INDUSTRIAL ENZYMES MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

The industrial enzymes Market size is valued US$ 7.53 Bn in 2024 and is expected to reach US$ 11.42 Bn by 2031, growing at a compound annual growth rate (CAGR) of 6.1% from 2024 to 2031. Industrial enzymes are proteins that act as catalysts for various biochemical reactions. They are produced through the fermentation of microorganisms like bacteria and fungi. There are various types of industrial enzymes that are used across industries. Proteases help in protein digestion and are used in detergents to remove tough stains. Amylases are used for starch modification in food processing and textile industries. Cellulases and hemicellulases break down cellulose and help in biofuel production from biomass. Lipases are useful in food processing for fat and oil modification.

Each type of industrial enzyme has its advantages. For example, amylases allow converting starch to sugars easily. Proteases help break proteins down gently. However, they also have some disadvantages. Being proteins, enzymes can be denatured by extreme pH, temperature, and chemical treatments. Their activity depends on reaction conditions like moisture level, substrate concentration, and others. Large scale production and standardization of enzyme characteristics also increases costs. Overall, as natural biocatalysts, industrial enzymes have enabled new applications and improved processes across many industries in an environment-friendly manner.                       

Industrial Enzymes Market Regional Insights:

• North America: North America holds the largest market share in the industrial enzymes market, due to 45% high demand for industrial enzymes in the food & beverage, laundry detergent, pharmaceuticals, and personal care presence of major players in the region.
• Asia Pacific: The market in the Asia Pacific region is projected to hold the second largest market share 30%, due  to significant growth in the healthcare, food & beverage, laundry detergent, pharmaceuticals, and personal care.
• Europe: The industrial enzymes market in Europe holds 10% in the market and the presence of major players in the region.

Figure 1. Industrial Enzymes Market Share (%), By Region, 2024

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Industrial Enzymes Market Analyst Viewpoint:

The industrial enzymes market remains promising over the long term, driven by the growing demand from several end-use industries. The food and beverage industry accounts for the largest share and is expected to remain a major consumer of industrial enzymes. North America dominates the market but Asia Pacific is likely to witness the fastest growth in the near future led by China, India and other developing economies in the region.

While rising environmental concerns are positively impacting the demand for bio-based and environment-friendly products, high dependence on raw material prices presents a challenge. Substitutes available for certain applications also act as a restraint. However, with rapid urbanization and changing lifestyles, opportunities will arise from the need for novel and improved food products. The need to reduce production costs will spur demand from the detergent industry as well.

Enzymes for specialty applications in textiles, animal feed, and paper manufacturing are likely to experience rising demand. Increasing need for low-calorie and low-fat food items opens new avenues. Continuous research and product innovation will expand the reach of industrial enzymes into newer areas and help companies overcome bottlenecks related to raw material supply.

Industrial Enzymes Market Drivers:

• Rising demand for biofuel production: The global demand for cleaner and renewable sources of energy has been increasing steadily over the past few decades. Ethanol produced from biomass has emerged as one of the viable alternatives to fossil fuels. Ethanol can be used directly in vehicles as fuel or blended with gasoline. Many countries across the world have implemented policies and regulations to promote the use of bioethanol as a transportation fuel. This has given a boost to commercial production of bioethanol globally. Industrial enzymes play a critical role in the production process of bioethanol. Amylases, cellulases, and other carbohydrate-degrading enzymes are used to break down starch and cellulose present in biomass sources like corn, sugarcane bagasse and lignocellulosic biomass into fermentable sugars. Without the application of these specialized enzymes, it would be impossible to efficiently hydrolyze the complex polysaccharides into simpler sugars. Furthermore, newer technologies such as consolidated bioprocessing and simultaneous saccharification and fermentation are gaining acceptance in the biofuel industry as they offer higher productivity and lower costs. These advanced processes rely even more heavily on customized enzyme formulations. Growing demand as well as policies supporting biofuel targets in regions including the U.S., Brazil, European Union (E.U) and others have encouraged large investments in new distilleries and expansion of existing ethanol plants worldwide. This is leading to significantly higher consumption of industrial enzymes for biofuel production. Major enzyme suppliers are actively developing novel enzyme products specially designed for different biomass feedstocks and production processes to gain advantages. The biofuel industry is expected to drive the demand and act as an important growth driver for the industrial enzymes market in the near future.
• Advancements in pharmaceutical manufacturing: Pharmaceutical industry has always been at the forefront of innovation and advancement. Over the decades, it has transitioned through several technological transformations right from small molecule drugs to complex biologics. Industrial enzymes have found numerous applications during various stages involved in drug manufacturing including manufacturing of active pharmaceutical ingredients (APIs), synthesis of chiral intermediates and catalyzing critical reaction steps. There is growing emphasis on developing more efficient, economical, and sustainable production methods across the pharmaceutical supply chain. This is prompting companies to replace traditional chemical synthesis routes with enzymatic processes where feasible. Compared to chemical catalysts, enzymes often offer higher selectivity, milder reaction conditions and generation of less toxic byproducts. They are able to carry out difficult transformations with excellent stereo- and regio-specificity that may not be achievable through chemical means. Also, enzymes can be engineered through protein engineering techniques to further enhance their activity and suitability for industrial-scale biocatalytic reactions. At the same time, biopharmaceuticals have revolutionized treatment of complex diseases. With approval and launches of novel biologic entities, pharmaceutical manufacturers are investing heavily in setting up large monoclonal antibody and other biologics manufacturing facilities worldwide. Downstream processing of these products relies on application of various industrial enzymes for analytics, purification, formulation and lyophilization. Novel drug delivery approaches also utilize enzymatic reactions. All these factors are propelling considerable demand for industrial enzymes in pharmaceutical manufacturing. Leading market players in this space are actively researching and developing new enzymatic solutions to assist drug development and large-scale commercial production processes.

Industrial Enzymes Market Opportunities:

• Utilization of waste biomass: The industrial enzymes market has potential to gain significantly from the utilization of waste biomass. Enzymes play a crucial role in breaking down biomass and facilitating processes like biofuel production. With the growing focus on sustainable practices and circular economy, waste biomass from various industries is being witnessed as a renewable source of raw materials. The utilization of waste biomass also offers strategic opportunities to reduce manufacturing costs for industrial enzymes producers. Waste streams provide a low-cost substrate for hyperproduction of targeted enzymes through fermentation. Some companies have already established demonstration plants by using agricultural residues and other non-food biomass to produce cellulases, amylases and other enzymes. For instances, European Commission have strategic roadmaps to promote the reuse of 60 million tons of agricultural residues by 2030.
• Production of high-value chemicals and materials:  Production of high-value chemicals and materials could indeed represent a great opportunity for growth in the industrial enzymes market. Enzymes have the potential to enable more sustainable and efficient production methods for various specialty chemicals, which could help drive significant demand. Some key specialty chemicals and materials where enzyme-based production methods may gain more traction include bio-based plastics, pharmaceutical intermediates, fine chemicals and biochemicals. Compared to traditional chemical synthesis routes, industrial enzyme catalysis allows for easier production of chiral molecules with high selectivity and yields. As environmental regulations around chemical production tighten worldwide and consumer demand for sustainable alternatives increases, we are likely to witness more investment in industrial biotech solutions. Major companies have already started incorporating green enzymes across their specialty chemicals portfolios. Looking ahead, further innovations to develop more robust and stable enzyme varieties through protein engineering could unlock applications in newer areas such as coatings, electronics and consumer goods manufacturing over the next years (2025). With rising global focus on the bioeconomy as well as carbon neutrality goals, production of high-value goods through sustainable biocatalytic routes is expected to emerge as a major driver of industrial enzyme demand going forward. For instances, according to a   report by the United Nations Industrial Development Organization, in 2021, enzymatic processes allow manufacturers of various pharmaceutical ingredients and agrochemicals to produce only the desired enantiomer without generation of the unwanted mirror-image form, thereby providing an important environmental and economic advantage.

Industrial Enzymes Market Trends:

• Advent of integrated bio-refineries:  Growing trend of integrated bio-refineries is having a substantial impact on the industrial enzymes market. Bio-refineries aim to process biomass into a spectrum of marketable products and energy in an integrated manner. By consolidating different processing steps under one roof, bio-refineries help reduce costs, increase efficiencies and maximize the value derived from sustainable feedstocks. This integrated approach relies heavily on the application of specialized industrial enzymes at various stages. Industrial enzymes play a vital role in pre-treatment, hydrolysis, and fermentation processes within bio-refineries. They help break down biomass into fermentable sugars and enable the conversion of those sugars into high-value bio-based chemicals, fuels, and materials. For example, cellulases and hemicellulases are added during the pretreatment phase to deconstruct cellulose and hemicellulose fractions into simpler sugars. Amylases assist in saccharification of starch-containing biomass. Proteases help solubilize proteins for nutrient recycling. Specific enzymes like lipases and cellulases also find application in upgrading processes to produce biodiesel, bioplastics, and other biochemicals. For instances, according to data provided by the International Renewable Energy Agency, global investments in advanced biofuel production capacity increased from US$1 Bn in 2020 to US$2.7 Bn in 2021, with most of this new capacity based on integrated biorefinery concepts.                                       
• Consolidation activities among industry players: The consolidation trend among industrial enzyme manufacturers has significantly impacted the industrial enzymes market in recent years. Many large players have either acquired smaller rivals or merged with peers to gain a larger market share and strengthen their product portfolios. For example, in 2020, Dupont acquired LBG's enzyme business and expanded its cleaning and bio-based products portfolio. Similarly, in 2022, AB Enzymes merged with Novozymes to build a robust microbial enzymes business. Such consolidation activities allow companies to benefit from scale economies, integrated supply chains, and expanded geographical reach. It helps them optimize production costs and improve process efficiencies across global operations. The larger consolidated entities can also invest more in research and development (R&D), thus allowing stronger product pipelines and innovation in industrial enzyme technologies over the long run. For instance, post-merger, AB Enzymes significantly increased its R&D investments, thus leading to the launch of more sustainable bio-based products for detergents, leather, and textile applications within two years.

Industrial Enzymes Market Restraints:

• High R&D costs:  High research and development (R&D) costs pose a significant challenge for growth in the industrial enzymes market. Developing new enzyme formulations requires extensive laboratory experimentation to identify the optimal enzyme combinations and reaction conditions for various industrial applications. Enzymes are complex biocatalysts and even minor tweaks to their amino acid structures can impact their efficacy and stability. As a result, the R&D process is lengthy and resource-intensive, involving sophisticated protein engineering techniques. Moreover, as environmental regulations have become more stringent worldwide, the performance specifications for industrial enzymes have also risen. Manufacturers must demonstrate that their products offer enhanced substrate specificity, effectiveness at extreme pH/temperature conditions, resistance to inhibitors, and ability to operate in non-conventional solvents/reactors. This pushes the boundaries of bioscience and necessitates higher investments in R&D infrastructure, equipment and skilled human resources. For many smaller players, sustaining such capital-intensive innovation year after year poses a challenge. Even large corporations find it difficult to continually fund high-risk, high-reward projects in diversifying application areas like biofuels, bioplastics, and white biotechnology. For instances, according to the data published by the United Nations Educational, Scientific and Cultural Organization (UNESCO), on 2020, global expenditures on scientific R&D rose from US$1.5 trillion in 2015 to nearly US$2.2 trillion in 2020, with the life sciences claiming a growing share.
• Counterbalance: The high research and development costs needs to be very clearly considered by the key market players, before the same expenditure is incurred.                         
• Instability in raw material supply: One of the major factors restraining the growth of the industrial enzymes market is instability in the supply of raw materials. Enzymes used for industrial applications are mainly derived from microorganisms through fermentation processes. The key raw materials required for fermentation include carbohydrates, minerals, amino acids, and vitamins. However, the supply of these raw materials has become increasingly unpredictable in recent years due to changing climate patterns and geospatial conditions affecting agricultural production. Extreme weather events like droughts, floods, and heat waves have led to reduced availability of key agricultural commodities in many parts of the world. For instances, droughts in Brazil and Western Europe in 2020-21 significantly reduced sugar cane and sugar beet harvests which are important sources of carbohydrates for microbial fermentation FAO, 2022.

Recent Development:

• In December 2022, Novozymes, a notable biotech entity, announced a significant merger with Chr. Hansen, a Denmark based powerhouse in the fields of agriculture, pharmaceutical, and food ingredients. This move is witnessed as a tactical strategy by Novozymes to bolster its market presence. Novozymes A/S is a global biotechnology company headquartered in Bagsværd, outside of Copenhagen, Denmark. The company's focus is the research, development, and production of industrial enzymes, microorganisms, and biopharmaceutical ingredients.
• In August 2022, BASF SE made a strategic decision to sell its baking enzymes division, BASF Nutrilife, to Lallemand Inc., a renowned enzyme manufacturing firm. This acquisition enriches Lallemand Inc,'s diverse offerings, including its specialized yeast and bacterial technology platforms. BASF SE is a global chemical company headquartered in Ludwigshafen, Germany, with a significant presence in North America through its affiliate, BASF Corporation, based in Florham Park, New Jersey. The company operates in various segments, including Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, and Agricultural Solutions.
• In November 2021, Novozymes joined forces with Novo Nordisk Pharmatech. Their joint venture focuses on the creation of superior technical enzymes, aiming to enhance production in the biopharmaceutical sector. This partnership is anticipated to significantly aid Novozymes in expanding its capabilities in the burgeoning field of regenerative medicine. Novozymes is a global biotechnology company headquartered in Bagsværd, outside of Copenhagen, Denmark. The company's focus is the research, development and production of industrial enzymes, microorganisms, and biopharmaceutical ingredients. Novo Nordisk Pharmatech A/S is a leading global supplier of high-quality ingredients for the biopharmaceutical and pharmaceutical industries. The company is specialized in producing quaternary ammonium compounds (Quats) used as active and recombinant insulin for use in cell culture media to enhance cell growth, viability, and productivity.

Figure 2. Industrial Enzymes Market Share (%), By Source, 2024

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Key Companies in the Industrial Enzymes Market:

• Advanced Enzyme Technologies,
• Lesaffre, Adisseo,
• Enzyme Development Corporation,
• BASF SE, Novozyme,
• DuPont Danisco,
• DSM,
• Novus International,
• Associated British Foods PLC,
• Hansen Holding A/S

Definition: Industrial enzymes are proteins that are used in various industrial processes to catalyze chemical reactions. These enzymes are typically produced by microorganisms such as bacteria and fungi and are used in industries such as pharmaceuticals, chemical production, biofuels, food and beverage, and consumer products. They are employed in technical applications such as pulp and paper, textile and laundry detergent industries, as well as in food processing, animal feed, healthcare, textiles, leather processing, and biofuel production.