The brewing enzymes market is estimated at USD 352.1 million in 2018. It is projected to reach USD 484.7 million by 2023, at a CAGR of 6.6% from 2018, in terms of value. The use of enzymes has become increasingly important in the brewing industry, as they accelerate the chemical reaction without a change in their own structure. To enhance the brewing process, commercial exogenous enzymes are used in various steps to make the brewing faster, easier, and more consistent. The demand for brewing enzymes in the beer segment is expected to witness significant growth in the near future, due to the rising popularity of beer consumption among young consumers, rise in technological innovations, and growth in the craft beer segment and number of microbreweries.
Drivers: Forecasted high cereal price trend
Despite the high production estimations for cereals, as per FAO estimates for 2017, their prices are expected to increase in the coming years owing to a forecasted downfall in output. Even with the improved availability of cereals and sugar in the global market, the price of both these commodities has seen a sharp rise. The FAO cereal index (a trade-weighted measure of the monthly change in international prices of food commodities namely sugar, cereals, dairy, meat, meat, and vegetable oils) also increased by 3.4% from December to a six month high.
Increasing per capita income driving beer consumption in Asia Pacific
Rapid economic and income growth, urbanization, and globalization are leading to a dramatic shift in the cultural patterns in the Asia Pacific region. The fast pace of lifestyles and consumer willingness to try out new alcoholic beverages is identified as a factor responsible for increasing beer consumption and subsequently driving the demand for brewing enzymes. Higher levels of income are resulting in a higher demand for alcohol and subsequently driving the demand for beer and wine. The nominal per-capita income is estimated to grow at a CAGR of ~8%, which is expected to fuel the growth of the beer industry and is expected to result in high demand for brewing enzyme.
Restraint: Lack of Uniformity in Regulations
The manufacturers of enzymes are required to comply with regulations imposed by different governing agencies such as the Enzyme Technical Association (ETA), Association of Manufacturers & Formulators of Enzyme Products (AMFEP), and the Food and Drug Administration (FDA). Enzymes in the food industry are required to adhere to the guidelines defined by the Food Chemicals Codex as well. There is lack of a uniform regulatory structure for the use of industrial enzymes, even though stringent regulations are imposed for their in industries in the UK, Canada, and the European Union.
The brewing enzymes market includes players such as Novozymes (Denmark), DSM (Netherlands), DowDuPont (US), Amano Enzyme (Japan), Chr. Hansen (Denmark), Associated British Foods (UK), Kerry Group (Ireland), Brenntag (Germany), Enzyme Development Corporation (US), Aumgene Biosciences (India), Biocatalysts (UK), and Enzyme Innovation (US).
