The global rennet market size was valued at USD 718.55 million in 2022. It is estimated to reach USD 1,132.99 million by 2031, growing at a CAGR of 5.19% during the forecast period (2023–2031). The demand for rennet is expected to grow, owing to its use as the main ingredient for cheese making. The increase in environmental awareness and improved production methods of inexpensive rennet has generated a new opportunity in the rennet market. It will enhance the market for non-animal rennet. In addition, a growing number of companies in the fast food and beverages product segment are anticipated to use rennets in their manufacturing processes, which could boost demand for rennets.
Rennet is typically derived from the lining of the fourth stomach of juvenile ruminant animals, such as goats, lambs, and calves. It is only found in juvenile animals that rely on milk as their preliminary source of nutrition. Complex enzymes are responsible for milk's curdling. Therefore, it is utilized extensively in the dairy industry to produce various cheeses.
Rennet is also present in plants, including artichokes, nettles, cardoon thistles, and animals. Chymosin, a protease, is one of the main enzymes in the rennet mixture of enzymes that causes milk to curdle by causing the coagulation of casein in the milk. Casein is amongst the primary proteins in milk, and the action of the rennet enzyme causes this protein to combine with other casein molecules, forming a network and causing milk to coagulate.
|Market Size||USD 1,132.99 million by 2031|
|Fastest Growing Market||North America|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
The expansion of the global cheese market is driven by an increase in the number of quick-service restaurants (QSRs) in developing regions and by the expansion of QSRs in developed regions. In 2020, per capita cheese consumption in the United States was 40.2 pounds, a modest increase from previous years. The widespread embrace of ethnic cuisines, such as Italian and Mexican, which use a disproportionate amount of cheese, has also contributed to cheese's worldwide popularity.
Factors such as a longer shelf life for cheese products, a rise in disposable income, and a rise in demand for protein-rich foods have contributed to the market's growth during the forecast period. Moreover, the developing market for low-fat cheese and various innovations to improve the taste and quality of the products provide new opportunities for growth for the manufacturers operating in the market studied. The surging demand for cheese has led to a growing demand for rennet. As a result, the key participants in the market have been concentrating on product launches and innovations to cater to the rising demand in the market studied.
Statistically less in share, a significant increase in vegetarianism has been witnessed in countries such as Germany, Mexico, and the United States. Nonetheless, consumers worldwide are also increasingly opting for veganism, boosting the consumption of dairy-free cheeses. On the other hand, this further cramps the scope for animal-derived rennet in the food industry.
As per a global survey conducted by the American product testing, inspection, and certification organization NSF International in 2021, approximately 88% of food industry professionals anticipate an increase in demand for plant-based products. Moreover, the demand for animal-free rennet (specifically Fermentation-produced chymosin- FPC) in developing clean-label products, such as Halal- and Kosher- cheese, is further mounting to its demand among manufacturers and general consumers.
Several potential alternatives emerging in the market studied portray the constraints to traditional rennet, thereby restricting the market growth. Microbial acidic proteases have largely replaced the calf enzyme (rennet) in the dairy industry for their ability to coagulate milk protein (casein) to form curds from which cheese is prepared. Similarly, pepsin is superseding rennet in cheese production, except for sweet curd cheeses. It is utilized in every region globally and is significantly less expensive.
The growth of the rennet market will be aided by the advancements in the packaging industry and the development of consumer-friendly packaging in various sizes and shapes to meet their needs. Manufacturers are altering the origins of rennet production to improve efficiency. These variables are expected to accelerate the market's expansion in the upcoming years. They are considered critical aspects expected to drive the market's development over the projected period.
In addition, the availability of rennet in various forms, such as powder, tablet, paste, liquid, and numerous others, provides manufacturers with several options for meeting the needs of various applications. These factors are anticipated to create opportunities for the market over the forecast period.
Based on region, the global rennet market is bifurcated into North America, Europe, Asia-Pacific, and the Rest of the World.
Europe is the most significant global rennet market shareholder and is anticipated to exhibit a CAGR of 4.38% during the forecast period. Increased cheese production accompanied by high consumption boosts the demand for rennet in the region's cheese-making industry. For instance, according to the UK Dairy Trade Association, in 2021, around 504 thousand metric ton of cheese was produced in the country. In addition, a growing number of private-label cheese brands are anticipated to foster the demand for rennet during the forecast period. Increasing investment in the animal-free dairy industry promotes the development of vegetable rennet in the region. For instance, the study conducted by the Grocery Retailers' Association in 2021 identified around 40 labels that provide plant-based cheese products in Germany. The trend is estimated to continue over the forecast period as mainstream consumers increasingly opt for vegetarian food habits to support animal welfare.
Furthermore, the development of vegetarian rennet to produce ideal cheese products for the vegan population is currently the market trend, and players are exploring ingredients to fulfill the demand. For instance, Gran Natura and Tanelli are Italian cheese brands made with vegetarian rennet and are naturally lactose-free.
North America is estimated to exhibit a CAGR of 4.65% over the forecast period. Rising health consciousness among consumers has increased the demand for dairy products like cheese in the region, augmenting the demand for enzymes, such as rennet, for coagulation and cheese production. The United States is one of the world's major cheese manufacturers in the North American region. Moreover, the bolstering foodservice market in the country further drives the demand for cheese, which will again positively impact the market growth.
Furthermore, the key players in this region are launching new products to sustain their market position. For instance, in June 2020, Aspartic protease Chymostar, a new milk-coagulating preparation for dairy products, was launched by DuPont brand Danisco. It will manufacture hard, semi-hard, soft, and mold-ripened cheeses. It will also enhance the flavor of cheese by hastening its maturity. Firms from outside the area are also expanding their investments to have a foothold in this market, which is driving the growth of the rennet industry.
Asia-Pacific is predicted to expand substantially during the forecast period, owing to several aspects that have led to a surge in demand for cheese products, such as the rapid adoption of Western culture and increasing disposable income. Moreover, as Western consumption of cheeses such as cheddar and mozzarella and spreads in non-cheese dishes increases, Asian countries such as Japan, China, and India are increasing their use of rennet in cheese production. In response to a predominantly vegetarian audience in countries like India, key dairy companies are investing in R&D and technology advancement to launch new variants of cheese made using bacterial or fungal rennet for household and commercial consumers, including hotels, restaurants, fast food chains, etc. Such factors boost regional market growth.
The Rest of the World includes South America and the Middle East and Africa. South America is the leading revenue contributor to this region. Brazil and Argentina were the two prominent rennet-consuming countries in South America. According to the Food and Agriculture Organization (FAO), Brazil's per capita cheese consumption was 3.75 kg in 2018 and is expected to reach 4.16 kg per capita by 2024. The expanding fast food industry and growing acceptance of cheese-based products are anticipated to expedite cheese consumption, benefitting the region's rennet market. Meat is widely consumed in most South American countries; besides, the vegan or flexitarian trend is developing, paving the way for animal or ruminant-derived rennet in the region.
Furthermore, cheese consumption is rapidly growing in Middle Eastern countries; for instance, as per IndexBox, in 2018, Saudi Arabia consumed 377K tons of cheese and curd, although the country majorly imports cheese from European countries. Still, large dairy and cheese processing companies, including Almarai, Nada Dairy, SADAFCO, and others, coupled with robust domestic consumption, have been driving domestic cheese consumption, benefitting the global market.
Moreover, the African region is expected to gain positive growth owing to the increase in the use of cheese in fast-food products. The shift of Africans in milk and value-added milk products production, processing, and marketing activities for income, coupled with the surging support of European NGOs and dairy brands in assisting African local milk producers with infrastructure and technology, is anticipated to increase the cheese production in the region, which in turn, is likely to favor the growth of rennet market in the coming years.
The global rennet market is segmented by type and form.
Based on type, the global rennet market is segmented into animal-derived rennet, microbial rennet, FPC (fermentation-produced chymosin rennet), and vegetable rennet.
The FPC (fermentation-produced chymosin rennet) segment dominates the global market and is predicted to exhibit a CAGR of 5.18% over the forecast period. FPC is identical to animal-produced chymosin but is manufactured more efficiently. Since 1990, FPC products have been available on the market. These are commercially viable substitutes for crude animal or plant rennets, which are normally preferred since the amount needed per unit of milk can be standardized. FPC was the first artificially produced enzyme approved and registered by the FDA of the United States. After fermentation, the genetically modified microorganism is eliminated, and chymosin is extracted from the fermentation fluid. The cheese producers' fermentation-produced chymosin (FPC) contains no GMOs or GMO DNA.
Compared to rennet produced from animals, typically veal, microbial rennet is generated at a much lower cost. This means that the cheese made using microbial rennet costs less to produce. The absence of bovine pepsin (always present at variable levels in traditional calf rennets) helps to improve cheese yield. FPCs have Halal, Kosher, and vegetarian status, are highly standardized, and numerous studies have shown they are suitable for manufacturing many varieties.
Rennet from calves is becoming less common for this use, to the point that less than 5% of cheese in the world is made using animal rennet today as substitutes for calf rennet, bovine pepsin, porcine pepsin, and plant coagulants have been utilized. Despite this, they have not been commercially effective because of their extensive proteolytic nature and other inherent disadvantages. Earlier, animal rennet was normal. However, as it is an expensive enzyme, various attempts have been made to find cheaper alternatives from microbial sources over the years.
Based on form, the global is segmented into liquid, powder, and paste.
The liquid segment owns the highest market share and is estimated to exhibit a CAGR of 5.09% during the forecast period. This is due to the convenience and wide applicability in various dairy products manufacturing, including cheese is fostering the sales of liquid rennet with various International Milk Clotting Units such as 65, 280, 580, and 1000 IMCU/mL, among others, and products are available in various types like animal, microbial, among others. In addition, the companies are expanding their offerings through product innovation in production methods, packaging, and concentration or through partnerships and other strategies to catch hold of the market landscape. For instance, in 2017, Synercore Food Holdings announced that it had been appointed as a Distributor Partner of Caglificio Clerici SpA in Southern Africa. Caglificio Clerici offers a range of rennet portfolios in various formats, including Yellow liquid rennet (AB) 1:18000.
Powdered rennet is comparatively more concentrated than the liquid format and has a long shelf life due to its low moisture content. Further, rennet-free from microbial coagulants, porcine pepsin, chymosin, and recombinant DNA are increasingly preferred globally. The rising demand for homemade cheeses has made this segment flourish recently; thus, the manufacturers are producing portion sachets with/without preservatives to cater to this group. Moreover, with the increased demand for homemade products due to the pandemic's tailwind, this segment gained momentum over the forecast period due to its storage condition usage and convenience.