The global food enzyme market size is forecast to expand from USD 2,672.8 million in 2024 to USD 4539.2 million by 2034. Global sales of food enzymes will likely surge at a CAGR of 5.4% CAGR during the next ten years spurred by surging consumer demand for digestive foods.
Microorganisms remain commonly used sources by manufacturers for producing food enzymes owing to their cost-effectiveness and other advantages. The target segment is projected to account for a revenue share of 52.9% in 2024.
Giving powers to food manufacturers to produce high-quality products with extended shelf life, food enzymes are witnessing significant demand. They are generally added to food during processing to improve flavor, enhance texture, and extend shelf life.
Few of the commonly used enzymes in the food and beverage sector include lipase, amylase, lactase, and protease. Lactase is mostly added to milk products to make them digestible for lactose-intolerant people. Similarly, lipase is used in cheesemaking to break down fats, protease in brewing and meat tenderization, and amylase in baking to break down starches.
Global Food Enzyme Industry Assessment
| Attributes | Description |
|---|---|
| Estimated Market Size (2024E) | USD 2,672.8 million |
| Projected Market Value (2034F) | USD 4539.2 million |
| Value-based CAGR (2024 to 2034) | 5.4% |
Numerous benefits offered by food enzymes, including enhanced nutritional value, improved product quality, increased efficiency, and reduced processing times, are expected to fuel demand. These biological catalysts are widely used in the food sector to meet growing consumer demand for safe, high-quality, and sustainable food products.
In the contemporary world, consumer focus is shifting towards health and well-being, leading to surging demand for healthy food options. This will likely create growth prospects for the global food enzyme sector during the forecast period.
Growing emphasis on reducing food waste is another key factor impacting sales growth. Around 1.3 billion tonnes of food produced globally is lost or goes to waste according to the Food and Agriculture Organization of the United Nations. Food enzymes can help counter this issue as they have the ability to extend the shelf life of food products.
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The below table presents the anticipated CAGR for the global food enzyme market over several semi-annual periods spanning from 2024 to 2034. For the first half (H1) from 2023 to 2033, the sector is set to record a CAGR of 5.3%. For the second half (H2), there will likely be a slight increase, with sales recording a CAGR of 5.5%.
| Particular | Value CAGR |
|---|---|
| H1 | 5.3% (2023 to 2033) |
| H2 | 5.5% (2023 to 2033) |
| H1 | 5.7% (2024 to 2034) |
| H2 | 5.6% (2024 to 2034) |
Moving forward to the subsequent period, from H1 2024 to H2 2034, the CAGR is foreseen to be 5.7% in the first half and 5.6% in the second half, indicating a negligible deviation between the two CAGRs. These consistent CAGRs highlight the growth potential of the target industry, tempting companies to try their hand at this business.
Rising Demand for Processed Foods Spurring Food Enzyme Market Growth
Developed and developing nations like the United States and China are witnessing high demand for convenient, ready-to-eat food products due to rapid urbanization and busy lifestyles. This, in turn is expected to fuel food enzyme sales as they play key roles in extending the shelf life of these processed foods without compromising their texture or taste.
There is also an increasing interest in functional foods that offer additional health benefits beyond basic nutrition. This is expected to elevate food enzyme demand as they are used to develop probiotics.
Ongoing Advances in Biotechnology Revolutionizing the Industry
Advances in biotechnology are allowing companies to develop more efficient and cost-effective enzyme production methods. Different varieties of enzymes are produced from novel trains of microbes for diverse applications. This will positively influence industry expansion during the assessment period,
Factors Limiting Growth of Food Enzyme Market
Despite a positive outlook, the global industry is facing few challenges that might limit its growth. These include consumer skepticism about the use of enzymes in food products and availability and usage of substitutes.
Many companies are still using synthetic flavors and chemical additives owing to their easy availability and cost-effectiveness. This, in turn, is negatively impacting the target industry. Similarly, people consider enzymes unsafe and unnatural, compelling food manufacturers to refrain from using them in their products.
Principal Consultant
Global food enzyme sales recorded a CAGR of 5.5% between 2019 and 2023. This growth was mostly due to increased consumer demand for processed foods. People also showed a keen interest in consuming healthy and nutritious food products, especially during the COVID-19 pandemic. This also provided impetus for the growth of the food enzyme market.
Looking forward, the global industry is projected to advance at a CAGR of 5.4% throughout the assessment period. This is attributable to the growing health consciousness, surging demand for digestive foods, and restriction on chemical additives in several regions.
Growing clean-label trend is also positively impacting the industry. Today, consumers are seeking food products with natural ingredients. This is prompting food and beverage companies to use food enzymes as these natural catalysts are derived from plants, micro-organisms, and animals.
Rising focus on improving gut health and digestion is encouraging people to opt for digestible foods that contain enzymes. As demand for these food products continues to rise so will sales of food enzymes during the projection period.
Advances in enzyme engineering and development of genetically modified enzymes will further facilitate industry expansion. Subsequently, growing popularity of super enzymes and wider availability of enzyme supplements are anticipated to benefit the sector.
Tier 1 companies comprising Associated British Foods Plc. (ABF), Amano Enzyme Co., Ltd, and Royal DSM N.V. among others hold around 30% of the food enzyme market share. These leaders are experts in creating enzymes for different applications for global as well as regional businesses.
Tier 1 companies use advanced manufacturing technologies as well as unique microbe strains to create high-quality enzymes for industries like food processing, bakery, dairy, and others. Their extensive distribution facilities globally also help them to stay ahead of the competition. They are concentrating on adopting sustainable practices to woo eco-conscious consumers.
Associated British Foods Plc. (ABF), headquartered in London, England, operates in over 53 countries. It is the world’s second-leading producer of sugar and baker’s yeast. The company also offers ingredients like enzymes, emulsifiers, and lactose.
Amano Enzymes Co., Ltd has become a leading enzyme manufacturer in Asia. The company’s 70% sales come from overseas. It has bases in the United States, Thailand, China, and the United Kingdom. The company specializes in producing and selling enzymes that play key roles in various processes.
Tier 2 companies, having presence in specific regions, account for only about 8.7% of the industry share. These players are using different strategies, including new product launches, campaigns, and advertisements to boost their sales. They are also looking to strengthen their positions through mergers, acquisitions, and collaborations. A key player in this category is Advanced Enzyme Technologies, a prominent company engaged in research, development, manufacturing, and marketing of probiotics and enzymes.
Tier 3 companies, including start-ups, currently lead the target sector, holding a prominent share of 61.3%. These players are constantly launching new products as well as making use of online platforms and celebrity endorsements to expand their customer base and compete with market giants. They are also exploring new application areas for their products.
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The following section provides a comparative analysis of two industries in the food and beverage division related to target sector, namely, agricultural enzymes and bakery enzymes industries. The information provided in the tables below would enable potential clients to make wise investment decisions and put efforts in the most beneficial zones.
Bakery Enzyme Industry Assessment:
The bakery enzyme industry is expected to progress steadily during the forecast period. This is due to growing demand for better-for-you, convenience, and on-the-go trends and surging interest in healthy ingredients. Similarly, booming bakery sector will likely create growth prospects for bakery enzyme manufacturers.
| Attribute | Description |
|---|---|
| Related Industry | Bakery Enzyme Industry |
| CAGR (2024 to 2034) | 5.1% |
| Growth Factor | Growing demand for premium food products. |
| Opportunity | Increasing consumption of bakery products globally. |
| Key Trends | Innovation in bakery enzymes. |
Agricultural Enzyme Industry Assessment:
Today, consumers are seeking organic food products, which are grown without using synthetic fertilizers and pesticides. This is creating a conducive environment for the growth of the agricultural enzyme industry. Surging demand for food products and favorable government support are other factors influencing sales growth.
| Attribute | Description |
|---|---|
| Related Industry | Agricultural Enzyme Industry |
| CAGR (2024 to 2034) | 10% |
| Growth Factor | Growing emphasis on increasing crop productivity and quality. |
| Opportunity | Rise of precision agriculture. |
| Key Trends | Rising consumer demand for organic food. |
The below section offers insights into leading nations. Among these, India and Germany are projected to witness lucrative CAGRs of 5.7% and 5.6%, respectively, through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| United States | 5.2% |
| China | 5.3% |
| United Kingdom | 5.5% |
| Germany | 5.6% |
| India | 5.7% |
The United States food enzyme market is anticipated to expand at a CAGR of 5.2% during the assessment period. This is attributable to rising health and wellness trends, surging demand for convenience foods, and growing popularity of specialty enzymes.
Americans are increasingly prioritizing their health and wellness, leading to high demand for natural and clean-label products. This, in turn, is expected to increase usage of food enzymes as they are often believed to be natural and safer than chemical additives.
Many consumers in the United States are also seeking foods with digestive health benefits. As a result, enzymes like probiotics and digestive aids are becoming popular in the nation’s functional food and dietary supplement sectors, leading to sales growth.
Sales of food enzymes in China are slated to soar at a CAGR of 5.3% between 2024 and 2034. Prominent factors driving this sales growth include growing health awareness and increasing usage of enzymes in the thriving food and beverages industry.
The exploding population in China as well as increasing disposable incomes is leading to robust growth of the food and beverage industry. This, in turn, is expected to create lucrative growth prospects for food enzyme manufacturers in the country through 2034.
Food and beverage companies in China are increasingly using enzymes to enhance taste and texture of their products as well as extend their shelf life. Thus, as the demand for processed and packaged food products in China continues to rise, so will sales of food enzymes.
The United Kingdom is anticipated to register a CAGR of 5.5% during the assessment period. Prominent factors driving growth of the food enzyme market in the nation include booming bakery sector, high consumer spending on convenient foods, and growing interest in plant-based enzymes.
The United Kingdom is home to a robust bakery industry, and food enzymes play a crucial role in improving the quality and shelf life of baked goods. They are widely used by bakers to produce superior bread products. Thus, surging production and consumption of baked goods in the nation will play a key role in spurring industry growth through 2034.
The following section offers in-depth insights into leading segments of the sector. Carbohydrate segment is forecast to lead the sector, holding a value share of 42.3% in 2024. Based on source, microorganisms segment is estimated to account for a revenue share of 52.9% in 2024.
| Segment | Carbohydrate (Type) |
|---|---|
| Value Share (2024) | 45.6% |
Carbohydrate segment is set to retain its market dominance, accounting for a value share of 42.3% in 2024. This is attributable to growing usage of carbohydrases in diverse food applications, including processed food production, bakery, and brewing.
Surging demand for processed foods is another key factor boosting segment growth. Carbohydrate-hydrolyzing enzymes like cellulases and amylases are vital in manufacturing processed foods as they breakdown complex carbohydrates into simpler sugars. They also help to improve flavor, texture, and shelf-life of food products.
Baking sector is also becoming a prominent user of enzymes like amylases. These enzymes are widely used to enhance dough handling, fermentation, and final product quality. Their tendency to improve the freshness, softness, and shelf-life of baked goods is making them indispensable tools in the baking industry.
| Segment | Microorganisms (Source) |
|---|---|
| Value Share (2024) | 52.9% |
As per the latest analysis, microorganisms will likely remain a preferred source for producing food enzymes during the assessment period. This is due to their cost-effectiveness, scalability, and other advantages. The target segment is slated to account for a revenue share of 52.9% in 2024.
Microorganisms like fungi and bacteria can be easily cultivated in large quantities through fermentation and other established processes. This makes them a cost-effective source for enzyme production than animal or plant sources.
A wide variety of enzymes can be produced through micro-organisms for various food processing applications. Right from increasing cheese production to breaking down starches in baking, microbial enzymes offer versatility to end users.
The sustainability factor also plays a key role in boosting segment growth. Using microorganisms for producing enzymes is more sustainable and eco-friendly. Similarly, development of novel microbial strains for producing unique enzymes with specific properties will likely benefit the target segment as well as the industry.
The competitive landscape of food enzyme market is fiercer with tier 1 players given tough competition to established ones. In order to succeed, players are employing different strategies, including new product launches, strategic partnerships, acquisitions, mergers, and investments in research and development.
Leading players are striving to develop enzymes for specific applications. For instance, they are developing lactose hydrolysis for dairy products. Similarly, companies are creating enzymes using natural sources to meet evolving consumer demand for minimally processed foods.
Industry Updates
Based on type the global food enzyme market is segmented into carbohydrate, protein, lipase, and others.
In terms of source, the sector is trifurcated into micro-organisms, animals, and plant.
Key product applications include bakery product, beverages, dairy products, and others.
Food enzyme market analysis has been carried out in key countries of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia, Oceania, and the Middle East and Africa.
The global industry value is estimated to total USD 2,672.8 million in 2024.
Global demand is forecast to increase at 5.4% CAGR through 2034.
Global revenue is set to total USD 4539.2 million by 2034.
Microorganisms.
Associated British Foods Plc. (ABF), Advanced Enzyme Technologies, and Amano Enzyme Co., Ltd.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Type 6.2. Source 6.3. Application 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Type 7.1. Carbohydrate 7.2. Protein 7.3. Lipase 7.4. Other Types 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Source 8.1. Microorganisms 8.2. Animals 8.3. Plants 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application 9.1. Bakery Products 9.2. Beverages 9.3. Dairy Products 9.4. Other Applications 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 10.1. North America 10.2. Latin America 10.3. Western Europe 10.4. South Asia and Pacific 10.5. East Asia 10.6. Middle East and Africa 11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. South Asia and Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Sales Forecast 2024 to 2034 by Type, Source, and Application for 30 Countries 18. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 19. Company Profile 19.1. Associated British Foods Plc. (ABF) 19.2. Advanced Enzyme Technologies 19.3. Amano Enzyme Co., Ltd 19.4. BASF 19.5. Chr. Hansen Holding A/S 19.6. DuPont 19.7. Kerry Group 19.8. PLC 19.9. Novozymes 19.10. Royal DSM N.V 19.11. Aum Enzymes
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Food Enzyme Market
