According to a new report published by AkVis Intelligence, titled, “Dairy Enzyme Market by Type, Source, Application, Function, and Form, and Region Global Market Analysis and Forecast, 2024-2032.

The Global Dairy Enzyme Market Size Was Valued at USD 650.05 Million in 2023 and is Projected to Reach USD 1155.48 Million by 2032, Growing at a CAGR of 6.6 % from 2024-2032. Dairy enzymes are proteins that enhance the quality and texture of dairy products, such as milk, cheese, yogurt, and nutritious daily drinks. They function as clotting agents in the production of these products, maintaining the cleanliness and health of the intestines. Dairy enzymes catalyze processes like fermentation, coagulation, and ripening in milk and dairy products, either naturally occurring in raw milk or added during production to improve product quality, texture, taste, and longevity. Dairy enzymes include lactase, rennet, lipases, and proteases, which help break down complex substances like lactose and proteins into simpler forms, enhancing the efficiency and quality of dairy manufacturing. They can be combined with vanilla extract and other natural flavorings for use in ice cream and desserts. Enzymes are essential in the food and beverage sector, contributing significantly to the processing, manufacturing, and storage of various products like dairy items, eggs, infant formula, chocolates, syrups, baby food, food additives, cheese, sweeteners, milk, and more.

The rapid growth of the dairy industry is driven by advancements in technology for discovering food enzymes, particularly in extracting microbial sources for the dairy industry. The growth rate is forecasted to persist due to consumers and dairy outlet operators, as well as the changing landscape, upcoming trends, and increasing Dairy Enzyme Market Size trajectory worldwide.

According to Dairy Enzyme, the Market is segmented into Type, Source, Application, Function, and Form. By type, the market is categorized into Rennet, Lactases, Catalases, Lipases, Proteinases, and Peptidases. By Source, the market is categorized into Plant, Animal, and Microorganism. By Application, Milk, Yogurt, Cheese, Whey, Ice Cream and Dessert, Infant formula, and Others. By Function, the market is categorized into Flavor Enhancement, Texture Modification, Shelf-Life Extension, and Processing Aids. By Form, the market is categorized into Liquid & Powder. By region, it is analyzed across North America (U.S.; Canada; Mexico), Europe (Germany; U.K.; France; Italy; Russia; Spain, etc.), Asia-Pacific (China; India; Japan; Southeast Asia, etc.), South America (Brazil; Argentina, etc.), Middle East & Africa (Saudi Arabia; South Africa, etc.).

The global demand for fermented dairy products, such as yogurt and cheese, is driven by stomach-related diseases, convenience, lactose-free options, and vegan dairy enzymes. Manufacturers are improving enzyme products for yogurt and cheese production, leading to faster production and increased efficiency. The dairy enzyme market growth is driven by public awareness of dairy benefits, environmental advantages, and lifestyle changes, resulting in quicker production and increased efficiency.

The market for lactose-alterate dairy options is expanding due to the increasing demand for dairy products without lactose. This growth is driven by the introduction of affordable organic and natural flavored dairy products, appealing packaging techniques, creative products, and engaging marketing strategies. The growing awareness of personalized nutrition options and the rise in lactose intolerance cases are also driving market expansion, leading to the introduction of new dairy product varieties.

Global Dairy Enzyme Market, Segmentation

The Dairy Enzyme Market is Segmented Based on Type, Source, Application, Function, Form, and Region.

By Source:

The Microorganism Segment Is Expected to Dominate the Market During the Forecast Period. Microorganisms, including bacteria, fungi, and yeast, are essential in producing dairy enzymes through fermentation processes. Lactobacillus bulgaricus and Streptococcus thermophilus produce lactase, which breaks down lactose in milk. Fungal species like Aspergillus oryzae and Rhizopus oryzae produce proteases and lipases, enhancing cheese ripening and taste. Kluyveromyces lactis and similar yeasts also produce lactase. Microbial fermentation offers scalability, cost efficiency, and genetic manipulation opportunities, making it a crucial source of dairy enzymes.

By Application:

The Cheese Segment Held the Largest Share. The cheese segment dominates the Dairy Enzyme Market due to rising consumer demand for cheese flavors, higher disposable incomes, and protein-rich foods. The growing popularity of exotic tastes and global cuisines, particularly Mexican and Italian, has boosted cheese demand. The food industry's growth has led to the creation of new cheese products, such as flavored cheese. Handcrafted, organic, and artisanal cheese types are also gaining popularity. Enzymes in dairy products, such as rennet and lipases, play a crucial role in cheese production, affecting its quality, texture, and flavor. This makes the cheese sector the leading player in the market.

Region:

North America is Expected to Dominate the Market Over the Forecast Period. North America is expected to dominate the Dairy Enzymes Market over the forecast period due to its focus on healthy diets and dietary supplements, significant demand for dairy enzymes, and strong presence of key industry players. The region's robust distribution network and quick adoption of cutting-edge technologies in the dairy sector further strengthen its position. The dairy industry in North America is flourishing, adapting to evolving consumer preferences and driving demand for innovative dairy offerings. The demand for dairy enzymes is fueled by a health-conscious culture and growing awareness of the nutritional benefits of dairy products. Strict regulations and the growing dairy processing industries further strengthen North America's leadership in the market.

Some of The Leading/Active Market Players Are-

• Dow (U.S.)
• Cargill (U.S.)
• DuPont (U.S.)
• Wilbur-Ellis Holdings, Inc. (U.S.)
• Genencor International, Inc. (U.S.)
• ENMEX (Mexico)
• Hansen A/S (Denmark)
• Kerry Group (Ireland)
• Novozymes (Denmark)
• SternEnzym GmbH & Co. KG (Germany) and Other Active Players

Key Industry Developments

• In December 2023, Kerry Group Plc. completed the acquisition of a portion of Chr. Hansen's global lactase enzyme business and full ownership of Nuocheng Trillion Food (Tianjin) Co. Ltd, a subsidiary of Novozymes. The €150 million transaction, aligned with Kerry's strategy to enhance biotechnology solutions, brings advanced enzyme technology for lactose-free and sugar-reduced dairy products. This move positions Kerry to meet rising global demand due to increased awareness of lactose intolerance. The deal, pending European Commission approval, was anticipated to be finalized in the first half of 2024.

• In December 2023, ADM announced its acquisition of US-based dairy flavor producer Revela Foods. Specializing in clean-label dairy flavor formulations through enzyme technology, Revela employs approximately 400 people and operates three production facilities in the US Midwest. The company serves a wide range of applications, including snacks, frozen meals, sauces, dressings, soups, seasonings, and desserts. Reveal is projected to achieve nearly $240 million in sales in 2023. This acquisition bolsters ADM's capabilities in the global dairy flavors and savory flavors sectors.

Key Findings of the Study:

• Microorganisms, particularly through fermentation processes, are a dominant source of dairy enzymes, offering scalability, cost-efficiency, and genetic manipulation opportunities.
• The cheese segment holds the largest share in the dairy enzyme market, driven by increasing consumer demand for diverse cheese flavors and protein-rich foods.
• North America is expected to dominate the market throughout the forecast period due to a health-conscious culture, strong dairy industry infrastructure, and rapid adoption of advanced dairy technologies.