ID: MRFR/F-B & N/6622-CR | 110 Pages | Author: Snehal Singh | November 2022
The Global Industrial Enzymes Market Anticipated to Reach CAGR of 6.27% and reach a value of USD 10,807.10 million by 2030.
Living organisms from man to bacteria are maintained by biological catalysts called enzymes. Enzymes are made from proteins and have been evolving over millions of years to perform very specific biochemical jobs. Some enzymes are responsible for building chemical compounds up while others are responsible for either breaking them down or modifying compounds. These reactions include the breaking down of chemical bonds. The role of enzymes is to make sure these reactions occur much faster and hence they are referred to as catalysts. The great potential applications of enzymes were first recognized and exploited by industrialists. This is because they realized that if they could speed up the rates of reactions, then production processes could be done in lesser time than normal. In fact. These reactions could even be performed at lower temperatures and low pressures.
Developments in genetic and protein engineering have led to improvements in the stability, economy, specificity, and overall application potential of industrial enzymes. A laccase is used in a chlorine-free denim bleaching process which also enables a new fashion look. A glucosyltransferase is used in the food industry to produce functional sweeteners. Hydrolases are by far the most widely used class of enzymes in industry. An alpha-acetolactate decarboxylase is used to shorten the maturation period after the fermentation process in beer brewing. In starch processing, after hydrolyzing it to glucose, a glucose isomerase is used to convert glucose into fructose, which increases the sweetness of the syrup
COVID-19 Impact Analysis
Global Industrial Enzymes Market was facing a pre-lockdown decline in business due to disruption of supply chains. The pandemic stopped cash flows, while migration of workers caused much distress. The COVID pandemic has mainly affected micro, small and medium enterprises (MSMEs), which are facing closure owing to problems like a lack of working capital and labor. During this pandemic, several countries including China, India, Germany, Italy, Brazil, and Canada declared complete lockdown. This further led to the shutdown of production facilities, and raw material transportation. This epidemic has severely affected the supply chain of numerous manufacturing units. Since, both raw material supply and finished goods distribution is majorly affected, causing a massive drop in revenue. China is a major consumer of materials and an epicenter of coronavirus, thus, inhibiting the development of the market. Restrictions over export and import of products such as tires, general, and industrial goods acts as a factor for the decline of the market. Major food manufacturers have either sharply reduced their operations or shuttered their facilities.
For instance, BASF SE suspended its manufacturing operations across India. However, the global situation normalizing and the industry returning to its usual pace offers various growth opportunities for improving the industry’s performance. As the recovery initiates, market players are trying to recuperate the losses by strategic alliances and expanding their production bases, which is also anticipated to boost the market growth.
The Global Industrial Enzymes Market is projected to register a CAGR of 6.27% during the projected period. The growing demand from food and beverages applications acts as one of the significant factors for the rising growth of the global Industrial Enzymes market during the forecast period. Moreover, making the industries more environmentally friendly to propel the growth of the global Industrial Enzymes market during the review period. However, lack of standard regulatory scenario is anticipated to restrict the growth of the market. Demand for natural substitutes of synthetic chemicals to offer a lucrative opportunity to the manufacturers of the global Industrial Enzymes market.
Food processing industries like the baking industry, brewing, and fruit juice industry are currently the largest user of food enzymes. This is the fastest-growing application segment, mainly supported by the ever-growing global population and its increasing purchasing power. Health awareness is also a factor for people‘s increasing demand for food quality, safer production processing, and improved nutritional value. The increasing demand for high-quality foods in terms of natural flavor and taste has become a common trend among present consumers. This trend triggered the need for the development of flavored and tasty processed foods using industrial enzyme applications.
These enzymes act as catalysts by playing important roles in the breaking down of vitamins and nutrients in the metabolic reactions and inter-conversion of complex molecules to smaller molecules. Food enzymes, such as amylase, cellulase, xylanase, pectinase, protease, lipase, glucosyltransferase, arabinanase, polygalacturonanace, chymosin, and beta-glucanase, among others, have become an essential part of the global food additives industry. The food industry is continuously involved in developing new dairy products, beverages, and food items for consumers. With the development of new products in the food and beverage industry, the application of enzymes in the industry has continuously increased. With the increased innovation and development of technologies in the food industry, industrial enzymes have found extensive applications in fat modification and sweetener technology, thereby driving the industrial enzymes market. All the aforementioned factors are expected to increase the market demand for industrial enzymes during the forecast period.
Different regulatory structures, about the handling and safety of the enzymes, and the high sensitivity of the enzymes to environmental factors like excess light, pH, humidity, and temperature are restraining the growth of the market. The Association of Manufacturers & Formulators of Enzyme Products (AMFEP) states that enzymes that are used in the production of paper & pulp, bioethanol, and textile & leather need to take registration under the EU REACH Regulation before the manufacturing process or imported into the EU in a volume under one ton per year. Manufacturers of enzymes need to comply with the regulations imposed by different governing agencies, such as the Enzyme Technical Association (ETA), Association of Manufacturers & Formulators of Enzyme Products (AMFEP), and EU REACH (Registration, Evaluation, and Authorization of Chemicals) Regulation. The use of enzymes in the food industry is required to adhere to the guidelines defined by the Food Chemicals Codex. There is a lack of a uniform regulatory structure for the use of industrial enzymes, even though stringent regulations are imposed for their use in industries in the UK, Canada, and the European Union
According to the Association of Manufacturers & Formulators of Enzyme Products (AMFEP), enzymes that are used in bioethanol, paper & pulp, and textile & leather processing need to be registered under the EU REACH Regulation [Regulation 1907/2006 (for “Registration, Evaluation, and Authorization of Chemicals”)] before they are manufactured or imported in the EU in a volume under one ton per year. In Europe, the European Chemicals Agency (ECHA) is the authorized body to supervise the registration process. These regulations need to be followed by manufacturers in terms of labeling, packaging, and mixing products before placing them in the market. These guidelines are approaches to check the safety of enzymes for each application. Different regulatory structures affect international trade, which is a restraining factor for the growth of the enzymes market.
Enzymes are recognized as alternatives to traditional chemicals and provide solutions to problems related to synthetic chemicals. Synthetic chemicals used in industrial processes threaten the environment as they are harmful. Enzymes, such as carbohydrases, which are derived from plants and microorganisms, have no negative impact on the environment as they work under mild conditions, thus reducing energy consumption and decreasing greenhouse gas emissions. Carbohydrases derived from plants and microorganisms are utilized in the textile, starch processing, and bioethanol production industries. The leather industry has switched to proteases and trypsin over lime and sulfides to obtain high yields with cleaner products. Amylase and protease are used in the bakery industry to get maximum output. Enzymes are also used to improve the nutritional value of food and feed products. Enzymes reduce water consumption and chemical waste and decrease by-product generation, posing negligible risks to humans and the ecosystem. Hence, the use of enzymes is considered cost-effective, safe, and environmentally friendly. Products that are made from chemical processes pose a threat to human lives, as well as affect the environment. Most industrial manufacturing companies are replacing chemical products that are toxic to the environment with safer and naturally derived products. Thus, the market for enzymes, as substitutes for synthetic chemicals, is projected to witness growth.
Based on source, the global industrial enzymes market has been segmented into Plant, Animal, and Microorganisms. The microorganisms segment accounted for the larger market share of 76.33% in 2021 while the plant segment is expected to exhibit a higher CAGR of 6.81% during the review period
Based on Type, the global industrial enzymes market has been segmented into Carbohydrases, Proteases, Lipases, and Others. The Carbohydrases segment accounted for the largest market share of 41.74% in 2021 whereas the others segment is projected to register the highest CAGR of 6.43% during the review period.
Based on application, the global industrial enzymes market has been segmented into food & beverages, animal feed, detergent & cleaners, personal care, pharmaceuticals & nutraceuticals, and others. Food and Beverages is further bifurcated into bakery & confectionery, dairy & frozen desserts, breweries & distillers, sweet & savory snacks, and others. The food and beverages segment accounted for the larger market share of 40.89% in 2021 whereas the others segment is expected to exhibit a higher CAGR of 7.07% during the review period
Global Industrial Enzymes Market Share, by Region, 2021 (%)Sources: MRFR Analysis
By region, the Global Industrial Enzymes Market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. North America accounted for the largest market share of 43% in 2021. Asia-Pacific was the second-largest market in 2021 and is expected to register the highest CAGR of 7.04% during the forecast period.
North America accounted for the second market share of around 42.59% in terms of revenue in 2021. The region is projected to dominate the global Industrial Enzymes market during the forecast period. The market in North America is anticipated to grow at a CAGR of 5.51% from 2022 to 2030. The United States occupies the top position in the global industrial enzymes market. The country has the largest revenue share globally, owing largely to beverage and biofuel production. The increasing demand for craft beer is likely to be responsible for the growth of the industrial enzymes market. The food and beverage applications dominated the US industrial enzymes market, accounting for more than half of the total market share in 2021. The industrial enzymes market is witnessing rapid growth in Mexico due to the increasing demand for processed food and increased applications of enzymes in the processed food industry, which are driving the demand for industrial enzymes in Mexico. In Canada, the demand for baked goods has moved from the traditional bread consumption trend to the increasing consumption of bakery goods, such as pancakes, cupcakes, croissants, and rolls. This, in turn, is likely to drive the demand for industrial enzymes used in the food and beverage industry.
Asia Pacific is anticipated to be the fastest growing market from 2022 to 2030. It is estimated to grow at the highest CAGR during the forecast period. Owing to significant growth in the healthcare, food & beverage, and chemical sectors. Rapid population growth and rising consumer expenditure are driving the market growth in the region. The presence of the largest enzyme companies, rising sales of yeast enzymes, and increasing demand for enzymes in textile processing are driving the market expansion in the region. Especially in countries such as China and Japan. The increasing industrial developments in these regions have also contributed to the growing adoption of enzymes for the production process. Additionally, companies are developing new enzymes and production processes to suit the ever-increasing market requirements. Increased demand for carbohydrase enzymes and protease enzymes in pharmaceutical and food applications is driving the market growth in China.
In Australia, the demand for food enzymes is on the rise due to the restriction in the use of chemical additives in bakery products. The market for enzymes in food and beverages is expected to develop due to its properties as important healthy food additives. Changes in consumer preferences, as well as trade liberalization, have increased demand for meat and meat products in the country. The adoption of Western diets that are associated with the growing demand for bakery products, dairy products, and beverages continue to increase in the region.
The market comprises tier-1, tier-2, and local players. The tier-1 and tier-2 players have a global reach and diverse product portfolios. Companies such as Novozymes (Denmark), DuPont (US), and BASF (Germany) dominate the global market due to brand reputation, product differentiation, financial stability, and diversified regional presence.
Prominent players in the Global Industrial Enzymes Market include Chr. Hansen Holding A/S (Denmark), BASF (Germany), DuPont de Nemours (US), Inc, Koninklijke DSM N.V N.V (Netherlands), Novozymes (Denmark), Advanced Enzyme Technologies Ltd (India), Adisseo (China), Dyadic International, Inc (US), Kerry Group PLC (Ireland), and Amano Enzyme Inc (Japan).
Few developments that occurred in recent times influencing the market growth of Industrial Enzymes are listed below:
|Market Size||USD 10,807.10 million|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By source, Type. Application, region|
|Geographies Covered||North America, Europe, Asia Pacific|
|Key Vendors||Chr. Hansen Holding A/S (Denmark), BASF (Germany), DuPont de Nemours (US), Inc, Koninklijke DSM N.V N.V (Netherlands), Novozymes (Denmark), Advanced Enzyme Technologies Ltd (India), Adisseo (China), Dyadic International, Inc (US), Kerry Group PLC (Ireland), and Amano Enzyme Inc (Japan).|
|Key Market Opportunities||Demand for natural substitutes of synthetic chemicals|
|Key Market Drivers||Lack of standard regulatory scenario|
Incorporated (US), Codexis Incorporated (US), BASF SE (Germany), Associated British Foods PLC (UK), Chr. Hansen Holding A/S (Denmark), Koninklijke DSM N.V. (Netherlands), Dyadic International Inc. (US), Advanced Enzyme Technologies Ltd (India), Lesaffre (France), Adisseo (China), Amano Enzyme Inc. (Japan), AB Enzymes (Germany), Novozymes A/S (Denmark), BioResource International Inc. (US), Cargill, and DowDuPont (US).
Textiles, feed, pharmaceuticals & nutraceuticals, food & beverages, detergents & cleaning, and others.
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