Dairy Enzymes Market

Dairy Enzymes Industry Outlook

The global market for dairy enzymes is poised to witness strong growth until 2031, expanding more than 2x. As of 2021, the market is anticipated to be valued at approximately US$ 700 Mn. Applications for cheese production is slated to emerge dominant, resulting in sales worth US$ 150 Mn in the previous year and expanding at a CAGR of 7% until 2031.

Key Points Covered in Dairy Enzymes Industry Survey

• Market Estimates and Forecasts (2016-2031)
• Key Drivers and Restraints Shaping Market Growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Brand Share and Market Share Analysis
• Key Product Innovations and Regulatory Climate
• Assessment by Product Grade / Purity / Formulation Standards
• Assessment of Import Price, Bulk Price, Contractual Price, Producer / Distributor Price
• Certifications and Compliance Requirements
• COVID-19 Impact on the Dairy Enzymes Industry and How to Navigate
• Recommendation on Key Winning Strategies

Consumption Analysis of Dairy Enzymes from 2016-2020 Vs Market Outlook for 2021 to 2031

As per Fact.MR – market research and competitive intelligence provider, during the historic period of 2016 to 2020, the market expanded at a CAGR of 7%. In biotechnology, there are several industrial applications that have resulted in the development of biotech products that are being used on a regular basis. Few of these come under the food science application category that makes use of enzymes to enhance the quality and functional properties of different foods.

Likewise, in the dairy industry, enzymes are either used as coagulants for the production of cheese or as bio protectors for enhancing the safety and shelf life of dairy products. Prospects are also widening amid the ever-broadening trend of consuming vegan food products.

Considering these factors, the global dairy enzymes market is slated to expand at around 8% CAGR over the forthcoming decade, expected to reach a value of nearly US$ 1.5 Bn.

Will Demand for Lactose-Free Dairy Boost Market Expansion?

According to NIDDK (National Institute of Diabetes and Digestive and Kidney Diseases), about 68% of people across the globe are facing lactose malabsorption. In Asia and Africa majority of the people are lactose intolerant, whereas in the United States about 36% of people are intolerant to lactose. 

In response to trending healthy food consumption and growing consumer awareness regarding digestive health, manufacturers have developed innovative dairy enzymes that facilitate a significant increase in capacity and efficiency with respect to production thereby allowing dairy product manufacturers to fulfill the increasing demand for lactose-free dairy products, spurring demand for alternative dairy enzymes.

How will Production Enhancements Influence Dairy Enzymes Production?

Manufacturers are focused on further enhancements in their enzyme offerings that are applicable in the production of cheese and yogurt and enable faster production and a double-digit enhancement in the production efficiency.

Optimization in dairy production is the focal point of several manufacturers, developing dairy enzymes capable of enhancing the rate of production along with quality enhancements. Particularly, enzymes for dairy products that offer exceptional texture and flavor along with enhanced freshness reduces whey bitterness and facilitate trouble-free ultra-high temperature (UHT) processing. Demand for fermented milk products has been showing a significant demand rate owing to a high prevalence of digestive disorders among the consumers. 

In August 2021, Müller launched its first stand-alone yogurt brand in the U.K. Driven by the global wellness trend, Gut Glory is a new gut-health yogurt brand with a contemporary twist. Gut Glory is a creamy yogurt that contains gut-friendly cultures, it is a source of calcium and is made in Shropshire, England, using milk from British farms.

Region-Wise Analysis

How is Increasing Yogurt Consumption Spurring Dairy Enzymes Sales in Asia?

According to Fact.MR, the Asia is likely to register highest growth during the forecast period, accounting for a value CAGR worth 8% across the 2021-2031 assessment period. Increasing consumption of yogurt is widening prospects for dairy enzymes, with regional player unraveling new product lines.

For instance, in August 2020, Indian startup Epigamia launched a range of plant-based yogurt made with coconuts for Indian consumers. With its creamy texture, the company claims the yogurt’s consistency is almost indistinguishable from conventional dairy yogurts. They are available in two flavors — Unsweetened and Coconut Jaggery. 

By launching the coconut milk yogurts, Epigamia aims to reduce its impact on the environment. And it’s not just the yogurts that are more sustainable than conventional dairy products — the packaging is too.

Increasing Lactose Intolerance Driving Dairy Enzymes Demand in North America?

According to Fact.MR’s projections, North America is projected to be a significant revenue contributor to the global market for dairy enzymes through 2031, growing at around 7% value CAGR.

The region offers huge opportunities for the players in the market owing to the factors like an increasing number of people with lactose intolerance, and a rise in digestive disorders among people. In the U.S, about 36% of people are intolerant to lactose, or 30 million American adults.

Hence, consumers are transitioning towards consuming non-milk based dairy products. Considering the aforementioned factors, Fact.MR projects the market across the North American region to be highly lucrative during the forecast period (2021-2031).

How are Burgeoning Vegan Trends Influencing Demand in Europe?

According to Veganz, the number of people switching over to a vegan diet has doubled, from 1.3 million in 2016 to 2.6 million in 2020. This trend was the strongest in Germany, with 30% of them identifying themselves as flexitarians. Hence, popularity of plant-based dairy products has equally surged.

Studies have concluded that consumption of plant-based foods has experienced a nearly 50% increase between 2019 and 2021. While animal welfarism is the primary reason for this shift, a growing number of consumers have reported high levels of lactose intolerance. Hence, plant-based dairy enzymes consumption has increased. Fact.MR anticipates the market in Europe to surge at over 7% CAGR.

Category-wise Insights

Will Cheese Production retain Influence on Dairy Enzymes Demand?

A relatively high-value share has been envisioned for cheese with respect to the adoption of dairy enzymes in cheese production. Several microbes such as Irpex, Rhizomucor pusillus, and Aspergillus Oryzae are being extensively used for the production of rennet during cheese manufacturing.

According to Fact.MR, growth in sales of dairy enzymes for cheese production is complemented with the increasing consumption of cheese across the globe, which resulted in sales of US$ 150 Mn of dairy enzymes in 2020. By 2031, the segment is likely to surge at a CAGR of 7%.

Will Animals & Micro-organisms Sourced Dairy Enzymes Remain Prominent?

According to Fact.MR, the animal & microorganism segment is estimated to account for the largest share as compared to other sources of dairy enzymes. A market share worth 45% is projected for this segment by Fact.MR across the forecast period.

Manufacturers prefer animal and microorganisms as a source of dairy enzymes due to a simpler extraction process. Moreover, it is easy and more cost-effective to conduct R&D activities on microorganisms as compared to plant-sourced dairy enzymes.

Competitive Landscape

Prominent manufacturers of dairy enzymes are looking to capitalize on innovations in order to launch new products into the market.

• In March 2021, Amano Enzyme announced the launch of Umamizyme™ Pulse, a non-GMO enzyme designed for use in a variety of plant protein products to produce a pleasant, savory (umami) flavor, similar to that provided by monosodium glutamate (MSG), as well as a sensation of richness and complexity (kokumi) has been introduced by Amano Enzyme.
• In September 2021, Novozymes announced that it is launching five powerful biological solutions that address key challenges for North American farmers to improve yield and fertility and increase the application of biocontrol. This will help the agricultural industry in dealing with issues of nutritional availability and efficiency.

Report Scope

Attribute	Details
Market size value in 2021	USD 700 Mn
Market size value in 2031	USD 1.5 Bn
Growth Rate	CAGR of 8% from 2021 to 2031
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	Revenue (US$ Mn) & Volume (Tonnes)
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania Middle East & Africa
Key Countries Covered	U.S. Canada Germany U.K. France Italy Russia China Japan South Korea India ASEAN Australia New Zealand Brazil Mexico Argentina GCC Israel Egypt South Africa
Key Market Segments Covered	Product Type End-User Construction Activity Region
Key Companies Profiled	DowDuPont Kerry Group DSM Chr. Hansen Novozymes Advanced Enzymes Technologies Amano Enzymes Fytozimus Biotech Enmex SternEnzym Biocatalysts Connell Bros
Pricing	Available upon Request

Key Segments Covered

• Product Type

  • Carbohydrate Dairy Enzymes
  • Protease Dairy Enzymes
  • Polymerase & Nuclease Dairy Enzymes
  • Lipase Dairy Enzymes
  • Phytase Dairy Enzymes
  • Other Dairy Enzymes

• Source

  • Plant-based Dairy Enzymes
  • Animals & Micro-organisms-based Dairy Enzymes

• Application

  • Dairy Enzymes for Milk
  • Dairy Enzymes  for Cheese
  • Dairy Enzymes for Ice Creams & Desserts
  • Dairy Enzymes for Yogurt
  • Dairy Enzymes  for Whey
  • Dairy Enzymes  for Infant formula
  • Dairy Enzymes for Other Applications