What are Enzyme Biotechnology, Market Size and Growth Drivers

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What are Enzyme Biotechnology, Market Size, and its Growth Drivers

Enzymes
are proteins that catalyze chemical reactions and thus often replace chemicals
in products and industrial productions. Biotechnology could be traced back to
thousands of years ago when humans started to use yeasts to make liquor. This
may be the first dawn of biotechnology in food production. Along with the
development of natural and social sciences, nowadays, biotechnology carries more
colorful meanings.

Indian Enzyme Market

The Indian enzyme market is yet to find its feet, as
it is quite small when compared to the other sectors in the country. However,
the growing awareness about the capabilities of enzymes and the subsequent
benefits (both nutrition and cost-wise) will be important growth factors in the
coming years. 

The
developments in pharmaceuticals and chemical sectors will provide much-needed
boost to the enzyme market and it is expected that the demand for specialty
enzymes will be more than the industrial ones. The number of major players in
this market in India is nearly 25, but most of them are into formulations or
marketing. The Indian manufacturers are expanding their market base by
exporting their products to several countries. In FY20, on an average per
quarter enzymes worth 78.57 crores were exported to the USA, Japan, Germany, and Denmark.

Source: Magzter, Pharmanion, India Industrial Enzymes, Market Force & Opportunities

Increasing
demand from end-use industries such as food and beverage, biofuel, animal feed,
and home cleaning is projected to drive the market growth over the forecast
period. Increasing health awareness among consumers has resulted in the growing
consumption of functional food products, which is expected to propel the
product demand in the near future.

The
enzyme market is anticipated to reach $14.7 billion by the year 2025, on the
back of a Compound Annual Growth Rate (CAGR) of 6.7%
, in terms of value. A sharp improvement in the enzyme market is projected due to major breakthroughs
in enzyme research and development, the introduction of genetically-engineered
enzymes, advancements in green chemistry, and enzyme engineering.

Source: Grandview Research

Growing
demand for high-quality food products along with natural taste and flavor
contributed to the market growth in the past decade. This trend fueled the
demand for the expansion of processed and flavored foods in the industrial
enzyme application segment.

These food enzymes act as catalysts in breaking
down nutrients and vitamins of complex compounds to smaller compounds. Growing
awareness concerning the application of enzymes in protein engineering technology
and high opportunities in untapped developing countries are projected to
positively influence market growth.

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Protein
engineering is one of the new avenues for research and development application
.

This the area involves invention and production of newer types of enzymes to catalyze
reactions that do not occur naturally. The industry is estimated to witness
increased demand due to its wide-ranging use across applications including food
processing, pre-digestion of baby foods, germination in breweries, fruit juice
clarification, cheese manufacturing, meat tenderization, and conversion of
starch into glucose.

Enzymes
are also witnessing increased demand in paper processing, biofuels, contact
lens cleaners, rubber processing, biological detergents, and molecular biology.
Increasing consumer awareness regarding improved food quality, population
explosion and significant consumption of dietary requirements are considered
to be the key factors contributing to the enzyme market growth.

Enzyme
products are used in more +30 industries. Here are a few of the examples below:

Industrial Enzyme

The
industrial enzymes market is valued at $5.9 billion in 2020 and with a CAGR
6.5% it will touch an estimated $8.7 billion by 2026
. Consumers are willing to pay more for natural
products Compaction of laundry detergents remains a strong trend, driven by
increased sales through online retailers and the desire to reduce the use of
plastics Strong interest in freshness solutions for the removal of malodor and
grime, including in synthetics Growing interested in microbial cleaning and
bio-based solutions for softeners and dishwashing by hand.

Food & Beverages

The food enzymes market, at a CAGR of 6.9%, is
projected to be valued at $3.23 billion by 2023.
Factors like better food quality,
rising demand for processed food and increased awareness about nutrition-rich
foods have contributed to the market’s growth.
Growing consumer demand for high quality, healthy and
sustainable foods Consumers focus on brands using local and clean label
ingredients catering to local tastes, traditions, and cultures Continued focus
on yield enhancement solutions in agro-processing industries Strong interest
from emerging markets in production optimization solutions.

Organic sales growth is expected to be
broad-based with all regions contributing to growth. Emerging markets are
expected to outgrow developed markets. Beverages are projected to grow in line
with the industry average. Food & nutrition is expected to continue its
good momentum, supported by accelerating health awareness trends.

Specialty Enzymes

The
specialty enzymes market is evaluated at $4.4 billion in 2019 and at a CAGR of
6.9%, it should reach $6.6 billion by 2025.
Growing demand for clean energy as climate change and
sustainability is high on public agendas Increase in global biofuel mandates
continues, driven by key emerging markets Strong pressure on US ethanol
industry due to low producer margins and high inventories.
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Agriculture & Feed

In
2019, the global feed market was valued at $1.2 billion and is expected to rise
to $2 billion by 2025 with a CAGR of 9.1%.
Agriculture affected by more frequent extreme weather
conditions Sustainable yield enhancement still in high demand as the world
population grows, putting pressure on the agricultural sector to produce more and
better products while minimizing negative environmental impact Increasing focus
on feed efficiency and animal health with less use of antibiotics Farmer
sensitivity to fluctuations in commodity prices.

The world needs to provide enough healthy, affordable, and sustainably produced food
for a growing population. Many enzyme products help farmers around the world
increase their crop productivity using products containing naturally occurring
microbes. Many of our Food & Beverages solutions contribute to reducing
food waste and making food production systems more sustainable.

Growth
driver Freshness platform Lifestyle changes are spurring demand for freshness. Consumers’
lifestyle changes are the drivers of growing hygiene needs. 

New
and more stable enzymes to replace surfactants. Using enzymes to compensate for
performance loss when reducing pH level and the need for builders. Freshness
solutions to reduce the need for perfume. Enzymes to replace polymer functions,
such as fabric care and whiteness. Demand for better and more convenient food
with awareness about food safety and “naturally healthy” products. Growth in the market for “food intolerance” products, such as lactose-free.

Demand
for substitutes for animal protein and growth in grain and VOP. Demand for
optimization of raw materials and production processes. Optimization to help
manage commodity input cost volatility. Industry consolidation and focus on
process economics driving demand for enzymatic solutions that enhance yield. Innovation
for yield enhancement and chemical cost reduction.

Demand
for reducing CO2 emissions in the transport sector. Governments in emerging
economies focusing on agriculture productivity. High input costs for farmers
with increased chemical and fertilizer scarcity. Regulatory requirements for
more sustainable farming practices and focus on animal welfare. Growing calls
for reduced use of antibiotics in farm animals. Increased demand for food and
protein due to changes in dietary habits.

The huge scope of Enzyme Technology in
few main Industries

Textile
industry
:  Amylases enzyme is used as soіening agents
for starched clothes. Cellulases is useful for fabric finishing and oіen used
for better dye uptake in cotton.

Leather
industry
: Proteolytic enzymes are
used in dehairing of the skin and for soіening /plumping of detailed skin.

Detergent
industry
: Proteases are efficient
in removing protein stains such as grass, blood, egg, and human sweat. Lipases
can easily break down lipid and protein-based stains. Amylases are efficient in
removing starch-based residues. Cellulase used in detergent causing restoring
fiber smoothness, its original color.

Pharmaceutical industry: Pegadamase bovine is employed for SCID treatment.
Pancreatic enzymes is effective against fat malabsorption in HIV patients.

Spinal injuries could be
treated with chondroitinases. Hyaluronidase aids in the rebuilding of damaged
nerve tissues. Lysozyme is used as an antibacterial agent and also possess
activity against HIV. Human melanoma and hepatocellular carcinomas could be
inhibited by PEGylated arginine deaminase.

Food industry: Amylase is added to the dough to ensure its quality and increased
shelf life. Enzymes are also employed in cheese making by milk coagulation.
Proteolytic enzymes help to increase the shelf life of meat and seafood.
Lipases used to control the lipid content of food products. Glucose oxidase and
catalase are used as food preservative agents.

Renin is used in the
manufacture of cheese. Lactase enzymes are applied in the making of ice cream,
yogurt, and frozen and invertase in the making of chocolate-covered berries and
candies. The glucose isomerase is used for the production of fructose and high fructose
syrups.

Increasing
demand from end-use industries such as food and beverage, biofuel, animal feed,
and home cleaning is projected to drive the market growth over the forecast
period. Increasing health awareness among consumers has resulted in the growing
consumption of functional food products, which is expected to propel the
product demand in the near future.

Sources: Grandview Research, Advanced Enzyme Technologies, Novozyme

Disclaimer: The information provided on Shuchi Nahar’s Weekend Blog is for educational purposes only. The articles may contain external links, references, and a compilation of various publicly available articles. Hence all the authors are given due credit for the same. All copyrights and trademarks of images belong to their respective owners and are used for Fair Educational Purpose only.

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Shuchi Nahar

Shuchi Nahar

Shuchi is NISM Certified Equity Research Analyst, CFA - Level 1, a student of Law and Finance, and an aspiring CS.
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