The milk protein hydrolysate market is anticipated to witness significant growth by 2027 attributable to the growing use of milk protein hydrolysate as a nutritional supplement for infants around the world.

Milk protein hydrolysate is used as an additive or diet supplement to enhance digestibility in infants. It finds extensive clinical applications, especially for the geriatric population, to support muscle synthesis. It is also being integrated into sports nutrition to help muscle mass development. Thus, wide applicability of the product across emerging industry segments has driven industry expansion.

Recently, leading industry players have adopted strategic initiatives to tap into emerging marketplaces, which has enhanced market dynamics. For instance, in July 2021, Kerry, a major nutrition company, completed the acquisition of Biosearch Life, a specialist in the functional food and pharmaceutical space. The strategic acquisition was purposed to enable Kerry to expand its market offerings for health-based supplements and diet additives.

The milk protein hydrolysate market has been segmented based on form, product, technology, application, and region. On the basis of product, the market has further been bifurcated into whey and casein.

The milk protein hydrolysate market from the casein product segment is expected to observe notable growth at a CAGR of around 8.5% through the assessment period as it provides high amino acid profile, essential minerals, and carbohydrates, which are vital in the sports and dietary supplement industries.

As per form, the market has been categorized into powder and paste. The paste form segment is projected to rise steadily at a CAGR of about 6% over the forecast period.

In terms of application, the market has been categorized into clinical nutrition, infant nutrition, sports nutrition, and animal feed. With respect to animal feed, the milk protein hydrolysate market has been divided into swine, cattle, poultry (broilers and layers), aquaculture (salmon, shrimps, trouts, and others), pet, and equine.

The poultry animal feed segment is anticipated to attain a revenue of over USD 15 million by the end of 2027. Booming demand for poultry meat and high-quality eggs has bolstered the demand for nutritional and protein-rich food for poultry animals, which is likely to impel segmental growth in the coming years.

The milk protein hydrolysate market from the broilers poultry segment is slated to grow at a CAGR of approximately 5% through the projected timeline and is expected to record a surge in demand owing to growing focus of poultry manufacturers on developing feeds enriched with vitamins. The layers poultry segment is anticipated to deliver a substantial CAGR through the review period to reach a valuation of around USD 4.75 million by 2027.

The aquaculture animal feed segment is calculated to gain a valuation of around USD 28.5 million by the end of 2027. The trouts aquaculture segment is expected to see robust expansion at over 5% CAGR through the analysis period. The milk protein hydrolysate market from the shrimps aquaculture segment is estimated to progress at a CAGR of around 4.5% over the assessment timeframe. The others aquaculture segment is anticipated to garner a revenue of over USD 4 million by the end of 2027.

From the regional perspective, the LATAM milk protein hydrolysate market is speculated to expand at a CAGR of more than 6% through the study timeframe owing to increasing consumer expenditure on healthcare and rising prevalence of metabolic disorders across Latin America. In 2020, the MEA milk protein hydrolysate market size exceeded USD 35 million and is projected to grow considerably over the forecast period on account of increasing product adoption in dietary supplements and clinical nutrition in the Middle East & Africa region.