Rennet market is estimated to witness high growth owing to the increasing consumption of processed cheese and demand for Kosher and halal alternatives
The Rennet Market is estimated to be valued at USD 746.5 Mn in 2024, exhibiting a CAGR of 5.4% over the forecast period from 2024 to 2031. Furthermore, the growing popularity of vegetarian and vegan diets is also fueling the demand for non-animal derived rennet.
The rennet market is primarily driven by the rising demand for processed and packaged food worldwide. Processed cheese is one of the major applications of rennet where it acts as a coagulating agent. The increasing working population and fast paced lifestyle has boosted the demand for convenient packaged food items like processed cheese slices and cubes. Additionally, the growing health consciousness has led to rising demand for kosher and halal certified dairy products, which is supplementing the growth of non-animal derived vegetarian rennet. Plant-based rennet helps manufacturers offer alternatives to consumers complying with religious and vegan dietary needs. These factors coupled with various innovations by major players to develop cost-effective and high yielding rennet products are expected to propel the rennet market revenue.
Growing Demand for Cheese Drives the Rennet Market
One of the key drivers of the rennet market is the growing demand for cheese globally. Rennet is a key ingredient used in the production of cheeses like Parmesan, Romano, Gouda, Cheddar, etc. According to data, the global cheese consumption has been rising consistently over the past few decades. Rising disposable incomes and exposure to different cuisines have increased the appetite for cheese among consumers. This rising demand is encouraging cheese producers to scale up their production capacities, in turn, boosting the demand for rennet.
Increasing Popularity of Baked Goods Augments Market Growth
Another major driver for the rennet market is the rising popularity of baked goods like bread, pizza, and cakes which use rennet during manufacturing. Rennet helps in curdling milk which acts as a binding agent. High consumption of baked goods is witnessed in both developing and developed economies. In addition, the convenience food trend is prompting manufacturers to develop new bakery products using rennet. These factors are complementing the increased uptake of rennet in the food processing industry.
Availability of Alternative Substitutes Can Hamper Market Growth
One of the key challenges for the rennet market is the availability of alternative substitutes that can be used in place of animal-derived rennet. These substitutes include microbial rennet, plant-based rennets, and other clotting agents. For instance, microbial rennet derived from fungi is widely replacing the traditional calf rennet. Some manufacturers are also developing vegetable-based rennets as a way to meet the demands of vegan and vegetarian consumers. The easy availability of such cost-effective substitutes can impede the demand for traditional rennet.
Stringent Regulations Regarding Animal Welfare Deter Adoption
Governments across regions have implemented strict norms regarding animal welfare in food processing industries. Since traditional rennet is extracted from the stomach lining of young ruminants, its production process involves the slaughter of young calves. This goes against the principles of animal welfare. As a result, regulators are promoting the use of non-animal-derived rennet types. Complying with these stringent regulations inflates the production cost of traditional rennet, limiting its demand.
Growing Organized Retail & E-commerce Sector Provides New Avenues
The rapid growth of modern retail channels like supermarkets and hypermarkets as well as a booming e-commerce industry provides new opportunities for rennet market players. Organized retailers are driving the demand for varied, high-quality dairy products. They also offer a wider shelf space for specialized food ingredients like rennet. Similarly, online platforms enable companies to promote their offerings to customers across geographies, supporting sales growth. Rennet producers can target these rising retail formats to boost their revenue streams.
Emerging Economies with Improving Standards of Living Spur Demand
Emerging nations in regions like Asia Pacific, Latin America, Africa, and the Middle East offer enticing prospects for rennet market stakeholders. As disposable incomes rise in developing countries, their populations are developing a taste for processed and convenience foods. This expanding consumer base will spur demand for dairy products manufactured using rennet. Moreover, governments in these regions are undertaking initiatives to enhance food safety and quality standards. Rennet suppliers can capitalize on these emerging opportunities by strengthening their presence in high-growth developing economies.
Link - https://www.coherentmarketinsights.com/market-insight/rennet-market-5144
Key Developments
- In 2020, DuPont introduced Chymostar, a new rennet designed for milk coagulation in the dairy industry, enhancing ripening kinetics. This versatile product can be utilized for the production of various cheese types, including hard, semi-hard, low-fat, and ingredient cheeses.
- In 2020, Renco invested multi-million USD to increase their rennet production capacity. The company has partnered with a The Cheese Connection, a distributor who supply Renco’s rennet to the United States.
Key Players
Chr. Hansen Holding AS, AFFCO, International Flavors & Fragrances Inc., Intermak Inc., Punature Food Ingredient Co. Ltd, Walcovit Inc., Hebei Yoko Biotech Co. Ltd, Koninklijke DSM NV, MAYASAN Food Industries AS, Calza Clemente SRL, Iran Industrial Enzymes Company, Sacco SRL, Punature Food Ingredient Co. Ltd., and Hebei Yoko Biotech Co. Ltd.
