Industrial Enzymes Market

Industrial Enzymes Market Overview (2024-2029)

The industrial enzymes market size is projected to reach USD 11.2 billion by 2029 from USD 7.9 billion in 2024, at a CAGR of 7.2% during the forecast. The industrial enzymes market growth is driven primarily by rising demand from different manufacturing sectors, like food and beverages, biofuel, etc. Enzymes are the most sustainable alternatives to conventional chemical processes. Advances in biotechnology and protein engineering has greatly expanded applications and made industrial enzymes more effective. Enzyme applications are promoted by governmental support and strict environmental legislation. For example, the U.S. Toxic Substances Control Act and the Canadian Environmental Protection Act, stimulate the use of eco-friendly enzyme technologies. Additionally, with this increased orientation towards clean labels and organic foods in the world, there is a growing trend in the use of enzymes since they comply with the latter requirements, meaning natural and sustainable ingredients. This is anticipated to increase the industrial enzymes market value.

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Market Dynamics

Driver: Switch toward renewable sources of energy to lead to increased consumption of bioethanol

A rise in demand for renewable energy, mainly bioethanol, drives the market for industrial enzymes. This is coupled with environmental concerns and a vision to minimize emissions of greenhouse gases. Overexploitation of resources and air pollution have heightened the focus towards sustainable alternatives. Bioethanol, produced by enzymatic hydrolysis, is a much cleaner alternative compared to traditional fuels like gasoline. On the other hand, the production of bioethanol involves enzymes such as amylases, cellulases, lipases, and proteases; therefore, growth in this sector is bound to benefit the industrial enzymes market. Added to this is a move toward renewable energy, also covered by government initiatives and policies that have very ambitious goals regarding clean energy, hence powering the industrial enzymes market.

Restraint: Actions of enzymes restricted to various external factors

The major problem related to the industrial enzymes market is that the sensitivity of enzymes to the environmental conditions may be pretty high. Temperature changes, extreme pH values, high salt, radiation, natural solvents, and usage of organic solvents may lead to a reduction in enzyme activity or in its denaturation. The exposure of enzymes to oxygen during aerobic processes can also lead to oxidation, and heavy metals may cause functional inhibition because of direct binding in the active sites, such as lead and mercury. Although there are attempts to design enzymes that work under wider conditions, environmental factors still make up one of the main limitations that restrict the general application of enzymes in manufacturing processes for food and beverages and affect their overall effectiveness and stability.

Opportunity: Innovations in technologies and wide industry scope

The industrial enzymes market holds immense potential for huge growth with new technological innovations. Bioprocessing advances let it produce enzymes from a wide array of feedstocks for improved sustainability. Genomics and metagenomics enable the discovery of new enzymes for specific industrial applications to degradation lignocellulosic biomass. Meanwhile, automation and artificial intelligence increase efficiency and precision in producing enzymes through fermentation processes and the optimization of enzyme formulations. Industrial enzymes players like DSM also contribute to this growth by innovations in low-glycerol yeast technology to produce bioethanol to reduce the environmental problems caused by conventional fuels.

Challenge: High costs of raw materials limiting enzymes usage

One of the major challenges faced by the industrial enzymes market companies is the high cost of raw materials, and nutrient-rich media required for microbial fermentation. Such costs are prone to fluctuations depending on demand and supply, making the enzyme a bit expensive to produce. On the other side, downstream processing, purification, and formulation raise costs, thus hindering the diffusion of enzymes in cost-sensitive applications like commodity markets and low-margin industries. This becomes particularly daunting in developing countries, where high enzyme costs are out of the reach of SMEs, thus limiting further market penetration and use.

INDUSTRIAL ENZYMES MARKET ECOSYSTEM

Key players within this market consist of reputable and financially robust industrial enzymes manufacturers. These entities boast extensive industry tenure, offering diversified product portfolios, cutting-edge technologies, and robust global sales and marketing networks. Prominent companies in this market are BASF (Germany), Novozymes (Denmark), DuPont (US), DSM (Netherlands), Associated British Foods plc (UK), Kerry Group plc (Ireland), Advanced Enzyme Technologies (India), Chr. Hansen Holding A/S (Denmark), Amano Enzyme Inc. (Japan) and Megazyme Ltd. (Ireland).

Food & Beverages application of industrial enzymes is estimated to dominate market share during the forecast period.

One of the major factors behind the rapid growth of the industrial enzymes market in the food and beverage industry is the growing demand from customers for natural, sustainable, and healthier food products. Since they can retain natural features and at the same time offer higher efficiency during food processing, enzymes become attractive to health-conscious consumers. They also play a very key role in the formulation of new products, such as plant-based, lactose-free, and gluten-free, which continue to surge in popularity as eating habits change. The ability of enzymes to enhance texture, flavour, and shelf life adds another element that gives them impetus in demand. As the food business becomes more innovative, the value of enzymes grows, and their exponential growth in the industry gains momentum.

In the type segment, carbohydrases segment is estimated to dominate market share during the forecast period

High growth in carbohydrases segment of industrial enzymes can be accredited by several key factors. An increased demand for processed foods, where most of them need improvement in texture, flavour, and shelf life, fuelling the demand of carbohydrases enzymes. These enzymes help in the breakdown of the complex carbohydrates into simple sugars and therefore play a very vital role in the industries of baking, brewing, and production of biofuels. Also, the demand for healthier formulations is driving the carbohydrases market as it reduces sugar content in the food products. Carbohydrases hydrolyse starches to sugars, which facilitates the manufacturer to produce less caloric sweeteners. Furthermore, because of the need for renewable energy sources, biofuel production is on the rise, which, in turn, fuels the demand for carbohydrases. These enzymes are key to the conversion of biomass to fermentable sugars.

The industrial enzymes market in the Asia Pacific region is expected to grow at the highest CAGR during the forecast period.

The growth in the industrial enzyme market in the Asia-Pacific region has been rapid because of the expanding food and beverage industries, which make use of enzymes to improve the quality and shelf life of products. An increasing interest in biofuels due to governmental initiatives helps augment the usage of enzymes in the production of bioethanol. Another end-use application, the textile industry, is growing rapidly in this region, and this eco-friendly application from enzymes adds to the demand. Agricultural improvements, especially pertaining to sustainable farming, further add to the adoption of enzymes.

Key Market Players

The key players in the industrial enzymes market include BASF (Germany), Novozymes (Denmark), DuPont (US), DSM (Netherlands), Associated British Foods plc (UK), Kerry Group plc (Ireland), Advanced Enzyme Technologies (India), Chr. Hansen Holding A/S (Denmark), Amano Enzyme Inc. (Japan) and Megazyme Ltd. (Ireland). These market participants are emphasizing the expansion of their footprint via agreements and partnerships. They maintain a robust presence in North America, Asia Pacific, South America, RoW, and Europe, and they are supported by manufacturing facilities and well-established distribution networks spanning these regions.

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Scope of the Report

Target Audience

• Industrial enzymes traders, retailers, and distributors.
• Industrial enzymes manufacturers & suppliers.
• Related government authorities, commercial research & development (R&D) institutions. 
• Regulatory bodies, including government agencies and NGOs.
• Commercial research & development (R&D) institutions and financial institutions.
• Government and research organizations.
• Venture capitalists and investors.   
• Technology providers to industrial enzymes companies.
• Associations and industry bodies.   

Industrial enzymes Market Segmentation:

By Type

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

By Source

• Microorganism
• Plant
• Animal

By Application

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

By Formulation

• Lyophilized Powder
• Liquid
• Dry

By Region:

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

Recent Developments

• In January 2023, BASF (Germany) and Cargill (US) extended the existing cooperation to the production and marketing of feed enzymes in the US. The two enterprises have been working on innovative enzyme-based solutions at present, adding value to animal feed customers. Partners will establish an innovation pipeline for animal protein producers by combining the competencies of BASF in enzyme research and development and that of Cargill in application and broad market presence.
• In November 2022, Novozymes (Denmark) introduced Frontia Prime, a next-generation corn separation enzyme. Manufacturers of maize starch and sweeteners will be able to increase their yields, reduce energy consumption, and lower CO2 emissions with this new enzymatic solution.
• In May 2022, the global taste and nutrition leader, Kerry Group plc. (Ireland), has officially opened the single largest and most advanced flavor manufacturing facility on the African continent. This new USD 41.1 million investment will supply sustainable nutrition products throughout Africa from KwaZulu-Natal, South Africa. This project has been identified as a crucial strategic investment in the KwaZulu Natal region and South Africa's food manufacturing sector. It has been selected as one of the Presidential investment drive components for sustainable, fair, and comprehensive growth to be the cornerstone of socio-economic transformation in the nation.

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