Hydrolyzed Vegetable Protein Market by Source (Soy, Wheat, Pea, Corn, Rice), Form (solid, liquid), Process (Acid & Alkaline, Enzymatic), Application (Food and Beverages, Infant Nutrition, Nutritional Supplement) - Global Forecast to 2030

The Hydrolyzed Vegetable Protein Market is expected to reach $6.14 billion by 2030, at a CAGR of 9.9% during the forecast period of 2024 to 2030. The growth of this market is attributed to the increased demand for processed & convenience foods, the growing popularity of vegetarian and vegan diets, the rising awareness about the health benefits of plant-based protein, and growing health and wellness trends. Additionally, increasing intolerance for animal protein and emerging economies are expected to offer significant growth opportunities for market players. However, the wide availability & high preference for isolates and concentrates and fluctuating raw material prices restrain the market’s growth.

Key Players

The report includes a competitive analysis based on an extensive assessment of the key growth strategies adopted by leading market players in the past four years. The key players profiled in the hydrolyzed vegetable protein market are Kerry Group Plc (Ireland), Cargill, Incorporated (U.S.), Rouquette Frères (France), Ajinomoto Co., Inc. (Japan), Tate & Lyle PLC (U.K.), Foodchem Group (China), Titan Biotech Limited (India), Archer-Daniels-Midland Company (U.S.), Aipu Food Industry (China), and Axiom Foods Inc. (U.S.).

Increased Demand for Processed & Convenience Foods to Drive the Market for Hydrolyzed Vegetable Protein

In recent years, there has been a significant increase in the demand for processed and convenience food products. Modern lifestyles have become busier and more fast-paced, with people having less time for cooking and meal preparation. Processed and convenient foods offer quick and easy meal options that require minimal effort and time in the kitchen. Processed foods provide a convenient solution with limited cooking resources. Processed foods often undergo various processing and preservation techniques, which extend their shelf life. The extended shelf life allows consumers to stock up on these items and use them whenever needed, reducing food waste. According to Agriculture and Agri-Food Canada (AAFC), the processed food and beverages sector in Canada contributed more than USD 141.3 billion in sales in 2021 (up 15.7% from 2020). According to the Plant-based Food Association, the sale of plant-based meat increased from USD 0.95 billion in 2019 to USD 1.37 billion in 2022, an increase of 44.2% from 2019.

In addition, due to increasing demand for convenience food products, many food companies heavily promote them through advertising campaigns highlighting their convenience, taste, and time-saving benefits. This exposure and persuasive marketing have influenced consumer behavior and contributed to increased demand for processed and convenience food products.

Processed foods often come in various flavors, textures, and options, catering to diverse consumer preferences. They offer convenience without compromising taste, making them appealing to individuals looking for quick, flavorful meals or snacks. Vegetable protein hydrolysates are emerging as a vital ingredient in the food processing industry for developing convenient food formulations. Plant-based protein hydrolysates are used in the processed food industry for both nutritional and functional reasons. For instance, vegetable protein hydrolysates can act as emulsifiers and binders in processed food products. They help stabilize emulsions, improve texture, and enhance moisture retention, which can be beneficial in various food applications such as sauces, dressings, bakery products, and meat analogs. These properties contribute to improved product quality and consumer acceptance.

Furthermore, vegetable protein hydrolysates are rich in essential amino acids, which are the building blocks of protein. They offer a valuable source of plant-based protein, making them particularly attractive to consumers seeking vegetarian or vegan alternatives. Vegetable protein hydrolysates can align with the clean-label trend in the food industry. They are often perceived as natural ingredients, especially when derived from recognizable plant sources.

Thus, due to its functional & nutritional properties and increasing applications in a range of food products, there is an increasing demand for hydrolyzed vegetable protein in processed and convenience food markets.

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Key Findings in the Hydrolyzed Vegetable Protein Market Study:

In 2024, the soy segment is expected to account for the largest share of the hydrolyzed vegetable protein market

Based on source, the hydrolyzed vegetable protein market is segmented into soy, wheat, pea, corn, rice, and other sources. In 2024, the soy segment is expected to account for the largest share of the hydrolyzed vegetable protein market. The large market share of this segment can be attributed to its cost-effectiveness, the widespread availability of soy crops, the large number of manufacturers engaged in large-scale production, and its strong umami flavor, which enhances the taste profile of diverse food products and conceals off-flavors or bitterness in processed foods.

However, the pea segment is expected to register the highest CAGR during the forecast period. This growth is attributed to the absence of common allergens in protein hydrolysates derived from peas, including dairy, soy, and gluten, making it an ideal option for individuals with food allergies or sensitivities. Furthermore, protein hydrolysates derived from peas have become a sought-after protein supplement among athletes, bodybuilders, and health-conscious consumers due to their protein content and various health benefits.

In 2024, the solid segment is expected to account for the largest share of the hydrolyzed vegetable protein market

Based on form, the hydrolyzed vegetable protein market is segmented into solid and liquid. In 2024, the solid segment is expected to account for the larger share of the hydrolyzed vegetable protein market. The large market share of this segment is attributed to the growing demand for solid hydrolyzed vegetable protein due to their benefits such as ease of handling & transport, relatively lower costs, reduced likelihood of formulation errors, and ingredient stability.

However, the liquid segment is expected to register the highest CAGR during the forecast period due to its high shelf life, natural and fresh appeal, and versatility for various applications.

In 2024, the acid & alkaline segment is expected to account for the larger share of the hydrolyzed vegetable protein market

Based on process, the hydrolyzed vegetable protein market is segmented into acid & alkaline and enzymatic. In 2024, the acid & alkaline segment is expected to account for the larger share of the hydrolyzed vegetable protein market. The large market share of this segment is attributed to the benefits offered by this process, such as enhanced digestibility & flavor, allergen reduction, and clean label appeal.

However, the enzymatic segment is expected to register the highest CAGR during the forecast period due to the benefits offered by this process, such as improved functional properties, solubility, and nutritional enhancement.

In 2024, the food & beverages segment is expected to account for the largest share of the hydrolyzed vegetable protein market

Based on application, the hydrolyzed vegetable protein market is segmented into food & beverages, infant nutrition, nutritional supplements, and other applications. In 2024, the food and beverages segment is expected to account for the largest share of the hydrolyzed vegetable protein market. The large market share of this segment is attributed to increased demand for vegetable protein from plant-based product manufacturers, high demand for vegetarian products, and increased production of functional and convenience food products.

However, the nutritional supplements segment is expected to register the highest CAGR during the forecast period. The rapid growth of this segment is mainly attributed to the rising adoption of natural protein-rich nutritional supplements with the growing health & wellness trends, changing lifestyles, increasing awareness of nutrition, and the increasing prevalence of diseases.

In 2024, the offline segment is expected to account for the largest share of the hydrolyzed vegetable protein market

Based on distribution channel, the hydrolyzed vegetable protein market is segmented into offline and online. In 2024, the offline segment is expected to account for the largest share of the hydrolyzed vegetable protein market. The large market share of this segment is attributed to the growing number of modern groceries offering high-quality products, the availability of a wide range of products, and the enhanced shopping experience offered by modern groceries, hypermarkets, and supermarkets.

However, the online segment is expected to register the highest CAGR during the forecast period. The rapid growth of this segment is mainly attributed to faster accessibility and cost-effectiveness offered by online shopping platforms.

Asia-Pacific: Fastest-growing Regional Market

Based on geography, in 2024, North America is expected to account for the largest share of the hydrolyzed vegetable protein market. North America’s major market share is attributed to the increased production of functional and convenient food & beverages, rising concerns over animal products and protein, increasing vegan population, growing preference for plant based-products, high demand for health supplements, and the presence of numerous hydrolyzed vegetable protein manufacturers in the region.

However, Asia-Pacific is projected to register the highest CAGR during the forecast period. The growth of this regional market is attributed to growing awareness about the health benefits of protein-rich diets, increasing focus on nutrition, technological advancements in the food & beverages industry, wide availability of raw materials, and a substantial vegetarian population.

Scope of the report:

Hydrolyzed Vegetable Protein Market Assessment, by Source

• Soy
• Wheat
• Pea
• Corn
• Rice
• Other Sources

Hydrolyzed Vegetable Protein Market Assessment, by Form

• Solid
  • Chunks
  • Slices
  • Flakes
  • Granules
• Liquid

Hydrolyzed Vegetable Protein Market Assessment, by Process

• Acid & Alkaline
• Enzymatic

Hydrolyzed Vegetable Protein Market Assessment, by Application

• Food & Beverages
  • Processed Fish, Meat, and Egg Products and Alternatives
  • Bakery & Confectionery
  • Snack Foods
  • Soups, Sauces, and Dressings
  • Breakfast Cereals and Meals Dairy
  • Beverages
  • Others Food & Beverage Applications
• Infant Nutrition             
• Nutritional Supplements              
• Other Applications

Hydrolyzed Vegetable Protein Market Assessment, by Distribution Channel

• Offline
• Online

Hydrolyzed Vegetable Protein Market Assessment, by Geography

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • Australia
  • Rest of Asia-Pacific
• Latin America
• Middle East & Africa  

Key questions answered in the report: