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The Food Enzymes Market size is projected to increase by USD 991.08 million, at a CAGR of 6.45% between 2023 and 2028. The growth of the market depends on several factors, including the increasing demand from the beverage industry, the rise in awareness about healthy and nutritional food, and the high demand for food enzymes from the dairy industry
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A rise in awareness about healthy and nutritional food is the key factor driving market growth. Factors such as a rise in concern about health consciousness and food safety increased per capita income and spending expenditure, and rapid economic development have led to a significant increase in the demand for processed foods. This rise in demand for processed food products is also attributed to the increasing expenditure on health and nutritional foods, radical changes in lifestyle and food habits of individuals, growing disposable income, urbanization, and an increase in the young population, nuclear families, and working women population. The modern lifestyle is characterized by time constraints and the preference for convenience foods.
In addition, the consumption of fat-rich and calorie-laden foods that lack essential micronutrients impedes normal metabolism in humans. Therefore, the use of food enzymes in processed food manufacturers products is increasing as these enzymes break down the complex carbohydrates and fats present in foods, thus supporting digestion and metabolism. Hence, the increasing demand for processed foods, such as breakfast cereals, tinned vegetables, bread, and convenience foods, such as microwave meals or ready meals, is anticipated to drive market growth during the forecast period.
Capacity expansions and new plants are the primary trend shaping market growth. Align with the market trends and analysis, the market in China and India has developed at a rapid pace with the continuous increase in production capacities by producers. It is expected that both the supply and consumption of food enzymes will continue to grow in the next decade across the world. The rise in demand for food enzymes from food and beverage manufacturers has compelled the producers to expand their production capacities.
For example, in January 2022, BASF SE announced its plan to expand the production capacity for feed enzymes in Ludwigshafen, Germany. The number of possible fermentation runs per year has significantly increased because of the expansion of the existing plant. Therefore, the development of new production facilities and capacity expansion of the existing production facilities will present a major opportunity for the growth of the market during the forecast period.
High prices affecting product consumption is a major challenge that affects market growth. Even though the enzyme market is characterized by the presence of a significant number of small players, only the major players can afford to use technological leverage and sophistication to maintain the best quality. These major market players support their R&D efforts and secure their discoveries by patenting their products. This has led to an increase in the cost of enzymes for primary users, such as the dairy, brewery, and convenience food industries, thereby increasing the price of their products.
Furthermore, primary consumers in the developing regions often refrain from using enzymes or use medium- to low-quality products. This can be prevented by an increase in joint research and development (R&D) efforts and strategic partnerships to lower the price for primary consumers. Thus, the fluctuations in food enzyme prices may impede the growth of the market during the forecast period.
Carbohydrases were the largest segment of the market in 2023. Carbohydrases include alpha- and beta-amylase, glucoamylase, cellulases, lactase, hemicellulases (including xylanases and others), glucose isomerase, pectinase, and other enzymes that can break down carbohydrates such as cornstarch into simpler units. Additionally, alpha-amylase converts the starch in fruits into fermentable sugars. Starches such as grain and potatoes are used as raw materials in the production of ethyl alcohol. In addition, manufacturers of ice cream, yogurt, and frozen desserts use lactase extensively to enhance scoop and creaminess, sweetness, and digestibility. Hence, the increasing use of carbohydrates in different end-user industries, such as F and B, will augment the growth of the global market through the carbohydrate segment during the forecast period.
The market share growth by the processed foods segment will be significant during the forecast period. Processed foods, like breakfast cereals, tinned vegetables, bread, and convenience foods, such as microwave meals or ready meals, use food-grade enzymes to break down proteins, carbohydrates, and starch into simpler units. The consumption of processed foods has gained prominence owing to the hectic lifestyles of individuals coupled with rising expenditures. This has led to higher consumption of cereal grains as the staple foods for the majority of the world's population.
The processed foods segment was valued at USD 1,018.24 million in 2018.
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Additionally, the rise in population, especially in developing countries such as China and India, is expected to increase the demand for cereals and grains, which will drive the demand for food enzymes. Moreover, food enzymes are added to frozen foods to aid in the digestion of complex carbohydrates present in these foods. Thus, the increasing demand for frozen foods, driven by the changes in lifestyle and dietary preferences, accelerates the demand for food enzymes. Thus, such factors are expected to drive the market through the processed foods segment during the forecast period.
North America is estimated to contribute 35% to the growth of the global market during the forecast period
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Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market growth analysis during the forecast period. The US, Canada, and Mexico are the key contributing countries in the region. The market in North America is offering market players several opportunities to expand their product portfolio. The market growth is mainly driven by the increasing consumption of proteases and lipases. The US contributed the majority share of the total revenue share of the market in the region. The rise in health consciousness among individuals is boosting the use of enzymes in fortified foods and premium foods in the country. Furthermore, North America is one of the largest consumers and exporters of meat products. Thus, with the rising consumption of meat, the regional market is expected to grow during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market research and growth report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The food enzymes market is propelled by environmental concerns, spurring R&D activities in enzyme engineering and genetically engineered enzymes. Technological innovations address chemical consumption, benefiting the food industry with multifunctional advantages. Growing economies, particularly in the Asian continent, witness increased demand, driven by the expanding middle-class population. Enzymes play a vital role in extending shelf life and enhancing flavor, color, and texture, with operational adaptability to temperature and pH ranges.
Manufacturers in Denmark and across the EU adhere to legislation, especially in the carbohydrate segment encompassing amylases, pectinases, lactases, and others, vital in bakery & confectionery. Enzymes optimize production, offering cost-effective modifications in meat processing, dairy, bakery, nutraceuticals, and processed fruits & vegetables. Enzymatic hydrolysis yields peptides and amino acids, serving as taste enhancers in soups, sauces, ready-to-eat, canned, and frozen food products, addressing consumer preferences globally.
The market analysis and report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest market growth and trends opportunities from 2018 to 2028.
Food Enzymes Market Industry Scope |
|
Report Coverage |
Details |
Page number |
185 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.45% |
Market Growth 2024-2028 |
USD 991.8 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.0 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 35% |
Key countries |
US, China, India, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advanced Enzyme Technologies Ltd., Amano Enzyme Inc., Archer Daniels Midland Co., Associated British Foods Plc, Aum Enzymes, BASF SE, Chr Hansen Holding AS, DuPont de Nemours Inc., Dyadic International Inc., Jiangsu Boli Bioproducts Co. Ltd., Koninklijke DSM NV, Lumis Biotech Pvt. Ltd., Maps Enzymes Ltd., Nagase and Co. Ltd., Noor Enzymes Pvt. Ltd., Novozymes AS, Puratos Group NV, Sunson Industry Group Co. Ltd., VTT Technical Research Centre of Finland Ltd., and BRAIN Biotech AG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
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