The global industrial enzymes market size is expected to reach revenues of USD 8 billion by 2025, growing at a CAGR of over 5.5% during the period 2020–2025. The global industrial enzyme market is expected to witness growth during the forecast period because of the increased capacity of enzymes to replace synthetic chemicals and act as a viable source for biocatalysts. The need for eliminating organic solvents and the demand for low side-effects substances are driving the market growth. With the decline in 2020 owing to the COVID- pandemic, manufacturing, and distribution end-user industries have reduced the demand for enzymes. However, the market is expected to revive in early 2021, with the normalization of industrial activities. Changing dynamics and trends of food and beverage, detergents, and quality enhancements in the animal feed industry are further expected to drive the demand for new formulations during the forecast period.
The developments in protein engineering have led to the growing instability, specificity, economy, and overall application potential of enzymes across industries. With the rising beneficial activities of sustainable enzymes, the number of commercial applications is expected to further. Protease, carbohydrases such as amylase and cellulase are some of the widely utilized enzymes across industries.
- Signifying a high scope for new engineering formulations in the industrial enzymes segment, the enzyme market in India is expected to grow at a CAGR of over 7% during the period 2019–2025.
- The carbohydrase segment is expected to reach a revenue of over $2.70 billion by 2025 due to the increased application of the food and beverage industries.
- The microorganism segment is likely to reach over $5 billion by 2025, which is majorly driven given their benefits such as optimization, process modification, consistency, and low cost & time requirements.
- The food and beverage segment is projected to grow at a CAGR of over 5% during the forecast period as enzymes are preferred for starch liquefaction and saccharification, cheese formation, and increasing juice yields and clarifications.
GLOBAL INDUSTRIAL ENZYMES MARKET SEGMENTATION
This research report includes a detailed segmentation by
INSIGHTS BY TYPE
The carbohydrase segment is expected to reach close to USD 3 billion by 2025. Over 80% of vendors offer a minimum one form of carbohydrase such as amylase, xylanase, cellulase, pectinase that are eventually supporting for the leadership position. Amylase is considered to be a universal enzyme finding applications in food and beverage, biofuel, cleaning agents sectors. While pectinases are more prevalent in poultry feed, xylanases are the preferred choice for pre-bleaching of Kraft pulp. North America was the largest market for carbohydrase in 2019, accounting for 28% of the total share. The protease was the largest segment of the industrial enzymes market in 2019, accounting for 32.22% of the total share. Brewing, meat tenderization, baking, and milk coagulation, where plant-based protease is gaining momentum, are some of the major applications.
Lipases are considered one of the fastest-growing enzyme segments, growing at a CAGR of over 6% during the forecast period. With advances in molecular technology, lipases are increasingly preferred as biocatalysts in several industries. High reaction rates and promising scope for enzymes in biofuel, wastewater treatment, and synthesis of complex compounds in the cosmetics industry are expected to support the growth in the next five years. Phytases are a vital contributor for phosphate-free products, primarily in the cleaning industry in North America and Europe. With the new formulations of phytases being undertaken by vendors, microbes tend to be the major source for the enzyme, especially for the application in the food and beverage industry.
INSIGHTS BY END-USERS
The food and beverage industry was the largest industry with a wide range of applications. Pectinases, xylanases, cellulases, and other carbohydrase continue to find adoption in the ever-expanding food and beverage trends. With the advent of lactose-free dairy products and plant-based alternatives, growth opportunities have further widened. The segment is expected to reach USD 2.00 billion by 2025. North America and the European region are considered as forerunners in adopting the latest food trends that are expected to grow during the forecast period.
The rise in disposable income and awareness and shelfing of biological detergents have replaced traditional non-biological detergents in major economies of China, the US, and other European countries. With subsequent innovations in the detergent segment and preference for concentrated liquids, they seem to be a prominent industry for the growth of industrial enzymes. Similarly, the rise in meat consumption and improvement in animal health are major criteria expected to stimulate growth in the animal feed industry.
INSIGHTS BY SOURCE
Based on the source, microorganisms were the major revenue contributor, generating USD 3.68 billion in 2019. Fungi tend to dominate the segment where species such as Aspergillus are utilized for extracting protease, which is the widely used industrial enzyme in 2019. Microbes are also the primary mode of choice for industries with respect to food preservation, stable composition requirements, affordability, and taste enhancements. The segment is expected to pose an absolute growth of 48% in APAC and 41% in Europe by 2025. The Middle East and Africa region are also likely to generate incremental revenue of USD 100 million during the forecast period.
Plant-based sources were the second-largest segment as they find a wide application in food & beverage, biofuels, and cleaning agents. The papain enzyme from papaya has unique benefits that can find adoption in functional foods and beverages. Plant-based ingredients, including enzymes such as protease and lipases, are also the major contributors to plant-based foods, drinks especially inclined towards vegan consumers. The segment is expected to grow at a CAGR of over 5%. APAC is the fastest-growing region for this segment and is expected to grow at a CAGR of around 6%. With the concept of green cosmetics booming in North America and Europe, they are expected to pose a promising growth during the forecast period.
Animal-based sources accounted for over 13% of the global revenue in 2019. The segment is expected to generate incremental revenue of USD 260 million during the forecast period. While Latin America accounted for over 14% of the revenue share, the Middle East and Africa region is expected to generate incremental revenue of USD 19 million during the forecast period.
INSIGHTS BY GEOGRAPHY
North America was the largest market for industrial enzymes in 2019, valued at USD 1.60 billion. The US is the major driver, with an increased demand for industrial enzymes, and is likely to contribute to the market growth post-2020 following the supply chain disruption due to COVID-19. Vendors are recommended to focus on intensifying the distribution toward their end-user industries to maintain their market share. The region is expected to remain as the leader during the forecast period, where it is expected to generate over USD 2 billion by the end of 2025. Stringent regulations, dynamic food and beverage trends, policies for biofuel production, and a strong presence of global players are propelling the growth of the region.
INSIGHTS BY VENDORS
The global industrial enzymes market is fragmented, with many international and domestic vendors in each geography. Novozymes is estimated as the market leader with other key players such as DuPont, DSM, AB Amano, accounting for approximately 75% of the global share in 2019. The competitiveness of the industry is inclined toward new formulations in enzyme technology, extending the product line to cater to the existing demand-supply gap through protein engineering, mergers, and acquisitions to expand the global footprint, and other strategies to counter the global challenges through the concept of sustainability. Extending research and development activities for eco-friendly solutions for emerging industries can be foreseen among major vendors during the forecast period.
The industrial enzymes market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
Segmentation by Type
- Food & Beverages
- Cleaning Agents
- Animal Feed
- Pulp & Paper
- Personal Care and Cosmetics
- Wastewater and Others
- North America
- South Korea
- Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia