The industrial enzymes market is estimated to be valued at USD 5.9 billion in 2020 and is projected to reach USD 8.7 billion by 2026, recording a CAGR of 6.5%, in terms of value. The growing environmental concerns and enzyme quality in food & beverages and feed, and the rising demand for bioethanol are factors that are projected to drive the growth of the industrial enzymes market globally.
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Market Dynamics
Drivers: Growing Environmental Concerns and Increasing Demand for Bioethanol
The depletion of non-renewable resources has increased the need for and importance of manufacturing bioethanol, which has a negligible impact on the environment. In countries with surplus agricultural capacity, ethanol produced from biomass can be used as a substitute, extender, or octane booster as an alternative for traditional motor fuels, such as gasoline, diesel, and kerosene. Bioethanol is prepared from agricultural waste containing corn stalks, leaves, bagasse of sugarcane, sugar beet, sorghum stalks, wheat, barley, rye, and by-products, such as whey from cheese making and potato processing waste streams. Toxic oxygenates in petroleum fuels can be replaced with biofuels, which also help in reducing pollution. The increase in demand for bioethanol has resulted in increased usage of enzymes, such as carbohydrases, lipases, and proteases, which are used for the production of bioethanol. Amylases are expected to be the major contributors in the bioethanol enzymes market due to their ability to sustain at a comprehensive range of temperatures and pH levels. The demand for bioethanol will give rise to the demand for bioethanol producing ingredients, where enzymes play a vital role in the production process. This factor is projected to drive the growth of the enzymes market.
Restraints: Stringent Regulatory Framework
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.
Opportunities: Demand for an Alternative to Synthetic Chemicals
Enzymes are recognized as alternatives to traditional chemicals and provide solutions to problems related to synthetic chemicals. Synthetic chemicals used in industrial processes pose a threat to 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 obtain maximum output. Enzymes are also used to improve the nutritional value of food and feed products. In addition, 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 environment-friendly.
Nowadays, 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.
Challenges: High Raw Material Costs Limiting the Usage of Enzymes
Industrial enzymes are majorly used to catalyze chemical reactions as they increase the rate of reaction that approaches toward stability. Enzymatic processes used in various industrial applications result in the reduction of prices of end products. However, this change is limited by the high cost of raw materials used in enzyme manufacturing. Enzymes are highly temperature-sensitive and can be denatured by even a small increase in temperature. They also become toxic with a change in pH, as they are sensitive to external factors in the manufacturing process. Enzymes are expensive to produce as they perform reactions for a specific period. Additionally, contamination of the enzyme with other chemical substances used in food & beverages can affect the chemical reaction, which would result in huge wastages. Therefore, these factors result in a rise in costs involved while considering enzymes as raw material, thereby creating a challenge for the market.
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The North American region dominated the industrial enzymes market with the largest share in 2019, whereas Asia Pacific is expected to witness the highest growth rate.
The industrial enzymes market in North America was dominant due to the increasing demand for enzymes in industrial applications. Technological innovations in machinery, optimization of production, logistics, and globalization of business have made the food & beverage industry one of the essential sectors in North America. However, the shift of industrial operations from developed regions, such as North America and Europe, to Asia Pacific, has further contributed to the growth of the industrial enzymes market in the Asia Pacific region. The use of industrial enzymes in textiles & leather and detergents has been fueling the market in the Asia Pacific region. Furthermore, European consumers have shown an inclination toward clean-label and organic products. This has enabled manufacturers to consider organic ingredients as major components of the products. Due to this, the industrial enzymes market in the European region is led by the growing focus on the production of food & beverages, owing to the functional benefits of enzymes.
This report includes a study on the marketing and development strategies, along with the product portfolios of leading companies. It consists of profiles of leading companies, such as BASF (Germany), Novozymes (Denmark), DuPont (US), DSM (Netherlands), Kerry Group (Ireland), Dyadic International (US), Advanced Enzymes (India), Chr. Hansen (Denmark), Amano Enzymes (Japan), Megazyme (Ireland), Aumgene Biosciences (India), Biocatalysts (UK), Enzyme Supplies (UK), Creative Enzymes (US), Enzyme Solutions (US), Enzymatic Deinking Technologies (US), Sunson Industry Group (China), MetGen (Finland), Denykem (UK), and Tex Biosciences (India).
