Dairy Enzyme Market Size & Outlook, 2025-2033

Dairy Enzyme Market Overview

The global dairy enzyme market size was valued at USD 846.05 million in 2024 and is projected to grow from USD 919.65 million in 2025 to reach USD 1631.67 million by 2033, growing at a CAGR of 7.25% during the forecast period (2025-2033). The expansion is fueled by the growing consumption of dairy products and an increasing emphasis on sustainability in food production.

Key Market Insights

• North America dominates the dairy enzyme industry and accounted for a 33% share in 2024.
• Based on type, rennet leads the global market, widely used for cheese production.
• Based on the source, microorganisms hold the largest share in the market due to their efficient, scalable, and cost-effective enzyme production.
• Based on application, cheese leads the global market, with enzymes enhancing flavor, texture, and quality.

Market Size & Forecast

• 2024 Market Size: USD 846.05 million
• 2033 Projected Market Size: USD 1,631.67 million
• CAGR (2025–2033): 7.25%
• Largest market in 2024: North America
• Fastest-growing region: Asia-Pacific

The global dairy enzyme market is primarily boosted by a surge in the consumption of dairy products, owing to a rapid population surge worldwide, especially in emerging economies. Sustainability has been a major concern for consumers in recent years, owing to increased environmental pollution, thereby driving the demand for environmentally friendly products. This is anticipated to boost the global market. Moreover, the market leaders are launching new dairy enzymes with better functionality to enhance their market share, which is estimated to generate market growth opportunities.

Dairy enzymes are proteins that catalyze specific biochemical reactions in milk and dairy products, facilitating various processes such as fermentation, coagulation, and ripening. These enzymes can be naturally present in raw milk or added during processing to improve product quality, texture, flavor, and shelf life.

Examples of dairy enzymes include lactase (which breaks down lactose into glucose and galactose), rennet (used in cheese making to coagulate milk proteins), lipases (which contribute to flavor development in cheeses), and proteases (which help in protein breakdown during cheese ripening). Dairy enzymes are crucial in producing a wide range of dairy products, including cheese, yogurt, butter, and fermented milk beverages.

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Dairy Enzyme Market Drivers

Growing Demand for Dairy Products

The surging demand for dairy products is a key driver of the global market. As global populations increase and consumer preferences evolve, there is a rising appetite for dairy-based foods and beverages. According to the United Nations, the global human population reached 8.0 billion in mid-November 2022 and is predicted to reach 9.70 billion by 2050, possibly peaking at close to 10.4 billion in the mid-2080s.

According to FAO, this rise in population and wealth will lead to a minimum 50% increase in the demand for dairy products. A rise in per capita income is predicted to cause the global per capita consumption of fresh dairy products to grow by 1.2% yearly over the next ten years, a little faster than in the previous ten years. The dairy enzyme market is expanding due to producers of dairy products looking to use enzymes to improve product quality, efficiency of production, and innovation in response to this growing demand.

Sustainability Concerns

Sustainability concerns are a significant driver of the global market as consumers and industry stakeholders increasingly prioritize environmentally friendly practices. Enzymes offer sustainable alternatives to traditional chemical additives and processing methods, reducing the environmental footprint of dairy production. Enzyme-based technologies require fewer resources, such as water and energy, and generate less waste than conventional methods.

Additionally, enzymes enable the production of cleaner-label products by eliminating the need for synthetic additives and preservatives. Due to rising awareness of climate change and resource depletion, dairy producers face increasing pressure to implement sustainable practices across their supply chains. Consequently, the demand for enzymes as eco-friendly processing aids continues to rise, driven by the need to meet sustainability goals and satisfy environmentally-conscious consumers.

Market Restraint

High Production Cost

High production costs significantly restrain the dairy enzyme market due to the complex nature of enzyme manufacturing processes. The production of dairy enzymes requires specialized equipment, facilities, and skilled personnel, contributing to high capital investment and operating expenses. Stringent quality control measures are also necessary to ensure the consistency and purity of enzyme products, further increasing production costs.

These expenses are often passed on to dairy producers and ultimately to consumers, making enzyme-treated dairy products potentially less competitive in the marketplace. The upfront costs associated with enzyme production may pose a challenge for small-scale dairy operations, thereby impeding their ability to adopt enzyme-based processing technologies. Moreover, the need for continuous research and development to innovate and improve enzyme formulations adds to ongoing expenses, making cost-effective production a critical challenge for companies in the dairy enzyme market.

Market Opportunity

Introduction of Novel Diary Enzymes

The key market players are introducing new and enhanced dairy enzymes.

• For instance, in November 2020, DSM introduced the Maxilact Super lactase enzyme, designed to facilitate the manufacturing process of dairy products free from lactose and reduced in sugar. The DSM approves Maxilact Super for all lactose-free dairy applications, such as milk, beverages, and yogurts. According to the manufacturer, the enzyme converts lactose "into its sweeter forms," thereby reducing the sugar content of products by up to 20%. DSM asserts that the enzyme can decrease production hydrolysis time by 33%, optimizing production efficiency.

Furthermore, DuPont Nutrition & Biosciences (DuPont) introduced Versilk in December 2020. This innovative enzyme is the most recent addition to DuPont's line, which assists beverage and yogurt manufacturers in attaining the most desirable texture and flavor profiles in high-protein yogurts, consumable dairy products, and other fermented beverages. Manufacturers can accomplish their label-friendly objectives, per DuPont, with the assistance of this native enzyme, a straightforward processing aid. Fortifying plant-based or dairy yogurt to increase its protein content may increase the final product's bitterness and thickness. This factor creates opportunities for market expansion.

Regional Analysis

North America led the global market, holding a 33% share in 2024, and is expected to expand substantially during the forecast period as the most significant global market shareholder. North America has been dominant regarding dairy enzyme consumption due to the presence of developed food processing industries and the early adoption of cutting-edge technology. The North American dairy market has a prominent consumer base with positive growth prospects due to the presence of a well-established dairy industry. As recent data from the USDA Economic Research Service (ERS) indicates, Americans consume more dairy products than in the past. Americans consumed approximately 655 pounds of dairy in 2020.

In 2021, the per capita dairy consumption in the United States increased to 667 pounds. The most recent data, published in September 2022, show a continuous increase in dairy consumption since 1975, when the USDA started monitoring the yearly intake of milk, cheese, butter, and other dairy items. In 1975, the average dairy intake per person in the United States was 539 pounds.

Moreover, the increase in dairy sales in 2021 is due to the significant expansion of specific dairy products such as American cheese, butter, and yogurt. The U.S. per capita consumption of American cheese rose by 0.5 pounds, while butter and yogurt consumption climbed by 0.2 pounds and 0.7 pounds, respectively. Yogurt experienced its best growth rate in a decade in 2021, showing hopeful data. However, it had a very moderate growth rate of 2% during the past ten years. Thus, the high consumption of dairy products is estimated to drive the dairy enzyme market.

Furthermore, the key regional market players are launching new dairy enzymes to cater to the growing dairy consumption.

• For instance, in June 2021, International Flavors & Fragrances Inc. (IFF) launched a new dairy enzyme called Nurica in the United States. Nurica, part of the Danisco food solutions line, utilizes lactose from milk to produce a significant amount of prebiotic galacto-oligosaccharides (GOS) fibers. The substance decreases sugar and lactose levels while providing an appropriate sweetness and natural milk flavors. Consequently, all these factors foster regional market growth.

Asia-Pacific Market Trends

Asia-Pacific is forecasted to have the highest market growth rate owing to the huge consumption and production of dairy products. India is the second-largest milk-producing country in the world, accounting for 19% of global production. The FAO projects India to experience the most significant increase in milk production, surpassing the European Union to become the world's top milk producer with a 23% worldwide market share by 2026. Pakistan will follow India with an average annual growth rate of 3.4% and a worldwide market share of 6%. Developing countries are projected to use 67% of fresh dairy products, with the majority being consumed in Asia.

Furthermore, there has been a rise in research for developing and discovering new enzymes.

• For instance, in July 2023, Researchers at UNSW found that milk-clotting enzymes from marine organisms could assist cheesemakers in satisfying the increasing cheese consumption. Associate Professor Jian Zhao from UNSW Sydney's School of Chemical Engineering discovered a seaweed species capable of producing cheese with significant caseinolytic activity. Consequently, all these factors augment the regional market growth.

Type Insights

The rennet segment dominates the global market. The lining of the fourth stomach in young ruminant animals, like goats, lambs, and calves, is typically where rennet is obtained. It is only found in young animals whose main food source is milk. It is also complex enzymes that cause milk to curdle.

Hence, it is widely used in the dairy business to make different cheeses. Rennet can be found in plants like artichokes and nettles and animals like cardoon thistles. Moreover, Chymosin, a protease enzyme in rennet, coagulates milk by forcing the casein proteins to curdle. Casein is among the main proteins found in milk. The rennet enzyme allows casein molecules to bind, creating a network that leads to milk coagulation.

Source Insights

The microorganism held the largest market share. Microorganisms serve as a significant source of dairy enzymes, with various bacteria, fungi, and yeast species utilized in enzyme production through fermentation processes. Bacteria such as Lactobacillus bulgaricus and Streptococcus thermophilus are commonly employed in dairy fermentation and are natural producers of enzymes like lactase, which breaks down lactose in milk.

Similarly, certain fungal species like Aspergillus oryzae and Rhizopus oryzae are known for producing enzymes such as proteases and lipases, which play crucial roles in cheese ripening and flavor development. Yeasts like Kluyveromyces lactis are also utilized in enzyme production, particularly for lactase production.

Microbial fermentation offers several advantages, including scalability, cost-effectiveness, and the ability to manipulate and optimize enzyme production through genetic engineering and fermentation process optimization. Thus, microorganisms are a valuable and versatile source of dairy enzymes, contributing significantly to the dairy industry's enzyme supply.

Application Insights

The cheese segment is estimated to own the highest market share. Dairy enzymes play a crucial role in cheese production by facilitating the coagulation and ripening processes. One of the most commonly used enzymes in cheese making is rennet, which contains the protease enzyme chymosin. Other enzymes, such as lipases and proteases, are used during the ripening phase of cheese making.

Lipases contribute to flavor development by breaking down fats into fatty acids and other compounds. At the same time, proteases help break down proteins, resulting in changes in texture and flavor during cheese aging. Thus, dairy enzymes play a crucial role in cheese production, influencing its texture, flavor, and overall quality. Moreover, there has been a rise in cheese consumption in recent years.

• For instance, in 2020, per capita cheese consumption in the United States was 40.2 pounds, a modest increase from previous years.

List of key players in Dairy Enzyme Market

1. DSM N.V.
2. Chr. Hansen Holding A/S
3. Biocatalysts Limited
4. Danisco A/S
5. Novozymes A/S
6. Kerry Group PLC.
7. Advanced Enzyme Technologies Limited
8. Amano Enzyme Inc.
9. Connell Bros. Co. LLC
10. SternEnzym GmbH Company KG

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Recent Developments

• In August 2025, Lactalis finalized its acquisition of several consumer brands from New Zealand dairy cooperative Fonterra, including Anchor and Mainland, along with 17 manufacturing sites across Oceania, Sri Lanka, the Middle East, and Africa.
• In July 2025, Amano Enzyme introduced a protease enzyme tailored for functional dairy beverages. This product supports digestion and wellness, aligning with Japan's focus on functional food innovation.
• In March 2025, Maxiren®EVO by DSM-Firmenich was launched, which is a coagulant enzyme that enhances cheese texture, flavor, yield, and overall functionality. Using advanced fermentation technology, it specifically targets αs1-casein to deliver superior cheese quality.
• In December 2024, Kerry Group acquired the lactase enzyme business from Chr. Hansen and Novozymes for $176 million, enhancing its enzyme portfolio for dairy applications.