Enzymes Demand to Reach $2.8 Billion in 2014

US demand for enzymes is forecast to increase 4.8 percent annually to $2.8 billion in 2014.  Solid industry growth in recent years has been based on advances in higher-value specialty enzymes used in applications such as pharmaceuticals, research and biotechnology, and biocatalysts, as well as in the emerging biofuels market.  Going forward, gains will come from continued expansion in these markets as producers introduce new or more efficient enzymes for uses such as cellulosic ethanol production.  While specialty enzymes are becoming increasingly important and will pace overall growth in enzyme demand, many industrial enzymes will continue to see advances in markets such as pulp and paper processing, animal feed, cosmetics and toiletries, and cleaning products. Carbohydrases will continue to be the largest selling enzyme product type, although growth will be below average through 2014 due to moderating sales in the key starch processing and biofuels markets.  These and other trends, including market share and product segmentation, are presented in US Enzymes, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

The biofuels enzyme market saw explosive growth from 2004 to 2009 as the US biofuels industry rapidly scaled up its production capacity and invested in new technology to meet the quotas established by the Energy Independence and Security Act of 2007.  To date, the biofuels enzyme product mix has been dominated by alpha amylases and glucoamylases used in conventional starch-based ethanol processing.  Through 2014, gains will moderate as the industry undergoes a transition to cellulases and related enzymes for producing biomass (cellulosic) ethanol.  This will be followed by a return to stronger growth led by cellulases as the US nears the federally mandated production level of 8.5 billion gallons of cellulosic ethanol in 2019.

Pharmaceutical enzymes, the largest market, will continue to see above-average annual growth through 2014.  The double-digit annual gains experienced in pharmaceutical enzymes from 1999 to 2009 were driven by several key enzyme-based medications holding orphan drug status from the US Food and Drug Administration (FDA) for treating rare lysosomal storage disorders (LSDs), most notably imiglucerase (CEREZYME -- Genzyme) for Gaucher disease.  Through 2014, key sources of demand in this market will include continued strength in enzyme replacement therapies (ERTs) for treating LSDs and related disorders, including several new ERT treatments; expanding medical indications for neuromodulators; and growth in enzymes used in cancer treatment.

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.