Dairy Enzymes Market: Leading Players Scramble to Form Regional Alliances to Seize US$ 1 Bn Opportunity

The dairy enzymes market continues to be influenced by ever-evolving consumer preferences and tectonic shifts in the prevailing status quo. Sustained demand from cheese and yogurt manufactures, coupled with ubiquitous ‘digestive health’ trend promises a slew of opportunities, according to a new study. Demand has received a fillip as its application scope – which was once limited to enhancement and quality enrichment – now includes the fledgling infant formula landscape.

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Dairy Enzymes Enable Value Added Advancing of Conventional Dairy Products

Key players involved in the manufacturing of dairy products have reported moderate growth and majority of the products in their portfolio have been pushed to commodity segment products. To counter these challenges, leading companies opted to refresh their product portfolio and re-launch dairy products with new formulation with an above average value addition. Use of dairy enzymes has offered potential opportunities in terms of growth prospects for participants involved in dairy enzyme development, as these products add new texture, flavor, freshness as well as reduced bitterness. Moreover, dairy enzymes also facilitate convenient ultra-high temperature processing.

Consolidation in the Plate for Global Dairy Enzymes Market

The market is clearly divided in two sets of dairy enzyme suppliers, first - the global suppliers, also referred as leaders, which includes Chr. Hansen, DSM, Novozymes, Kerry Group and Danisco to name a few; and second, the regional suppliers operating across countries. List of such tier two players include Stern Enzymes, Biocatalysts, Enmex, Connell Bros., and Amano Enzyme. Since, the end use market reach with both types of players have their own limitations, it is likely that key players will integrate their operations with regional participants. The Goliaths in dairy ingredient processing business have an upper hand, as these established players are associated with big buyers for dairy enzymes. However, with a view to enhance customer base, industry leaders would need to form alliances with regional players.

Lactose Intolerance – Main Aspect Pushing Development of Advanced Dairy Enzymes

Lactose intolerance has been a major problem across regions in the globe. According to National Institute of Diabetes and Digestive and Kidney Diseases (NIDDK) analysis about 68 percent of world population are facing lactose intolerance. The increasing number of lactose intolerant individuals has fuelled the demand for lactose free dairy products, not only milk but also other dairy products such as yoghurts and cheese. Increasing demand for lactose free dairy products has pushed enzyme manufacturers to develop novel solutions to meet consumer requirements. In view of this, DSM has introduced Maxilact Smart, a lactase enzyme that facilitates higher production efficiency and capacity for lactose free dairy products.

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Dairy Enzymes say Cheese

A relatively high value share has been envisioned for cheese with respect to adoption of dairy enzymes in cheese production. Several microbes such as Irpex, Rhizomucor Pusillus and Aspergillus Oryzae are being extensively used for production of rennet during cheese manufacturing. Cheese manufacturers have accelerated the curdling process using lactic acid, rennet and plant based enzymes, especially from fig leaves, wild artichokes, melons or safflowers. In addition, the growth in sales of dairy enzymes for cheese production is complemented with the increasing consumption of cheese across the globe, which resulted in sales of US$ 150 Mn of dairy enzymes in 2017, which was higher than any other application area.

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