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 - Growth Drivers and Challenges
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 |
|
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 |
|
|
Application |
|
|
Form |
|
Vishnu Nair
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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 |
Key Fish Protein Hydrolysate Market Players:
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
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:
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.
- Report ID: 4765
- Published Date: Jun 30, 2025
- Report Format: PDF, PPT
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