Dairy Enzymes Market Size – By Product, Application Analysis, Share, Growth Forecast, 2025 - 2034

Dairy Enzymes Market Size

The global dairy enzymes market size was valued at USD 662.4 million in 2024 and is estimated to grow at a CAGR of over 7.3% from 2025 to 2034. The market is driven by a commendable rise in demand for lactose-free dairy products. Lactose-free goods have gained significant popularity in recent years, attributed to the increasing incidences of food allergies such as lactose intolerance among people worldwide.
 

According to the report published in ProCon.org, around 65% of adults globally have a sort of lactose intolerance caused due to decreasing activity of the LCT gene, resulting in abdominal pain and other gastrointestinal consequences after consuming dairy products. For those who cannot digest lactose, lactose-free dairy can deliver the vital elements found in regular dairy products, such as calcium and vitamins.
 

The health appeal of this product category to customers is currently widespread and expanding. Consistent efforts toward improving product quality and diversity, allowing consumers varied enticing options, will strengthen the market outlook. Dairy enzymes are relatively more expensive than traditional specialty food chemicals. Besides, there are strict guidelines pertaining to their usage and commercialization across several economies. The lengthy process involved in the development of new products may interfere with market growth.
 

Dairy Enzymes Market Trends

The dairy enzymes industry is experiencing significant growth due to increasing demand for functional and specialty dairy products such as lactose-free milk and cheese. Consumers' rising preference for healthier, natural ingredients in food production is driving the adoption of enzymes to improve flavor, texture, and shelf life. Technological advancements in enzyme production, such as microbial fermentation, have also boosted efficiency and cost-effectiveness in dairy processing. Additionally, the growing trend of plant-based dairy alternatives is influencing enzyme innovations for vegan-friendly products. Environmental sustainability concerns are encouraging manufacturers to use enzymes that reduce waste and energy consumption in dairy production.
 

Dairy Enzymes Market Analysis

The dairy enzymes industry is driven by growing consumer demand for lactose-free and functional dairy products, as well as the increasing need for natural and clean-label ingredients. Advancements in enzyme technology, particularly microbial fermentation, are enhancing product efficiency and expanding applications in dairy processing.
 

However, the market faces pitfalls such as fluctuating raw material costs and potential supply chain disruptions, especially for animal-derived enzymes. Regulatory frameworks, including stringent food safety standards from authorities like the FDA and EFSA, play a crucial role in product approvals and labeling requirements. Companies must navigate these regulations while innovating to meet consumer demands and sustainability goals.
 

Additionally, the rising demand for plant-based dairy alternatives is shaping the future of the market, as manufacturers seek enzyme solutions for non-dairy products like almond or oat milk. This shift presents both opportunities and challenges, as developing effective enzymes for plant-based products requires innovation and adaptation of traditional dairy enzyme technologies.
 

Based on product, the dairy enzymes market is segmented into lipases, carbohydrases, proteases, esterase, catalase, transglutaminase and others. The proteases segment dominated the market by generating USD 271.7 million revenue in the year 2024 and is expected to reach 577.3 million by 2034. Proteases aid in the absorption of amino acids and the digestion of proteins. These enzymes also help boost cardiovascular health, promote immune function, and accelerate tissue repair while preventing colon cancer. This apart, the non-pathogenic, non-toxic, and eco-friendly benefits associated with protease enzymes favor their adoption across several end-use industries.
 

Based on application, the dairy enzymes market is segmented into milk, cheese, butter, yogurt, whey protein, desserts and ice cream, infant formula and others. The cheese segment holds a dominant market share of 40% in 2024. The increasing cultural exchanges and broadening culinary horizons will complement the demand for dairy-free cheese. In addition, the increased popularity of fast foods like pizza, pasta, and hamburgers has led the demand for mozzarella, parmesan, and cheddar cheese across the globe. Food enzymes market size reach USD 4.6 billion by 2027, propelled by increased consumption of alcoholic and non-alcoholic beverages.
 

The U.S. dairy enzymes market was valued at USD 122.1 million in 2024, due to the growing demand for lactose-free dairy products is a significant growth driver, driven by the rising incidence of lactose intolerance among consumers. The shift toward healthier eating habits and natural food ingredients has increased the adoption of enzymes in dairy processing to enhance flavor, texture, and nutritional value.
 

Additionally, innovations in enzyme technology are improving production efficiency and sustainability, aligning with the growing consumer preference for clean-label products. The plant-based dairy alternatives trend is also pushing enzyme innovation in non-dairy segments. Increasing awareness of environmental sustainability is further motivating manufacturers to use enzymes that reduce waste and resource consumption.
 

In North America, the overall dairy enzymes market is fueled by the region's well-established dairy industry and the growing consumer demand for high-quality and functional dairy products. Enzymes play a crucial role in improving the efficiency and cost-effectiveness of dairy production processes, which helps meet the rising demand for products such as cheese, yogurt, and whey protein. The increasing popularity of lactose-free and low-fat dairy products, due to health concerns, is also a major growth factor.
 

Dairy Enzymes Market Share

The dairy enzymes industry is characterized by strong competition among companies like Advanced Enzyme Technologies, Amano Enzyme, Biocatalysts, CHR. Hansen, and Novozymes, each focusing on expanding their enzyme portfolios. These companies are investing in research and development to enhance enzyme efficiency, improve dairy production processes, and meet consumer demand for functional and lactose-free products. Innovations in enzyme technology, particularly microbial fermentation and enzyme stability, are common strategies used by these firms to maintain relevance in the evolving dairy industry. Additionally, partnerships with dairy producers and collaborations in new product development are key competitive strategies.
 

Several of these companies are also responding to the rising demand for plant-based dairy alternatives, driving enzyme innovations for non-dairy products like oat and almond milk. There is a focus on enzymes that support better texture, flavor, and nutritional value, aligning with clean-label and sustainability trends. Geographic expansion and regional market penetration, particularly in North America and Europe, are becoming important to capture growing demand for functional dairy products. Competition is further intensified by the need to comply with stringent regulations around food safety and enzyme usage in dairy production.
 

Dairy Enzymes Market Companies

Major players operating in the dairy enzymes industry are: 

• Advanced Enzyme Technologies
• Amano Enzyme
• Biocatalysts
• CHR. Hansen
• Acid India
• DSM
• Enzyme Innovation
• Kerry Group
• Molekula Gmbh
• Novozymes
• Specialty Enzymes and Probiotics
• SternEnzym
   

Dairy Enzymes Industry News

• In April 2021, Biocatalysts Ltd., in a bid to extend its range of Halal- and Kosher-certified enzymes, especially targeting the dairy protein market, rolled out its new enzyme Promod™ 517MDP (P517MDP). The newly launched P517MDP is a highly efficient exopeptidase that attains over 40% degree of hydrolysis in casein protein, breaking it down into peptides and amino acids. This improves its solubility and enhances its digestibility changing casein protein hydrolysate to a more versatile component that can be utilized in the production of foods for special medical purposes, including specialist follow-on and infant formulas.
   
• In June 2023, DSM-Firmenich launched lactase enzyme for more efficient lactose-free dairy production called Maxilact Next. Maxilact Next is around 25% faster than the former fastest market reference utilised for milk processing, reducing the hydrolysis time by 25% when dosed at the same level.
   

The dairy enzymes market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Million) & volume (Kilo Tons) from 2021 to 2034, for the following segments:

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Market, By Product

• Lipases
• Carbohydrases
  • Amylase
  • Lactase
  • Other carbohydrates
• Proteases
• Esterase
• Catalase
• Transglutaminase
• Other

Market, By Application

• Milk
• Cheese
• Butter
• Yogurt
• Whey protein
• Desserts and ice cream
• Infant formula
• Other applications

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa