Fish Protein Hydrolysate Market Trends

Growth Drivers

• Rising demand in animal feed and aquaculture: Fish protein hydrolysate (FPH) is emerging as a powerful option in animal feed and aquaculture due to its high digestibility and nutritional properties. According to the American Feed Industry Association in 2023, livestock, poultry, and farmed aquaculture in the U.S. consumed nearly 284 million tons of safe, high-quality, and nutritious feed. FPH is a sustainable and coherent protein source and has favorable use cases in the feed industry. Furthermore, upgradation in enzymatic hydrolysis and fractionation technologies is enhancing consistency of the product, lowering bitterness, and enabling tailored formulations for specific species and growth stages.

• Growing adoption of the 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. When the FPH is mixed with liquid or other soluble agrochemicals, it functions as a soil enhancer owing to its richness in amino acids. Various new-age companies are actively amalgamating FPH into their products as an initiative for the organic and sustainable farming initiative. According to data published by IFOAM - Organics International in 2022, 96.3 million hectares of land were under organic management. These factors are propelling the fish protein hydrolysate market growth during the forecasted period.

• Increase consumption of the nutraceutical applications: The human nutrition sector is witnessing burgeoning interest in marine-based protein hydrolysates due to their bioactive properties. The inclusion of the FPH peptides has illustrated several benefits, such as muscle recovery, anti-inflammatory, etc., making them adequate as a functional food. According to a survey conducted by the National Institutes of Health in 2023, in the U.S., more than 51% of people take at least one dietary supplement. Also, with the increasing worldwide inclination for clean-label and protein-enriched diets, nutraceutical companies are widely spreading their product portfolios to include FPH in powders, capsules, and ready-to-drink formulations.

Challenges

• Trade barriers and WTO-reported tariff disputes: A plethora of non-tariff barriers were reported in 2022 as non-compliance with regulations about the traceability of marine resources. This led to refusals of fishery product imports from Southeast Asia into the EU. 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. The company managed to move faster through customs while expanding its export opportunities to the Netherlands and Sweden.

• High pricing pressures in competitive feed markets: FPH can easily compete directly with low-cost alternatives, e.g., soy protein and fishmeal. In competitive markets such as aquafeed, where price sensitivity is high, these elevated costs can limit adoption unless supported by clear performance advantages or regulatory incentives. Also, sensory limitation is particularly problematic in functional foods, beverages, and nutraceuticals, where consumer acceptance depends on palatability.