Enzymes Market

According to MarketsandMarkets, the global enzymes market size is estimated to be valued at USD 14.0 billion in 2024 and is projected to reach USD 20.4 billion by 2029, recording a CAGR of 7.8%. The growth of the enzymes market is fueled by key factors such as a notable surge in demand for processed foods, driven by changing consumer lifestyles and preferences. This trend necessitates the use of enzymes to improve the quality, texture, and shelf-life of these products. Enzymes find expanding applications across various industries, including pharmaceuticals, biofuels, textiles, and more, contributing to their widespread adoption and market growth.

The expanding business has offered lucrative business opportunities to the players who are operating in the market segments. For instance, in June 2023, Kerry Group plc. introduces Biobake EgR, an innovative enzyme solution that reduces egg usage in various baking applications, allowing European manufacturers to switch to free-range or organic eggs without increasing costs. Other major players, such as Dyadic International, Inc (US), Dyadic International entered a development and exclusive license agreement to commercialize non-animal dairy enzymes with Dapibus, receiving a USD 0.6 million upfront payment in October 2023. The company achieved the target yield for a milestone payment, pending partner verification, and is progressing well with developing a second enzyme. This boosts Dyadic's market position.

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Enzymes Market Dynamics

Drivers: Growing environmental concerns and increasing demand for biofuel

The depletion of non-renewable resources has heightened the need for manufacturing biofuels, which have minimal environmental impact. In countries with surplus agricultural capacity, ethanol derived from biomass presents a viable alternative to traditional motor fuels like gasoline, diesel, and kerosene. This ethanol can serve as a substitute, extender, or octane booster. Biofuels are produced from agricultural waste materials such as corn stalks, leaves, sugarcane bagasse, sugar beet, sorghum stalks, wheat, barley, rye, and by-products from industries like cheese-making and potato processing. Biofuels offer a significant advantage by replacing toxic oxygenates in petroleum fuels, thus contributing to pollution reduction. The growing demand for biofuels has led to increased usage of enzymes, including amylases, lipases, cellulase, and proteases, which are essential in the biofuel production process. Among these, amylase enzymes are expected to dominate the biofuel enzymes market due to their robust performance across a wide range of temperatures and pH levels.

Additionally, the adoption of advanced biotechnological methods has improved the efficiency and yield of biofuel production. Innovations in enzyme engineering and biomass processing technologies are further enhancing the economic viability and environmental benefits of biofuels, making them a crucial component of sustainable energy strategies. Biofuels such as bioethanol are produced from biomass. According to OECD-FAO Agricultural Outlook 2019, about 60% of the ethanol is produced from corn, 25% from sugarcane, 7% from molasses, and 4% from wheat and other grains. Furthermore, according to the OECD-FAO Agricultural Outlook 2019–2028, the international biofuel sectors are strongly influenced by national policies with three major goals: reduced greenhouse gas emissions, farmer support, and reduced energy independence. Moreover, the demand for biofuels is expected to grow in developing countries due to developments in transportation fleets and domestic policies that favor demand at the consumer level. These factors are projected to drive the demand for biofuels in most regions.

Restraints: Stringent regulatory framework

Manufacturers of enzymes are required to adhere to various regulations imposed by different governing agencies, including the Enzyme Technical Association (ETA), the Association of Manufacturers & Formulators of Enzyme Products (AMFEP), and the EU REACH (Registration, Evaluation, and Authorization of Chemicals) Regulation. For enzymes used in the food industry, compliance with the guidelines set forth by the Food Chemicals Codex is mandatory. Despite stringent regulations in countries such as the UK, Canada, and the European Union, there is no uniform regulatory framework for the use of industrial enzymes globally. According to AMFEP, enzymes utilized in industries such as biofuels, paper & pulp, and textile & leather processing must be registered under the EU REACH Regulation (Regulation 1907/2006) before they are manufactured or imported into the EU in volumes exceeding one metric ton per year. The European Chemicals Agency (ECHA) oversees the registration process in Europe, ensuring that manufacturers comply with requirements related to labeling, packaging, and mixing of products before market placement. These regulations are designed to ensure the safety and efficacy of enzymes for their intended applications.

Additional considerations include the need for manufacturers to stay updated on regional variations in regulatory requirements, as compliance can significantly impact market access and operational processes. For instance, failure to adhere to EU REACH regulations can result in penalties and restricted market entry, underscoring the importance of rigorous compliance practices in enzyme manufacturing.

Opportunities: Demand for alternatives to synthetic chemicals

Enzymes are increasingly recognized as viable alternatives to traditional synthetic chemicals, offering environmentally friendly solutions to industrial challenges. Synthetic chemicals pose significant environmental threats due to their harmful nature. In contrast, enzymes like amylase and cellulase, derived from plants and microorganisms, operate under mild conditions, reducing energy consumption and greenhouse gas emissions. These enzymes are utilized in industries such as textile processing, starch processing, and biofuel production. The leather industry, for example, has adopted proteases and trypsin instead of lime and sulfides, achieving higher yields and cleaner products. Similarly, amylase and protease are employed in the bakery industry to maximize output.

Additionally, enzymes enhance the nutritional value of food and feed products, reduce water consumption, minimize chemical waste, and decrease by-product generation, posing negligible risks to humans and the ecosystem. Thus, enzymes are considered cost-effective, safe, and environmentally friendly. As products undergoing chemical processes increasingly present risks to human health and the environment, many industrial manufacturing companies are transitioning to safer, naturally derived alternatives. Consequently, the market for enzymes as substitutes for synthetic chemicals is anticipated to grow.

Challenges: Excessive Costs of Raw Materials Limiting Enzymes Usage

The excessive cost of raw materials can be a significant barrier to the use of industrial enzymes in some applications. Enzymes are typically produced using microbial fermentation processes requiring specialized equipment and nutrient-rich media, such as sugars, amino acids, and minerals. These raw materials can be expensive, and their availability can be subject to fluctuations in supply and demand.

In addition to the cost of raw materials, the cost of downstream processing, purification, and formulation can also contribute to the overall cost of industrial enzymes. These processes are necessary to isolate and purify the enzymes from the fermentation broth and formulate them into a stable and effective product for industrial applications. The excessive cost of industrial enzymes can limit their adoption in applications where cost is critical, such as in commodity markets or low-margin industries. This can also limit their adoption in developing countries, where the cost of enzymes may be prohibitive for small and medium-sized enterprises.

The Enzymes Market Ecosystem

The specialty enzymes segment is projected to hold a significant market share in the enzymes market during the forecast period.

Specialty enzymes play a critical role in the pharmaceutical and biotechnology industries. These enzymes are essential in biopharmaceutical production, including monoclonal antibodies and gene therapies, where precision and specificity are paramount. For instance, the enzyme proteinase K is widely used in DNA and RNA extraction processes for genomic research, which has seen increased demand due to advancements in personalized medicine and diagnostics. The specialty enzymes segment benefits from significant R&D investments and innovations. Companies like Novozymes A/S (Denmark) and dsm-firmenich (Switzerland) are focusing on developing novel enzymes with improved stability and activity for specific industrial applications. For example, in May 2023, dsm-firmenich launched Maxilact Next speeds milk processing by 25%, optimizing lactose-free dairy production and efficiency without altering taste. Furthermore, regulatory support for biopharmaceuticals and the increasing prevalence of chronic diseases requiring advanced treatments contribute to the growth of specialty enzymes, solidifying their market dominance.

The plant-derived enzymes segment holds a significant market share in the enzymes market.

The use of amylase derived from barley and wheat in the brewing industry. Amylase is critical for breaking down starches into fermentable sugars, which improves the efficiency and quality of beer production. Additionally, pectinase, sourced from fruits like apples and oranges, is extensively used in the juice and wine industries to clarify beverages and increase juice yield. Plant enzymes also play a crucial role in the growing market for plant-based and vegan products. For instance, transglutaminase, derived from plant sources, is utilized in meat alternatives to improve texture and binding properties, addressing the increasing consumer demand for sustainable and ethical food options. This trend is supported by the rising popularity of plant-based diets, which boosts the market for plant-derived enzymes. Moreover, companies like Novozymes have invested significantly in developing plant-based enzyme solutions tailored to specific industry needs. In March 2020, Novozymes A/S (Denmark) introduced Saphera Fiber, a lactase enzyme derived from plants, designed to increase fiber content in dairy products while reducing sugar levels, catering to health-conscious consumers.

The market growth is also driven by advancements in enzyme extraction and formulation technologies, which enhance enzyme stability and functionality. The scalability of plant enzyme production, combined with regulatory support for natural and non-GMO ingredients, further solidifies the plant segment's substantial market share in the enzyme industry.

The textile and leather industries hold a significant market share in the industrial application of enzymes.

In the textile industry, enzymes like amylases, cellulases, and laccases are extensively used. Amylases remove starch-based sizes from fabrics without damaging fibers, improving fabric quality and reducing water consumption. Cellulases, particularly in denim processing, create a desirable stone-washed effect without the use of pumice stones, reducing water and energy use. For example, Novozymes' Cellusoft is a cellulase product that enhances fabric softness and appearance while being environmentally friendly.

The leather industry benefits significantly from proteases and lipases, which streamline the soaking, bating, and degreasing processes. Proteases like NovoCor AD from Novozymes A/S efficiently break down non-collagen proteins, improving hide quality and reducing chemical use. Similarly, lipases help in degreasing hides, ensuring cleaner and higher-quality leather. AB Enzymes' LEATHERZYME P range offers specific solutions for different stages of leather processing, enhancing efficiency and product quality.

Adopting these enzymatic solutions aligns with the industries' growing focus on sustainability and regulatory compliance. Enzymes reduce the need for harsh chemicals, lower energy consumption, and minimize water pollution, addressing stringent environmental regulations and consumer demand for eco-friendly products. This drive towards greener and more efficient production processes underpins the significant market share held by the textile and leather sectors in the industrial enzyme market.

By specialty enzyme applications, the pharmaceuticals segment is projected to hold the highest market share during the forecast period

In drug formulation, enzymes like immobilized lipases are critical for synthesizing chiral intermediates, which are crucial in creating enantiomerically pure drugs. For example, the production of statins, widely used to lower cholesterol, relies on specialty enzymes to ensure the precise construction of their complex molecular structures.

In biopharmaceutical production, enzymes such as trypsin and pepsin are indispensable. Trypsin, specifically, is used in the manufacturing process of insulin and monoclonal antibodies. These enzymes facilitate protein cleavage and purification, ensuring the production of high-purity biopharmaceutical products. For instance, Genentech's production of monoclonal antibodies incorporates enzymatic processing steps that are crucial for achieving therapeutic-grade purity.

Moreover, the pharmaceutical industry's stringent quality and regulatory standards necessitate the use of high-purity specialty enzymes. Enzymes like DNA polymerases are vital in PCR (polymerase chain reaction) and qPCR (quantitative PCR) technologies. These techniques are fundamental in genetic testing and molecular diagnostics, including COVID-19 testing, where enzymes ensure the accuracy and reliability of diagnostic results. Companies like Thermo Fisher Scientific have developed advanced polymerase enzymes tailored for high-performance diagnostic applications.

Asia Pacific is poised to experience the highest CAGR in the Enzymes market during the forecast period.

The region's food and beverage sector is rapidly expanding due to rising consumer demand for processed foods and beverages. For example, the demand for convenience foods and beverages in countries like China and India is soaring, driving the need for food-processing enzymes. According to Nestlé India Annual Report, 2023, Nestlé has committed to investing USD 700 million in expanding its manufacturing capabilities to meet the rising consumer demand for processed foods.

The region's pharmaceutical and biotechnology sectors are also expanding rapidly. According to the India Brand Equity Foundation, 2023, India's pharmaceutical industry, which contributes over 20% of the global generics market, relies heavily on enzymes for drug production.

Environmental regulations and sustainability initiatives further drive market growth. China's stringent environmental policies, such as those outlined in the 14th Five-Year Plan, emphasize reducing industrial pollution, which promotes the use of enzyme-based solutions. These policies have led to a projected 10% annual growth in the industrial enzymes market in China.

Advancements in biotechnology and increased R&D investments enhance enzyme production capabilities. Japan and South Korea are at the forefront of biotechnological innovations, with South Korea investing over USD 2.5 billion annually in biotechnology R&D (OECD, 2023). These factors collectively contribute to the region's fast-paced market expansion.

Asia Pacific: Enzymes Market Snapshot

Key Market Players

• Key players in this market include BASF SE (Germany), International Flavors & Fragrances Inc. (US), dsm-firmenich (Switzerland), Associated British Foods plc (England), Novozymes A/S (Denmark), Kerry Group plc. (Ireland), Dyadic International Inc (US), Advanced Enzyme Technologies (India), Aumgene Biosciences (India), Amano Enzyme Inc (Japan), F. Hoffmann-La Roche Ltd (Switzerland), Codexis, Inc. (US), Sanofi (France), Merck KGaA (Germany), Adisseo (China)

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Scope of the Report

Target Audience:

• Enzyme raw material suppliers
• Industrial enzyme manufacturers
• Specialty enzyme manufacturers
• Intermediate suppliers such as traders and distributors of enzymes
• Manufacturers of food & beverages, biofuels, detergents, textile & leather, paper & pulp, wastewater treatment, feed, and others
• Government and research organizations
• Associations, regulatory bodies, and other industry-related bodies

Report Scope:

Enzymes Market:

Enzymes Market, By Product Type

• Industrial Enzymes
• Specialty Enzymes

Enzymes Market, By Source

• Microorganisms
• Plant
• Animal

Enzymes Market, By Type

• Carbohydrases
• Proteases
• Lipases
• Polymerases & Nucleases
• Other enzymes

Enzymes Market, By Reaction Type

• Hydrolases
• Oxidoreductases
• Transferases
• Lyase
• Others

Industrial Enzymes, By Application

• Food & Beverage
• Bioethanol
• Textiles & Leather
• Detergents
• Paper & Pulp
• Wastewater Treatment
• Feed
• Soil Treatment
• Oil Treatment
• Other Applications

Specialty Enzymes, By Application

• Pharmaceuticals
• Research & Biotechnology
• Diagnostics
• Biocatalysts

By Region

• North America
• Europe
• Asia Pacific
• South America
• Rest of the World (RoW)

Recent Developments

• In January 2024, Novozymes and Chr. Hansen has completed their merger, resulting in the establishment of Novonesis. As a bio solutions partner, Novonesis aims to enhance business, promote healthier lives, and support a healthier planet. The combined expertise of the company spans over 30 different industries.
• In December 2023, IFF and Kemira (Finland) are collaborating to commercialize renewable polymers from IFF's Designed Enzymatic Biomaterials (DEB) technology, integrating production into Chemigate Ltd’s biorefinery in Finland by mid-2024. This innovation addresses the demand for sustainable alternatives in pulp, paper, water treatment, and other markets. By expanding DEB technology, IFF will offer high-performance, sustainable materials, enhancing its enzyme industry presence and supporting a circular bioeconomy.
• In March 2023, BASF and Cargill (Provimi) are expanding their partnership to South Korea, marking their first Asian market. This collaboration introduces Enzae Manno (Cargill), made with Natupulse TS, to South Korean animal protein producers, combining BASF's enzyme R&D strengths with Cargill's market reach. This partnership aims to enhance productivity, sustainability, and cost-efficiency in animal feed. By extending its geographic reach and launching innovative enzyme solutions.

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