The protein hydrolysate market for animal feed is expected to witness robust growth by 2027 owing to mounting awareness regarding the benefits of protein hydrolysates in animal nutrition.

Recent studies have concluded that including some animal-protein hydrolysates or soybean protein hydrolysates in soybean meal- and corn-based diets could improve growth performance and feed efficiency on young calves, post-hatching poultry, weanling pigs, and fish. Subsequently, promising advantages of protein hydrolysates have propelled market outlook across key regions.

The protein hydrolysate market for animal feed has been segmented on the basis of technology, form, source, livestock, and region. Based on source, the market has further been segmented into fish protein hydrolysates, animal protein hydrolysates (bovine, poultry, pig, and other meat), plant protein hydrolysates (sunflower protein, soy protein, and others), and milk protein hydrolysates (casein and whey).

The pig protein hydrolysate segment size is projected to surpass USD 115 million by the end of 2027. These hydrolysates are ideal for pet food, aquaculture, and swine feed products, which is expected to boost market demand through the analysis period.

The protein hydrolysate market from the poultry animal protein hydrolysate segment is projected to observe robust growth at a CAGR of over 6.5% over the assessment timeframe. The sunflower protein hydrolysate segment is anticipated to expand at a CAGR of more than 4.5% through the analysis period. Sunflower protein hydrolysates reduce cholesterol micellar solubility, which is likely to bolster segmental adoption in the future.

In terms of livestock, the protein hydrolysate market for animal feed has been segregated into poultry (broilers and layers), cattle, swine, calves, equine, aquaculture (salmon, shrimps, trout, and others), and pet. The protein hydrolysate market for animal feed from the boiler poultry segment was valued at around USD 25 million in 2020 and is speculated to grow at a considerable pace over 2021-2027.

In 2020, the swine livestock segment garnered a valuation of nearly USD 60 million and is anticipated to showcase steady expansion through 2027. Fish protein hydrolysates are widely used as a feed for swine owing to its high nutritional value to produce meat and are abundantly available, which is expected to support segmental growth over the following years.

The calves segment is estimated to grow at a notable rate to reach a valuation of over USD 35 million by the end of 2027. The protein hydrolysate market for animal feed valuation from the equine segment is calculated to surpass USD 65 million by the end of the forecast period.

In the regional landscape, the LATAM protein hydrolysate market for animal feed is expected to observe steady growth at a CAGR of over 6% through the projected timeline driven by the rising demand for protein-rich animal feed in the region.

Meanwhile, the MEA protein hydrolysate market for animal feed is also speculated to exhibit substantial growth at a CAGR of approximately 5.5% due to the booming animal feed sector and surging meat consumption in the region.