Dairy enzyme market boosted by demand for specialised products

Continued demand from cheese and yoghurt manufacturers, coupled with a desire to promote digestive health, promises a slew of opportunities in the dairy enzyme market, according to a new study.

Global market intelligence company Fact.MR anticipates the global demand for dairy enzymes will surpass 270,000 tonnes in 2026, which is likely to translate into a market opportunity of more than $1.3 billion.

Use of dairy enzymes has offered potential opportunities in terms of growth prospects for participants involved in dairy enzyme development, as these products add new texture, flavour, freshness and reduced bitterness.

Dairy enzymes also facilitate convenient ultra-high temperature processing.

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Lactose intolerance is a main aspect pushing development of advanced dairy enzymes, Fact.MR reports.

The National Institute of Diabetes and Digestive and Kidney Diseases reports that about 68 per cent of world’s population faces lactose intolerance.

The increasing number of lactose intolerant individuals has fuelled the demand for lactose free-dairy products – not only milk but also other dairy products such as yoghurts and cheese.

Increasing demand for lactose free-dairy products has pushed enzyme manufacturers to develop novel solutions to meet consumer requirements.

A relatively high value share has also been envisioned for cheese with respect to adoption of dairy enzymes in cheese production.

Several microbes such as Irpex, Rhizomucor Pusillus and Aspergillus Oryzae are being extensively used for production of rennet during cheese manufacturing

Cheese manufacturers have accelerated the curdling process using lactic acid, rennet and plant based enzymes, especially from fig leaves, wild artichokes, melons or safflowers.

In addition, the growth in sales of dairy enzymes for cheese production is complemented with the increasing consumption of cheese across the globe, which resulted in sales of more than $150 million in dairy enzymes in 2017, which was higher than any other application area.


Push to take ‘milk’ away from non-dairy alternatives

Dairy advocacy group Dairy Connect has initiated an online petition aiming to stop makers of non-dairy drinks using the word ‘milk’ to describe their products.

Dairy Connect CEO Shaughn Morgan said there was a constantly evolving range of products such as ‘soy milk’ and ‘almond milk’ vying for consumer attention.

“We have seen a rise in the number of dairy-imitations made from plants,” he said.

“We believe that this has been the source of confusion among consumers, some of whom equate the great nutritional benefits of cows’ milk with the plant drink alternatives.”

Dairy Connect said the traditional definition of milk by Food Standards Australia and New Zealand was a liquid drink derived from the ‘mammary secretions of milking animals’.

The group claims such a change would deliver a clearer distinction between the two product types, including potential presence of allergens or intolerances; greater consumer awareness about the nutritional variations between traditional fresh dairy milk and plant drinks describing themselves as milks; and greater clarity regarding the methods of formulation used in the two different categories

Morgan pointed out that the European Union Court of Justice this year ruled in favour of the need to differentiate between dairy products and plant derived products:

“In light of this, we would like to see Australia keep up with the progressive dairy labelling laws in overseas markets and we support the initiatives being progressed in Europe and the United States,” he said.

“We encourage members of the community and industry stakeholders to show their support for dairy farmers by signing the petition and sharing the campaign.”


Increasing the appeal of dairy-free drinks

DuPont Nutrition & Health (DuPont) announces that it has made it easier for beverage manufacturers to produce stable soy, almond and other plant-based drinks with a refreshing texture and a clean label. Utilising a new ingredient in the DuPont Danisco range, manufacturers can obtain all the functionality they need without mixing in other additives.

The gelling ingredient is Grindsted Gellan MAS 100 – otherwise known as gellan gum – and is the label-friendly stabiliser for non-dairy beverages made with pulses, grains, nuts and plant-derived protein. Previously produced by DuPont for ingredient systems, it is now available as a single ingredient for the first time.

“The main driver is the demand for dairy-free drinks for lactose-intolerant consumers. According to the latest market intelligence, close to 25% of European consumers are reducing or avoiding dairy products in their diet for health reasons,” says Jean-Baptiste Dufeu, DuPont global product manager. “Our ingredient enables manufacturers to respond to this trend by stabilising particles in plant-based beverages and creating a refreshingly smooth texture. Consumers experience a refreshing drink with an authentic flavour profile.”

Market analysts at Euromonitor and Innova Market Insights have registered an explosion in sales of plant-based drinks. In 2016, sales in Western Europe alone reached $1.5 billion. Soy beverages accounted for around $1 billion of those sales – a dominant position that is now being challenged by the rise of drinks based on rice, almond and oats.

Gellan gum provides reliable stabilising functionality with a low cost in use, regardless of raw material fluctuations. No other additives are required – supporting the consumer preference for clean-label, plant-based drinks that are free of artificial ingredients.

Gellan gum is the latest addition to the broad DuPont Danisco range of texturants, which is backed by strong expertise in optimising the texture, taste and appearance of specific food and beverage applications.


Global dairy alternative drink market on the rise

The global market for dairy alternative drinks is expected to reach US$16.3bn in 2018, up dramatically from US$7.4bn in 2010.

Significant developments in this area include the acquisition of WhiteWave in 2016, presenting Danone with the opportunity to further developing its interests in this dynamic market in both North America and Europe.

In another key region, Want Want, one of Greater China’s leading food processing companies, recently announced its expansion into soy and other plant-based beverages. China is enjoying particularly strong growth for dairy alternative drinks, with a CAGR of 18.7 per cent forecast between 2010 and 2018, reaching a market value of US$6.7bn, compared with a more modest, if still impressive, CAGR of 10 per cent in the US.

Dairy alternative drinks accounted for 7 per cent of global dairy launches recorded by Innova Market Insights in 2016, up from 6 per cent in 2015. Actual global launch numbers more than doubled over a five-year period. Just over half of these launches were positioned as lactose-free, nearly 40 per cent as vegan and just under a quarter as GMO-free.

“The dairy alternatives market has seen rising levels of interest in recent years, spurred mainly by consumers increasingly looking for lactose-free, dairy-free and plant-based/vegan options as healthy lifestyle choices, rather than regarding them as simply for those with allergies or intolerances,” said Lu Ann Williams, Director of Innovation at Innova Market Insights.

“The category has been further boosted by the growing availability and promotion of plant-based options to traditional dairy lines, particularly beverages, but also cultured products such as yogurt, frozen desserts and ice cream, creamers and cheese.”

“Plant Powered Growth” was one of Innova Market Insights’ Top Trends for 2017, highlighting developments in plant-based foods, which are seeing increased demand from those who do not want to commit to a full vegan or even vegetarian lifestyle, but would rather pick and choose to suit their lifestyle, social life or health conditions.

According to Innova Market Insights, dairy alternative launches grew at a CAGR of 20% over the 2012-2016 period. Meat substitutes had a CAGR of 14% over this period, while the use of a vegan positioning in global food and beverage launches tripled from 2012 to 2016.

“In the move to offer something new, we are starting to see an increasing variety of non-soy plant-based alternatives, including cereals such as rice, oats and barley, and nuts – such as almonds, hazelnuts and macadamias – as well as more unusual options such as hemp and flaxseed,” notes Williams.

“There has been ongoing launch activity for a range of increasingly sophisticated flavors and blends of non-dairy milks from different sources. In line with the milks market as a whole, there has been a strong move into fashionable milk-based coffee drinks,” she adds.

Infographic - Innova Market Insights reports plants based drinks at #IFT17