US demand to rise over 3% annually through 2019

Enzyme demand in the United States is forecast to rise over three percent per year to over $2 billion in 2019. Healthcare reform and efforts to combat rising healthcare costs will lead to changes in the medical and pharmaceutical industries that in turn will result in strong gains in enzymes used in research and biotechnology, in vitro diagnostics, and biocatalysts. In more mature industrial markets, efforts to reduce energy and water use will continue to have a positive impact on enzyme demand. However, declines in US gasoline consumption, along with falling public support for grain-based biofuels and the slow commercialization of new cellulosic biofuel technologies, will restrain growth in the biofuels market.

Biocatalyst uses to benefit from healthcare cost cutting

The increased use of lower cost generic drugs will prompt pharmaceutical companies to improve production processes by using biocatalysts, as well as invest in the development of new biological pharmaceuticals, which will drive strong growth in research and biotechnology enzyme demand. In addition, in response to rising healthcare costs many healthcare providers have begun pursuing a “personalized medicine” approach in which medical care is tailored to the individual, based on their genetic profile, clinical data and personal preferences. Increased diagnostic testing and genome sequencing in support of the personalized medicine approach, along with greater testing due to more insured people undergoing routine medical care, and the generally increased medical care required by an aging population, will further drive enzyme demand.

Key biofuels market to be limited by variety of factors

While the biofuels market was the primary driver of increases in US enzyme demand from 2004 to 2014, growth going forward will be limited, held back by conflicting government policies, changing consumer driving habits and attitudes toward biofuels, and slow commercialization of next-generation biofuel technologies. Government policies that require increasing motor vehicle fleet fuel efficiency will continue to drive declines in gasoline consumption going forward. This will put downward pressure on biofuel consumption and production as falling public support for grain-based biofuels, and vehicle manufacturer reluctance to support higher levels of bio-ethanol in the gasoline supply, limit the government’s ability to enforce the federal renewable fuel standard. Additionally, the slow commercialization of alternative biofuel technologies that are more intensive consumers of enzymes will further limit growth.

Sustainability concerns to boost mature markets

Companies have become increasingly focused on sustainability, including lowering their energy and water use. These concerns will continue to support enzyme demand in otherwise mature industries such as pulp and paper, and textiles and leather. In addition, the continued growth of the renewable chemicals industry, which utilizes enzymes in a number of applications, will be strengthened by manufacturers looking to replace petroleum-based chemicals in their processes. Consumers are also becoming more aware of the environmental impact of household chores. The rising popularity of laundry detergents formulated with more expensive enzymes for cold water washing will support modest growth in cleaning product enzyme demand.

Company Profiles

Profiles for over 20 competitors in the US industry, including BASF, DuPont, Novozymes, Roche Holding & Royal DSM

Additional Information

This comprehensive study analyzes the US market for enzymes, which encompasses both specialty and industrial enzymes typically manufactured using fermentative microorganisms, as well as those sourced from plants and animals. Major enzyme market sectors covered in the study include biofuels, food and beverage processing, research and biotechnology, cleaning products, diagnostics, animal feed, and other. Additionally, several smaller markets are also covered, including biocatalysts, dietary supplements, cosmetics and toiletries, textiles and leather, pulp and paper, and others. Specific types of enzymes examined include carbohydrases, proteases, polymerases, nucleases, lipases, and others. Carbohydrases covered include alpha amylases, glucoamylases, cellulases, glucose isomerases, lactases, and pectinases, among others. Cellulases, as covered in this study, include all enzymes acting on cellulosic fiber-type materials, which encompass both cellulases and hemicellulases. Additionally, several smaller markets are also covered, including cosmetics and toiletries, pulp and paper, textiles and leather, and others.

Historical data for 2004, 2009 and 2014 and forecasts for 2019 and 2024 are provided. Unless otherwise indicated, all figures represent demand for enzymes stated in current US dollars. The term “demand” refers to US demand, is used interchangeably with the terms “sales” or “apparent consumption,” and denotes US production, plus imports, minus exports. Data are presented at the manufacturers’ level and may also include captive production and use. Tabular details may not add to totals due to independent rounding and ratios may be rounded for the sake of clarity.

Table of Contents

Introduction X

I. Executive Summary 1

II. Market Environment 4
General 4
Demographic Trends 5
Macroeconomic Outlook 8
Consumer Spending 13
Manufacturing Trends 15
Food & Beverage Industry Outlook 20
Agricultural Outlook 23
Crop Production 26
Livestock & Poultry 28
National Health Expenditures 29
Historical Market Trends 32
Pricing & Product Mix 35
Environmental & Regulatory Considerations 37
Intellectual Property Considerations 40
International Activity 41
Foreign Trade & US Production 42
Imports 44
Exports 46

III. Technology 48
General 48
Enzyme Production Overview 49
Recombinant DNA Technology 51
Directed Evolution & Gene Shuffling 52
Protein Engineering Technology 53
Molecular Screening & Bioinformatics 54
Enzyme Immobilization 55
Extremophilic Enzymes 56
Enzyme Factories 57

IV. Markets 59
General 59
Biofuel 62
Biofuel Industry Outlook 63
Enzyme Demand 67
Starch Enzymes 68
Cellulosic & Other Biofuel Enzymes 70
Food & Beverage Processing 73
Sweeteners 75
Corn Sweetener Industry Outlook 76
Enzyme Demand 77
Dairy Products 80
Dairy Industry Outlook 81
Enzyme Demand 84
Cheese Production 85
Other Dairy Products 88
Bakery Products 91
Baked Goods Industry Outlook 91
Enzyme Demand 93
Beverage Processing 96
Beverage Industry Outlook 97
Enzyme Demand 99
Wine & Fruit Juice Production 101
Beer, Distilled Spirits, & Other Beverages 103
Other Food & Beverage Applications 105
Research & Biotechnology 108
Research & Biotechnology Industry Outlook 109
Enzyme Demand 111
DNA Amplification & Sequencing 113
Other Research Enzyme Applications 117
Cleaning Products 119
Cleaning Product Industry Outlook 120
Enzyme Demand 122
Laundry Detergents 124
Dishwashing Detergents & Other Cleaners 127
Diagnostics 129
Diagnostic Industry Outlook 130
Enzyme Demand 132
Animal Feed 137
Animal Feed Industry Outlook 137
Enzyme Demand 141
Non-Starch Polysaccharides 144
Phytate & Other 145
Other Enzyme Markets 147
Biocatalysts 148
Dietary Supplements 152
Cosmetics & Toiletries 154
Textiles & Leather 157
Pulp & Paper 159
All Other 162

V. Products 167
General 167
Carbohydrases 169
Alpha Amylases 172
Glucoamylases 175
Cellulases 177
Glucose Isomerases 180
Lactases 181
Pectinases 183
Other Carbohydrases 185
Proteases 187
Microbial Proteases 189
Rennet/Chymosin 192
Other Proteases 194
Polymerases 196
Nucleases 198
Lipases 201
Other Enzymes 204

VI. Industry Structure 208
General 208
Market Share 211
Competitive Strategies 215
Research & Development 217
Cooperative Agreements 218
Acquisitions & Divestitures 223
Manufacturing 226
Marketing & Distribution 227
Company Profiles 229
AB Enzymes, see Associated British Foods Agilent Technologies Incorporated 230
Alere Incorporated 233
Amano Enzyme Incorporated 235
Associated British Foods plc 237
BASF SE 241
BBI Solutions, see Alere Chr. Hansen A/S 249
Codexis Incorporated 252
Danisco, see DuPont DSM, see Royal DSM DuPont (EI) de Nemours 254
Dyadic International Incorporated 261
Iogen Bio-Products, see Novozymes  Life Technologies, see Thermo Fisher Scientific Lonza Group Limited 266
MP Biomedicals LLC 267
National Enzyme Company 269
New England BioLabs Incorporated 271
Novozymes A/S 274
POET-DSM Advanced Biofuels, see Royal DSM Promega Corporation 283
Roche Holding Limited 286
Royal DSM NV 290
Sigma-Aldrich Corporation 297
Specialty Enzymes & Biotechnologies Company 300
Thermo Fisher Scientific Incorporated 305
Verenium, see BASF Other Companies Mentioned in the Study 308

List of Tables

Section I -- Executive Summary
Summary Table 3

Section II -- Market Environment
1 Population & Households 8
2 Macroeconomic Indicators 12
3 Personal Consumption Expenditures 15
4 Manufacturers’ Shipments 20
5 Food & Beverage Shipments 23
6 Agricultural Indicators 26
7 Major Crop Production 28
8 Livestock & Poultry Population 29
9 National Health Expenditures 32
10 Enzyme Market, 2004-2014 34
11 Selected Enzyme Pricing 37
12 Enzyme Production & Foreign Trade 43

Section IV -- Markets
1 Enzyme Demand by Market 61
2 Biofuel Supply & Demand 66
3 Biofuel Enzyme Demand by Application & Product 68
4 Food & Beverage Enzyme Demand by Application & Product 75
5 Corn Sweetener Supply & Demand 77
6 Corn Sweetener Enzyme Demand by Application & Product 80
7 Dairy Product Shipments 83
8 Dairy Enzyme Demand by Application & Product 85
9 Cheese Enzyme Demand 88
10 Other Dairy Product Enzyme Demand 90
11 Bakery Product Shipments 93
12 Bakery Product Enzyme Demand 96
13 Beverage Shipments 99
14 Beverage Enzyme Demand 100
15 Other Food Processing Enzyme Demand 108
16 Research Expenditures 111
17 Research & Biotechnology Enzyme Demand by Type & Product 113
18 DNA Amplification & Sequencing Enzyme Demand 117
19 Other Research & Biotechnology Enzyme Demand 119
20 Cleaning Product Supply & Demand 122
21 Cleaning Product Enzyme Demand by Application & Product 124
22 Laundry Detergent Enzyme Demand 127
23 Dishwashing & Other Cleaning Product Enzyme Demand 129
24 In Vitro Diagnostic Product Shipments 132
25 Diagnostic Enzyme Demand 136
26 Animal Feed Shipments 141
27 Animal Feed Enzyme Demand by Application & Product 144
28 Other Enzyme Demand by Market & Product 148
29 Biocatalyst Enzyme Demand 152
30 Dietary Supplement Enzyme Demand 154
31 Cosmetic & Toiletry Enzyme Demand 157
32 Textile & Leather Enzyme Demand by Application & Product 159
33 Pulp & Paper Enzyme Demand 162
34 All Other Enzyme Markets 163

Section V -- Products
1 Enzyme Demand by Product 168
2 Carbohydrase Demand by Product & Market 171
3 Alpha Amylase Demand 175
4 Glucoamylase Demand 177
5 Cellulase Demand 179
6 Glucose Isomerase Demand 181
7 Lactase Demand 182
8 Pectinase Demand 185
9 Other Carbohydrase Demand 187
10 Protease Demand by Product & Market 189
11 Microbial Protease Demand 192
12 Rennet/Chymosin Demand 194
13 Other Protease Demand 196
14 Polymerase Demand 198
15 Nuclease Demand 201
16 Lipase Demand 204
17 Other Enzyme Demand 207

Section VI -- Industry Structure
1 US Enzyme Sales by Company, 2014 210
2 Selected Cooperative Agreements 220
3 Selected Acquisitions & Divestitures 225

List of Charts

Section II -- Market Environment
1 Enzyme Market, 2004-2014 35
2 US Enzyme Imports by Source, 2014 45
3 US Enzyme Exports by Destination, 2014 47

Section IV -- Markets
1 Enzyme Demand by Market, 2014 62

Section V -- Products
1 Enzyme Demand by Product, 2014 169

Section VI -- Industry Structure
1 US Enzyme Market Share, 2014 212