Enzymes are proteins which have the capability to convert a compound (substrate) into another product. Enzymes have catalytic reaction in the conversion of a compound into another product. The enzymes are therefore used in industrial applications such as food & beverages, cleansing agents, and animal feed. The usage of enzymes is cost-effective and eco-friendly.
The industrial enzymes consist of various enzymes and are broadly categorized into carbohydrases, proteases, lipases, phytase, catalase, and others. These enzymes are used in various industries such as dairy, biofuel production, textile & leather, and others. Rules and regulations imposed on industrial enzymes differ depending on its application.
The extensive requirement of carbohydrases in food processing, brewing, baking, and biofuel manufacturing has been the biggest driver for the industrial enzymes market. The industrial enzymes play a significant role in accelerating industrial processes and optimize the yield from the same quantity of raw material between the ranges of 5% to 8%.
Industrial enzymes: market prominence
The global market for industrial enzymes is expected to grow at a CAGR of 7.0% from 2015 to 2020. Industrial enzymes are used as catalysts to encourage chemical reactions and boost the production process. They are used for various chemical and industrial applications such as tannery, brewing, bakery, animal feed, and biofuel production. Depending on the application, different types of enzymes such as carbohydrases, proteases, lipases are used.
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The demand of industrial enzymes in various applications and the ability of industrial enzymes to act as a catalyst and increase the production have led to a growth of the industrial enzymes market. However, different regulatory structures in industrial production and safety & quality concerns of the products in which industrial enzymes are used restrain the growth of this market.
Factors driving the growth of the industrial enzymes market
Increasing demand for biofuel
The depletion of non-renewable resources has raised the need and importance of development of biofuels, which do not have negative impact on environment. Biofuel is prepared from agricultural waste containing corn stalks, leaves, bagasse of sugarcane, and sorghum stalks. Toxic oxygenates in petroleum fuels can be replaced by biofuels and help in reducing pollution. The increase in demand of biofuel has resulted in increase in demand of enzymes such as amylases, lipases, and proteases, which are used for the production of biofuel. Amylase enzymes are expected to be major contributors in the biofuel enzymes market owing to its ability to survive at a comprehensive range of temperatures and pH levels. Various enzymes such as amylases, lipases and proteases are used in the production of biofuel. With increase in demand of biofuel, the demand of these industrial enzymes has also increased.
Increase in demand for consumer products
As per IBIS World Business Environment Report of 2015, per capita disposable income is projected to grow at a CAGR of 1.5%. With increase in disposable income, the demand of consumer products such as food & beverages, cleansing agents, and leather products has increased.
Other reasons that enhance the application of enzymes in this industry are the benefits they render to processed food. These include freshness of end products, thereby prolonging the shelf life of convenience foods while preserving their flavor, color, and texture. Enzymatic hydrolysis of yeast and vegetable proteins produce peptides and amino acids, which act as taste enhancers in soups, sauces, ready-to-eat meals, canned and frozen food products, and others.
Demand of various food products, beverages, detergents, and textile & leather products has increased with increase in disposable income. To meet the increasing demand, the efficiency of production needs to be improved. Industrial enzymes help in increasing the efficiency of production, and hence the market for industrial enzymes witnesses continuous growth.
Investment in R&D for innovative industrial enzymes
Developments in biotechnology such as protein engineering and genetic engineering provide scope for R&D in industrial enzymes. The R&D will help the industry to use the technology in innovating new products and increase the production to meet the increasing demand of applications of industrial enzymes. Biotechnology helps in increasing the efficiency of developments of enzymes and improves the properties, which results in formation of next generation enzymes. These enzymes are used in biofuel production, leather & textile industry, and paper & pulp industry.
Regional dynamics in the industrial enzymes market
The North American region was the largest market, with a share of about 37% in 2015, followed by Europe with 24%. The North American market is known for its niche consumers, developed technologies, and global industrialization that drive the largest market share for industrial enzymes. The U.S. is the largest market for industrial enzymes accounting a share of 68% in 2014. Food & beverage, biofuel production industries, and cleaning agents contribute to a higher market share. According to NCBI (National Center for Biotechnology Information), Europe is the second largest market for the production and consumption of industrial enzymes.
The rising population, per capita income, healthcare expenditure, increase in awareness of diseases, buying power of population and the rapid growth in technologies find growing opportunities in Asia-Pacific and RoW. Countries such as China, India, South Africa, and Brazil have tremendous scope for the growth of the industrial enzymes market.
