Dairy Enzymes Market - Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Type (Lactase, Chymosin, Microbial Rennet, Lipase and Others), By Application (Milk, Cheese, Ice-Cream & Desserts, Yogurt, Whey, Infant Formula and Others), By Source (Plant and Animal & Microorganisms), By Region 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 0.74 Billion
CAGR (2026-2031)	7.31%
Fastest Growing Segment	Lactase
Largest Market	Europe
Market Size (2031)	USD 1.13 Billion

Market Overview

The Global Dairy Enzymes Market will grow from USD 0.74 Billion in 2025 to USD 1.13 Billion by 2031 at a 7.31% CAGR. Dairy enzymes are specialized biocatalysts, including lactase, chymosin, and lipase, utilized in the processing of milk and its derivatives to facilitate coagulation, improve texture, and enhance flavor profiles. The market is primarily driven by the escalating global demand for cheese and the rising prevalence of lactose intolerance, which necessitates the extensive use of lactase in producing digestible dairy alternatives. This expansion is supported by tangible shifts in industrial output; according to the European Dairy Association, in 2024, cheese production in the European Union increased by an estimated 2.6% as processors strategically prioritized this high-demand category over other commodities.

Despite these positive indicators, the market faces a significant impediment in the form of stringent regulatory standards regarding enzyme sources and processing aids. Navigating the complex approval frameworks across different regions creates high barriers to entry and increases compliance costs, potentially slowing the introduction of innovative enzyme formulations to the global industry.

Key Market Drivers

The robust expansion of the cheese processing sector acts as a primary catalyst for the market, necessitating higher volumes of coagulants like chymosin and rennet. As manufacturers scale operations to capitalize on consumption trends, enzymes become critical for consistent curd formation and yield optimization. This upward trajectory in manufacturing output is evident in major dairy-producing regions. According to the USDA National Agricultural Statistics Service, April 2025, in the 'Dairy Products 2024 Summary', total cheese production in the United States reached 14.2 billion pounds, representing a 0.7% increase compared to the previous year. This sustained growth in processing volume directly drives the procurement of essential enzymatic inputs required for efficient large-scale fabrication.

Simultaneously, rising consumer awareness of gut health and digestive wellness is driving the adoption of enzymes that enhance digestibility. Dairy producers are increasingly utilizing lactase to create functional offerings catering to lactose-intolerant populations and consumers seeking immunity support. The commercial success of this shift is underscored by industry performance. According to Danone, March 2025, in the '2024 Universal Registration Document', more than 70% of the company's Essential Dairy and Plant-Based revenues were generated from functional segments, including immunity and gut health. This trend bolsters the broader market, as evidenced by supplier growth; according to Novonesis, February 2025, in the 'Annual Report 2024', Food & Beverages organic sales increased by 8%, driven primarily by strong performance in the dairy category.

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Key Market Challenges

The most significant challenging factor hindering the "Global Dairy Enzymes Market" is the enforcement of stringent regulatory standards regarding enzyme sources and processing aids. Enzyme manufacturers are compelled to navigate a highly fragmented global compliance landscape where approval frameworks differ drastically between major jurisdictions such as North America, Europe, and Asia. This regulatory divergence forces companies to conduct multiple, costly safety assessments and adhere to varying labeling requirements for the exact same enzyme formulation, which substantially inflates operational costs and delays the commercialization of innovative biocatalysts.

The direct impact of these high barriers to entry is a reduction in the speed at which new enzyme technologies can penetrate key international markets. The complexity of these approval processes often restricts market access and dampens trade volumes in regions with evolving food safety codes. For instance, according to the 'International Dairy Federation', in '2024', 'dairy import volumes in China decreased by 15% during the first half of the year', a decline partially attributed to the rigorous and shifting market standards that international suppliers must navigate. Such hurdles inevitably slow the expansion of the global industry as resources are diverted from research and development to regulatory compliance.

Key Market Trends

The utilization of enzymes for sugar reduction in flavored dairy products has emerged as a primary trend, driven by intensifying consumer scrutiny regarding added sugar content. Manufacturers are increasingly deploying specialized biocatalysts like lactase and invertase to convert lactose into sweeter glucose and galactose, enabling significant sugar reduction in yogurts and flavored milks without compromising taste or requiring artificial sweeteners. This reformulation strategy has become a key revenue driver for ingredient suppliers as dairy brands race to improve nutritional scores. The commercial impact of this shift is substantial; according to Kerry Group, March 2025, in the 'Annual Report 2024', the Taste & Nutrition division achieved a 5.9% increase in EBITDA, a performance explicitly supported by continued product renovation activity aimed at enhancing nutritional profiles for customers.

Simultaneously, the development of cold-active lactases for energy-efficient processing is reshaping industrial operations. Dairy processors are rapidly adopting these advanced enzymes, which function optimally at lower temperatures, to eliminate the need for energy-intensive heating steps during hydrolysis, thereby reducing both operational costs and carbon emissions. This adoption is integral to the sector's broader decarbonization strategy, as these enzymatic solutions allow for significant improvements in sustainability metrics. The scale of this environmental contribution is highlighted by major industry players; according to IFF, May 2025, in the '2024 Do More Good Report', the company’s innovative solutions, including its enzyme portfolio, enabled customers to avoid approximately 27.3 million metric tons of CO2e emissions, underscoring the critical role of biochemical efficiency in modern manufacturing.

Segmental Insights

The lactase segment currently stands as the fastest-growing category within the global dairy enzymes market, largely fueled by the increasing prevalence of lactose intolerance worldwide. As consumers become more conscious of digestive health, the demand for lactose-free milk and yogurt has risen substantially. Consequently, manufacturers are utilizing lactase to hydrolyze milk sugar effectively, ensuring their products cater to sensitive demographics. This shift is further supported by rigorous safety evaluations from institutions such as the European Food Safety Authority, which validate the use of these enzymes in food processing and encourage industrial adoption to meet dietary needs.

Regional Insights

Europe maintains the dominant position in the Global Dairy Enzymes Market, driven by a robust dairy processing sector and substantial consumption of cheese and fermented milk products. The region benefits significantly from stringent food safety regulations enforced by the European Food Safety Authority, which promote the adoption of high-quality ingredients and clear labeling standards. Furthermore, the increasing consumer demand for lactose-free products, resulting from growing health awareness, accelerates the application of lactase and other specialized enzymes. This combination of regulatory support and established industrial infrastructure cements Europe as the primary revenue generator in the global landscape.

Recent Developments

• In May 2025, Novonesis launched Vertera Velvet, a new enzyme-based ingredient solution designed to enhance the texture, foam stability, and protein functionality of plant-based dairy alternatives. The product was developed to address common challenges in the category, such as the curdling of plant proteins when mixed with coffee and the lack of stable foam in barista-style beverages. By utilizing a specific protein deamidase, the solution improves solubility and mouthfeel without altering the flavor profile. This launch expanded the company's portfolio of biosolutions tailored for the evolving needs of the dairy and plant-based beverage market.
• In February 2024, Novonesis was officially established following the completion of the merger between Novozymes and Chr. Hansen, creating a leading global biosolutions partner with a significant presence in the dairy enzymes market. The combination brought together extensive expertise in enzymes and microbial technologies, enabling the new entity to offer a comprehensive portfolio for the food and beverage industry. The company announced its strategic focus on delivering transformative biosolutions that improve production efficiency and sustainability for dairy manufacturers. This merger represented a major consolidation in the industry, uniting two of the most prominent players in dairy cultures and enzymes.
• In February 2024, Kerry Group plc finalized the acquisition of the global lactase enzyme business from Chr. Hansen and Novozymes. This transaction, which was a regulatory condition for the merger of the two Danish bioscience companies, included the trade and assets of the lactase business and a manufacturing subsidiary in China. The acquisition significantly expanded Kerry Group's biotechnology capabilities, adding advanced enzyme technology that facilitates the creation of lactose-free and sugar-reduced dairy products. This strategic move allowed the company to meet the growing global demand for lactose-free dairy solutions driven by health-conscious consumers.
• In January 2024, SternEnzym GmbH & Co. KG presented its functional enzyme systems at ProSweets Cologne, highlighting solutions designed to optimize the production of confectionery and dairy products. The company showcased enzyme applications capable of converting saccharose into glucose and fructose in marzipan, which improves texture and freshness. Additionally, SternEnzym displayed its range of dairy enzymes, including lactase for the production of lactose-free milk and transglutaminase, which is utilized to improve the firmness and texture of yogurt and quark. These innovations aimed to help manufacturers reduce production costs while maintaining high product quality.

Key Market Players

• Novozymes A/S
• International Flavors & Fragrances Inc
• DSM-Firmenich
• Kerry Group plc
• Advanced Enzyme Technologies Ltd.
• Amano Enzyme Inc.
• Biocatalysts Ltd.
• SternEnzym GmbH & Co. KG
• Connell Bros. Co. LLC
• Enmex

By Type	By Application	By Source	By Region
Lactase Chymosin Microbial Rennet Lipase and Others	Milk Cheese Ice-Cream & Desserts Yogurt Whey Infant Formula and Others	Plant and Animal & Microorganisms	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Dairy Enzymes Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Dairy Enzymes Market, By Type:

• Lactase
• Chymosin
• Microbial Rennet
• Lipase and Others

• Dairy Enzymes Market, By Application:

• Milk
• Cheese
• Ice-Cream & Desserts
• Yogurt
• Whey
• Infant Formula and Others

• Dairy Enzymes Market, By Source:

• Plant and Animal & Microorganisms

• Dairy Enzymes Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE