Global Biocatalysis and Biocatalysts Market - 2022-2029

Market Overview

The biocatalysis and biocatalysts market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period (2021-2028).

Biocatalysis is defined as the use of living systems or parts of living systems to speed up a chemical reaction. Biocatalysts are naturally sourced substances that speed up a chemical reaction. Biocatalysts are isolated from natural sources like plants, animals and micro-organisms. Modern biotechnology has allowed for the use of biocatalysts for wide-ranging commercial and industrial applications.

Enzymes are the most common biocatalysts in use today. The major advantage of biocatalysts is that they are environmentally friendly and do not cause adverse effects. Due to their high bioavailability, they are suitable for food processing and pharmaceutical applications. Biocatalysts are also being used for the manufacturing of eco-friendly agrochemicals and pesticides.

Market Dynamics

The rising use in end-user industries mainly drives the demand for biocatalysis and biocatalysts. The expensive costs of development for biocatalysis and biocatalysts will be the key challenge to the growth of this market.

Increasing use in end-use industries

Recent years have seen a growing awareness about the long-term health effects of chemical and artificial additives in processed food. An increasing amount of research indicates carcinogenic tendencies for long-term consumption of highly processed food. It has naturally led to the growing substitution of chemical-based additives with natural bio enzymes.

A growing number of food and health supplements that market to the health-conscious consumers now use bio enzymes. Biocatalysts are also used to produce fermented alcohols such as beers and wine. The main use of biocatalysts is to maintain optimum flavor profile and taste and speed up the fermentation process. The pharmaceutical industry is also increasing the usage of biocatalysts on a large scale, especially to enhance drug delivery to targeted sites by using enzyme action.

The chemical industry is also adopting biocatalysts, particularly for manufacturing green and renewable chemicals such as ethanol, glycerol, ketones and organic acids. The rising demand from end-use industries is driving the global biocatalysis and biocatalysts market growth.

High cost of research and development

Biocatalysis and biocatalysts are emerging sciences in the field of biotechnology. The research and development of new biocatalysts is a capital-intensive process. Large expenditure has to be incurred on scientific expertise, high-tech machinery and complex biological processes. Even after completing research and development works, additional expenditure is incurred on field trials of long duration and regulatory certifications.

The high cost of research and development is passed on to the consumer and thus, foods, beverages and pharmaceutical products containing biocatalysts are priced at the premium end of the consumer segment. It leaves out a lot of low-income and middle-class consumers. Furthermore, the high capital expenditure requirements of the field act as an entry barrier that prevents small and medium-scale enterprises and startups from entering the field.

It relegates the biocatalysts and the larger biotechnology field to major conglomerates. It stifles innovation in the sector and prevents end-user industries' wider adoption of biocatalysts. The high cost of research and development is, therefore, a key challenge for the growth of the market.

COVID-19 impact analysis

The biocatalysis and biocatalysts market was deeply affected by the COVID-19 pandemic. Governments worldwide imposed lockdowns to curb the spread of the pandemic globally. It led to massive disruption and many companies scaled back or suspended capital expenditure. The suspension and scaling back of capital expenditure delayed research into new types of biocatalysts. It also delayed the launch of new types of products in the industry. The delays in product research and development impacted the revenues of many companies in the industry. Many startups in the biocatalysts market had to shut down as venture funding dried up due to the economic uncertainty of the pandemic.

The COVID-19 pandemics have caused knock-on effects on the global supply chains. It has caused industry-wide shortages of essential raw material components. The shortage of specific enzymes and proteins has hampered the production of biocatalysts. The pandemic will not have a major impact on the long-term growth of the biocatalysis and biocatalysts market since companies are expected to gradually ramp up capacity utilization as construction activities resume and demand returns to pre-pandemic levels. The demand for biocatalysis and biocatalysts remains strong and is expected to grow gradually in the coming years.

Segment Analysis

The biocatalysis and biocatalysts market is segmented into source, type, application and region. The biocatalysis and biocatalysts market is segmented into food & beverage, pharmaceuticals, agricultural, cleaning agents and others. Food and beverage are leading in this segment since it is the largest end-user industry for this market. Biocatalysis and Biocatalysts are used in various natural foods and health supplements as substitutes for artificial additives. Fermented alcohols such as wine and beer also use biocatalysts for better fermentation and flavor profile.

Geographical Analysis

North America is leading in the biocatalysis and biocatalysts market. North America accounts for the largest market share due to the developed market of U.S. It is the wealthiest country globally and is generally the first to commercialize emerging technologies. The availability of a large amount of venture capital and government regulations that encourage research and innovation dominate the biocatalysis and biocatalysts market. Several startups in U.S., such as Beyond Meat and Impossible Foods, are developing plant-based meats that mimic the taste of real meats. Biocatalysts are an important part of the process of manufacturing plant-based meat.

Europe and Asia-Pacific are also two major regions for the biocatalysis and biocatalysts market. The presence of many foods and beverage companies and major pharmaceutical conglomerates makes Europe a prominent region in this market. Major global conglomerates such as Nestle and Danone are based in Europe. The Asia-Pacific region is mainly represented by the markets of China, India, Japan and South Korea.

The countries have large-scale food processing and pharmaceutical industries. China is also a major competitor for U.S. in developing and commercializing new technologies. While the North American region is currently leading, in the long-term, the Asia-Pacific region is expected to hold the largest market share.

Competitive Landscape

The biocatalysis and biocatalysts market is competitive due to the availability of proprietary primers available from different companies for various applications. Some of the major market players contributing to the growth in the segment are Novozymes A/S, Dyadic International Inc., AB Enzymes, BASF SE, Amano Enzyme Inc., Group Soufflet, Amano Enzyme Inc., Codexis Inc., Chr. Hansen Holdings A/S and Royal DSM N.V. The major players in the market adopt several strategies such as new product launches, joint ventures and collaborations, contributing to the growth of the industry.

Novozymes A/S

Overview: Novozymes A/S is a multinational biotechnology company focusing on the research, development and production of enzymes, micro-organisms and biopharmaceutical ingredients. The company was formed in 2000 through a spin-off of the pharmaceutical conglomerate Novo-Nordisk. Novozymes A/S has operations in China, India, Argentina, Brazil, UK, U.S. and Canada. The company is headquartered in Bagsvaerd, Denmark.

Product Portfolio

Lipozyme CALB is a lipase-based biocatalyst with various industrial applications such as the enantioselective resolution of esters and amides, acylation of alcohols and mild hydrolysis of sensitive substrates.

Key Developments:

In January 2021, Novozymes A/S, in a joint venture with Royal DSM N.V., announced the launch of a new generation of phytase called HiPhorius. It is a new generation of biocatalyst designed for the greater production of high-quality animal feed.

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Target Audience 2022

Chemical manufacturers

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Research Professionals