Lipase Market Size, Share & Industry Analysis, By Source (Microbial and Animal), By Application (Food & Beverage {Bakery, Dairy, Confectionery, Beverages and Others}, Nutraceuticals, Animal Feed, and Others), and Regional Forecast, 2024-2032

The global lipase market size was USD 572.29 million in 2023 and is projected to grow from USD 606.80 million in 2024 to USD 985.54 million by 2032, exhibiting a CAGR of 6.25% during the forecast period. North America dominated the lipase market with a market share of 39.69% in 2023.

Lipase belongs to a class of enzymes that catalyze triglycerides into glycerol and fatty acids. These enzymes are mainly found in pancreatic secretions, which facilitate fat digestion and overall metabolism. The normal range of lipase levels in adults (less than 60) ranges from 10 – 140 U/L. In human health, lipase enzyme plays a critical role in lipid transportation and serves various functions in numerous tissues, such as pancreatic lipase in the small intestine and hepatic lipase in the liver. For commercial purposes, lipase enzymes are derived from animals, microorganisms and plants and are largely used in applications, such as paper and pulp, detergents and textiles, oleo chemical, and food & beverage sectors. However, on a broader level, microbial lipase accounts for a majority share of the global enzyme market compared to animal and plant sources, which are still developing. Owing to the enzyme's versatility and stable nature, such enzymes are widely used in the agro and food industries as an alternative to traditional emulsifiers in bakeries, flavor modifiers in dairy products, and as a supplement to animal feeds.

The sudden onset of the COVID-19 pandemic led to a drastic disturbance in the global production and consumption of food products. The pandemic initiated the worldwide lockdown, which forced the key companies to shut their manufacturing units. Thus, this scenario led to minimal utilization of lipase in the bakery and dairy units due to the maximum closure of production facilities. However, the demand for such natural enzymes is projected to grow in the near term owing to its several uses in various applications.

Lipase Market Trends

Rising Growth of Functional Cosmetics Industry Can Fuel Demand for Enzymes

Over the past few decades, the global market has witnessed remarkable growth in the personal skincare industry, with growing shelf spaces in retail stores and boutiques. Likewise, the functional cosmetics sector is evolving and utilizing enzymes to develop cosmetic products with improved functional properties. Functional cosmetics combine the use of specialized chemicals to produce beauty products that impart additional advantages beyond traditional cosmetic benefits. Ingredients, such as U.V. agents, conditioning agents, and exfoliators are a few examples that are used in functional cosmetics. In this modern era, natural functional cosmetics are becoming highly popular among consumers, specifically due to the growing health and environmental awareness and demand for various benefits from a single product. In alignment with this, lipases also have a role as an active ingredient in functional cosmetic products and are used to develop beauty masks, hair care products, and nose cleansing applications. Also, the immobilized form of lipase is largely used as a catalyst in the production of active agents for cosmetics. However, this enzyme has a minor role in the cosmetics industry in the current scenario, and it is predicted to fuel the global lipase market growth.

Lipase Market Growth Factors

Surging Demand for Lipases in Animal Feed Industry Can Strengthen Market's Potential

In the past few years, enzymes have become an increasingly essential component of animal feed and strongly contribute by aiding in the absorption and digestion of dietary fats. The utilization of such enzymes helps in hydrolyzing fats into monoglyceride, free fatty acids, and glycerin. However, monogastric animals have the ability to secrete lipase, but the secretion is inadequate for absorption. Thus, the supplementation of enzymes is also useful in minimizing the prevalence of ruminant animal diseases and reduces the overall feed cost.

With respect to the factors mentioned above, key manufacturers are trying to introduce lipase-based enzymes for pet food. For instance, in April 2020, Biocatalysts Ltd., an enzyme specialist in the U.K., announced the microbial lipase alternative to pancreatic lipase, primarily for pet food. The latest Lipomod 888MDP, a fungal-based microbial lipase, is used especially for the hydrolysis and breakdown of fats.

Increasing Use of Lipases in Food Production is Likely to Drive Market Growth

Since ancient times, enzymes have been used in the food industry before their recognition as biological catalysts. These enzymes contribute to the areas of dairy processing, cheese making, baking, beverage processing, and vegetable processing, among others. Similarly, commercial lipase enzymes are also used in the food processing industry, especially for the breakdown and modification of biomaterials. The main role of using lipase enzyme is for flavor enhancement in processed products, such as meat, dairy, fruits, and beer. Concerning the dairy segment, these enzymes are used to hydrolyze milk fat. Also, this enzyme shortens the ripening process of cheese and modifies the fatty acids to improve the overall flavor of dairy-based items.

Moreover, in the oils and fats industry, the major function of enzymes is the hydrolysis of fats, leading to the release of glycerol and fatty acids. As a result, this breakdown helps obtain energy from the components (fatty acids and glycerol). Apart from the aforementioned properties, this enzyme can be used as a preservative and can also prolong the shelf life of baked goods. Also, this enzyme can improve the softness and texture of bakery items which is mainly achieved by lipase catalyzation.

RESTRAINING FACTORS

Knowledge Gaps and Policy Fluctuations Can Obstruct Industry Sales

Inadequate knowledge about lipase and regulatory challenges are the major hurdles faced by manufacturers globally. The role and awareness of lipases among producers and consumers are still growing, especially in developing regions. Thus, the capabilities and advantages of these enzymes are not fully recognized by the producers, which can hinder market growth. Also, negative consumer perception toward using lipase solutions, maybe due to the sources or other concerns, can further restrain the growth.

Apart from this, unpredictable regulatory changes or governmental policies are also prominent challenges that can lead to slow investments in lipase production. Other factors include improper infrastructure and supply chain vulnerabilities, which can further contribute to slow market progression.

Lipase Market Segmentation Analysis

By Source Analysis

Microbial Segment Dominated Due to its Easy Production and High Yields 

Based on source, the global market is divided into microbial and animal. Among these sources, the microbial is the leading segment and held the lion's share in 2023. As compared to plant and animal sources, microbial lipases are more stable and can easily grow in an inexpensive medium, leading to high yields. Also, other favorable characteristics of microbial lipases include stability in organic solvents, strong resistance to high temperatures, and action in various pH ranges. Moreover, microorganisms are available throughout the year and are not affected by weather fluctuations, further fueling the demand for microbial lipases.

The animal segment held the second position in terms of source and is anticipated to grow at a stronger pace in the upcoming years. Animal-based enzymes are commonly used in developing regions, such as South America, and Middle East & Africa, mainly due to the lack of well-equipped manufacturing infrastructure for microbial enzymes. Also, limited investments support the growth of microbe-based enzymes in such regions, which propels animal-based enzyme production.

By Application Analysis

Food & Beverage Segment Led Market Due to High Utilization of Lipase in Food Processing

Based on application, the market is distributed into food & beverage (bakery, dairy, confectionery, beverages, and others), nutraceuticals, animal feed, and others. Among all, the food & beverage category dominated the market and accounted for a majority of the lipase market share in 2023. Lipase enzyme is recognized as a multifunctional enzyme, as it is an eco-friendly option and offers high yields in several food applications. For instance, lipase shows promising results in the dairy sector, as it is used as a cheese flavor enhancer and also aids in the lipolysis of milk, cream, and fat. Moreover, in the bakery industry, lipase is vital in extending the shelf life and improving the bread's volume. This enzyme also finds application in the brewing industry and is extensively used in the beer and winemaking industries.

Animal feed ranked second in the market and is expected to grow at a considerable pace in the future. Nowadays, consumers are seeking high-quality animal products free from antibiotics and other additives. Thus, the livestock caretakers are supplementing enzymes in the feed of monogastric animals (pigs and poultry), which helps in digesting fats. Most often, lipase enzymes are used in a combination with other enzymes (proteases or amylases) to fuel their overall energy.

REGIONAL INSIGHTS

The global market scope is classified across five regions, North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

North America dominates the global market and held a significant share of 39.66% in 2023. Favorable factors supporting regional growth are well-established research capabilities and strong industrial infrastructure. In the current scenario, the majority of the consumers rely on convenience foods due to their busy schedules, which bolsters the trend of snacking. Thus, many producers are utilizing lipases to improve the quality of products, such as baked snacks, dairy items, and other beverages, which fuels its acceptability rate. Moreover, the region boasts a solid presence of dominating players specializing in enzyme production, further facilitating the market's growth. Additionally, the region holds a prominent position in the animal feed and food & beverage industry, where this product is extensively used, fostering technological advancements and innovation in enzyme production.

Europe secured the second position in the market due to the soaring demand for processed foods, followed by a growing number of health-conscious populations. In terms of bakery production, Europe is the biggest market globally. As per the European Regional Development Fund, an investment fund allocated by the European Union stated that Europe held 34% of the bakery sales in 2020. Also, with respect to the global level, Europe dominated the market by generating 41% for bakery category launches. As a result, the above-mentioned factors show higher chances of lipase utilization as the enzyme is largely used for baking purposes. Coupled with this, the trend of veganism also supports the demand for natural ingredients for food products.

Asia Pacific is recognized as the fastest-growing region in the global space, primarily due to the growing population across India and China and expanding food & beverage industry. Additionally, the region is among one of the largest producers of animal feeds. According to Alltech, a nutrition company in the U.S., Asia Pacific produced 458.12 million metric tons of compound feed. Lipase enzyme plays a crucial role in human and animal digestive systems by easing the assimilation process of dietary fats. In this modern era, both animals and humans face challenges in terms of health and require external supplementation, which provides numerous benefits. Thus, manufacturers are trying to incorporate such enzymes while producing food products or animal feeds. Also, lipase is pivotal in laundry detergents and the textile industry, where it is used for removing tough stains and enhancing fabric absorbency.

South America and the Middle East & Africa are at their nascent stage but are anticipated to grow at a stable pace in the future. Factors contributing to the region's growth include the augmented nutraceuticals sector and emerging demand for lipases in the biofuel industry. Also, the surging number of animals in the region and the growing tourism industry drive the product's usage.

KEY INDUSTRY PLAYERS

Prominent Market Players Embark on New Launches to Enhance Enzyme's Awareness

Major players in the market include Novozymes, Novonesis, Amano Enzyme Inc., and A.B. Enzymes, among others. In today's time, manufacturers are facing the pressure of maintaining the quality of the produce and are engaged in using high quality enhancers (enzymes) that can improve the flavor and texture. Apart from refining the taste, enzymes are proven beneficial in extending the shelf life of food products and also ease the digestion process. Thus, owing to such demands, companies are investing in research activities to produce lipase enzymes and are focusing on expanding their business line, specifically in developing regions with restricted availability of such enzymes.

List of Top Lipase Companies:

• Novozymes (Denmark)


• Novonesis (Denmark)


• Amano Enzyme Inc. (U.S.)


• Koninklijke Royal DSM (Switzerland)


• Creative Enzymes (U.S.)


• AB Enzymes (Germany)


• Enzyme Development Corporation (U.S.)


• International Flavors & Fragrances (U.S.)


• Biocatalysts (U.K.)


• Aumgene Biosciences (India)

KEY INDUSTRY DEVELOPMENTS:

• August 2023: Alcresta Therapeutics Inc., a developer of novel enzyme-based products in the U.S., announced that the federal agency of the U.S. Food and Drug Administration (FDA) expanded the usage of RELiZORB for children aged 2 to <5 years. The newly launched product is mainly formulated to replicate the function of pancreatic lipase across the U.S. market.


• August 2023: Pathlab, a New Zealand-owned medical laboratory, started offering lipase as an alternative to amylase enzymes amid New Zealand. As per the Pathologists and Senior Scientists in Australasia (RCPA), a leading organization, lipase is preferred while investigating upper gastrointestinal pain as it provides better performance than amylase.


• May 2020: Biocatalysts Ltd., a U.K.-based enzyme specialist, introduced its latest enzyme, "Lipomod 767P," a non-genetically modified lipase appropriate for the esterification and hydrolysis of fats and oils. This latest product is an addition to the company's microbial enzymes range, which was developed to fulfill the rising demand for clean label items among U.K. consumers.


• April 2020: Biocatalysts Ltd., a biotech company in the U.K., released their new animal-free enzyme, LIPOMOD 888MDP, which is a microbial lipase preparation, both Halal and Kosher free. The product is made of fungi and was launched in the wake of African swine fever in the U.K.


• February 2020: A team of international researchers from the Centre of Enzymes Innovation, based at the University of Portsmouth, a public university in England, launched a lipase enzyme derived from residues of mustard seeds. The product, Anoxybacillus sp. ARS-1 was launched in a collaborative project between Indian scientists and researchers from the U.K. and can be used as an additive in biodiesel, cosmetics, and laundry detergents. 

REPORT COVERAGE

The report includes quantitative and qualitative insights of the market. It also offers a detailed analysis of the market sizing and growth rate for all possible segments. Various key insights presented in the report are an overview of related markets, competitive landscape, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and global market trends.

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