Dairy Enzymes Market Report

Innovations include enhancing enzymatic solutions that fulfil particular functions, such as lactose breakdown, curd development, and flavour augmentation. These developments improve the overall effectiveness of dairy processing, allowing producers to create superior products with better taste, texture, and nutritional characteristics. Integrating biotechnology and enzyme engineering has significantly contributed to improving the effectiveness of dairy enzymes. Scientists have successfully adjusted enzymes to satisfy the increasing need for dairy goods by utilising genetic modification and sophisticated screening methods.

Ongoing innovations also generate the necessity to investigate new sources for enzyme production as the sector is gradually embracing sustainable practices by investigating alternative sources, such as microbial fermentation and the production of plant-derived enzymes. With the advancements in dairy enzymes, the market is steadily expanding at a notable growth rate. Dairy enzymes, originally utilized in dairy processing, are being more frequently adopted in the plant-based food sector to address the difficulties of imitating the sensory and textural properties of dairy items. By altering plant proteins, these enzymes improve texture and mouthfeel, enrich flavour development via regulated protein degradation, and stabilize plant-based emulsions to ensure consistent product quality.

This adaptability enables the use of a broader variety of plant materials, enhancing the ingredient variety for creative plant-based foods. For instance, in November 2024, IFF launched TEXSTAR, a new enzymatic solution for premium textures in fermented dairy and plant-based products, eliminating the need for stabilizers. TEXSTAR enhances the flavour profile of plant-based fresh fermented products and minimizes the beany flavours, improving the taste without interfering with the nutritional values.

Elevated production expenses greatly limit the dairy enzyme market because of the intricate nature of enzyme production methods. The manufacturing of dairy enzymes demands specific equipment, appropriate facilities, and trained staff, leading to substantial capital investment and operational costs. Strict quality control protocols are also essential to guarantee the uniformity and purity of enzyme products, thereby raising production expenses. These costs are frequently transferred to dairy farmers and eventually to consumers, which can render enzyme-treated dairy products possibly less competitive in the market.

The initial expenses related to enzyme production could present difficulties for small dairy operations, hindering their capacity to implement enzyme-based processing methods. The necessity for ongoing research and development to enhance and innovate enzyme formulations contributes to persistent costs, creating a significant challenge for companies in the dairy enzyme sector regarding cost-efficient production.

Health-aware buyers seek tasty, lactose-free, and lower-sugar dairy items with the same nutritional value as milk. For instance, in June 2023, DSM-Firmenich launched Maxilact Next, a pure lactase enzyme for more efficient lactose-free dairy production. The lactase enzymes assist in developing more flavourful and healthier lactose-free products more efficiently by adding nutritional values such as probiotics, vitamins, and minerals, and also by sugar reduction. This latest solution is the most effective and pure lactase currently offered in the market and is approximately 25% quicker than the previous fastest market reference for milk processing, cutting the hydrolysis time by 25% when used at the same dosage.

Maxilact Next enabled lactose-free dairy manufacturers to enhance production, boost capacity, and utilize raw materials more effectively – all while maintaining the flavour of lactose-free products. With the increasing demand for premium, natural flavours in the food sector, dairy enzyme manufacturers are introducing innovative products for enhancing flavours. For instance, in October 2024, Biocatalysts Ltd launched an innovative enzyme solution, to boost umami flavour in dairy ingredients. This newly crafted enzyme solution, belonging to Biocatalysts Ltd.’s esteemed Flavorpro line, is designed to enhance the natural flavour attributes of dairy components.

This innovative approach provides manufacturers with a method to enhance and elevate savoury, umami-filled flavours in dairy products, producing more recognizable and attractive tastes that align with contemporary consumer expectations for flavour and simpler ingredient lists. This new addition aims to enhance the taste and sensory experience of enzyme-modified dairy products by utilizing the natural protein structure of dairy ingredients, eliminating the requirement for artificial additives. Recent acquisitions in the dairy enzymes industry including those focused on lactose-free products are driving market growth by broadening product portfolios and enhancing manufacturing capabilities, resulting in the growth of the dairy enzymes market.

For instance, in December 2023, Kerry Group plc, the global taste and nutrition company, acquired part of the global lactase enzyme business Novozymes and Chr. Hansen. The Lactase Enzymes Business, featuring NOLA Products, further strengthens Kerry’s biotechnology solutions expertise after the acquisitions of c-LEcta and Enmex. This purchase incorporates enzyme technology that aids in producing lactose-free and sugar-reduced dairy items while maintaining their genuine clean flavour. The rising awareness of lactose intolerance is fueling global demand for lactase, as many consumers opt for lactose-free products for lifestyle and health benefits.

The dairy enzymes market in North America is undergoing strong growth, led by the United States, which holds a substantial market share in the area. The market is rising in this region, due to evolving dairy sector, high per capita dairy intake, and quick implementation of advanced enzyme technologies. The increasing demand for specialized dairy items such as low-lactose alternatives is driven by lactose intolerance issues among the population. The increased consumption of cheese and butter while the consumption of fluid milk is declining which favours the dairy enzymes market has made the per capita dairy consumption in the United States over 661 pounds per person.

According to the report by the U.S. Department of Agriculture Economic Research Service (ERS), consumption of dairy products increased by a compound annual growth rate of 1.45% per year, from 2013 to 2023. In Asia-Pacific, the market benefits from a mature dairy sector with countries like India and China leading in dairy production. India is the largest milk-producing country globally with over 25% of the world’s production, witnessing impressive growth in the dairy sector.

The significant rises in both milk production and consumption, are fueled by socioeconomic progress and strong backing from both government and private sectors in India. The milk output in India is projected to reach 216.5 million metric tons as the demand for dairy goods in India is increasing due to higher disposable incomes, growing e-commerce platforms, and vigorous marketing strategies. The demand for dairy enzymes in Asian countries like India is increasing with the increased dairy production and to use of a sustainable way.