Nisin is a bacteriocin which is used as a preservative in many food products like dairy and meat products. Nisin is produced from a food-grade bacterium's fermentation product and its protection and efficacy as a food preservative have led to its widespread use around the world. Moreover, nisin is the only bacteriocin with WHO approval to be used as a food preservative. It helps to avoid food spoilage and pathogen growth, extending the shelf life of food, which is why it has a strong demand as a natural alternative to synthetic preservatives. Nisin is also used as a natural preservative in the pharmaceutical industry, in addition to the food and beverage industry. While its usage as a natural growth promoter in the animal feed industry is keeping up the popularity of nisin. The global nisin market valued USD XX million in 2020 and is estimated to reach USD XX million by 2028, growing at a CAGR of XX%.
Source: DataM Intelligence Analysis (2021)
Growing demand for canned and processed food is driving the growth of the market
The rising demand for processed and canned food due to growing urbanisation is driving the growth of the nisin market. As the working-class population is increasing with people having busy schedules have resulted in people shifting towards processed and ready to go food. Moreover, as the working mother’s population is increasing, canned goods are becoming common among young kids. As nisin is one of the rarely approved bacteriocins its demand is increasing with the increasing demand for canned foods. Among all the canned food, processed meat and cheese are highly in demand. According to FAO, the growth in the consumption of processed meat over the next decade is estimated to increase by 12% by 2029, which is also likely to increase the demand for nisin.
The major concerns related to the market growth of nisin is its sensitive production process, since it is obtained naturally and the extraction process is slower and cost-inefficient. Also, it can adversely affect the product if in case there is an increase in lactate concentration beyond a standard level and the decrease in pH.
Nisin is getting popular in the dairy industry because of the growing demand for longer shelf life in dairy products
Nisin is extensively used in dairy industry because of its impact on the shelf life of dairy products. Nisin is added to pasteurized milk, makes it shelf life extended by twice. While adding nisin to the disinfected milk and sterilizing it at 115 degree for 15 minutes can make the product reach ‘no bacteria standard’. More importantly, nisin is being widely used in the cheese while processing, as its addition to the unprocessed cheese can solve the putrefaction problem which is caused due to gram positive bacteria such as Clostridium botulinum and another Anaerobic Clostridium. In countries like United States, where processed cheese is highly produced, are the major exploiter of nisin preservatives. While in other countries it is also used in fresh and recombined milk, fermented beverages like beer, canned foods, frozen desserts, and high moisture/reduced fat foods. Recent application of nisin include its use as a preservative in high moisture, hot baked flour products (crumpets) and pasteurised liquid egg.
North-America dominates the global nisin market owing to the high production and consumption of processed food
North America is the largest shareholder of the nisin market. High consumption of cheese in the United States led to the growth of the nisin market in North America. Nisin is the only purified bacteriocin having been approved by the Food and Drug Administration (FDA) for use in pasteurised processed cheese spreads. According to National Agricultural Statistics Service, more than 30% of the world's cheese production is carried on by the United States, with total cheese production reaching to 12.9 billion pounds in 2019. Thus, the increased demand and production of cheese in this country, is propelling the increased demand for nisin.
However, Asia-Pacific is expected to witness rapid growth by 2028, owing to the demand for natural preservatives. Comparatively, the nisin market in Western Europe is more established and stable with the presence of key players such as Royal DSM N.V. and Danisco A/S. These players also dominate in the global nisin market, constituting major share. The nisin market in Asia-Pacific is evolving and growing at a faster rate with new entrants in the market. Additionally, countries like China are taking stricter regulatory measures due to the lack of quality standards when compared to the European or other international counterparts, as it affects the export of nisin to other west region countries.
Source: DataM Intelligence Analysis (2021)
The nisin market remains consolidated, with only two players – Danisco A/S and Koninklijke DSM NV – operating at the global level. These market goliaths account for a share of 60-70% in the nisin market, with product innovation being their key winning strategy. For instance, Koninklijke DSM NV averred the extension of its range of natural food protection solutions in 2018, with the addition of DelvoGuard cultures. The product is aimed at improving the shelf life of dairy products. However, regional players employ different set of strategies to leapfrog their global competitors. Regional players are heavily concentrated in China, and occupy nearly 10-20% of the market share. This batch of players focuses on offering nisin at competent prices, thereby intensifying the competition level. Regional players prioritize investments towards enhancing their regional and global footprints. For example, in January 2017, Galatic S.A. partnered with Azelis to leverage the dedicated distribution channel of the latter in BENELUX. Local players account for around 2-10% of the total share, which implies that, high manufacturing cost creates an entry barrier in the nisin market.
COVID-19 Impact: Pandemic had a positive impact on global nisin market
As the covid-19 outbreak resulted in lockdown in major parts of the globe, the pandemic had significantly impacted the global nisin derivatives. As lockdowns resulted in people staying at homes and freight challenges led to people stockpiling their houses with canned goods with longer shelf life. Nisin was hugely in demand as the demand for canned goods increased during this period.
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