In 2018, the enzyme market was valued around $10.48 billion globally and it is expected to grow at a compound annual growth rate of 8.9 percent by 2025. The increasing demand of enzymes in applications like biotechnology, research, diagnostics, textile, and home and personal care are the key driving factors for the growth.
The manufacturers in the North American region are expanding their production capabilities because of the growing demands in the local market. The presence of big players in the cosmetic industry like L’oreal, Johnson & Johnson, and Procter & Gamble has driven the demand for enzymes in the US. The situation is pretty similar in the growing economies present in the Asia Pacific region as well.
Steady growth in every category
The enzymes market is further divided into five major categories on the basis of the products — carbohydrase, protease, lipase, and polymerases and nucleases.
It was carbohydrase that made up for the majority of the market share in 2015 by accounting for 48.02 percent. It is expected that the use of carbohydrase will further increase in the coming years.
The protease market share was evaluated at $2.86 million in 2015 majorly because of the growth of textile and detergent industries in the emerging economies. It is expected to have a compound annual growth rate of 8 percent between 2016 and 2024.
The growth can also be attributed to rising consumer awareness regarding nutritional benefits associated with the product. Furthermore, growth of pharmaceuticals, textile, and detergent industries in emerging economies is expected to promote the market growth over the forecast period.
Similarly, the demand of polymerases and nucleases is also projected to expand at a compound annual growth rate of 8.2 percent by 2025.
On the basis of application, the enzyme market is divided into specialty enzymes and industrial enzymes. The industrial enzymes were valued at $5.88 billion in 2018, and the market is expected to grow at a compound annual growth rate of 6.84 percent between 2019-2024. The demand for industrial enzymes is expected to increase in the coming years due to the rise in the use of digestive and nutritional enzymes in the food and beverage sector.
In fact, food and beverage accounted for the highest revenue with a compound annual growth rate of 9.9 percent between 2019 to 2025. It is followed by detergents, animal feed, nutraceutical, personal care, and textile industry.
The global specialty enzymes was worth $2.4 billion in 2017 and it is expected to reach a total market size of $4 billion by 2023 with a compound annual growth rate of 9.02 percent. These enzymes are used for biocatalysts, diagnostic solutions, R & D, and pharmaceuticals. The rapid growth of the end use market will in turn lead to increased growth for specialty enzymes.
For specialty enzymes, pharmaceuticals industry accounted for the majority of the market share in 2018 with 45.7 percent. The steady growth of the pharmaceutical manufacturing sector in Asian countries like India, China, and Indonesia is expected to drive the growth of specialty enzymes.
The demand for specialty enzymes in the research and biotechnology sector is incredibly high and it was valued at $1.43 billion in 2018. It is projected to have a compound annual growth rate of 9.4 percent between 2018 and 2025.
How enzymes are supporting the textile industry
The global textile enzyme market was estimated at $209.66 million in 2018, and it is expected to reach $284.92 by 2026 with a compound annual growth rate of 3.98 percent.
The Asia Pacific region is a major contributor to the textile enzyme market due to the attractive growth in the regional textile sector over the last few years. The constantly changing consumer behavior in the developing countries and global textile manufacturers shifting their production facilities to this region has also led to the growth of the global textile enzymes market.
Developed regions like North America and Europe will have more have a moderate growth in the coming years. In Europe, this is particularly due to the fragmented market in countries like France, Germany, the UK, and the Netherlands. The strict regulations set upon the use of chemicals in textile processing are also hampering the regional prospects. The North American region will also grow at a moderate pace, except for the US, which will see an attractive growth rate.
The Indian textile industry is one of the oldest industries in India and it has backed the economy of the company for several decades. The entire Indian textile industry is estimated to be around $150 billion and it contributes to 2 percent of the GDP. The textile industry is expected to be around $223 billion market by 2021, growing at a compound annual rate of 12.2 percent
There are over 45 million people employed in the industry. During FY 2017-18, the Indian textile industry exports amounted to $39.2 billion, which is 15 percent of the total export earnings of India. The export revenue is expected to increase to $82 million by 2021.
The increased demand in the textile industry for manufacturing furniture, clothing, and other household items are expected to drive growth. Moreover, the usage of refining, bleaching, de-inking, and removal of adhesives will also boost growth.
About AVA Chemicals
AVA Chemicals is a globally renowned company engaged in formulation and supply of premium-grade chemicals to diverse industries such as Pharmaceutical & Lab Reagents, Agrochemicals, Home & Personal Care, Oil & Gas, Coatings, Water Treatment and many more. Over the last three decades, AVA Chemicals set-up three state-of-the-art Facilities (ISO and HALAL certified) in Badlapur, India, and a strong Clientele presence in over 40 countries.
At AVA Chemicals, we supply some of the products which are used by the Textile industry like EDTA Tetrasodium, NTA acid/Trisodium,HEDP 60%,Trisodium Phosphates, Ammonium acetates etc.
It aims to be known as an ethical company providing chemicals to companies who manufacture products that are used in day-to-day life, thus touching the lives of millions of people.