Global enzyme market at $3.5 billion, 6% growth expected
Industrial enzyme, which refers to the enzyme preparation used for industrial purposes, can be applied to detergent, animal feed, bread, brewing (beer, wine, etc.), papermaking, textile, bio-ethanol and so forth; especially, food and brewing, feed and detergent are the most commonly application fields, and they consume about 75 percent of industrial enzyme together.
The industrial enzyme market size has been expanding in recent years with the improvement of R&D technology and the extension of application range. From 2001-2011, the global industrial enzyme market scale presented a CAGR of 6.8 percent, and in 2011 the global market valued at $3.5 billion, with a year-on-year growth rate of 6.1 percent.
Through numerous mergers and acquisitions, the global industrial enzyme market concentration degree has been gradually raised. In 2011, Novozymes and DuPont (DuPont acquired Genencor) enjoyed market share of 47 percent and 21 percent respectively.
Through several decades of development, China has become an important production base of industrial enzyme, and its market size accounts for about 10 percent of the global size. Judging from Chinese economic situation and domestic demand, the industrial enzyme market of China is expected to embrace a faster growth rate of 10 percent or so than the global 6-8 percent in the next three years, and it will reach at least RMB3 billion in 2014.
Yet, foreign tycoons with patent monopoly and strong R&D capabilities have entered China in succession, while Chinese counterparts are lagged in R&D, therefore Chinese native enzyme preparation enterprises have weak competitiveness, and the Chinese market is still currently dominated by Novozymes, DuPont (Genencor) and other foreign brands.
However, in market segments like feedstuff, Chinese play, VTR, for example, occupy a significant position, with 16.5% share (by sales volume) in Chinese feed enzyme market in 2011. Meanwhile, local enterprises are not only increasing new products, but also striving to expand their production scale and enhance marketing; for instance, VTR invested the funds raised from IPO in "12,000 t/a Enzyme Preparation Project Phase II" in Inner Mongolia (early 2012); Hunan Hongyingxiang and Jinshi Development Zone signed an agreement for "300,000 standard tons/a Enzyme Preparation Project" (May, 2012).
Therefore, based on local advantages, it is expected that Chinese companies will sweep more market shares.