Demand for enzymes in the US is forecast to rise more than five percent annually to $2.7 billion in 2014. Solid industry growth in recent years has been founded upon advances in higher-value, specialty enzymes used in applications such as pharmaceuticals, research and biotechnology, and biocatalysts, as well as the emerging biofuels market. Going forward, gains will come from continued expansion in these areas as enzyme producers create new niches in the treatment of lysosomal storage disorders LSDs), the use of biocatalysts in pharmaceutical and fine chemical manufacturing, and in new cellulase formulations enabling biomass-based ethanol refining to reach an economically feasible industrial scale.
Over the past decade, pharmaceuticals surpassed the former mainstay of the enzyme market, food and beverage processing, to become the highest value source of enzyme demand. The nearly double-digit growth in pharmaceutical enzymes seen from 1999 to 2009 was driven by several key enzyme medications holding orphan drug status for treating rare LSDs, most notably imiglucerase for Gaucher disease. Along with imiglucerase, key enzyme replacement therapies (ERTs) have included treatments for Hurler syndrome, Fabry disease and Pompe disease. Pharmaceutical enzymes have also gained ground due to the explosive sales growth of neuromodulators botulinum toxin A and B. Through 2014, the likely approval of new medical indications for neuromodulators and the entrance of new competition for BOTOX in both cosmetic and noncosmetic applications will shape the prospects for this market segment.
Demand for enzymes used in making biofuels has grown strongly as the industry has rapidly scaled up its production capacity and invested in new technology to meet government quotas. To date, enzyme growth in the biofuels market has come largely from alpha amylases and glucoamylases used in conventional starch-based ethanol processing. Gains in the future will be derived from a shift in the product mix toward cellulases and related enzymes needed to refine biomass (cellulosic) ethanol, which is mandated to reach production of 8.5 billion gallons in 2019.
Although specialty enzymes are becoming the higher-value segment, industrial enzymes will continue to see stable growth in markets such as pulp and paper processing, animal feed, cosmetics and toiletries, and cleaning products. Market leaders such as Novozymes and Danisco, competing in the industrial segment, will continue to fight off the downward sales pressures coming from commoditization and maturing markets by introducing new, more technical and specially tailored enzymes. In food and beverage applications, novel enzymes are raising beer and wine manufacturing efficiencies, and improving the health profile of fats and oils. The animal feed enzyme market will see moderating benefits from the widespread adoption of phytases as this application matures. In all industrial markets, demand for enzymes will be supported by their more environmentally friendly nature on a variety of levels, including their ability to substitute for harsh chemical solvents.
This new Freedonia industry study, Enzymes, historical demand data (1999, 2004 and 2009) plus forecasts for 2014 and 2019 by market and product. The study also considers market environment factors, evaluates company market share and profiles 34 industry competitors.