Food Enzymes Market Size, Share & Industry Analysis, By Source (Microbes, Plants, and Animals), Type (Carbohydrases, Proteases, Lipases and Others), Application (Bakery, Dairy, Beverages, Nutraceuticals and Other Processed Foods), and Regional Forecast, 2020-2027

The global food enzymes market size was USD 1.69 billion in 2019 and is expected to reach USD 2.39 billion by 2027 while exhibiting a CAGR of 4.70% during the forecast period.

The enzymes as food additives market are witnessing robust growth owing to its extensive application in various processed food and beverages. The emerging trend of consuming clean-labeled products, rising demand for natural ingredients, and ongoing biotechnological advancements are the factors driving the growth of the global market.

The world economic outlook growth projections as reported by the International Monetary Fund are negative i.e. -3.0 for 2020 from 2.9 in 2019 owing to the market disruption by the COVID-19 pandemic. Recently, a coalition of food giants including Unilever, Nestlé, Olam, and PepsiCo have tied up with several academics, NGOs, farming associations, and other industry groups in the pursuit of making food systems resilient. However, the “protectionist” measures undertaken by the South East Asian region in the wake of a current health crisis is expected to affect the global food supply chain. The supply-demand shocks will culminate in disruption of 8-10% in the global food ingredients and additives sector. At the same time, the food enzymes market is thus expected to witness a significant drag in its consumption pattern for the current year, the forecast for the same is decent and gradual during the forecast period.

MARKET TRENDS

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Proactive Ingredients and Additives Transformation towards Clean-Labeled Claims based on Consumer Preferences

The rising trend of consuming clean-labeled, free-from foods is fueling the demand for enzymes in the food industry. There is a significant shift in consumer preferences from chemical ingredients to natural, minimally processed food products. The shift is attributable to the growing awareness of adverse health effects owing to the consumption of synthetic ingredients and additives. Increasing awareness among consumers regarding the health impacts of the food consumed has shifted their focus towards naturally processed foods that are perceived to be safe and healthy. This emerging trend has led to the increasing adoption of natural ingredients and additives in the processed food systems by manufacturers. Food enzymes fit well with the ongoing trend of natural ingredients as well as reduced the cost of the overall processing. The market is expected to witness robust growth owing to their extensive utilization in a myriad of food matrices as compared to synthetic chemicals.

MARKET DRIVERS

Rising Demand for Bio-based Additives in Processed Food and Beverages to Drive the Market

The growing demand for all-natural, chemical-free products has led to the increased incorporation of bio-based additives in processed foods. Enzymes are produced by various microorganisms, plants, animals, and have a range of benefits over synthetic chemicals in product processing as well as for human consumption. The constant adoption of enzymes results in many advantages that cannot be obtained through a traditional chemical treatment. These often include higher product quality, lower manufacturing cost, less wastage, and reduced energy consumption. Traditional synthetic chemical treatments are generally non-specific, hard to control, and may create uneven conditions.

Food processors are choosing enzymes as a cost-effective and safe alternative to synthetic chemicals. Another driver for the growth of the market is the improvement of product quality through these enzymes. Food enzymes are used as additives to modify organoleptic, rheological, and nutritional properties like digestibility, texture, and shelf-life, among others. Enzymes incorporated in processed foods are generally destroyed during subsequent processing steps and they are not present in the final food products. The growing awareness regarding the undesirable side effects of excessive consumption of synthetic chemicals is fuelling the demand for enzymes across various segments of the food industry.

Biotechnological Advancements to Support Food Enzymes Market Growth

The advancements in biotechnology for the improvement of the enzyme production process are considerably driving the growth of the market. Modern biotechnology has already established techniques that allow the development of safe and efficient microbial hosts to be utilized in the production of various enzymes. Modern technology made it possible to produce inadequate quantity which was otherwise not possible by conventional extraction techniques using host microbes or any other raw materials. The development of recent genetic techniques that enable DNA modifications in various microbial strains for the production of the desired enzyme has led to enzymes with superior functional properties. The key food enzyme manufacturers are focusing on technological expansion to capitalize on the growing demand from different sectors of the food industry. For example, in July 2019, AB Enzymes partnered with Genedata, a leading provider of advanced software solutions for life science R&D, to digitalize strain development and increase the efficiency of the discovery process for innovative enzymes.

MARKET RESTRAINT

Regulatory Uncertainties to Impede the Growth of the Market

The rise of food enzymes as processing ingredients in the food industry has led to the continuous evolution and up-gradation of their safety regulatory framework. In terms of food legislation, enzymes are categorized into food additives and food processing aids. The categorization of food enzymes is vital because pre-market approval, including safety evaluation, is mandatory only for additives in some countries. Furthermore, the definitions for additives and processing aids vary across countries and regions, which creates regulatory uncertainties that negatively impact market growth.

For instance, all food enzymes are regulated as food additives in Canada, the USA, and Japan. However, in the EU and Australia, most food enzymes are considered as processing aids and only a few are considered as additives. Country-wise regulations on enzymes as food processing aids also differ significantly among the European Union (EU) member states. In France, Denmark, Poland, and Hungary these enzymes are subjected to the authorization procedure, while in the United Kingdom, a voluntary approval system is in place which creates a regional discrepancy. The Asia Pacific is a diverse region and food regulations for individual countries are governed by authorities in each country. The regional harmonization of safety regulations related to food enzymes in particular and food additives, in general, is yet to be conceptualized. A scattered and piecemeal approach to regulate ingredients is expected to negatively impact the growth of the industrial enzymes in the food market in the region.

SEGMENTATION

By Source

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Microbial Enzymes to Hold the Largest Market Share Owing to their Cost-effectiveness & Consistency

The global market is expected to exhibit robust growth owing to the growing demand for natural ingredients in the food industry across the globe. Based on the source, microbial enzymes are expected to hold the largest market share as they are cost-effective and more stable than plant and animal enzymes. Microbial enzymes can be produced effectively by using various fermentation techniques such as solid-state and submerged fermentations. The large-scale production of microbial enzymes is easier than plants and animals. They can also be easily modified through various molecular and biochemical approaches to increase their specificity. These favorable traits for microbial-source of food enzymes will help retain their dominance in the forecast period.

Microbial enzymes are expected to grow at the fastest CAGR of 4.86% owing to their wide application in the food industry. Microbial enzymes are used to regulate the gluten strength in bakery products and facilitate in improving the texture and flavor of dairy products & alcoholic beverages. Many enzymes derived from microbes are still unexplored and thus present an untapped opportunity for the wider application of novel enzymes from microbes in the food sector.

By Type

Increasing Utilization of Carbohydrases in Food Industry Drives the Segment

Carbohydrases hold the largest share as they are extensively used in various segments of the food industry. Carbohydrases catalyze the breakdown of carbohydrates into simple sugar. The vast application of carbohydrates in the food industry is driving the growth of the segment. Amylases - a type of carbohydrate, are widely used in the brewing and baking industry as flavor enhancement and anti-staling agents to improve bread quality. Glucoamylases are extensively employed for the production of modified starches such as glucose syrups and high-fructose syrups. Proteases are degradative enzymes with a crucial role in protein modification – hydrolysates are thus utilized in the fortification of infant formulae, soft drinks, and juices. They also facilitate quicker preparation of dough, reduced mixing time, and regulate gluten strength in baked commodities. Lipase is an enzyme that catalyzes the hydrolysis of long-chain triglycerides. Commercial lipases are used for flavor improvisation of dairy products – they produce free fatty acids on hydrolysis and help provide the characteristic taste and aroma of cheese.  

By Application

The Booming Bakery Segment & Emerging Application in Nutraceuticals Contribute to the Market Growth

One of the major factors contributing to the growth of the market is the robust growth of the bakery segment across the globe. Enzymes are usually added to modify dough rheology, gas retention, and crumb softness in bread, pastry, and biscuit manufacturing. The growing demand for clean-label, organic, and high-quality bakery products in developed countries is driving the sales performance of the food enzymes. The evolving consumer lifestyles in developing regions have led to increasing demand for premium bakery products. Bakery product's properties especially taste, texture, flavor, and shelf life play a vital role and the same is achieved through the use of baking enzymes.

Nutraceutical is the fastest-growing application category in the market. The most promising application of enzymes in nutraceuticals is the introduction of encapsulated digestive enzymes in the body for the breakdown of hard-to-digest compounds. The increasing awareness of digestive health among health-conscious consumers is driving the demand for various enzymes in nutraceuticals. Enzymes are also used for the production of protein peptides or hydrolysates in sports supplements and omega-3 fatty acids with superior nutritional values.

REGIONAL ANALYSIS

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North America is the Leading Region while the Asia Pacific is the Fastest Growing

The robust growth of the market in North America is attributed to the rising trend of consuming naturally sourced ingredients. The growing perception among consumers that natural additives are healthy & safe is fueling the demand for food enzymes in the region. The increasing demand for high-quality processed foods without chemical additives has led to the increased utilization of enzymes in the plethora of food systems. The increasing investments by key giants for the development of innovative solutions such as enzymes with high specificity are further driving the growth of the market in the region.   

The Asia Pacific is the fastest-growing region due to the booming food and beverage industry. The adoption of Western diets that are associated with the growing demand for bakery products, dairy products, and beverages continues to increase in the region. These products are expected to utilize food enzymes in place of synthetic additives amid growing concerns for sustainability and food safety.

KEY INDUSTRY PLAYERS

Highly Consolidated Industry Structure to Define the Market Competition

The market structure is highly consolidated owing to the strong dominance of a few key players. The manufacturers are working towards further consolidation by developing innovative products and acquiring small players in the industry. The dominant players present in the market are Novozymes, Roche, DuPont, AB Enzymes, and DSM. These players are expected to hold the major share in the market.

The market is highly competitive and technology-intensive. The key players are investing more in research and development to deliver high-quality products that meet the modern consumer demand for clean-label products. Product portfolio expansion, with innovative enzymes especially for the bakery and dairy industry, is one of the key strategies adopted by major players to strengthen their position in the market.

LIST OF KEY COMPANIES PROFILED:

• Novozymes (Denmark)


• DuPont (U.S.)


• F. Hoffmann-La Roche Ltd. (Switzerland)


• AB Enzymes (Germany)


• Koninklijke DSM N.V. (Netherlands)


• Chr. Hansen Holding A/S (Denmark)


• BASF SE (Germany)


• Nutritech Enzymes (Finland)


• Amano Enzymes, Inc. (China)


• Biocatalysts (UK)

KEY INDUSTRY DEVELOPMENTS:

• In June 2021, International Flavors & Fragrances, Inc., launched Nurica, a dairy enzyme that naturally harnesses the lactose present in the milk in the U.S. The enzyme helps in naturally generating a higher yield of prebiotic galacto-oligosaccharides (GOS) fibers that help in managing lactose intolerance and optimizing fiber intake.


• In April 2021, Biocatalysts Ltd. announced the launch of a new dairy enzyme Promod™ 517MDP (P517MDP) in order to expand its Kosher and Halal certified dairy protein enzymes.


• In March 2021, International Flavors & Fragrances, Inc., announced the launch of Enovera 3001 enzyme, as the newest addition to its ingredients for the bakery industry range. The new enzyme offers a label-friendly formulation for strengthening the bakery dough without compromising on its texture and taste.


• In March 2021, Amano Enzyme Inc. launched a non-GMO enzyme called Umamizyme Pulse, designed for utilization in various plant protein products. The enzyme helps in enhancing the umami flavor in plant-based proteins.

REPORT COVERAGE 

An Infographic Representation of Food Enzymes Market

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The specificity and catalyzing activity of enzymes have led to the emergence of novel and natural solutions based on the very efficiency and accuracy with which enzymes accomplish a plethora of tasks in different food systems. The microbial enzyme segment has witnessed significant growth in the overall market globally. The growing awareness about the negative health effects of the excessive consumption of chemical additives in processed foods is driving the demand for clean-label foods across the globe. Enzymes have positioned themselves well among the clean-labeled ingredients. The increasing utilization of enzymes as an additive in food systems is driving its global growth.

The report provides qualitative and quantitative insights into the market. It also offers a detailed analysis of the type and applications of food enzymes, market size, and growth rate for all possible segments in the market.

Along with this, the report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights presented in the report are an overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and key food enzymes industry trends.

Report Scope & Segmentation