Strong demand for bioethanol from emerging markets to beef up enzyme sector, study finds

The global enzymes market is expected to reach $17.5bn by 2024 helped by strong demand for bioethanol in emerging economies, according to a new study by Grand View Research.

Growing demand for enzymes in food and beverage products as they improve quality and eliminate deficiencies in the products is expected to propel industry growth in the near future.

Increasing demand for bioethanol and biodiesel in emerging economies including India, Brazil, and Thailand will augment industry growth over the forecast period. Growing number of government investments along with research and development activities in industrial enzymes will drive demand over the next eight years.

Rising population along with rising living standard will drive processed foods demand, which in turn will stimulate industry expansion. In addition, emerging protein design algorithms, along with growing inexpensive DNA sequencing technology will open new market avenues over the next seven years.

Carbohydrases accounted for 47.7% of the global market share in 2015, dominating the enzymes industry and the segment is expected to show significant growth in light of high usage in animal feed, textile, food & beverages, and pharmaceutical applications.

Moreover, mounting usage of artificial sweeteners, prebiotic products, and juices is expected to fuel product demand over the forecast period. 

According to the study, the North America enzymes market was valued at $3.59 billion in 2015 and will show high gains in light of favourable government policies.  Along with a robust manufacturing base in the US, growing demand for animal feed and biofuels in the US is expected to drive market size.

Rapid industrialisation

Latin America accounted for 8.3% of the overall enzymes market and will show substantial growth in light of rapid industrialisation coupled with increasing biodiesel production in Brazil and Argentina.

Key industry players include Denmark-based biotechnology company Novozymes, Danisco, Royal DSM, BASF SE, DuPont, Lonza Group, and Advanced Enzymes Technologies.

Novozymes has recently announced that it will deliver the enzymes for Dong Energy’s enzyme-enabled bioplant in the UK.

The plant, which is in the process of being built by Danish energy firm Dong Energy, is based in Northwich in the north west of England and is called REnescience.

According to Dong Energy, it will be the first full-scale bio plant in the world capable of handling household waste by means of enzymes.

Thomas Dalsgaard, executive vice president in Dong Energy, said: "It's important to extract as many resources as possible from waste, and the enzymes are an important part of the process where we convert waste into green energy and recyclable material. We're pleased to enter into a partnership with Novozymes on setting up this type of plant."