Enzymes are made from proteins. Enzymes are responsible for either building chemical compounds up or breaking them down. These reactions include the breaking down of chemical bonds. The role of enzymes is to make sure these reactions occur much faster and work as catalysts. The industrial enzymes can be categorized into the following types:
Carbohydrate active enzymes: These enzymes have applications in the food and textile industry.
Peptidases: Peptidases are majorly used in alcohol production, baking, and the leather industry.
Lipases: Lipases are used in the detergent industry to degrade fatty substances.
Nucleic acid enzymes: This type of enzyme has extensive usage in the medical industry.
Oxidoreductases: These enzymes are used in food, microbiology, and sanitizing industry.
In terms of procurement best practices, buyers need to engage with suppliers that take storage decisions based on enzyme stability profiles as enzymes may lose their potency over time due to a combination of moisture and heat.
The global enzymes market is valued at USD10.5 billion in 2020 and it is expected to grow at a CAGR of 7% from 2020 to 2027 due to increasing demand from end-user industries such as food and beverage, biofuel, animal feed, and home cleaning. Among these, the food and beverage industry is the largest end-user segment with more than 20% market share. Enzymes industry is expected to witness the highest growth rate of 8.2% during the forecast period, owing to the increasing demand for enzymes in industrial and specialty applications. North America is leading the global enzyme market with more than 30% market share majorly due to recent advances in protein engineering in the biotechnology sector.
The feedstock and raw material costs are the most important cost driver of enzyme production costs. It accounted for more than 20% of the overall cost of production. As the cost of procuring feedstock is somewhat similar across the world, suppliers focus on outsourcing the manufacturing activity to low-cost countries. It reduces labor, facility, and other operational cost and increases profitability.
The Covid-19 pandemic has negatively affected global enzyme production in 2020. Many countries were forced to temporarily halt all types of industrial operations during the pandemic. This resulted in reduced production of the enzyme during the time. In 2020, leading enzyme suppliers like BASF had to stop their enzyme production and use that capability to manufacture hand sanitizers.
BASF, DuPont, Associated British Foods, Novozymes, DSM, Dyadic International, Advanced Enzymes Technologies, are the leading suppliers of enzymes. The global enzymes market features a highly consolidated landscape with the top five players contributing around 75% of the market share. Industry leaders are strengthening their presence through multiple mergers and acquisitions. Grand View Research will help our client identify the best-suited suppliers by mapping their core capabilities and operational efficiency.
Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process
Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier
Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house.
A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc.
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