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Market Overview

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The biocatalysts market is projected to surpass USD 729 million by 2027, growing at a CAGR of 6.67% from 2022 to 2027. Biocatalysts, which are enzymes that accelerate biochemical reactions, are widely used in chemical synthesis across industries such as pharmaceuticals, food & beverages, animal nutrition, household applications, and others. In the pharmaceutical sector, biocatalysts are instrumental in manufacturing drugs for DNA/RNA treatment, cancer, cardiovascular diseases, and other therapeutic purposes.

The market for biocatalysts is driven by the increasing demand for biobased products worldwide. Sustainability has become a key focus, leading pharmaceutical companies to incorporate biobased drugs to enhance product quality, thereby fostering rapid growth in the pharmaceutical biocatalysts market. Consequently, top companies are adopting expansion strategies to gain a larger market share in the biocatalysts industry. The food & beverages sector is also experiencing growth due to rising consumption, resulting in increased demand for biocatalysts globally.

The food industry encompasses producers, marketers, processors, and farm services. During the Covid-19 pandemic, there was heightened demand for food supplies, driving industry growth. Enzymes serve as effective substitutes for chemical preservatives in the food industry, enhancing product quality in various applications such as starch processing, fruit juice production, cheese-making, animal feed production, and beer & wine production. Notably, the demand for animal feed is increasing due to higher consumption of poultry, meat, and dairy products.

The pharmaceutical industry continues to witness revenue growth due to the increasing demand for drugs and pharmaceutical products. In recent years, the Chinese pharmaceutical industry has exhibited significant growth rates. Changes in clinical practices and the rise in chronic and age-related diseases contribute to the growing consumption of pharmaceutical products.

Lowering regulatory barriers for new drugs in the United States has resulted in increased global demand for pharmaceutical sector products. The demand for pharmaceutical products was particularly high during the Covid-19 pandemic, and it remains elevated due to the emergence of new variants of the virus. Developing countries like India, China, and Brazil are experiencing an increase in demand for pharmaceutical products due to the emergence of Covid-19 variants, lifestyle diseases, and aging populations. Biocatalysts are crucial in the production processes of antibiotics used to treat such diseases, and as the global pharmaceutical industry expands, so does the biocatalysts market.

Biocatalysis involves the use of biomolecules to accelerate chemical processes, offering mild reaction conditions and high selectivity. It plays a significant role in the chemical industry and is gaining relevance in industrial applications. However, accurately determining the protein structure of biocatalysts poses challenges, as it is a time-consuming process that requires a substantial amount of catalysts to facilitate the chemical reaction. The manufacturing process of biocatalysts necessitates specific conditions, such as new substrates and concentrations, which are not readily found in nature, thereby increasing production costs.

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Market Segmentation

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The market is segmented based on various factors, including type, end use, and geography.

Segmentation by Type
Carbohydrases
Proteases
Polymerases & Nucleases
Lipases
Phytases
Other

Segmentation by End Use
Pharmaceutical
Food & Beverages
Animal Nutrition
Household
Others

Segmentation by Geography
North America – US, Canada
Europe – Germany, France, UK, Italy, Rest of Europe
APAC – China, Japan, India, South Korea, Rest of APAC
Latin America – Brazil, Mexico, Rest of Latin America
Middle East & Africa – South Africa, Saudi Arabia, Rest of the Middle East & Africa

The global biocatalysts market is composed of various segments, with carbohydrases being the largest in terms of type. It is projected to reach a value of USD 231 million by 2027. Carbohydrases find extensive use in the food industry and are primarily derived from fungi, yeast, and bacteria. They are employed as digestion agents in milk products to reduce lactose content. Carbohydrases can be further classified into different categories such as alpha and beta amylases, cellulases, glucosidase, pectinases, mannanases, galacto, and pullulanase.

The proteases-based biocatalysts market is the second-largest segment, valued at USD 134.4 million in 2021. Proteases are utilized in industries such as cleaning, leather production, and dairy processing. These enzymes are categorized based on their catalysis mechanism, including glutamic, aspartic, metalloproteases, threonine, cysteine, and serine proteases, which activate water molecules and break down proteins.

Lipases play a crucial role in catalyzing fats and reducing their content in food products. They are derived from animal and plant enzymes and have various applications in biological processes, inflammation treatment, dietary supplements, and increasing metabolism. The lipases segment is expected to grow at a CAGR of 6.54% during the forecast period. They are particularly relevant in esters production and hold great potential in the biofuels sector. The rising demand for biofuels, driven by increasing crude oil prices, further fuels the demand for lipases in the biocatalysts market.

The global biocatalysts market, categorized by end-use, includes pharmaceuticals, food & beverages, animal nutrition, household applications, and others. The pharmaceutical sector is the largest end-use segment, projected to exceed USD 215.4 million by 2027. With a growing global population and increasing health consciousness, the demand for pharmaceutical products is on the rise. In this industry, biocatalysts find applications in molecular biology, extraction of medically important compounds, diagnostic procedures, chemical pharmaceutical manufacturing, and dietary supplements.

The food & beverages segment is the second-largest end-use category, experiencing a CAGR of 7.52% during the forecast period. Biocatalysts have been utilized in this industry for many years. Commercial biocatalysts are derived from microbial, plant, and animal sources. There is a significant demand for bakery biocatalysts, particularly in Europe and North America, to extend the shelf life of bakery products. Biocatalyst manufacturers are continuously developing new designs to enhance the quality of bakery food.

North America currently dominates the global biocatalysts market and is expected to grow at a CAGR of 6.27% during the forecast period. This dominance can be attributed to the region’s well-established infrastructure, growing population, and increasing demand from industries such as food & beverage, pharmaceuticals, animal nutrition, and household applications. The United States and Canada are the leading countries in the North American biocatalyst market. The demand for biocatalysts in the pharmaceutical industry in North America is driven by the presence of the world’s top ten pharmaceutical companies in the United States.

The APAC biocatalysts market is the second-largest globally and is projected to exhibit the highest CAGR during the forecast period. The demand for biocatalysts in this region is driven by technology advancements and innovations in the food & beverages industry. Factors such as increasing healthcare expenditure, rising health consciousness, and the emergence of new diseases contribute to the growth of the pharmaceutical market in the Asia Pacific region.

Germany, Italy, France, and Spain are the major countries contributing to the European biocatalyst market. The increasing consumption of biocatalysts in Europe can be attributed to the rising per capita income. Furthermore, the European market is driven by high spending on healthy food due to the health-conscious habits of the population and the growing demand for food & beverages biocatalysts.

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Competitive Landscape

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Prominent participants in the global biocatalysts market encompass renowned organizations such as DuPont (U.S.), AB Enzymes (Germany), BASF SE (Germany), Novozymes (Denmark), and DSM (Netherlands). These industry leaders have implemented diverse strategies, including expansions, acquisitions, new product developments, joint ventures, and others, to augment their revenues within the biocatalysts market. Additionally, notable companies like Amano Enzymes (Japan), Dyadic International (U.S.), Codexis (U.S.), and others have made substantial investments in research and development endeavors, aiming to create biocatalyst-based products that appeal to customers. Consequently, these companies have emerged as formidable competitors, posing challenges to major enterprises.

Major enterprises have adopted a strategic approach of mergers and acquisitions, enabling them to fortify their market share and gain a competitive edge. Key vendors in the biocatalysts market have adopted various strategies to foster growth on a global scale. The surge in demand for innovative and sustainable biocatalyst products, driven by factors such as investments in research and development, technological advancements, and environmental and economic challenges, has presented opportunities and hurdles for all industry players alike.

Key companies profiled in this report include DuPont, BASF SE, DSM, AB Enzymes, Novozymes, Chr Hansen Holding A/S, Codexis, Dyadic International Inc., Amano Enzymes, Biocatalysts, Nature Bioscience Pvt Ltd., Johnson Matthey, Advanced Enzymes Technologies, Zymtronix, Inc., Nutritech, Hoffmann-La Roche Ltd (Roche CustomBiotech), Aumenzymes, The Soufflet Group, Iosynth.

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Recent Industry Developments

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Novozymes, in 2021, acquired a majority stake in Synergia Life Sciences, an India-based company located in Mumbai. Synergia is recognized globally as a leader in the production and supply of microbiome therapeutics and vitamin K2-7. This strategic acquisition strengthens Novozymes’ presence and capabilities in these sectors.

Similarly, DSM, a prominent multinational company, completed the acquisition of First Choice Ingredients, a US-based manufacturer specializing in dairy-based flavorings. Through this transaction, DSM gains access to fermentation and biotechnology solutions offered by First Choice Ingredients, further enhancing their portfolio and market position.

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Key Questions Answered

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What is the revenue generated by the global biocatalysts market?
The global biocatalysts market generated a revenue of USD 495 million in 2021.

What is the growth rate of the biocatalysts market?
The biocatalysts market is projected to grow at a compound annual growth rate (CAGR) of 5.60% from 2022 to 2027.

Who are the key players in the global biocatalysts market?
The key players in the global biocatalysts market include DuPont, BASF SE, DSM, AB Enzymes, and Novozymes.

What is the projected size of the biocatalysts market by 2027?
The global biocatalysts market is expected to reach a size of USD 729 million by 2027.

What are the main driving factors in the global biocatalysts market?
The increasing demand from the pharmaceutical industry, the growing demand for biofuels, and the adoption of sustainability standards to enhance productivity and profitability are key driving factors in the global biocatalysts market.

Which region dominates the global biocatalysts market?
North America currently dominates the global biocatalysts market and is projected to grow at a CAGR of 6.27% during the forecast period. The increasing health consciousness among consumers in the US and Canada, along with a high demand for bio-based products, contributes to the growth of the industry. The US, being a developed country with a population that values diet and healthy food products, has a particularly high demand for biocatalysts used in the food and beverages sector, further driving the market’s growth.