Enzymes are proteins with highly selective catalysts responsible for improving the quality of food along with nutrition. The dairy industry demands many enzymes that are imperative for the production of cheeses, yogurt, and other products, while some enzymes are used in a more specialized manner to enhance texture and flavor. The most important enzymes involved in the dairy industry include lipases, lactoperoxidase, proteases, transglutaminase, lactase, esterases, catalase, lysozyme, and aminopeptidase, among others.
The enzymes of the dairy industry may be coagulants that help in the formation of cheese, or bio-protective, which improve the safety and shelf life of various dairy products. The two key applications of enzyme technology in the dairy industry are the hydrolysis of lactose and the use of rennet in milk coagulation, while others include the production of enzyme-modified cheeses by the addition of individual or multiple proteinases and lipases among others.
The application of enzymes in the dairy industry is still in its introductory/growth phase as the technology is constantly evolving. The dairy industry has flourished in the last few decades in most of the countries of the world since the demand for milk and milk products has steadily risen over the period. While developed regions of North America and Europe and a significant number of Asian countries adopted enzyme technology in the dairy industry quite a while back, emerging nations of the Middle East and Africa are in the process of introducing it. Advancement in microbial dairy enzymes is taking shape while demand for new value-added dairy products increases worldwide pertaining to progression in the field of biotechnology.
Dairy enzymes register significant demand from various industry participants, including dairy product manufacturers such as cheese, butter, yogurt, ice-cream, whey and milk protein concentrates, and infant formula, among others. Apart from these, manufacturers of condensed milk, evaporated milk, skimmed milk, milk powder, and cream producers are among the other end-use consumers of dairy enzymes. According to a research report from the Austrian Federal Environment Agency, about 158 enzymes were used in the food industry, 64 enzymes in technical application, and 57 enzymes in feedstuff, of which 24 enzymes are used in 3 industrial sectors.
Milk and dairy products diversify the diet as they are nutrient-dense and provide high-quality protein and micronutrients in an easily absorbable form. Increasing demand for dairy products is majorly driven by the growing population, rising health consciousness, and increasing per capita income along with evolving living standards. According to the Food and Agriculture Organization (FAO), the human population will increase from approximately 7 billion in 2011 to 9.5 billion in 2050. The growth in population size and wealth will increase the demand for dairy products by at least 50%. As income and population increase, the diets have become more globalized. Thus, more dairy products are expected to be consumed in developing countries. On the other hand, in developed countries, the per-capita consumption of milk solids is estimated to reach 21.4 kg by 2026 from 20.2 kg in 2014, according to FAO, which in turn will stimulate the growth of dairy enzyme market.
Food intolerance has become a primary concern for the health and wellbeing of consumers. The prevalence of high lactose intolerance amongst the population, particularly in America and a part of some European countries, is another aspect that drives the growth of the dairy enzyme market. Improving global economics, easy digestibility, and improved bioavailability of lactose-free food have consolidated the demand for lactose-free dairy products, which is projected to have a positive outlook for the dairy enzyme market over the forecast period 2019-2026. The U.S. is the largest market for lactose-free food, accounting for approximately 29% of the global sales in 2015.
Another advantage of dairy enzymes is the positive impact on the environment by reducing nutrients released in feces, which may harm the environment and thereby allowing better use of natural resources. For instance, proteases can substantially lower the amount of non-protein nitrogen supplement in diets of animals, thereafter reducing the excretion of urea into the environment. The developed regions have adopted several new enzyme technologies in industry application at a high pace, as their companies invested in enzyme-related technologies to address environmental issues, and increase productivity and product value.
The global dairy enzyme market is highly competitive, has small profit margins, and is technologically intensive. The world enzyme demand is satisfied by about 12 major producers and 400 minor suppliers. Near about 75% of the total enzymes are produced by 3 top enzyme companies, i.e., Denmark-based Novozymes, US-based DuPont (through the May 2011 acquisition of Denmark-based Danisco) and Switzerland-based Roche.
An increasing number of companies are investing to gain the customer base's attention in an attempt to capture untapped markets. Presently, there has been a higher demand for vegan dairy enzymes that contribute to the growth of the global dairy enzymes market. Additionally, there has been a rapid surge in the demand for various types of dairy-based products, including yogurts and cheese, which become some of the major factors influencing the market growth over the estimated period. Companies such as Chr. Hansen Holding A/S are putting a step forward, wherein the company is focusing on the launch of various innovative products having applications in the dairy enzyme market. For instance, in June 2016, the company launched NOLA Fit, which allowed the dairy producers to decrease or remove lactose from dairy products. In October 2017, the company launched a new range of bacteria to fight molds that develop in dairy products.
The global dairy enzyme market is majorly segmented into six regions, including North America, Europe, Asia-Pacific, Middle East, and Africa. Developed regions, including North America and Europe, have been dominant in regard to the consumption of dairy enzymes owing 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. While North America was observed to be the largest market for dairy enzymes, followed by Europe, Asia-Pacific is projected to be the fastest-growing economy. India ranks second, having contributed 19%, in the top five milk-producing countries around the globe. According to the FAO, India is poised to have the largest growth in milk production and is expected to surpass the European Union, to become the largest milk producer with a global share of 23% by 2026. India will be followed by Pakistan, with an average growth rate of 3.4% p.a. and a global share of 6%. According to estimates, developing countries will consume 67% of fresh dairy products, most of which are consumed in Asia. The per capita consumption of dairy products in emerging nations is anticipated to rise by an average of 0.7% p.a. for whole milk powder, 1.2% p.a. for skimmed milk powder, 0.8% p.a. for cheese, 1.3% p.a. for butter, and 1.8% p.a. for fresh dairy products. India exported 94,000 tonnes of dairy products in 2018, which was valued at approximately USD 290 million, among which butter and other dairy fats make up the majority of exports, accounting for 65% in volume terms.
India and China are key countries that contribute to the high demand for dairy enzymes in this region, as its economic importance has increased in the last decade. In South and East Asia, smallholder dairying has become a good source of income. The region’s enhanced industrial growth over the years and improvements in the food and beverage industry have opened up new growth avenues for the dairy enzymes market. The economic growth of Asian countries, combined with the rising demand for nutritious dairy products is expected to fuel the growth of the dairy enzyme market.
The microbial rennet segment is expected to grow at the highest CAGR from 2019-2026. Microbial rennet is recognized as ‘vegetarian-friendly,’ as the enzyme produced by the microorganism is not derived from animals. Furthermore, microbial rennet is more cost-effective as compared to animal rennet. These are the key factors surging the growth of the microbial rennet segment worldwide. Chymosin is the enzyme that is most commonly isolated from the rennet, and can also be obtained from several other animals, microbial or vegetable sources. Up to around 70% of cheese products can be produced by bioengineered chymosin, which is strongly contributing to the growth of the dairy enzyme market.
The microorganisms segment is projected to account for a higher share of the global dairy enzyme market in 2018. Since they are the most pronounced source of dairy enzymes preferred by manufacturers owing to the extraction process. Moreover, comprehensive research and development on microbial strains are easier to perform and more cost-effective over plant-sourced dairy enzymes.
The cheese segment is forecast to account for the largest market share of all in the global dairy enzymes in 2018, and the same trend is expected to continue over the assessment period 2019-2026. Various microbes such as Rhizomucor pusillus, Irpex, Aspergillus oryzae, and others are extensively used for rennet production during the cheese-making process. Most cheese producers accelerate the curdling process with rennet, lactic acid, or plant-based enzymes from wild artichokes, fig leaves, safflowers, or melons. Apart from plants and microbes, enzymes are also extracted from young ruminants.
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