improving economic conditions and growing awareness of the benefits of infant formula.

Global Protein Hydrolysates Ingredients Segment Analysis

In this report, the Global Protein Hydrolysate Ingredients Market has been segmented by Source, Application and Geography.

Global Protein Hydrolysate Ingredients Market, Segmentation by Source

The Global Protein Hydrolysate Ingredients Market has been segmented by Source into Dairy Protein, Poultry and Meat Protein and Plant Protein.

The global protein in infant formula market is segmented by source into four primary categories: cow's milk, soy, hydrolyzed protein, and specialty protein blends. Each of these sources offers unique nutritional profiles and caters to different needs and preferences of infants and their caregivers.

This is the most commonly used source in infant formula, providing essential nutrients such as whey and casein proteins. Cow's milk-based formulas are designed to mimic breast milk and are rich in essential amino acids, vitamins, and minerals. They are suitable for most infants, ensuring healthy growth and development. However, cow's milk protein formulas can sometimes cause allergic reactions in some infants, leading to a demand for alternative protein sources.

Soy-based infant formulas serve as a crucial alternative for infants who are allergic to cow's milk proteins or are lactose intolerant. These formulas use soy protein isolate, which is fortified with vitamins and minerals to meet the nutritional needs of infants. Soy protein formulas are also suitable for vegetarian and vegan families. Despite their benefits, soy formulas can be a concern due to the presence of phytoestrogens, which has led to ongoing research and debate about their long-term effects.

These formulas contain proteins that are broken down into smaller peptides, making them easier to digest and less likely to cause allergic reactions. There are two types of hydrolyzed protein formulas: partially hydrolyzed and extensively hydrolyzed. Partially hydrolyzed formulas are designed for infants with mild protein sensitivities, while extensively hydrolyzed formulas are used for infants with severe allergies and gastrointestinal issues. Hydrolyzed protein formulas are an essential segment of the market, addressing the needs of infants with special dietary requirements.

This category includes formulas that incorporate a mix of different protein sources, such as goat's milk, rice protein, or hypoallergenic amino acid-based formulas. Specialty blends are tailored for infants with multiple allergies or specific health conditions, providing a broader range of options for parents seeking alternatives to traditional cow's milk or soy-based formulas. These blends are often fortified with additional nutrients to ensure they meet the comprehensive nutritional needs of infants.

The segmentation by source in the global protein in infant formula market reflects the diverse needs and preferences of infants and their caregivers, driving innovation and development in the industry to cater to varying dietary requirements and health concerns.

Global Protein Hydrolysate Ingredients Market, Segmentation by Application

The Global Protein Hydrolysate Ingredients Market has been segmented by Application into Infant Formula, Sports Nutrition, Clinical Nutrition and Others.

This segment includes formulas designed to meet the nutritional needs of infants from birth up to six months. These formulas typically contain a blend of proteins, including whey and casein, to closely mimic the composition of breast milk. The high demand in this segment is driven by working mothers and the increasing adoption of formula feeding in urban areas.

Follow-on formulas are intended for infants aged six to twelve months. These formulas have a different protein composition compared to standard formulas, with a slightly higher protein content to support the growing nutritional requirements of older infants. This segment sees significant growth due to the transition from exclusive breastfeeding to complementary feeding practices.

Specialty formulas cater to infants with specific health needs or dietary restrictions. This includes hypoallergenic formulas, lactose-free formulas, and those designed for infants with metabolic disorders or allergies. The demand in this segment is driven by the increasing prevalence of food allergies and intolerances among infants, as well as the growing awareness among parents regarding specialized nutritional needs.

Also known as toddler milk, this segment targets children aged one to three years. Growing-up milk is formulated to provide additional nutrients that may be lacking in a toddler's diet, including higher protein content to support their rapid growth and development. The popularity of this segment is influenced by parental concerns about ensuring adequate nutrition during the early years and the convenience of ready-to-drink formulas.

Global Protein Hydrolysate Ingredients Market, Segmentation by Geography

In this report, the Global Protein Hydrolysate Ingredients Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Protein Hydrolysate Ingredients Market Share (%), by Geographical Region, 2023

In North America, the protein in infant formula market is expanding due to a rising awareness among parents about the importance of early nutrition for infant development. The United States and Canada are the leading contributors in this region, with a high penetration of premium infant formula products. The increasing incidence of lactose intolerance and allergies in infants has led to a growing demand for specialized protein-based formulas, such as hydrolyzed protein and amino acid-based formulas. Furthermore, advancements in food technology and strict regulatory standards ensure the safety and quality of these products, further boosting market growth.

Europe represents a mature market for protein in infant formula, characterized by a high level of consumer awareness and stringent regulatory frameworks governing infant nutrition products. Countries like Germany, France, and the United Kingdom are the major markets within the region. The European market is driven by a strong preference for organic and clean-label infant formulas, reflecting a broader trend towards health and wellness. Additionally, the region has seen a surge in demand for hypoallergenic and lactose-free formulas, catering to the needs of infants with specific dietary requirements. The presence of major players and continuous product innovation also contribute to the market's robustness.

The Asia-Pacific region is experiencing rapid growth in the protein in infant formula market, primarily due to increasing birth rates and rising disposable incomes. China and India are the largest markets in this region, driven by a growing middle-class population and heightened awareness of infant nutrition. The demand for high-protein infant formulas is further fueled by a shift towards urbanization and changing lifestyles, leading to a preference for convenient and nutritious feeding options. Additionally, government initiatives and policies aimed at improving child health and nutrition are playing a crucial role in driving market growth in this region.

In Latin America, countries such as Brazil and Mexico are witnessing a growing demand for protein in infant formula, driven by increasing urbanization and a rising middle class. The market in this region is characterized by a high demand for affordable yet nutritious infant formula products. In the Middle East & Africa, the market is still in its nascent stage but is expected to grow steadily due to improving economic conditions and increasing awareness of the importance of infant nutrition. Countries like Saudi Arabia, South Africa, and the UAE are emerging as key markets, with a growing preference for fortified and protein-rich infant formulas to address malnutrition and support infant growth.

The global protein in infant formula market is witnessing diverse growth patterns across different regions, driven by a combination of economic, social, and demographic factors. Each region presents unique opportunities and challenges, shaping the market dynamics and competitive landscape.

This report provides an in depth analysis of various factors that impact the dynamics of Global Protein Hydrolysate Ingredients Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

The global protein in infant formula market is experiencing significant growth due to several key trends. Firstly, there is a rising awareness among parents about the nutritional benefits of protein for infant growth and development. This awareness is driving the demand for high-quality infant formula products that contain essential proteins such as whey and casein. Additionally, advancements in protein extraction and formulation technologies are enabling manufacturers to develop more efficient and effective protein-enriched infant formulas, which are appealing to health-conscious consumers.

Another trend shaping the market is the increasing preference for organic and natural ingredients in infant formula. Parents are becoming more cautious about the ingredients in the products they choose for their babies, leading to a surge in demand for organic and clean-label infant formulas. This trend is pushing manufacturers to innovate and offer products that not only meet nutritional standards but also adhere to organic and natural ingredient certifications, thereby gaining the trust and loyalty of discerning consumers.

The market is also witnessing a rise in the popularity of specialized infant formulas designed for specific dietary needs. For instance, hypoallergenic formulas for infants with protein allergies or sensitivities are gaining traction. Similarly, lactose-free and soy-based protein formulas are becoming more prevalent as they cater to infants with lactose intolerance or families following vegetarian or vegan lifestyles. These specialized formulas address specific health concerns, further expanding the market and offering diverse options for parents.

Geographically, the Asia-Pacific region is emerging as a lucrative market for protein in infant formula, driven by increasing birth rates and rising disposable incomes. Countries such as China and India are seeing a growing middle-class population with a willingness to invest in premium infant nutrition products. Additionally, government initiatives to improve infant health and nutrition in these regions are further bolstering market growth. As a result, both multinational and local players are focusing on expanding their presence and product offerings in the Asia-Pacific market to capitalize on this burgeoning demand.

Drivers, Restraints and Opportunity Analysis

Key players in Global Protein Hydrolysate Ingredients Market include:

• Arla Foods Ingredients
• Fonterra Co-operative Group
• Agropur Inc
• LG Corporation
• Milk Specialties Group
• Amco Protein
• Royal Frieslandcampina
• Royal Frieslandcampina
• Kerry Group
• Carbery Group

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis