Global enzymes market size was estimated at USD 4,411.6 million in 2013. Growing food and beverage industry coupled with increasing use in biofuel manufacturing is expected to drive market demand over the forecast period.
The global enzymes industry is expected to witness growth owing to extensive R&D aimed at technologically intensive manufacturing processes such as genetic and protein engineering resulting in products with novel properties. However, inconsistent regulations over the use of enzymes as an additive is expected to pose a threat over the forecast period
Rising application scope due to increasing innovation is expected to spur enzymes demand in the food & beverage industry. Growing need for animal protein as a nutrient source is expected to fuel proteases demand over the next six years. They are used in food & beverages for applications such as baking, dairy products & beverage manufacturing and hydrolysis of starch to glucose. Customers are keen on specialized products as various applications require specific characteristics. Products used in food & beverage and feed applications should be food grade which is not necessary when used in detergent and biofuels.
Increasing biofuels demand including bioethanol and biodiesel owing to fluctuating crude oil prices coupled with rising environmental concern is a key driver for the industry. Companies are looking for new avenues for development of fossil fuel substitutes, resulting in high enzymes demand from biofuel manufacturers. For instance, Cargill aims to develop a strain that can ferment sugar into chemical substances.
North America enzymes market revenue by product, 2012-2020, (USD Million)
Carbohydrase was the largest product segment accounting for USD 2,000 million of the overall market in 2013. Growing starch demand in food & beverage industry is expected to drive carbohydrase growth.
Proteases are expected to grow at a CAGR of 7.9% from 2014 to 2020 On account of increasing awareness regarding protein consumption. Declining nutrition levels on account of changing lifestyles and hectic schedules is expected to promote proteases demand.
These products are expected to witness high demand due to extensive use in applications including food processing, predigestion of baby foods, germination in breweries, fruit juice clarification, cheese manufacturing, meat tenderization, and conversion of starch into glucose.
Food & beverage dominated the global market accounting for over 35% of the volume share. Growing demand for high nutrition diet coupled with favorable government initiatives for promoting industrialization in emerging economies of BRIC, is expected to positively impact the food & beverage industry growth.
Detergents accounted for a significant revenue share on account of increasing awareness regarding hygiene. The segment is expected to grow at a CAGR of 7.6% from 2014 to 2020. Asia Pacific is expected to witness rising detergent production on account of low costs as compared to the U.S.
North America enzymes market was the largest, owing to growing demand for animal feed and biofuels in the U.S. Europe market was valued at over USD 1,200 million in 2013, however, it is expected to decline on account of sluggish demand in the region.
Europe was followed by Asia Pacific, which accounted for over 22% in 2013. Government initiatives promoting use of biofuels including biodiesel is expected to promote growth over the forecast period.
Increasing awareness regarding livestock diseases has led to adoption of better animal nutrition practices, which is expected to play a major role in driving demand over the next six years.
Novozymes, Danisco and DSM dominated the global enzymes market share, accounting for over 70% in 2013, with Novozymes being the largest player at over 45%. The company offers a variety of products which cater to numerous applications such as household care, food & beverages, bioenergy, agriculture & feed and technical & pharmaceuticals.
High capital cost on account of stringent testing requirements prior to product launches is expected to act as a key barrier for new players entering the industry. Companies such as DSM and DuPont manufacture customized solution for targeting specific applications. This industry is characterized by forward integration from the manufacturing stage to distribution and end-use industries.
In January 2014, DuPont announced the launch of LAMINEX MaxFlow 4G, intended for improving texture, taste and appearance of beer. In October 2012, DSM acquired Cargill’s cultures
and enzymes business for USD 107.6 million.