Hydrolyzed Vegetable Protein Market Size, Share, Growth, and Industry Analysis, By Type (Dry Powder,Paste,Liquid), By Application (Food Products,Functional Beverages), Regional Insights and Forecast to 2033

Hydrolysed Vegetable Protein Market Overview

The Hydrolysed Vegetable Protein Market size was valued at USD 1638.83 million in 2024 and is expected to reach USD 2477.81 million by 2033, growing at a CAGR of 4.7% from 2025 to 2033.

The hydrolysed vegetable protein market is experiencing increased demand across the global food and beverage industry due to its functional benefits and clean-label appeal. In 2024, over 112,000 metric tons of hydrolysed vegetable protein (HVP) were consumed globally across food applications such as seasonings, soups, sauces, and meat analogy. HVP is produced through acid or enzymatic hydrolysis of vegetables such as soy, wheat, corn, and peas. Soy-based HVP accounted for over 68% of total production volume in 2023 due to its high protein yield and affordability.

The expanding vegan and vegetarian population has driven the use of HVP as a flavor enhancer and functional protein source, particularly in plant-based meat products, which saw over 23% growth in production demand across North America and Europe. More than 180 new food products launched globally in 2023 featured HVP as a functional or flavor-enhancing ingredient. Additionally, dry and liquid HVP formats are widely integrated into functional beverages, processed snacks, and ready meals. Rising consumer interest in umami taste profiles and sodium reduction strategies has further boosted industry uptake of HVP across product lines in over 35 countries.

Key Findings

Top Driver reason: Rising demand for plant-based flavor enhancers and clean-label ingredients in processed foods.

Top Country/Region: The United States leads with over 34% of global hydrolyzed vegetable protein consumption.

Top Segment: Dry powder HVP dominates with over 52% of total HVP format usage in the food processing industry.

Hydrolysed Vegetable Protein Market Trends

The hydrolysed vegetable protein market is witnessing significant transformation as clean-label formulations, natural flavourings, and sustainable ingredients become core priorities for manufacturers. In 2023, over 3,200 processed food SKUs in the global market included HVP as a taste-enhancing or protein-enriching component. The shift toward plant-based diets is a major influence, with over 17 million consumers across Europe identifying as vegan or vegetarian, thereby increasing demand for natural alternatives to monosodium glutamate (MSG). HVP is now preferred in over 45% of low-sodium formulations due to its ability to deliver umami taste while reducing sodium levels by up to 35%.

Dry powder HVP is favoured by manufacturers of instant soups, seasoning mixes, and bouillons. In 2024, more than 62,000 metric tons of dry HVP were used in flavour house production globally. The rise of ethnic and fusion cuisines in North America and Asia-Pacific has led to increased demand for flavour-rich seasoning bases, with over 1,500 seasoning products launched using HVP.

Functional beverages are emerging as a growing application segment. In 2023, over 2,200 beverage SKUs across Japan, China, and the United States were fortified with vegetable-based protein sources, including enzymatically hydrolysed wheat or soy HVP. The innovation of allergen-free HVP, particularly derived from rice and pea sources, has driven adoption in clean-label nutrition products. Furthermore, the industry is observing rising demand for enzymatic hydrolysis processes, which accounted for over 41% of HVP production methods globally in 2024, due to superior flavour stability and reduced formation of 3-MCPD contaminants.

Hydrolysed Vegetable Protein Market Dynamics

DRIVER

Rising demand for plant-based flavor enhancers.

 Consumer demand for plant-based diets and healthier flavor enhancers has driven the use of hydrolysed vegetable protein in thousands of processed food and beverage products. In 2023, over 185 global food brands incorporated HVP to replace traditional flavoring additives such as MSG. The increasing awareness around clean-label ingredients and the negative perception of artificial flavor enhancers have prompted manufacturers to shift to natural, hydrolyzed protein sources. HVP enables sodium reduction strategies while preserving flavor intensity, a critical need in the food industry where over 75% of salt intake is from processed foods. The rise in health-focused product launches, exceeding 8,000 in 2023 alone, reflects the role of HVP as a vital formulation component.

RESTRAINT

 Regulatory concerns over 3-MCPD formation.

One of the key restraints in the hydrolysed vegetable protein market is the formation of 3-monochloropropane-1,2-diol (3-MCPD), a contaminant associated with acid hydrolysis. In 2023, over 14 countries introduced stricter limits on 3-MCPD levels in HVP-based products, affecting production methods in the US, EU, and parts of Asia. Approximately 30% of acid-hydrolyzed HVP batches in Southeast Asia faced compliance challenges, leading to reformulation or product recalls. The regulatory scrutiny has compelled manufacturers to shift towards enzymatic hydrolysis methods, which require higher investment but result in lower contaminant levels, thereby affecting operational costs and market pricing.

OPPORTUNITY

Growth in allergen-free and enzymatically hydrolyzed proteins.

The growing demand for allergen-free and clean-label food products presents a significant opportunity for HVP manufacturers. Enzymatic hydrolysis processes enable the production of soy-free and gluten-free HVP, which are suitable for consumers with allergies or dietary restrictions. In 2024, over 15% of new HVP product launches were based on pea and rice proteins, offering an alternative to traditional soy-based HVP. Functional beverages and nutraceuticals in Japan, South Korea, and the United Kingdom have increased usage of enzymatic HVP by over 27%, targeting sports nutrition and elder nutrition segments. This innovation is also aligned with sustainable sourcing strategies, reducing the environmental footprint associated with traditional soy production.

CHALLENGE

Cost pressures in raw material sourcing.

Raw material cost volatility, particularly for soy, wheat, and corn, has significantly impacted HVP production economics. In 2023, global soybean prices increased by 13%, driven by climate-related yield drops in Brazil and the US. As soy accounts for over 65% of HVP raw material sourcing, this price spike added to production costs for over 80 manufacturers worldwide. Furthermore, wheat-based HVP manufacturers in Europe experienced raw material supply issues due to geopolitical disruptions in Eastern Europe, resulting in a 17% reduction in wheat-based HVP exports from Germany. These challenges make cost control and supply chain optimization crucial for manufacturers operating at scale.

Hydrolysed Vegetable Protein Market Segmentation

The hydrolysed vegetable protein market is segmented by type and application, which defines usage across industrial formulations and end-user consumption.

By Type

• Dry Powder: Dry powder HVP is the most commonly used format, accounting for over 52% of the global market in 2023. More than 67,000 metric tons of dry HVP were used across instant soups, snacks, and seasoning applications. Dry HVP offers longer shelf life, reduced transportation costs, and ease of storage. It is particularly favored by large food manufacturers and flavor houses in the US and Europe, which use it in bouillons, ready meals, and snack coatings.
• Paste: HVP in paste form is predominantly used in marinades and liquid seasoning applications. In 2024, over 22,000 metric tons of HVP paste were processed globally, with high consumption observed in Asian markets, especially China and Thailand. Paste HVP is suitable for liquid product formulations and is often included in soy sauces, meat glazes, and stir-fry sauces. Manufacturers prefer paste for its strong flavor profile and natural umami concentration.
• Liquid: Liquid HVP is widely used in industrial foodservice kitchens and large-scale production facilities. In 2023, over 18,000 metric tons of liquid HVP were utilized across fast-food chains and institutional cooking sectors. This format is preferred in settings requiring high-volume dispersion and rapid blending. Liquid HVP is commonly used in gravy mixes, wet soups, and sauces for convenience food chains.

By Application

• Food Products: Food products dominate HVP applications with over 85% market share. In 2023, more than 95,000 metric tons of HVP were consumed in food categories including soups, instant noodles, meat products, frozen meals, and seasonings. Manufacturers in Japan, Germany, and Brazil reported increased HVP usage in plant-based meat and ready-to-eat meals, with over 1,800 new product launches in the category.
• Functional Beverages: Functional beverage applications for HVP are rising, particularly in the sports nutrition and elder care sectors. In 2023, approximately 9,000 metric tons of enzymatically hydrolyzed HVP were used in protein-enriched drinks and recovery beverages. Demand is high in Japan, South Korea, and the US where functional beverages accounted for over 6% of total HVP usage. Innovation in allergen-free and soy-free HVP is driving this trend.

Hydrolysed Vegetable Protein Market Regional Outlook

The hydrolysed vegetable protein market shows regionally diverse growth patterns influenced by food processing trends and dietary preferences.

• North America

represents the largest market for HVP, with over 34% of global consumption in 2024. The United States accounts for the bulk of this share, consuming more than 38,000 metric tons annually. Major applications include seasoning mixes, processed meats, and plant-based food production. Over 700 food manufacturers in North America use HVP in low-sodium product development, particularly in snacks and soups.

• Europe

follows closely, with over 29,000 metric tons of HVP consumed across Germany, France, the UK, and the Netherlands. European Union regulations have accelerated the shift toward enzymatically hydrolysed protein to meet food safety standards. Germany alone exported over 8,000 metric tons of HVP in 2023, primarily to Eastern Europe and Scandinavia. There is strong uptake of HVP in vegan food manufacturing, which saw a 31% increase in usage in the past year.

• Asia-Pacific

It is a high-growth region for HVP, with over 41,000 metric tons consumed in 2023. China, Japan, and India are key markets. Japan’s elderly nutrition segment utilizes liquid and enzymatic HVP in over 2,500 foodservice institutions. China leads in paste-format HVP production, exporting more than 6,000 metric tons annually to Southeast Asia. India is witnessing fast growth due to rising demand for low-cost flavouring agents in packaged snacks and instant meals.

• Middle East & Africa

market is emerging, with over 9,500 metric tons of HVP usage in 2023. Saudi Arabia and the UAE dominate the region, with expanding usage in ready-to-eat meals and QSR (Quick Service Restaurant) products. South Africa uses HVP in both local snack production and meat processing industries, contributing over 1,200 metric tons of annual consumption. government's focus on food processing capacity expansion supports regional growth.

List of Top Hydrolyzed Vegetable Protein Companies

• Griffith Laboratories
• Ajinomoto Co., Inc.
• Kerry Group plc
• Tate & Lyle plc
• Givaudan
• Jones-Hamilton Co.
• DSM
• Diana Group
• Brolite Products Co., Inc.
• Caremoli Group
• Astron Chemicals S.A.
• McRitz International Corporation
• Good Food, Inc.
• Michimoto Foods Products Co., Ltd.
• Dien Inc.
• Unitechem Co. Ltd.

Top Two Companies with the Highest Share

Ajinomoto Co., Inc.: Ajinomoto leads the HVP market with over 14,000 metric tons of HVP produced annually across facilities in Japan, the US, and Brazil. The company supplies HVP to over 1,100 food manufacturers and operates multiple enzymatic hydrolysis lines for clean-label production.

Kerry Group plc: Kerry Group maintains a significant share in Europe and North America, with over 10,000 metric tons of HVP distributed annually. The company serves over 500 clients in the processed food sector and is actively investing in allergen-free HVP solutions.

Investment Analysis and Opportunities

Investments in the hydrolysed vegetable protein market have increased steadily over the past five years, fueled by clean-label trends and rising demand for plant-based proteins. In 2024, more than $280 million was invested globally in HVP production capacity expansion, new technology integration, and R&D initiatives. Over 35 food tech startups received funding for enzyme-based hydrolysis innovation and allergen-free protein extraction technologies.

Ajinomoto invested over $35 million in its US-based HVP facility to scale enzymatic hydrolysis production and meet growing North American demand. Kerry Group allocated $20 million toward the development of HVP from non-soy sources, particularly pea and rice proteins. These investments aim to serve manufacturers of vegan meat products and allergen-free snacks.

In Asia-Pacific, China invested in 14 new HVP manufacturing plants across Shandong and Guangdong provinces, aiming to produce over 18,000 metric tons annually by 2025. India has seen public-private partnerships in food processing parks supporting soy and wheat HVP production, with output growth expected at over 12% year-on-year.

Opportunities also lie in product diversification. Companies are expanding their offerings to include hydrolysed mushroom and legume proteins as sustainable HVP alternatives. There is also a rise in demand for fermented HVP blends, which combine hydrolysis with natural fermentation for enhanced flavour and digestibility.

New Product Development

Innovation in hydrolysed vegetable protein production has surged, with over 180 new HVP-based products launched in 2023 alone. Companies are focusing on enzymatic processing to meet regulatory standards and respond to consumer demand for clean-label and allergen-free options. Ajinomoto launched a line of hydrolysed pea protein ingredients for savory applications, achieving over 1,200 metric tons in shipment volume within the first year of release.

Kerry Group unveiled a soy-free HVP powder with 95% solubility, aimed at functional beverage applications. The product was adopted by over 70 manufacturers in Europe for use in protein shakes and elder care nutrition. Similarly, DSM developed a novel dry HVP derived from chickpeas, offering a non-GMO and gluten-free formulation. This product saw initial shipments of over 500 metric tons across three continents.

Givaudan introduced hybrid HVP-yeast extract seasoning systems that are now used in meat substitutes, soups, and frozen meals. This dual-function ingredient reduces sodium levels by up to 30% while enhancing mouthfeel. Diana Group is experimenting with fermentation-enhanced hydrolyzed lentil protein, expected to reach commercial scale by Q3 2025, with pilot production already yielding 25 metric tons per month.

Product innovation is also targeting packaging and shelf stability. McRitz International introduced microencapsulated HVP granules for long-shelf-life seasoning packs used in military and emergency rations. Over 100 tons of these granules were produced in 2023 alone. These advancements indicate a strong trajectory of technical evolution in the hydrolyzed vegetable protein market.

Five Recent Developments

• Ajinomoto Co., Inc. expanded its Tennessee plant in 2023 to increase enzymatic HVP production capacity by 8,000 metric tons annually.
• Kerry Group plc launched a new allergen-free, hydrolyzed pea protein concentrate for European vegan food markets in 2024.
• DSM introduced chickpea-based dry HVP in Asia-Pacific markets, with exports reaching 1,200 metric tons by early 2024.
• Givaudan partnered with local producers in Thailand to develop regionally tailored HVP for Southeast Asian sauces and ready meals.
• Griffith Laboratories piloted a fermentation-assisted hydrolysis technique, reducing process time by 40% and improving amino acid retention in liquid HVP products.

Report Coverage of Hydrolyzed Vegetable Protein Market

The hydrolyzed vegetable protein market report comprehensively analyzes the industrial landscape, spanning key formats such as dry powder, paste, and liquid across application verticals like food products and functional beverages. The report covers over 40 countries, including data from more than 180 food and beverage manufacturers globally. It includes market volume data segmented by type, application, region, and hydrolysis process (acidic and enzymatic).

The report tracks production volumes exceeding 110,000 metric tons across North America, Europe, Asia-Pacific, and Middle East & Africa. It includes analysis of more than 75 product launches per year, highlighting trends in allergen-free, non-GMO, and sustainable HVP ingredients. Regulatory tracking includes details on 3-MCPD compliance limits introduced by the EU, US FDA, and ASEAN nations.

Key insights in the report are derived from data across 120 manufacturing facilities, 80+ trade partnerships, and over 400 industry-level interviews and supplier surveys. The report provides investment benchmarking by tracking 90+ funding rounds, plant expansions, and technological R&D projects. It also maps the shift in consumer preferences toward soy-free and enzymatic hydrolyzed HVP, aligning with global health and wellness trends.

Vendor profiling in the report includes 16 key players and evaluates their production capacities, R&D intensity, innovation pipelines, regional penetration, and supply chain models. The report serves as a strategic tool for ingredient suppliers, food processors, R&D organizations, investors, and policymakers to understand growth patterns, compliance frameworks, innovation trends, and market potential across each region. With detailed insights into product development and commercial strategies, the report provides a complete view of the evolving hydrolyzed vegetable protein industry landscape.

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