Freedonia Market Research Analyzes Enzymes Industry

US demand for enzymes is expected to rise 6.0 percent per year to $2.5 billion in 2012.  Advances will be led by continued rapid expansion in the fuel ethanol segment of the starch processing enzyme market, as well as strong growth in the large pharmaceutical and smaller biocatalyst and pulp and paper markets.  Animal feed will also contribute to gains, expanding at an above average pace going forward.  However, growth will slow markedly from the 1997 to 2007 time period as the market begins to reach maturity.  In other markets, healthy, though below average, gains will also be realized in diagnostics, research and biotechnology, and cosmetics and toiletries, offset somewhat by maturity in food and beverages, and cleaning products applications. These and other trends, including market share and company profiles, are presented in US Enzymes, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Growth in the US enzyme industry will be dominated by the rapid expansion of the fuel ethanol industry, as ethanol producers strive to meet the country’s renewable fuel needs specified in the Energy Independence and Security Act of 2007.  Even as the country reaches a practical limit on how much corn it can convert into ethanol, the rise of second generation, cellulosic biomass ethanol production will continue to drive rapid enzyme demand growth over the longer term.

Pharmaceuticals, which will remain the largest enzyme market going forward, will also achieve above average growth.  Advances will stem from continuing strong demand for neuromodulators, as well as orphan drug enzymes for treating lysosomal storage disorders.  Fast expansion in smaller pharmaceutical applications such as cancer treatment and wound debridement will also support gains.

The research and biotechnology market will benefit from technological advancements over the past decade that have expanded the scope of biotechnology applications, and accelerated the pace of advanced discovery and process optimization. As enzymes often enable more energy efficient processes, a combination of high energy prices and growing concern about the economic risks associated with global warming will lead to rapid increases in demand in areas such as biocatalysts and the pulp and paper industry, as well as ongoing healthy expansion in the more mature food and beverage and cleaning product markets. 

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.