Fish Protein Hydrolysate Market By Source (Fish Meal, Fish Processing By-products), By Type (Powdered Fish Protein Hydrolysate, Liquid Fish Protein Hydrolysate), By Application (Animal Feed, Aquaculture, Pet Food, Food & Beverages, Cosmetics & Personal Care, Fertilizers), By End-Use Industry (Animal Nutrition, Aquaculture & Fisheries, Food & Beverage Industr,; Cosmetics & Personal Care, Agriculture & Horticulture), and By Region; Global Insights & Forecast (2024 – 2030)

As per Intent Market Research, the Fish Protein Hydrolysate Market was valued at USD 2.6 billion and will surpass USD 4.7 billion by 2030; growing at a CAGR of 9.0% during 2024 - 2030.

The fish protein hydrolysate market is witnessing significant growth, driven by the increasing demand for high-quality protein sources across diverse industries, including animal nutrition, aquaculture, food and beverages, and cosmetics. Fish protein hydrolysates, derived from fish meal or fish processing by-products, offer a rich supply of essential amino acids, peptides, and other nutrients. These benefits make them highly sought after for applications in animal feed, functional foods, and cosmetic formulations.

As industries continue to prioritize sustainable sourcing and alternative protein solutions, fish protein hydrolysates are gaining traction for their environmental benefits, as they utilize fish by-products that might otherwise go to waste. The growing demand for eco-friendly and high-performance ingredients is fueling the market, with advancements in processing technologies ensuring higher yields and better quality products for various applications.

Powdered Fish Protein Hydrolysate Segment is Largest Due to Versatility and Ease of Use

The powdered fish protein hydrolysate segment holds the largest market share, owing to its versatility and ease of use in various applications. This form of fish protein hydrolysate is widely used in animal feed, particularly for livestock, poultry, and aquaculture, due to its high digestibility and ability to support growth and immune health in animals. Its powdered form also makes it easy to incorporate into feed formulations and products.

In addition to its widespread use in animal feed, powdered fish protein hydrolysate is increasingly used in functional foods, pet food, and cosmetics. The demand for natural, protein-rich ingredients in human and pet nutrition is driving this segment's growth. Powdered forms are especially popular due to their longer shelf life, ease of transport, and compatibility with various production systems, solidifying their position as the largest sub-segment in the fish protein hydrolysate market.

Aquaculture Application Segment is Fastest Growing Due to Expansion of Fish and Shrimp Farming

The aquaculture application segment is the fastest-growing due to the increasing demand for fish and seafood products, coupled with the rise of sustainable farming practices. Fish protein hydrolysates are highly beneficial for aquaculture, as they promote the growth, health, and immunity of fish and shrimp in farming environments. With the global population's demand for high-protein food sources rising, fish farming has become one of the fastest-growing sectors in the food industry, particularly in regions like Asia Pacific, Europe, and North America.

The benefits of fish protein hydrolysates, such as their ability to enhance feed quality and increase survival rates in farming conditions, make them indispensable in modern aquaculture. Additionally, aquaculture's growing emphasis on sustainability and reducing the environmental impact of farming practices is driving the adoption of fish protein hydrolysates, positioning this segment as the fastest-growing in the market.

Animal Feed Industry is Largest End-Use Industry Due to High Demand in Livestock and Poultry

The animal feed industry is the largest end-use industry for fish protein hydrolysates, driven by the rising demand for high-quality, protein-rich feed ingredients for livestock, poultry, and swine. Fish protein hydrolysates are known for their excellent digestibility, promoting better growth rates, improved feed conversion ratios, and enhanced animal health. As a result, they are increasingly used in the production of feed for a variety of animals.

This trend is particularly evident in the poultry and swine sectors, where fish protein hydrolysates are added to commercial feeds to support animal nutrition and reduce the need for synthetic amino acid supplements. The demand for high-quality animal protein and the increasing focus on animal welfare and sustainable feed sources are expected to continue driving the growth of the animal feed industry and, by extension, the fish protein hydrolysate market.

North America is Largest Region Due to Strong Demand from Animal Feed and Aquaculture

North America is the largest region in the fish protein hydrolysate market, driven by the strong demand from the animal feed and aquaculture industries. The United States, in particular, has seen a significant increase in the use of fish protein hydrolysates in both commercial animal feeds and fish farming operations. The demand for sustainable and high-performance feed ingredients, along with the rising popularity of fish farming, particularly in the Atlantic and Pacific coasts, has fueled the region’s growth.

Additionally, North America is home to a growing market for functional foods and dietary supplements, which use fish protein hydrolysates for their health benefits. The U.S. and Canada are leaders in the development and adoption of advanced aquaculture technologies, making them key drivers of the fish protein hydrolysate market in North America. The region's focus on sustainability and innovation positions North America as the dominant player in the global market.

Competitive Landscape and Key Players

The fish protein hydrolysate market is competitive, with several key players focusing on product innovation, expansion, and sustainability initiatives to strengthen their market positions. Leading companies such as KT CORPORATION, Omega Protein Corporation, Diana Aqua, and Aqualia are prominent players in this space, offering a range of fish protein hydrolysate products for animal feed, food and beverages, cosmetics, and agriculture.

These companies are increasingly focused on utilizing sustainable sourcing practices, improving production technologies, and expanding their product portfolios to cater to the growing demand for functional, natural ingredients. Strategic partnerships, mergers, and acquisitions are also key strategies for gaining market share and enhancing research and development capabilities. As consumer demand for clean-label and eco-friendly products grows, the competitive landscape will likely evolve to emphasize these values. Leading players are also investing in innovation to meet the needs of the expanding aquaculture sector and provide more targeted solutions for different animal species and farming conditions.

Recent Developments:

• Garra Rufa Group launched a new fish protein hydrolysate line for the aquaculture and pet food industries.
• ScanBio Marine Group expanded its production capacity to meet the growing demand for fish protein hydrolysate in animal nutrition.
• Omega Protein Corporation introduced a new range of organic fish protein hydrolysates for the cosmetic and personal care market.
• Alltech partnered with a major pet food brand to supply fish protein hydrolysate as a key ingredient in premium pet food.
• Nutrifish announced the development of a sustainable, marine-based fish protein hydrolysate targeting the functional food sector.

List of Leading Companies:

• Garra rufa Group
• KD Pharma
• ScanBio Marine Group
• Oleogran
• The Scoular Company
• Omega Protein Corporation
• CP Group
• Nutrifish
• Viromed
• Copeinca
• Qingdao Yiyuan Seafoods Co., Ltd.
• BioMar Group
• Alltech
• Nutreco N.V.
• Protein Plus

Report Scope: