Animal Feed Protein Hydrolysate Market Size - By Source, By Technology, By Livestock, Growth Forecast, 2025-2034

Animal Feed Protein Hydrolysate Market Size

The global animal feed protein hydrolysate market size was valued at USD 1.8 billion in 2024. The market is expected to grow from USD 2 billion in 2025 to USD 3.9 billion in 2034, at a CAGR of 7.7%, according to latest report published by Global Market Insights Inc.

• Animal feed protein hydrolysate is used extensively in the animal nutrition industry to enhance growth performance, immune function, and health in livestock, poultry, and aquaculture species. This ingredient comes from the enzymatic or chemical breakdown of animal proteins. It is highly digestible and bioactive. Such a thriving market is fueled by the increasing demand for quality protein supplements in animal feed so as to improve their nutritional contents.
   
•  According to the Food and Agriculture Organization, global meat production is expected to rise to around 376 million tons by the year 2030. This represents a further increase in the consumption of animal proteins, which escalates the demand for nutrient-rich feed additives, such as protein hydrolysates.
   
• Changes in the emphasis toward health and nutrition for animals have pushed animal feed manufacturers further to use functional additives for increased productivity and resistance to disease, opening new application areas for animal protein hydrolysates: Animal feed protein hydrolysates have started being used extensively by the feed manufacturers as functional feed additives for enhancing the performance of the animals while reducing feed conversion ratios.
   
• Asia-Pacific is currently the largest market for animal feed protein hydrolysates, mainly due to the high livestock and aquaculture bases in countries like China and India. North America, however, is recognized as the fastest growing market due to advanced manufacturing infrastructure and increasing adoption of innovative animal nutrition solutions. Global demand for high-quality animal protein continues to soar; consequently, these factors will propel the market further into innovative expansion across regions.
   

Animal Feed Protein Hydrolysate Market Trends

• Recent advancement in the enzymatic hydrolysis technique have improved the production of animal feed protein hydrolysate. State-of-the-art processing methods now reduce production costs and heighten product efficacy by producing targeted peptides with specific health benefits. The new technological advancements have encouraged feed manufacturers to increasingly rely on high-performance ingredients.
   
• Regulations are now demanding stringent standards for animal feed ingredients to ensure safety, traceability, and sustainability. Recent frameworks encourage green sourcing and green production. The fast-changing political landscape forces innovation amongst companies who must adopt safe and sustainable processes regulations stiffen. This regulatory environment is shaping the marketplace with companies directed to produce compliant and high-quality product, thereby influencing the very growth of the industry.
   
• Consumers are demanding for animal feeds that are composed of natural, safe, and health-promoting ingredients. This is accompanied by increased awareness of animal health and welfare and the need for animal products to be produced more sustainably. Thus, demand for natural feed additives escalates and triggers more innovative developments in the market.
   
• With the advancement in digital technology, data analysis, and biomarkers, precision nutrition strategies become practically possible. These innovations create opportunities for the development of custom feed blends for a certain animal species and/or for certain health condition, therefore optimizing growth performance and reducing waste. Integration of digital applications into feed manufacturing processes will bring change toward targeted and efficient nutrition practices, thus contributing to sustainable growth in the industry.
   

Animal Feed Protein Hydrolysate Market Analysis

Based on source, animal feed protein hydrolysate market is segmented into fish protein, animal protein, plant protein, milk and others. Fish protein generated revenue of USD 553.2 million in 2024.
 

• Fish is the main protein in hydrolysates to manufacture products for the animal feed market because of its high nutrition profile, including essential amino acids and also bioactive compounds which are most needed to help improve health and growth in animals. The high availability of fish by-products in the seafood industry offers a cheap source for the raw material, rendering it more sustainable for manufacturers. Fish nutrients also have better digestibility and palatability, which makes them very preferable to other ingredients by feed producers.
   
• Animal protein sources include poultry, beef, and pork by-products, which represent a significant portion of the market because they are an incomplete source compared to fish protein. Innovations in processing improve the functional qualities of these proteins although limitations in cost and sourcing variability still restrain their growth in comparison with fish protein.
   
• Plant protein sources like soy and pea are beginning to take off, signifying a vegetarian origin for most consumers where they are still leaning towards sustainable ingredients. On the other hand, milk proteins are composed mainly of casein and whey, which are valued as it contain high-quality amino acids and high advantages through their functionalities.
   

Based on technology, the animal feed protein hydrolysate market is segmented into enzymatic hydrolysis, acid hydrolysis, advanced processing technologies and others. Enzymatic hydrolysis made up 69.8% market share in 2024.
 

• Enzymatic hydrolysis is the preferred method for its specification, high efficiency, and production of peptides with specifically designed bioactive properties. Since this method can be carried out under mild conditions, the protein nutritional quality can be maintained while a precise control of the degree of hydrolysis can be done. From the environmental point of view, it is more viable to use this process rather than other forms since it can produce high-quality and uniform products. 
   
• Acid hydrolysis preferred under harsher conditions like high temperature and strong acid, which could cause protein degradation and inconsistency of the products. Also, the sustainability of the process is often questioned because of environmental issues and the need to neutralize the acids used. While it appears cost-effective in theory, the negative effects are imposed onto quality enhancement; this therefore leads to marketing restrictions.
   
• Advanced processing technologies such as membrane filtration, ultrasonication, and fermentation-based solutions offer advanced processing alternatives. Aimed at increasing processing efficiencies, minimizing processing times, and maximizing the functional properties of the hydrolysates, these technologies are expected to grow as the industry seeks more sustainable and high-performance solutions, thus encouraging further research and development investments.
   

Based on livestock, the animal feed protein hydrolysate market is segmented into poultry, swine, ruminant, aquaculture, companion animal and other livestock.
 

• The poultry segment is driven due to its vast population globally and relatively high feed conversion efficiency, which leads to very high demand for quality functional feed ingredients. Poultry farming is common in both emerging and developed economies and thus has been a major consumer of feed additives as protein hydrolysates for promoting growth, immunity, and overall health.
   
• Swine is driven by increased demand for pork in various regions, especially in Asia. Notable increases in the use of protein hydrolysates on swine farms include better feed digestibility and piglet health, which directly affect productivity and profitability. Concentric focus on lowering feed costs without compromising the health standards intensifies the desired growth of this segment in the market.
   
• Ruminants including cattle and sheep already have a uniformly steady growth rate because of the ever-increasing trend towards sustainable and natural feeding practices. While traditionally protein hydrolysates have been used as relatively few forages, applications such as increased milk yield and animal health are catching on rapidly, especially with intensive dairy farming.
   
• Aquaculture is proving to be the next fastest-growing slot as fish and shrimp farming is increasing worldwide. Hydrolysate supplements of protein are popular in aquaculture feeds because they bring about improved gut health and favourable growth performance and are the best for places where seafood consumption is on the increase.
   

The animal feed protein hydrolysate market in North America will grow at a CAGR from approximately 7.8% between 2025 and 2034.
 

• Increasing focus on animal health, especially gut health and immunity; along with high-quality protein source adoption in livestock diets are driving these prospects. Enzymatic hydrolysis innovations have improved efficacy and stability and made the product more digestible.
   
• The sustainable and natural animal feed ingredients trend in U.S., combined with eco-friendly formulation preferences, encourages companies to utilize animal feed protein hydrolysate for organic and environmentally friendly feed products.
   
• Increased animal welfare consciousness and demand for healthier livestock products further drive the market, with the feed manufacturers investing in their R&D for the development of targeted hydrolysates for specific livestock health needs. 
   

The animal feed protein hydrolysate markets in Europe, especially in a few countries like Germany, are expected to grow in the coming years, especially from 2025 to 2034, with CAGR of 7.5%.
 

• The shift in regulatory emphasis toward sustainable and natural feed ingredients has become the prime mover in the widespread acceptance of protein hydrolysates, especially in organic and clean-label animal feeds.
   
• Continuous advancements in enzymatic processing methods have improved the functional properties of hydrolysates, thus enabling their use in specialty feeds for dairy, poultry, and aquaculture.
   
• The continuing growth of plant-based and vegan options in animal feeds, in conjunction with the innovations of probiotic and functional ingredients, provides openings for an expanded application of animal feed protein hydrolysate with markets in Europe.
   

The animal feed protein hydrolysate market in China and India is expected to grow rapidly between 2025 and 2034, with CAGR of 7.9% in Asia Pacific.
 

• Rapid urbanization and increasing demand for high-quality animal products are driving the need for nutritionally enhanced feed ingredients like protein hydrolysates. Government initiatives promoting sustainable livestock farming and improving animal health standards support the adoption of advanced feed solutions, including hydrolysates.
   
• Awareness has been growing about gut health and immune support benefits in livestock and so is increasing with the growth of modern aquaculture and poultry sectors, which in turn increases demand for these ingredients.
   
• Unconventional fermented feeds and hydrolysate incorporation within more traditional functional animal feeds are opening up new market possibilities through consumer educational campaigns in Asia Pacific.
   

Between 2025 and 2034, the market for animal feed protein hydrolysate in the UAE and the Middle East is projected to grow significantly during this period.
 

• The development of infrastructure expansion of livestock and aquaculture sectors are the key drivers for the adoption of advanced feed into such feed ingredients as protein hydrolysate in Middle East & Africa.
   
• Regional health and wellness campaigns by government and private programs encouraging sustainable and healthy livestock management are promoting the inclusion of hydrolysates in the diets of animals.
   
• Market growth is fueled by innovations such as personalized animal nutrition systems and health monitoring systems that work jointly with the regional sustainable livestock practices.  
   

Brazil and Argentina are expected to witness notable growth for the animal feed protein hydrolysate sector between 2025 and 2034.
 

• Increasing consumer awareness about the benefits of gut health and immune support in livestock, together with urbanization, is driving demand for high-quality feed ingredients.
   
• Increasing investments in animal health infrastructure and government programs supporting sustainable livestock practices have enhanced this market. The trend of trying out various functional feed additives and probiotics derived from fermented sources has further opened gates for hydrolysates in livestock nutrition. 
   

Animal Feed Protein Hydrolysate Market Share

• Animal feed protein hydrolysate industry is moderately consolidated with players like BioMarine Ingredients Ireland, Darling Ingredients, Kemin Industries, Kerry Group and Symrise AG accounts for 47.7% market share in 2024.
   
• The animal feed protein hydrolysate market consists of such leading companies, operating mostly in their regional areas. Their long years of experience with protein hydrolysate allow these companies to maintain a strong market position worldwide. Their product offerings are diverse and majorly supported by production capacities and distribution networks, which can serve the increasing demand for animal feed protein hydrolysate in various regions.
   

Animal Feed Protein Hydrolysate Market Companies

Major players operating in the animal feed protein hydrolysate industry includes:

• BioMarine Ingredients Ireland
• Copalis
• Darling Ingredients
• Empro Europe
• Janatha Fish Meal
• Kemin Industries
• Kerry Group
• Proliver
• SAMPI
• Symrise AG
• Titan Biotech
   

BioMarine Ingredients Ireland-BioMarine Ingredients specialize in sustainable marine-based ingredients that manufacture high-grade fish protein hydrolysates for animal feed applications. Their products aim to improve the gut health, immunity, and performance of livestock and aquaculture. With sustainable sourcing in focus, the company manufactures innovative bioactive hydrolysates to respond to truly modern needs in animal nutrition.
 

Darling Ingredients-Darling Ingredients is the worldwide leader in converting sustainable animal by-products into valuable ingredients, inclusive of protein hydrolysates for animal feed. Their products improve digestibility, immune response, and growth performance in the livestock and aquaculture feed.
 

Kemin Industries-Kemin Industries develops specialized ingredients such as enzymatically hydrolysed proteins for animal feed formulations. With an aim of promoting gut health, enhancing nutrient absorption, and boosting immune functions of livestock and poultry, Kemin, consistent with its philosophy of innovation and quality, provides customized hydrolysates that not only meet rigorous safety standards but also support sustainable animal nutrition.
 

Kerry Group-Kerry Group consists of a broad array of functional ingredients, including protein hydrolysates intended for the markets of animal feeds and pet foods. These products promote digestibility, immunity, and overall performance in animals.
 

Symrise AG-Symrise AG operates to produce bioactive ingredients, specifically, enzymatically processed protein hydrolysates for animal nutrition. Their product support gut health, growth, and immune function in livestock and aquaculture.
 

Animal Feed Protein Hydrolysate Industry News

• In January 2024, a new industrial plant for the production of sustainable fish feed protein hydrolysates from animal byproducts was inaugurated in Portugal by Sebol, a subsidiary of the ETSA Group, marking one of the significant advances in aquaculture nutrition and circular economy practices.
   
• In August 2023, Kerry Group emphasized the plant protein hydrolysates with reference to their contribution for enhancing taste, texture, and nutritional value in plant-based foods and drinks including confectionery, drinks, and sports nutrition products.
   

The animal feed protein hydrolysate market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue in USD Billion and volume in terms of Kilo Tons from 2021–2034 for the following segments:

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Market, By Source

• Fish protein
  • Salmon 
  • Tuna 
  • Sardine & anchovy
• Animal protein
  • Poultry by-product
  • Pork by-product
  • Beef by-product
  • Blood & plasma
• Plant protein
  • Soy 
  • Rice 
  • Pea 
  • Others
• Milk 
  • Whey 
  • Casein 
  • Milk processing by-products
• Others

Market, By Technology        

• Enzymatic hydrolysis
  • Alcalase-based processing
  • Protamex-based processing 
  • Others
• Acid hydrolysis
  • Hydrochloric acid processing
  • Sulfuric acid processing
  • Others
• Advanced processing technologies
• Others

Market, By Livestock

• Poultry
  • Broiler 
  • Layer 
  • Turkey
  • Others
• Swine 
  • Piglet 
  • Grower 
  • Finisher 
• Ruminant 
  • Cattle 
  • Dairy
  • Small ruminants
• Aquaculture 
  • Finfish 
  • Crustacean 
  • Mollusk 
• Companion animal
  • Dog food
  • Cat food
  • Specialty pet foods 
• Other livestock
  • Equine 
  • Exotic & game animals
  • Others

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada
• Europe 
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific 
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Rest of Asia Pacific
• Latin America 
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East and Africa 
  • Saudi Arabia
  • South Africa
  • UAE
  • Rest of Middle East & Africa