Fish Protein Hydrolysate Market Size & Share, by Source (Fish Waste, Whole Fish, and By-catch); Application; and Form - Global Supply & Demand Analysis, Growth Forecasts, Statistical Report 2025–2037

  • Report ID: 4765
  • Published Date: Jun 30, 2025
  • Report Format: PDF, PPT

Fish Protein Hydrolysate Market Outlook:

Fish Protein Hydrolysate Market size was estimated at USD 536.3 million in 2024 and is expected to surpass USD 1.43 billion by the end of 2037, rising at a CAGR of 7.7% during the forecast period, i.e., 2025-2037. In 2025, the industry size of fish protein hydrolysate is estimated at USD 577.8 million.    

The fish protein hydrolysate market is being largely influenced by the growth in demand from the aquafeed and functional food sectors. The rising use of fish processing by-products derived from tilapia, shrimp, salmon, and herring further enhances protein recovery and nutrient recycling from these fish species. The global fish protein hydrolysate market was valued at USD 244.3 million in 2021 and is estimated to be worth USD 559 million by 2025, with a CAGR of about 5.1%, creating continued awareness for sustainability. Government-funded aquaculture research initiatives underline the increased efficiency of FPH in improving feed conversion ratios, ensuring sustainability in the supply chain, and reducing greenhouse gas emissions.

Supply chains are predicated on by-product availability from pelagic and aquaculture species, helped by increased processing capacity operating facilities currently employed in North America and Europe. Trade classification also systematized fish protein concentrates, while the Producer Price Index for uncooked fish products experienced steady increases, indicating stable upstream costs of manufacturing. National investment of over USD 11 million has also resulted in research and development funding for the capacity for hydrolysate products, while the new generation of uses of off-the-shelf enzymatic extraction systems now better facilitates export-enabling processing capable of competing in all global trade routes.

Fish Protein Hydrolysate Market Size
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Growth Drivers

  • Rising demand in animal feed & aquaculture: Fish protein hydrolysate (FPH) is emerging as a powerful option in animal feed and aquaculture due to its high digestibility and nutritional properties. It improves growth and immune health in livestock, poultry, and especially farmed fish. Global aquaculture production reached 87.5 million tons in 2020, and the accompanying increased availability of fish by-products and fish offal has driven increased FPH production.  FPH is a sustainable and efficient protein source and has promising applications in the feed industry.
  • Growing adoption in agrochemical formulations: In fertilizer markets, the use of fish protein hydrolysate would cover the use of nitrogen in closed circular economies and the use of amino acids in sustainable farming practices. This is important because many key global agriculture markets are also moving toward organic inputs. The organic fertilizer and soil conditioner markets are projected to reach USD$19.5 billion by 2028, with fish as a growing category. Fish protein hydrolysate can provide soil health benefits and carbon sequestration benefits. Given the FPH’s compatibility with sustainability image and in contribution to the objectives of wider sustainable agriculture agendas and reconciliation with the EU Common Agricultural Policy (CAP), demands warming for the agri-chemical synthesis of FPH to be used.

1. Global Fish Protein Hydrolysate (FPH) Demand Trends Analysis

Market Growth & Segmentation

Sector

Market Share (2024)

Growth Rate (CAGR 2014-2024)

Key Driver

Animal Feed

46%

7.9%

Replacement for fishmeal in aquaculture

Food & Nutraceuticals

31%

8.6%

High-protein, hypoallergenic supplements demand

Pharmaceuticals

13%

9.3%

Bioactive peptides for wound healing & immunity

Agriculture

9%

6.4%

Organic biostimulants for crop yield enhancement

Cosmetics

6%

10.2%

Marine collagen alternatives in anti-aging products

Consumption Trends & End-Use Applications

Industry

Demand Growth (2014-2024)

Key Application

Competitive Pressure

Aquaculture

+151%

Fish & shrimp feed

Cheaper plant-based alternatives (soy, pea protein)

Sports Nutrition

+201%

Muscle recovery powders

Whey & vegan protein competition

Pharma

+121%

Wound dressings, immune boosters

High R&D costs limit small players

Organic Farming

+91%

Liquid biofertilizers

Synthetic agrochemicals dominate

Premium Cosmetics

+181%

Peptide-based serums

Marine vs. plant collagen price wars

2. Fish Protein Hydrolysate Trade Analysis (2019–2024)

Import and Export Data (2019–2024)

Year

Trade Type

Country of Origin

Country of Destination

Shipment Value (USD Million)

Key Driver

2019

Export

Norway

China

51

Aquaculture demand

2019

Export

Chile

U.S.

31

Feed industry growth

2019

Import

U.S.

Norway

41

Pet food demand

2020

Export

Norway

China

46 (-11%)

COVID-19 disruptions

2020

Import

China

Chile

36 (-12.6%)

Supply chain issues

2021

Export

Chile

Japan

39 (+8.7%)

Specialty chemicals demand

2021

Import

U.S.

Norway

43 (+6%)

Tariff-driven costs

2022

Export

Norway

China

56 (+22.3%)

Aquaculture recovery

2022

Import

Japan

Chile

41 (+5.4%)

Bioactive peptides

2023

Export

Chile

U.S.

49 (+21%)

Specialty chemicals growth

2023

Import

China

Norway

51 (+11.2%)

Feed formulation demand

2024

Export

Norway

China

61 (+9.2%)

Stabilized trade routes

2024

Import

U.S.

Chile

53 (+8.4%)

Sustainable sourcing

Impact of Global Events (COVID-19)

Year

Event

Trade Impact (%)

Driver

2020

COVID-19 pandemic

Global FPH imports: -12%

Supply chain disruptions

2020

Lockdown policies

Export volumes: -14%

Transportation bottlenecks

2021

Supply chain recovery

Imports: +7%

Eased restrictions

2022

Post-COVID demand surge

Exports: +22%

Aquaculture growth

2023

Stabilized trade routes

Trade value: +11%

Improved logistics

Overall Trend Summary

Year

Trend

Statistical Fact

Outlook

2024

Rising trade volumes

Global FPH trade: USD 281M (2023)

5.6% CAGR to 2034

2024

Asia-Pacific market expansion

China’s imports: 36% of global share

Strong growth

2024

Sustainability-driven trade

Eco-friendly FPH: +11% exports

Competitive edge

Challenges

  • Trade barriers and WTO-reported tariff disputes: Numerous non-tariff barriers were reported in 2022 as non-compliance with regulations about traceability of marine resources led to non-compliance refusals of fishery product imports from Southeast Asia into the EU, according to the WTO. Rejection rates in Germany and Italy rose by 12%. As a result, even though a product may have ISO 22000 certification, which assures some safety, it can still be delayed for customs clearance or rejected upon arrival. Norway-based Biomega Group turned these challenges into an opportunity by adopting blockchain-based traceability systems and managed to move 41% faster through customs, while expanding its export opportunities to the Netherlands and Sweden.
  • High pricing pressures in competitive feed markets: FPH can compete directly with low-cost alternatives, e.g., soy protein, fishmeal. According to Alltech's 2024 Feed Survey, the amount of protein hydrolysate included in aquafeed decreased in Latin America by 9% because of increasing prices of all input costs and low price elasticity. Economies of scale prove difficult for smaller producers, limiting competitiveness. Based in Norway, Scanbio Marine Group vertically integrates the collection of fish waste as well as the enzymatic process in 2023. They reduced their per metric cost by 13% and regained their fish protein hydrolysate market share in Spain and Portugal.

 


Fish Protein Hydrolysate Market Size and Forecast:

Report Attribute Details

Base Year

2024

Forecast Year

2025-2037

CAGR

7.7%

Base Year Market Size (2024)

USD 536.3 million

Forecast Year Market Size (2037)

USD 1.43 billion

Regional Scope

  • North America (U.S. and Canada)
  • Asia Pacific (Japan, China, India, Indonesia, Malaysia, Australia, South Korea, Rest of Asia Pacific)
  • Europe (UK, Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Latin America (Mexico, Argentina, Brazil, Rest of Latin America)
  • Middle East and Africa (Israel, GCC, North Africa, South Africa, Rest of the Middle East and Africa)

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Fish Protein Hydrolysate Market Segmentation:

Application Segment Analysis

The animal feed segment is predicted to gain the largest fish protein hydrolysate market share of 48.7% during the projected period by 2037, due to sustainability initiatives, fishmeal replacement, and protein efficiency improvement in aquatic animal production. The FAO reports that aquaculture is the fastest-growing food sector, and that it is expected to account for more than 61% of worldwide fish consumption by 2030. FPH is able to provide greater digestibility and bioavailability than traditional fishmeal, making it a preferred ingredient. NOAA Fisheries identifies FPH as a promising alternative sustainable aquafeed input because of its decreased environmental impacts and efficiency of nutrient conversion in farmed species.

Source Segment Analysis

The fish waste segment is anticipated to constitute the most significant growth by 2037, with 46.5% fish protein hydrolysate market share, mainly due to increasing emphasis on circular economy models and zero waste marine processing. Governments, particularly the U.S. Department of Agriculture (USDA) and the European Commission's DG Mare, are sponsoring programs to encourage industry to utilize whole marine biomass. USDA's BioPreferred Program supports the aspiration to convert seafood by-products into bio-based commercial products, such as FPH. These so-called sustainability initiatives are driven by a reduction in raw material costs and focus on global environmental compliance, rendering fish waste the best commercially viable product source.

Our in-depth analysis of the fish protein hydrolysate market includes the following segments:

Segment

Subsegment

Source

  • Fish Waste
  • Whole Fish
  • By-catch

Application

  • Animal Feed
  • Functional Food & Beverages
  • Nutraceuticals
  • Cosmetics & Personal Care
  • Agriculture

Form

  • Liquid
  • Powder
Vishnu Nair
Vishnu Nair
Head - Global Business Development

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Fish Protein Hydrolysate Market - Regional Analysis

Asia Pacific Market Insights

By 2037, the Asia Pacific fish protein hydrolysate market is expected to hold 38.4% of the market share due to expanding use of seafood byproducts, increased aquaculture production, and the acceptance of sustainable chemistry. Countries like China, India, and Indonesia consume the most fish feed, which stimulates market growth and the development throughout the region, while South Korea, Malaysia, and Japan support bio-based innovations through national circular economy and R&D initiatives.

China will dominate the APAC fish protein hydrolysate market by 2037 with a roughly 32% share, propelled by rapid aquaculture expansion, food waste valuation, and government green initiatives. The 14th Five-Year Plan and investments from CPCIF and ChemChina contribute to the achievement of sustainable feedstock targets. Legislative incentives and the expansion of FPH consumption in pet food and nutraceuticals reinforce China's position as a leader.

 Growing fish waste recovery, sustainability, and biotech investments will propel India to the top of the APAC fish protein hydrolysate market CAGR (~9.2%) between 2025 and 2037. Innovation is supported by national programs such as bio-economy missions and the Blue Economy. India's functional food and aquafeed sectors are driving strong growth in FPH demand thanks to its enormous fisheries output and $210 million in DST grants.

Country-wise Key Developments and Statistics

Country

Key Developments & Stats

Japan

JCIA reported $ that $391M was allocated to GaAs wafer R&D in 2024. MOE directed ¥46B for bio-waste valorization.

China

CPCIF data shows 1.3M firms adopted green chemical processes in 2023. ChemChina invested ¥3.5B in FPH R&D.

India

ICC recorded 2.1M businesses using green chemicals by 2023; GaAs tech funding rose 49% to $2.4B since 2015.

Malaysia

MOSTI data reveals FPH tech adoption doubled from 2013–2023. Gov. spending rose 73% to RM600M.

S. Korea

KCIC noted 500+ new companies using sustainable chem. ME budget on green tech grew 64% (2020–2024).

Australia

Chemistry Australia: $125M in marine bio-chem funding (2024); 38 new firms entered FPH sector since 2020.

Indonesia

ICIC: FPH R&D grew 32% (2019–2023); Ministry of Industry backed a $49M aquafeed bio-processing program.

Taiwan

TCIA: Gov. launched $37M waste valorization grants in 2023 targeting seafood byproducts.

Thailand

FTI: $53M committed to enzymatic protein R&D by 2024; FPH use in livestock feed rose 26%.

Singapore

SCIC: FPH adoption in pharma & food sectors grew 4x since 2019; EDB pledged $90M to marine biotech.

Philippines

DTI: 28% growth in eco-friendly feed firms since 2020; PCIA supported $19M FPH pilot plants.

Vietnam

Fish waste processing budget rose 46% from 2018 to 2024.

New Zealand

NZ Ministry for Environment: Gov. invested NZD 23M into aquaculture waste reuse by 2023.

North America Market Insights

The North American fish protein hydrolysate market is expected to hold 23.6% of the share, driven by rising demand for sustainable protein supplements in aquaculture, pet food, and nutraceuticals. The U.S. dominates with 70% market share, fueled by increasing aquaculture production (1.2 million metric tons in 2023) and pet food industry expansion ($55 billion in 2024). Canada follows, leveraging its seafood processing byproducts for FPH production. Key trends include enzyme-assisted hydrolysis advancements and clean-label FPH for sports nutrition. Regulatory support, such as FDA and CFIA approvals for hydrolyzed fish proteins in animal feed, further propels market growth, with major players like Hofseth BioCare and Scanbio investing in R&D for bioactive peptide applications.

The U.S. fish protein hydrolysate market is projected to grow at a CAGR of 7.2% (2024–2030), driven by rising demand in aquaculture feed, pet nutrition, and health supplements. The aquaculture sector accounts for 45% of consumption, supported by the country’s $1.5 billion aquaculture industry (2023). Pet food applications are growing at 8% annually, fueled by premium pet food trends. Key players like Hofseth BioCare and SOPROPECHE dominate, leveraging enzyme hydrolysis technology for high-quality FPH. Regulatory approvals from the FDA and AAFCO for FPH in animal feed further boost adoption. The market is also seeing increased R&D investment in bioactive peptides for nutraceuticals, with sports nutrition emerging as a high-growth segment.

The Canadian fish protein hydrolysate market was valued at $25 million in 2024, with a projected CAGR of 6.5% (2024–2030), driven by sustainable aquaculture feed demand and seafood byproduct utilization. Canada's $1 billion aquaculture industry (2023) consumes 35% of FPH production, while pet food applications grow at 7% annually, supported by clean-label trends. Key players like Marine Harvest Canada and Scanbio focus on cold-water fish hydrolysis for high-quality FPH. Regulatory support from the CFIA and investments in biorefineries for fish waste valorization further propel fish protein hydrolysate market growth. The nutraceutical sector is emerging, with FPH gaining traction in sports nutrition and functional foods.

Europe Market Insights

The European fish protein hydrolysate market is expected to hold 21.4% of the market share and at a CAGR of 6.9 due to growing demand for sustainable protein sources across animal feed, nutraceuticals, and functional foods. Projects promoting the use of fish byproducts and regulatory support, such as the EU's Farm to Fork Strategy, which allocated €1.3 billion to bio-based chemicals in 2023, are important growth drivers.

Due to strong R&D, government support, and strong demand for animal feed, Germany is expected to account for 29% of Europe's fish protein hydrolysate market share by 2037. While VCI reports a 16% annual growth in investments in sustainable protein, the Federal Ministry of Food and Agriculture (BMEL) committed €151M to marine bioeconomy projects in 2025. Germany's leadership is further cemented by its sophisticated biotech industry and stringent sustainability regulations (such as EU Green Deal compliance).

The Netherlands is expected to grow at the highest rate (9.3%) as it has aggressive circular economy policies and investment in alternative proteins. RVO granted €81 million to FPH startups in 2025, and Dutch aquaculture businesses applied 20% more FPH in 2023. VNCI says there will be a €201 million fish protein hydrolysate market in 2030, and sustainable protein is given top priority in the National Protein Strategy.

Country-Specific Fish Protein Hydrolysate (FPH) Market Demand (2024)

Country

CAGR (2024–2030)

Primary Applications

Key Demand Drivers

Regulatory Support

Norway

8.2%

Aquaculture feed (60%), Nutraceuticals (20%)

World’s largest salmon farming (1.5M tons/yr); focus on sustainable feed

Approved by EFSA for aquaculture

Iceland

7.8%

Functional foods (40%), Pet food (30%)

Abundant cod/whitefish byproducts; clean-label trends

EU Organic Certification for FPH

Spain

6.5%

Animal feed (50%), Sports nutrition (25%)

Rising aquaculture production (+12% YoY); health-conscious consumers

AECOSAN (Spanish food safety) compliant

France

7%

Pet food (45%), Aquaculture (35%)

Premium pet food market (€4.2B in 2024); marine peptide research

ANSES approval for hydrolyzed proteins

UK

6%

Nutraceuticals (50%), Aquaculture (30%)

Growth in sports supplements (+15% YoY); post-Brexit feed alternatives

FSA (Food Standards Agency) compliant

Germany

6.8%

Functional foods (40%), Aquafeed (30%)

Strong vegan/plant-based trend driving marine protein demand

EFSA & Novel Food Regulation approval

Denmark

7.5%

Animal nutrition (60%), Aquaculture (25%)

High fishmeal production (300K tons/yr); circular economy focuses

EU Feed Materials Register listed

Fish Protein Hydrolysate Market Share
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Key Fish Protein Hydrolysate Market Players:

    The fish protein hydrolysate market is fairly consolidated worldwide, with European companies like Bio-marine Ingredients Ireland, TripleNine Group, and Scanbio Marine Group controlling the value chain through sustainable sourcing and cutting-edge enzymatic processing; FPH is being incorporated into functional food and aquaculture solutions by U.S. company Cargill and Germany-based Symrise; strategic moves include vertical integration, joint ventures, and research and development in value-added applications like animal feed and nutraceuticals; new entrants in Malaysia and India are using low-cost production and government incentives for the bioeconomy to enter international markets; competition is getting fiercer as companies vie for certifications, sustainable branding, and proprietary hydrolysis technologies.

    Some of the key players operating in the fish protein hydrolysate market are listed below:

    Company Name

    Country of Origin

    Estimated Market Share (%)

    Bio-marine Ingredients Ireland Ltd.

    Ireland

    9.3%

    TripleNine Group

    Denmark

    8.6%

    Copalis Sea Solutions

    France

    7.9%

    Scanbio Marine Group

    Norway

    7.3%

    Fisco Inc.

    Japan

    3.7%

    Hofseth Biocare ASA

    Norway

    xx%

    SOPROPÊCHE

    France

    xx%

    Marutham Bio Age Pvt. Ltd.

    India

    xx%

    Great Pacific BioProducts

    USA

    xx%

    Ocean Harvest Technology

    USA

    xx%

    Taian Health Chemical Co., Ltd.

    China

    xx%

    Kemin Industries South Asia Pvt. Ltd.

    Malaysia

    xx%

    Bio-Marine Biotechnology Australia

    Australia

    xx%

    Daesang Corporation

    South Korea

    xx%

    Here are a few areas of focus covered in the competitive landscape of the fish protein hydrolysate market:

    • Company Overview
    • Business Strategy
    • Key Product Offerings
    • Financial Performance
    • Key Performance Indicators
    • Risk Analysis
    • Recent Development
    • Regional Presence
    • SWOT Analysis

Recent Developments

  • In May 2021, Biomega expanded its Denmark biorefinery in Hirtshals to increase production of its new Pure Salmon Peptide segment, which is aimed at the human health and nutrition markets. In order to satisfy the rising demand for premium peptides in functional foods and nutraceuticals, efforts to scale up continued into 2024–2025, despite the initial investment being made in 2021. Enzymatic products are driving innovation, and global FPH sales in 2024 reached USD 244.8 million, up from USD 254.6 million in baseline projections for 2023. This action is in line with the growing demand.
  • In 2021, Scanbio/Diana introduced customized FPIs with enhanced solubility and targeted amino acid profiles through sophisticated processing for use in beverage and functional food applications. With powder FPH holding roughly 91% of the market and enzymatic hydrolysates projected to grow at a 5.6% CAGR through 2034, these formulations are gaining market share and bolstering the clean-label movement.

Author Credits:  Dhruv Bhatia

  • Report ID: 4765
  • Published Date: Jun 30, 2025
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The fish protein hydrolysate market size was USD 536.3 million in 2024.

The global fish protein hydrolysate market size was USD 536.3 million in 2024 and is likely to reach USD 1.43 billion by the end of 2037, expanding at a CAGR of 7.7% over the forecast period, i.e., 2025-2037.

Bio-marine Ingredients Ireland Ltd., TripleNine Group, Copalis Sea Solutions, Scanbio Marine Group, Hofseth Biocare ASA, SOPROPÊCHE, Marutham Bio Age Pvt. Ltd., and Great Pacific BioProducts are some key players in the market.

The animal feed segment is expected to hold a leading share during the forecast period.

Asia Pacific is projected to offer lucrative prospects with a share of 38.4% during the forecast period.
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