Edible bird's nest is a biologically derived consumable product primarily made from the secretion of the submandibular gland of swiftlet birds. With a long history, it is regarded as a precious tonic in the East. The hydrolyzate of edible bird's nest, known as edible bird's nest peptide, exhibits superior biological activities in some areas compared to the traditional edible bird's nest. This review covers the origin and basic composition of edible bird's nest, gives an overview of edible bird's nest peptides, their preparation methods, compositional characteristics, health effects, scientific and technical issues in their research and applications, application, and market trends. Edible bird's nest peptide preparation methods include water extraction, enzymatic hydrolysis, simulated digestion, and physical field-assisted enzymolysis. The preparation method greatly influences its composition, structure, and molecular weight, resulting in differing functional properties. Due to its unique structure and molecular weight distribution, the administration methods of edible bird's nest peptide differ from traditional edible bird's nest; it can be used both orally and topically. In terms of health benefits, edible bird's nest peptide has demonstrated unique benefits in various areas, such as antioxidant, anti-aging, skin whitening, anti-inflammatory, skin protection, antiviral, immunoregulation, and neurodegenerative disease improvement. Notably, in certain areas, edible bird's nest peptides showed characteristics superior to edible bird's nest, such as skin whitening. However, certain issues regarding edible bird's nest peptides remain, such as low efficiency in preparation methods, unclear amino acid sequences, unclear core peptide segments, and a small market size. Continuous effort is required for basic research and standardization. This study could serve as a theoretical reference for the technological innovation and modernization of edible bird's nest peptide development.
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