Latin America Protein Hydrolysates Market Report

Latin America Protein Hydrolysates Market Size

The Latin American protein hydrolysates market size is expected to reach USD 165.43 million by 2033 from USD 82.07 million in 2024, with a CAGR of 8.1% during the forecast period.

Protein hydrolysates are partially broken-down proteins derived from both animal and plant-based sources such as whey, soy, casein, collagen, pea protein, and rice protein. These hydrolyzed proteins offer enhanced digestibility, bioavailability, and functional properties, making them highly valuable across food, pharmaceutical, infant nutrition, and sports nutrition industries. In the Latin America region, the market for protein hydrolysates is gradually gaining momentum due to shifting dietary patterns, increasing health consciousness, and a growing emphasis on preventive healthcare.

The demand for hydrolyzed proteins in Latin America is being driven by several socio-economic and demographic factors. For instance, Brazil and Mexico have seen a rise in chronic diseases such as diabetes, obesity, and malnutrition, prompting greater use of protein hydrolysates in clinical and therapeutic applications. According to the Pan American Health Organization (PAHO), over 60 million people in Latin America suffer from type 2 diabetes , highlighting the urgent need for easily digestible, high-quality protein sources that support metabolic health.

Apart from these, countries like Argentina and Chile are witnessing increased adoption of clean-label and plant-based nutrition trends, which has led to innovation in hydrolyzed plant proteins such as soy and pea.

MARKET DRIVERS

Increasing Demand for Hypoallergenic Infant Formulas

The growing reliance on hypoallergenic infant formulas, particularly in Brazil, Mexico, and Colombia is one of the primary drivers fueling the Latin America Protein Hydrolysates Market. Cow’s milk protein allergy (CMPA) is increasingly recognized as a public health concern in the region, especially among infants with a family history of allergies or digestive sensitivities. To address this issue, major infant formula manufacturers in the region are incorporating extensively hydrolyzed whey or casein proteins into their product lines. These hydrolysates break down allergenic proteins into smaller peptides, significantly reducing the risk of allergic reactions while maintaining essential nutrient content. Companies such as Nestlé Latin America and Danone Nutricia have expanded their portfolios of hydrolyzed infant formulas to cater to parents seeking safer alternatives for newborns at risk of developing allergies.

Moreover, government initiatives and pediatric guidelines in several Latin American countries recommend the early introduction of hydrolyzed formulas for infants with a family history of allergies.

Expansion of Sports and Functional Nutrition Markets

The rapid expansion of the sports nutrition and functional food sectors is another significant driver shaping the Latin America Protein Hydrolysates Market. With rising fitness awareness, increasing participation in gym culture, and a growing number of lifestyle-related disorders, consumers in countries like Brazil, Mexico, and Argentina are turning to protein-rich diets to support muscle recovery, weight management, and overall well-being.

Hydrolyzed proteins, particularly whey, collagen, and plant-based variants, are favored for their fast absorption rate and superior amino acid profiles, making them ideal for post-exercise recovery. Similarly, in Mexico, where obesity rates have surpassed 30%, there is an increasing shift toward protein-enriched meal replacements and ready-to-drink shakes infused with hydrolyzed proteins.

Besides, the rise of clean-label trends and plant-based lifestyles in countries like Chile and Peru is boosting the adoption of hydrolyzed pea and rice proteins. Brands such as NutriScience Innovations and Watson Inc. have launched plant-derived hydrolysates tailored for sports and active nutrition markets, capitalizing on consumer preferences for natural and easily digestible ingredients.

MARKET RESTRAINTS

High Production Costs and Limited Economies of Scale

The high cost associated with the hydrolysis process, which limits affordability and widespread adoption, particularly among small-scale manufacturers and emerging brands is one of the major restraints affecting the Latin America Protein Hydrolysates Market. The enzymatic or acid hydrolysis required to break down complex proteins into smaller peptides demands specialized equipment, skilled labor, and precise control over processing parameters. As a result, the final product often carries a premium price compared to intact proteins, reducing its attractiveness in cost-sensitive markets.

In countries like Ecuador and Bolivia, where price sensitivity is high, many consumers and formulators opt for conventional protein powders and concentrates instead of hydrolysates, despite the latter offering better digestibility and faster absorption. This pricing disparity makes it difficult for hydrolysates to penetrate mass-market segments, especially in budget-focused retail channels.

Moreover, sourcing raw materials for hydrolysates, especially from organic or non-GMO origins, adds another layer of expense.

Regulatory Complexity and Labeling Challenges

Regulatory scrutiny and inconsistent labeling requirements across Latin America present a significant challenge for manufacturers of protein hydrolysates. While some countries, such as Brazil and Mexico, have relatively established frameworks for novel food ingredients, others, including Peru and Colombia, impose stringent approval processes that can delay market entry and increase compliance costs. This bureaucratic burden disproportionately affects smaller firms, which may lack the resources to navigate lengthy regulatory processes.

Labeling inconsistencies also create confusion among consumers and industry stakeholders. Terms such as "hydrolyzed," "partially hydrolyzed," and "extensively hydrolyzed" are not always clearly differentiated on packaging, leading to misinterpretation of product functionality. Without standardized definitions and clearer regulatory guidance, market growth may be hindered despite the rising demand for specialized protein formats in Latin America.

MARKET OPPORTUNITIES

Growing Use in Clinical and Medical Nutrition Applications

The expanding application of hydrolyzed proteins in clinical and medical nutrition settings is an emerging opportunity within the Latin America Protein Hydrolysates Market. With the rising prevalence of chronic diseases such as diabetes, inflammatory bowel disease, and sarcopenia, there is a growing need for easily digestible, nutrient-dense formulations that support patient recovery and long-term health management. Protein hydrolysates, due to their enhanced bioavailability and reduced allergenic potential, are increasingly being incorporated into enteral nutrition products, post-operative recovery drinks, and medical foods.

Hospitals and rehabilitation centers in Brazil and Argentina are adopting hydrolyzed protein-based nutritional supplements to address malnutrition in elderly patients and individuals recovering from surgery or critical illness. According to the Latin American Federation of Nutrition Societies (FALN), nearly 30% to 40% of hospitalized patients in the region suffer from malnutrition , emphasizing the urgent need for effective interventions. In response, companies such as Otsuka Pharmaceutical and Nestlé Health Science have launched medical-grade protein hydrolysate formulations specifically designed for intravenous and oral consumption in clinical environments.

Furthermore, advancements in peptide research are enabling the development of targeted hydrolysates that offer additional therapeutic benefits, such as immune modulation and gut health improvement.

Innovation in Plant-Based and Clean-Label Hydrolysates

The innovation and commercialization of plant-based and clean-label hydrolysates is a significant opportunity emerging in the Latin America Protein Hydrolysates Market. As consumer preferences shift toward sustainable, ethically sourced, and minimally processed ingredients, manufacturers are investing in hydrolyzed proteins derived from legumes, grains, and other botanical sources. Pea protein hydrolysates, in particular, have gained traction due to their complete amino acid profile, hypoallergenic nature, and compatibility with vegetarian and vegan diets.

Companies such as Roquette Frères and Burcon NutraScience have developed proprietary hydrolysis techniques that enhance the solubility, taste, and digestibility of plant-based proteins, addressing key challenges previously associated with these alternatives. Hydrolyzed plant proteins are now being integrated into a wide range of products including sports nutrition bars, meal replacements, and functional beverages aimed at health-conscious consumers.

Moreover, clean-label trends are influencing formulation strategies, with manufacturers focusing on enzyme-derived hydrolysates free from artificial additives or chemical processing aids. This aligns with the growing demand for transparency in ingredient sourcing and production methods.

MARKET CHALLENGES

Technological Limitations in Hydrolysis Process Optimization

The technological complexity involved in optimizing the hydrolysis process to achieve consistent product quality and desired functional properties is one of the major challenges facing the Latin America Protein Hydrolysates Market. The degree of hydrolysis directly influences the physicochemical characteristics of the final product, including bitterness, solubility, and bioactivity. Achieving the right balance between these attributes remains a technical hurdle for many manufacturers, particularly when scaling up production for commercial applications.

For instance, excessive hydrolysis can lead to the formation of bitter peptides, negatively impacting flavor and consumer acceptance. Conversely, insufficient hydrolysis may result in poor digestibility and reduced bioavailability, diminishing the intended functional benefits. Companies like DSM and Chr. Hansen are investing in advanced enzymatic technologies to refine hydrolysis protocols, yet the process still requires meticulous control and frequent adjustments. According to the Journal of Agricultural and Food Chemistry, variations in hydrolysis efficiency can lead to batch inconsistency, which poses a challenge for product standardization in regulated markets such as infant nutrition and clinical nutrition.

Moreover, the capital-intensive nature of enzyme-based hydrolysis systems and the need for specialized expertise limit accessibility for smaller players.

Consumer Perception and Misunderstanding of Hydrolyzed Proteins

Despite the functional advantages of protein hydrolysates, a significant challenge in the Latin America market is the limited consumer understanding and sometimes negative perception of hydrolyzed proteins. Many consumers associate hydrolyzed ingredients with artificial processing or chemical modification, leading to skepticism about their naturalness and safety. This misconception is further exacerbated by misinformation circulating on social media and health forums, where terms like “hydrolyzed” are sometimes equated with low-quality or synthetic additives.

This perception issue is particularly evident in the food and beverage sector, where clean-label movements have heightened sensitivity around ingredient sourcing and processing methods. Although hydrolyzed proteins—especially those derived from dairy or plant sources—are naturally processed using enzymes or mild acids, the lack of clear communication around these methods has contributed to consumer hesitation. To combat this, industry players must invest in consumer education campaigns that clarify the benefits and production processes of protein hydrolysates.

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Type Insights

The milk-based protein hydrolysates segment dominatesd the Latin America Protein Hydrolysates Market by capturing a share of 49% in 2024. The widespread use of whey and casein hydrolysates in infant nutrition, sports nutrition, and medical food formulations IS PRIMARily attributing to the dominance of milk-based protein hydrolysates segment. Further, the growing demand for hypoallergenic infant formulas , particularly in Brazil, Mexico, and Colombia is another major drivers for this segment. According to the Latin American Society of Pediatric Allergy and Immunology (SLAAPI), cow’s milk protein allergy affects between 1.5% and 4% of infants across the region , prompting manufacturers to adopt extensively hydrolyzed whey or casein proteins in baby formula production. Companies such as Nestlé Latin America and Danone Nutricia have significantly expanded their portfolios with these ingredients, reinforcing market growth.

Further, milk-derived hydrolysates are preferred in sports nutrition due to their high biological value and rapid absorption rates , which support muscle recovery and synthesis.

Furthermore, regulatory agencies like ANVISA in Brazil and COFEPRIS in Mexico recognize milk-based hydrolysates as safe and effective, facilitating easier approval for new product launches.

The plant-based protein hydrolysates segment is emerging as the fastest-growing segment in the Latin America Protein Hydrolysates Market by exhibiting a CAGR of 8.9% between 2025 and 2033. The shifting consumer preferences toward sustainable, allergen-free, and ethically sourced protein alternatives is one of the aspects behind the rapid expansion of plant-based protein hydrolysates segment. Further, the rising popularity of plant-based diets and vegan lifestyles, especially among younger demographics in countries like Chile, Argentina, and Peru also a contributing factor behind this surge. According to the Good Food Institute, retail sales of plant-based foods in Latin America grew by over $500 million in 2023 , with plant-based proteins accounting for a significant portion. Ingredients like pea, rice, and soy protein hydrolysates are increasingly used in sports nutrition products, meal replacements, and functional beverages due to their improved taste profiles and enhanced solubility.

Moreover, companies are investing heavily in advanced enzymatic hydrolysis technologies to optimize plant protein functionality. Roquette Frères, for example, has developed proprietary methods to produce hydrolyzed pea protein with better mouthfeel and reduced bitterness, making it more appealing to consumers. Similarly, Burcon NutraScience has partnered with global nutrition brands to introduce clean-label plant hydrolysates into mainstream health products.

Health-conscious consumers also prefer plant-based hydrolysates for their lower environmental footprint compared to animal-derived sources.

By Application Insights

The infant nutrition segment commanded the market with share of 43% in 2024. The extensive use of hydrolyzed proteins, particularly whey and casein, in hypoallergenic infant formulas is driving the growth of infant nutrition segment. With rising awareness of early-life nutrition and increasing prevalence of food allergies, hydrolyzed protein-based formulas have become a standard recommendation for infants at risk of developing sensitivities. Also, major players such as Nestlé Latin America and Danone Nutricia have expanded their offerings of extensively hydrolyzed formulas designed to reduce allergenic potential while maintaining nutritional integrity.

The growing number of pediatricians recommending hydrolyzed formulas for infants with digestive difficulties or family history of allergies is another key driver. Apart from these, regulatory frameworks in several Latin American countries mandate rigorous testing and clinical validation for infant nutrition products , ensuring only high-quality hydrolysates enter the market. This stringent oversight enhances consumer confidence and reinforces the dominance of infant nutrition in the overall market landscape.

The sports nutrition segment is the fastest-growing application in the Latin America Protein Hydrolysates Market and is projected to grow at a CAGR of 8.4% from 2025 to 2033. The increasing participation in fitness activities, coupled with rising demand for fast-absorbing protein sources that enhance muscle recovery and performance, is propelling the popularity is sports nutrition segment.

The Brazilian Association of Sports Medicine reports that over 25 million Brazilians engage in regular fitness activities , contributing to the expanding sports nutrition sector. In Argentina and Chile, where urbanization and lifestyle changes are influencing dietary habits, there is growing reliance on hydrolyzed whey and collagen peptides for post-exercise recovery.

Besides, the expansion of plant-based sports nutrition products is driving broader adoption of hydrolyzed plant proteins such as pea and rice. Brands like MuscleBlaze in Brazil and local startups in Chile are incorporating these ingredients into protein shakes, bars, and recovery drinks tailored for athletes seeking clean-label, easily digestible nutrition.

An additional contributing factor is the growing presence of sports science research validating the benefits of hydrolysates in improving athletic performance and reducing exercise-induced muscle damage. Universities and sports medicine institutions in the region are conducting clinical studies on hydrolyzed protein supplementation, reinforcing consumer trust and encouraging wider usage across amateur and professional athlete communities.

By Process Insights

The enzymatic hydrolysis segment was the top performing process by capturing a market share of 68% in 2024. Its superior control over peptide size, flavour profile, and functional properties is driving the growth of enzymatic hydrolysis segment. Unlike chemical hydrolysis, enzymatic methods offer a more precise breakdown of proteins using proteolytic enzymes such as trypsin, pepsin, and papain, resulting in hydrolysates with enhanced bioavailability and reduced bitterness.

This method is widely adopted in the production of hydrolyzed proteins for infant nutrition and medical applications, where safety and consistency are paramount. According to the Journal of Agricultural and Food Chemistry, enzymatic hydrolysis allows for tailored degree of hydrolysis (DH), enabling manufacturers to customize peptides for specific physiological effects, including immune modulation and gut health improvement.

Moreover, consumer preference for natural and minimally processed ingredients has boosted the appeal of enzyme-derived hydrolysates. Major industry players such as DSM and Chr. Hansen are investing in novel enzyme blends that improve yield and sensory characteristics, further strengthening the dominance of this process.

Regulatory bodies like ANVISA in Brazil and COFEPRIS in Mexico also favor enzymatic hydrolysis due to its reduced risk of toxic byproduct formation, which is a concern with acid hydrolysis.

The Acid and alkaline hydrolysis segment is experiencing steady growth and is projecting a CAGR of 6.1%. Their cost-effectiveness and suitability for large-scale industrial applications is largely driving the growth of Acid and alkaline hydrolysis segment. Although traditionally associated with lower product quality and bitter taste issues, advancements in neutralization and purification techniques have mitigated many of these drawbacks, enhancing their commercial viability.

Moreover, the use of acid hydrolysis in flavour enhancement and food processing industries, particularly in meat analogs and savory seasonings, also contributes to the development of this segment. According to the Flavor and Extract Manufacturers Association (FEMA), hydrolyzed vegetable protein (HVP) derived through acid hydrolysis is commonly used as a flavor enhancer in soups, sauces, and ready-to-eat meals, contributing to increased demand.

Further, acid hydrolysis remains a preferred method for producing collagen hydrolysates , especially in bone broth-based beverages and nutricosmetic products. Many of these collagen products are produced via acid hydrolysis due to its efficiency and scalability.

Despite concerns regarding residual chlorine and other byproducts, improvements in downstream processing have allowed manufacturers to meet safety standards without compromising production costs.

By Source Insights

The animal-derived protein hydrolysates segment spearheaded the Latin America market by capturing a share of 59.1% in 2024 owing to their extensive use in infant nutrition, sports nutrition, and medical food formulations. These hydrolysates, primarily sourced from dairy (whey and casein) and collagen-rich tissues (bones, skin, and connective tissue), are valued for their high biological value, complete amino acid profile, and superior digestibility.

Also, the high demand for hydrolyzed whey and casein in hypoallergenic infant formulas , particularly in Brazil, Mexico, and Colombia, further adds to the rise of this segment. Major manufacturers such as Nestlé Latin America and Danone Nutricia have integrated these proteins into their premium infant formula lines, reinforcing market penetration.

In addition, animal-based hydrolysates are widely utilized in sports nutrition due to their rapid absorption and muscle-building capabilities . Hydrolyzed whey and collagen are particularly favored for their role in muscle recovery and joint health, respectively.

Moreover, regulatory recognition and established manufacturing infrastructure support the continued dominance of animal-derived hydrolysates.

The plant-derived protein hydrolysates are the fastest-growing source segment in the Latin America Protein Hydrolysates Market and is exhibiting a CAGR of 9.1%. The growth of this segment is fueled by shifting consumer preferences toward sustainable, allergen-free, and plant-forward nutrition, especially among millennials and Gen Z consumers in Chile, Argentina, and Peru.

The increasing adoption of plant-based diets and vegan lifestyles is another key growth factor of this segment. Pea, rice, and soy-based hydrolysates are gaining traction in sports nutrition, meal replacement, and functional beverage markets due to their improved sensory attributes and amino acid completeness.

Moreover, technological advancements in enzymatic hydrolysis have significantly enhanced the taste, texture, and digestibility of plant-based hydrolysates, making them viable alternatives to animal-derived counterparts. Companies like Roquette Frères and Burcon NutraScience have developed proprietary processes to minimize bitterness and improve solubility, allowing for seamless integration into mainstream nutrition products.

An additional contributing factor is the rising demand for clean-label and allergen-free ingredients , especially in infant and clinical nutrition. Plant hydrolysates avoid common allergens such as dairy and gluten, aligning with the needs of sensitive populations.

REGIONAL ANALYSIS

Brazil

Brazil held the largest regional share at 37.5% in 2024 and is driven by rapid urbanization, rising disposable incomes, and increasing awareness of protein-enriched diets. The country's dominance is reinforced by its robust pharmaceutical, infant nutrition, and functional food sectors, all of which rely heavily on hydrolyzed proteins for specialized formulations. A key driver is the strong demand for hydrolyzed proteins in infant nutrition , especially given the rising incidence of cow’s milk protein allergy among newborns. Apart from these, the sports nutrition and elderly care sectors are expanding, with hydrolyzed collagen playing a crucial role in joint and skin health products. With ongoing R&D initiatives and strategic partnerships between domestic biotech firms and global ingredient suppliers, Brazil remains the epicenter of growth and consumption in the Latin America Protein Hydrolysates Market.

Argentina

Argentina is a key player in the Latin America Protein Hydrolysates Market. It is driven by increasing health consciousness, rising fitness culture, and growing investments in food science and biotechnology. This has led to increased demand for fast-absorbing protein sources such as hydrolyzed whey and plant-based hydrolysates, particularly among young urban professionals and gym-goers. Besides, the Argentine infant nutrition sector is witnessing increased use of hydrolyzed formulas , especially for children with cow’s milk protein allergy. Moreover, the rise of plant-based diets and clean-label trends in Argentina is fueling demand for hydrolyzed pea and rice proteins, particularly in sports nutrition and functional beverages. Domestic and international companies are expanding production facilities and R&D centers in Argentina to capitalize on the growing interest in premium protein solutions, positioning the country as a key player in the regional market.

Chile

Chile contributes significantly to the Latin America Protein Hydrolysates Market in 2024 and is driven by technological advancements, rising health consciousness, and a strong emphasis on preventive healthcare. One of the key growth factors is the country’s advanced food and biotech ecosystem , which supports the development of high-purity hydrolyzed proteins for sports nutrition, infant care, and medical applications. The Chilean Food Safety Authority (ACHIPIA) has streamlined approval processes for novel food ingredients, encouraging innovation and faster product launches. Further, Chile’s aging population and rising prevalence of chronic diseases have increased demand for hydrolyzed proteins in therapeutic nutrition. Moreover, Chilean consumers are highly receptive to premium nutrition products , particularly those with scientifically backed benefits. Companies such as Nutravita and local startups are leveraging this trend by launching functional beverages and supplements enriched with hydrolyzed proteins, further strengthening market dynamics.

Rest of Latin America

The Rest of Latin America collectively accounts for a considerable portion of the regional market in 2024, encompassing countries such as Mexico, Peru, Colombia, Ecuador, and Uruguay. Each of these nations contributes uniquely to the market based on economic conditions, regulatory environments, and evolving consumer preferences. Mexico plays a notable role, particularly in the sports nutrition and functional food segments. This has led to increased demand for hydrolyzed whey and plant-based proteins in sports supplements and energy drinks. Colombia and Peru are witnessing rising interest in plant-based and clean-label nutrition, with consumers showing a preference for hydrolyzed pea and rice proteins in health-focused products. Local startups and international players alike are introducing innovative formulations tailored to these markets. Ecuador and Uruguay are seeing gradual but steady growth in infant nutrition applications, supported by government-backed health initiatives and increasing awareness of hypoallergenic feeding options.

KEY MARKET PLAYERS AND COMPETITIVE LANDSCAPE

Abbott Nutrition, Koninklijke DSM N.V., Kerry Group PLC, Frieslandcampina, Arla Foods, Tate & Lyle PLC, Archer Daniels Midland Company, Glabnia PLC, Danone Nutricia, Nestle SA are some of the notable companies in the Latin America Protein Hydrolysates market.

The Latin America Protein Hydrolysates Market features a competitive landscape shaped by technological innovation, shifting consumer preferences, and increasing demand across diverse end-use sectors. Multinational corporations coexist with regional players, all striving to capture market share through differentiated product offerings and strategic partnerships. The competition is particularly intense between producers of animal-derived and plant-based hydrolysates, as both segments witness strong growth driven by distinct consumer motivations—ranging from clinical efficacy to sustainability and ethical consumption.

In this dynamic environment, differentiation is achieved not only through ingredient quality and functionality but also via branding, traceability, and supply chain integration. Large-scale manufacturers leverage their R&D capabilities to develop proprietary hydrolysis techniques that enhance taste, solubility, and nutritional benefits. Meanwhile, mid-sized and specialty ingredient suppliers focus on clean-label formulations and niche applications such as hypoallergenic infant formulas and targeted sports nutrition products. Regulatory compliance and adherence to evolving food safety standards further influence competitive positioning, requiring companies to maintain rigorous quality controls and invest in clinical validation.

Collaborations between ingredient suppliers, contract manufacturers, and healthcare institutions are becoming more prevalent, reflecting the growing importance of evidence-based formulations. As the market continues to expand, competition will likely intensify, with innovation, sustainability, and customer-centric product development serving as key battlegrounds for market leadership.

TOP PLAYERS IN THE MARKET

Archer Daniels Midland (ADM)

ADM plays a pivotal role in the Latin America Protein Hydrolysates Market by supplying high-quality hydrolyzed proteins derived from both plant and animal sources. The company offers customized solutions for infant nutrition, sports supplements, and clinical nutrition applications across the region. ADM's strong R&D capabilities and partnerships with regional manufacturers have enabled it to cater to evolving consumer preferences in countries like Brazil, Argentina, and Chile. With a focus on sustainable sourcing and functional ingredient development, ADM continues to expand its presence in key markets, making it a trusted supplier in the Latin American protein hydrolysates sector.

Roquette Frères (Latin America Division)

Roquette is a leading innovator in plant-based protein hydrolysates, particularly in pea and rice-derived formats tailored for clean-label and allergen-free formulations. The company has made significant contributions to expanding the use of hydrolyzed plant proteins in sports nutrition, infant formulas, and medical foods across Latin America. Roquette's commitment to enzymatic processing technologies enhances product taste, solubility, and digestibility, making plant-based hydrolysates more appealing to mainstream consumers. Its strategic collaborations with local nutrition brands further solidify its influence in the Latin American market.

Nestlé Health Science

Nestlé Health Science is a dominant force in the application-driven segment of the protein hydrolysates market, especially in infant and therapeutic nutrition. The company integrates hydrolyzed proteins into its flagship infant formula lines, targeting allergy-prone infants and supporting early-life nutrition. Apart from these, Nestlé Health Science leverages hydrolysates in specialized nutritional products designed for patients with metabolic and digestive disorders. Through continuous research and development, the company enhances product functionality and bioavailability, ensuring alignment with clinical and dietary recommendations in Latin America.

TOP STRATEGIES USED BY THE KEY MARKET PLAYERS

One of the primary strategies adopted by key players in the Latin America Protein Hydrolysates Market is product diversification and formulation customization, allowing companies to cater to niche applications such as infant nutrition, sports performance, and clinical nutrition. By offering a broad range of hydrolysates with varying degrees of hydrolysis and amino acid profiles, firms can address specific consumer and medical needs more effectively.

Another crucial approach is investment in advanced bioprocessing technologies, particularly in enzymatic hydrolysis and peptide fractionation. These innovations help improve sensory attributes, enhance digestibility, and optimize bioactivity, thereby expanding the usability of hydrolysates across different food and health applications. Companies are also focusing on sustainable sourcing and transparent labeling to align with consumer preferences for natural, traceable, and ethically produced ingredients. This not only strengthens brand trust but also supports long-term market positioning in an increasingly health-conscious environment.

RECENT HAPPENINGS IN THE MARKET

• In March 2024, ADM announced the expansion of its enzyme hydrolysis facility in São Paulo, Brazil, aimed at scaling up production capacity for dairy and plant-based protein hydrolysates. This move was intended to support growing demand from sports nutrition and clinical nutrition clients seeking high-purity, fast-absorbing protein ingredients.
• In June 2024, Roquette launched a new line of non-GMO hydrolyzed pea protein specifically designed for use in infant nutrition and pediatric supplements in Latin America. The product was developed using proprietary enzymatic technology to reduce bitterness while maintaining amino acid integrity, reinforcing Roquette’s position in premium hydrolysate markets.
• In September 2024, Nestlé Health Science partnered with a Brazilian biotech firm to develop novel hydrolyzed collagen peptides with enhanced bioavailability for use in joint health and skin wellness applications. This collaboration was expected to expand Nestlé’s presence in the nutricosmetics and aging population segments across Latin America.
• In November 2024, Kerry Group acquired a fermentation-based protein startup based in Argentina, enhancing its capability to produce customized hydrolysates for functional beverages and ready-to-drink nutrition products. The acquisition was part of Kerry’s broader strategy to strengthen its Latin American footprint in premium nutrition ingredients.
• In February 2025, Cargill introduced a new line of sustainably sourced hydrolyzed whey proteins, emphasizing traceability and carbon-neutral processing in the Latin America market. The initiative was aligned with growing consumer demand for environmentally responsible protein options and supported Cargill’s expansion into premium sports and medical nutrition markets.

MARKET SEGMENTATION

This research report on the Latin America protein hydrolysates market is segmented and sub-segmented into the following categories.

By Type

• Milk
• Plant
• Animal

By Application

• Infant Nutrition
• Sports Nutrition
• Dietary Supplements

By Process

• Enzymatic Hydrolysis
• Acid & Alkaline Hydrolysis

By Source

• Plant
• Animal

By Country

• Brazil
• Argentina
• Mexico
• Rest of Latin America