Hydrolyzed Vegetable Protein Market Analysis Europe, North America, APAC, South America, Middle East and Africa - US, China, Australia, Finland, Denmark - Size and Forecast 2024-2028

Hydrolyzed Vegetable Protein Market Forecast 2024-2028

The global hydrolyzed vegetable protein market size is projected to reach a value of USD 3.19 billion in 2028, growing at a CAGR of 5.8%. Hydrolyzed vegetable protein is a natural and organic product that is rich in amino acids, minerals, and micronutrients and is widely used in small amounts to add to or flavor enhancer of many processed foods, such as soups, snack foods veggie burgers, soy protein seasonings, hydrolyzed plant proteins and others. It is considered a natural additive.

Increasing market demand for plant protein-based diets is notably driving the market growth. As people become more health-conscious and aware of the importance of protein in their diets, they are looking for more ways to incorporate it into their meals. HVP is a convenient and versatile ingredient that can be used to add plant proteins to a wide range of food products, from meat and dairy alternatives to soups, sauces, and gravies. In addition, HVP is growing in popularity as an alternative to meat. Therefore, growing consumer demand for a protein-rich diet and the increasing popularity of meat alternatives are the key drivers of the HVP market growth analysis during the forecast period.

Market Overview

The market shows an Accelerated CAGR during the forecast period.

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Market Dynamics

The Hydrolyzed Vegetable Protein (HVP) market has experienced significant growth in recent years, particularly among sports enthusiasts and individuals conscious of their health. This protein powder, derived from vegetable sources, offers numerous benefits for those seeking muscle recovery and growth. Sports nutrition products, including HVP, have gained popularity due to their ability to aid in muscle soreness relief and enhance the flavour enhancer properties of various foods and beverages. HVP is commonly used in infant formula as a source of protein, making it a versatile option for various population groups. Hydrolyzed Vegetable Protein is gluten-free, making it an excellent alternative for those with dietary restrictions. It is often used in the production of food sauces, stews, seasoned snack foods, and dairy products. With an increasing focus on health consciousness and an active lifestyle, the demand for HVP is expected to continue growing. However, it is essential to note that some individuals may experience an increase in blood pressure when consuming HVP due to its high sodium content. Therefore, it is crucial for consumers to be aware of their individual nutritional needs and consult with healthcare professionals if necessary.

Market Trends

Increasing adoption of organic and natural ingredients is an emerging market trend and analysis shaping the market growth. The demand for natural and organic products is increasing because of health and safety concerns and increasing awareness about the ingredients. Consumers prefer natural and organic ingredient-based personal care products. Skin irritation, skin allergies, hair loss, acne, dark spots, and other issues have led to an increase in demand for natural and organic beauty products free from harmful synthetic ingredients. This is likely to encourage the demand for natural products in the future. The demand for organic and natural products has rapidly grown in the personal care and cosmeceutical sector because they act as natural cures for various skin problems.

Moreover, products are widely used as flavoring and fragrance ingredients for various purposes. Hence, the demand for natural ingredients with therapeutic properties is expected to increase the consumption of products in the future. Consumers are developing a preference for natural and green products, which is expected to increase consumption during the forecast years. 

Market Challenges

Increasing demand for healthy and nutritional food products is a significant challenge hindering market growth. Healthy and nutritional products are not frozen and are preservative-free. There is a high demand for such products across the globe, owing to the rising awareness among consumers about the health benefits of these products. There has been a global shift in demand for healthy and nutritional products as opposed to frozen foods. Eating fresh produce provides an individual with enhanced energy, reduces the effects of ageing, and helps in reducing weight.

Additionally, the promotion of the consumption of fresh fruits and vegetables by the World Health Organization (WHO) and a rise in the number of supermarkets have negatively impacted the market research and growth of the market during the projection period.  

Market Segmentation

The market incorporates a range of essential components to meet diverse consumer demands. Derived from sources like corn and rich in mineral salts and riboflavin, HVP offers not only nutritional benefits but also flavor enhancer properties that enhance the taste of food products. With its inclusion of peptides, it serves as a valuable ingredient in various culinary applications. Moreover, HVP is low in calories and cholesterol, making it an attractive option for health-conscious consumers seeking flavorful yet nutritious choices. Its versatility and ability to enhance taste while maintaining nutritional integrity underscore its significance in the food industry, catering to a wide range of dietary preferences and requirements.

By Distribution Channel 

The direct distribution channel would involve the manufacturer selling the products directly to the end consumer or to a food service provider, such as a restaurant or catering company, without the use of intermediaries such as distributors or wholesalers. This can be done through online sales, mail orders, or through a company-owned retail store. It can also be done by having a sales force that goes to different food service providers and sells the product to them. Many manufacturers and suppliers of protein products adopted a direct-to-customer model. Manufacturers adopt various D2C channels, such as online retailing and specialty stores. Therefore, the direct channel of distribution allows manufacturers to gain valuable insights into consumer behaviour and a more tailored approach to marketing and differentiation. Hence it is contributing to the market growth and trends of the market during the projection period. 

By Types Segment

The market share growth by the dry powder segment will be significant during the forecast years. The dry powder segment dominated the market by type in 2023. It is expected to maintain its dominance during the forecast period owing to the growing adoption of powder in various processed foods. 

The dry powder segment was the largest and was valued at USD 1.17 billion in 2018.

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Additionally, powder is manufactured depending on various factors, such as the natural nutrient content in vegetables, their shelf life, accurate composition, and precise pH value. They are widely used in food products that have an umami flavor profile, such as meaty flavor seasonings, oriental cuisine, and also as seasoning in snacks. Moreover, the increasing adoption of organic and natural ingredients in processed foods, the increasing use of hydrolyzed plant proteins in cosmetic products, and the changing lifestyles of individuals are expected to increase the need for dry powder form which, in turn, is anticipated to propel the growth of the dry powder segment of the market during the forecast years.

Key Regions

Europe is estimated to contribute 36% to the growth of the global market during the forecast period

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Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the projection period.  The leading revenue-contributing countries in the market in Europe are the UK, France, Italy, and Germany. The European economic crisis has slowed the market by increasing taxes and manufacturing costs. This has regulated the pace of growth of the market in Europe. Fat replacers, artificial sweeteners, and hydrocolloids are some of the fast-growing categories in the market in Europe. Some of the prominent vendors that offer in the region are Givaudan SA and Kerry Group Plc. However, the competition in the market in Europe is high due to the presence of numerous local and global companies, which prevents new players from entering the market and may restrict market growth

Key Hydrolyzed Vegetable Protein (HVP) Market Players Overview

Companies are implementing various strategies, such as strategic alliances, market growth and forecasting, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• Key Offering- Aarkay Food Products Ltd.: The company offers protein foods markets such as soya, groundnut, and wheat.
• Key Offering- Aarkay Food Products Ltd.: The company offers protein hydrolysate such as neutral flavor, meat flavor, and poultry flavor.
• Key Offering- Aipu Food Industry - The company offers hydrolyzed proteins such as neutral flavor, meat flavor, and poultry flavor.

The market report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Ajinomoto Co. Inc.
• Akola Chemicals Ltd.
• BELVITA FOOD INGREDIENTS PVT. LTD.
• Caremoli SpA
• Chaitanya Agro Biotech Pvt. Ltd.
• Foodchem International Corp.
• Givaudan SA
• Griffith Foods Worldwide Inc.
• Innova Flavors
• Kerry Group Plc
• Koninklijke DSM NV
• Merck and Co. Inc.
• New Alliance Dye Chem Pvt. Ltd.
• Tate and Lyle PLC
• YESRAJ AGRO EXPORTS PVT. LTD.
• Shanghai Bichain Industrial Chemical
• SUN IMPEX INTERNATIONAL FOODS LLC

Market Analyst Overview

The market is rapidly developing, driven by the rising demand for plant-based protein products and the increasing popularity of vegetarian and vegan diets. Applications span various sectors including bakery & confectionery, processed food products, and dietary supplements, catering to health-conscious individuals, athletes, and the food and beverage industry. As consumers recognize the health benefits of plant-based proteins, the demand for HVP continues to surge, driving innovation and market expansion. Consumers' demand for clean-labelled food products and flavor enhancers has increased significantly, driven by a shift towards healthier lifestyles and rising disposable incomes. However, there are restraints in the market, including concerns about the production methods such as acid hydrolysis used in flavor enhancers. Despite this, flavor-enhancing properties are widely used in various food products like sauces, hot dogs, dips, dressings, and soups to enhance their taste and appeal to consumers with active lifestyles.

However, some individuals may experience adverse reactions such as headache, sweating, facial pressure, numbness, burning sensation in the face and neck, heart palpitations, chest pain, nausea, and weakness, potentially linked to certain flavorings or imitation meat products containing additives like monosodium glutamate (MSG). As such, the market is witnessing a growing demand for natural flavoring and clean-labeled products made from vegetable sources to cater to health-conscious consumers seeking flavorful options without artificial additives. Additionally, functional beverages are gaining popularity among consumers looking for convenient and nutritious options to support their active lifestyles.

The market is experiencing significant growth driven by the rising demand for processed and convenience foods. Manufacturers are capitalizing on consumer preferences for plant-based proteins like soy, peas, and wheat, which offer health benefits and are suitable for vegetarian and vegan diets. HVP, derived from soy crops and wheat, provides essential amino acids and enhances flavor, particularly umami, in meat analogs and dietary supplements. Its cost-effectiveness and nutrient value make it a popular choice among consumers seeking alternatives to meat products. Despite concerns about allergens and bitter taste, HVP's role in sports medicine and its ability to improve amino acid absorption and bodybuilders' performance underscore its importance in the health and wellness industry.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Type Outlook
  • Dry powder
  • Liquid
  • Paste

• Distribution Channel Outlook
  • Direct
  • Indirect

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile 
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Scope
Report Coverage	Details
Page number	161
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 5.8%
Market Growth 2024-2028	USD 784.81 million
Market structure	Fragmented
YoY growth 2023-2024(%)	5.28
Regional analysis	Europe, North America, APAC, South America, and Middle East and Africa
Performing market contribution	Europe at 36%
Key countries	US, China, Australia, Finland, and Denmark
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Aarkay Food Products Ltd., Aipu Food Industry, Ajinomoto Co. Inc., Akola Chemicals Ltd., BELVITA FOOD INGREDIENTS PVT. LTD., Caremoli SpA, Chaitanya Agro Biotech Pvt. Ltd., Foodchem International Corp., Givaudan SA, Griffith Foods Worldwide Inc., Innova Flavors, Kerry Group Plc, Koninklijke DSM NV, Merck and Co. Inc., New Alliance Dye Chem Pvt. Ltd., Tate and Lyle PLC, YESRAJ AGRO EXPORTS PVT. LTD., Shanghai Bichain Industrial Chemical, SUN IMPEX INTERNATIONAL FOODS LLC, and Titan Biotech Ltd.
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the prediction period.
Customization purview	If our market trends and analysis report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report of factors that will challenge the growth of  market companies

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