Biocatalysis & Biocatalysts Market size is forecast to reach $120 billion by 2025, after growing at a CAGR of 5.1% during 2020-2025. Biocatalysts are defined as substances of biological (non-human) origin that are capable of catalyzing a wide range of reactions. In addition to the ability to operate under mild conditions, they are organic, biodegradable, and have high catalytic efficiency. Owing to this, they are used for various industrial and commercial applications. For instance, biocatalysts such as amylases and proteases are utilized in the Starch processing and biofuel industry for saccharification and starch liquefaction. In addition, due to advancements in technology and the environment-friendly nature of biocatalysts, their use has expanded rapidly, which fuels the growth of the biocatalysis & biocatalysts market during the forecast period.
North America dominates the biocatalysis & biocatalysts market owing to the increasing demand for the biocatalysis & biocatalysts from the major end-use industries in Europe and growing research and development activities in the region.
Traditionally biocatalysis & biocatalysts were used to convert biologically derived (or renewable) feedstock. However, in recent times they are being widely used in the production of biofuels, biopharmaceuticals, and paper & pulp.
Moreover, in industries such as food and beverages, detergents, starch processing, and textiles, increasing awareness of the benefits of biocatalysts and their environmental sustainability has stimulated their demand. As a result, the market is further expected to grow during the forecast period.
Due to the COVID-19 pandemic, most of the countries have gone under lockdown, due to which operations of various industries such as food and beverages, and biofuel has been negatively affected, which is hampering the biocatalysis & biocatalysts market growth.
Biocatalysis & biocatalysts Market Segment Analysis – By Type
The hydrolases segment held the largest share in the biocatalysis & biocatalysts market in 2019, owing to the increasing usage of hydrolases in various end-use industries. In organic synthesis, hydrolases are particularly common because they are readily available. The hydrolases are extensively used in many other industrial segments such as for the manufacture of detergents and in the food industry. Furthermore, hydrolases do not require a cofactor, which is the major factor driving the growth of hydrolases biocatalysis & biocatalysts market during the forecast period.
Biocatalysis & biocatalysts Market Segment Analysis – By End-Use Industry
The food and beverages industry held the largest share in the biocatalysis & biocatalysts market in 2019 and is growing at a CAGR of 5.9%, owing to the wide usage of biocatalysts in the food and beverage industry for several years as food enzymes for instance in dairy products, bakery, brewing, oil & fat production, preparation of meat products and beverages. Beyond the well-established procedures to accelerate food processing, biocatalysis & biocatalysts are also employed to improve food properties such as digestibility and taste. Furthermore, they are extensively utilized for the biotransformation of wastes coming from the food industry, allowing the obtainment of products to be re-employed in the food supply chain or used in other industrial applications, including the cosmetic or pharmaceutical field. All these factors are heavily contributing to the growth of biocatalysis & biocatalysts in the food & beverage industry during the forecast period.
Biocatalysis & biocatalysts Market Segment Analysis – By Geography
North America held the largest share in the biocatalysis & biocatalysts market in 2019 up to 36%, owing to the increasing demand for biocatalysis & biocatalysts from the food & beverage industry in the region. Biocatalyst is extensively used to aid food processing in a wide variety of applications, for example in the manufacturing of cheese, vinegar, and wine, the leavening of bread, brewing of beer, and more. In these processes, enzymes help to save energy and resources, as well as improve the overall efficiency. According to the United States Department of Agriculture (USDA), in 2017, Agriculture, food, and related industries contributed $1.053 trillion to U.S. gross domestic product (GDP), a 5.4-percent share. In 2018, Americans spent an average of 9.7 percent of their disposable personal incomes on food, divided between food at home (5.0 percent) and food away from home (4.7 percent). According to the United States Department of Agriculture (USDA), in 2018, Canada’s total food and beverage industry sector sales reached $87 billion. The Government of Canada is expecting to increase the food exports to 26 percent by 2025 up to C$ 85 billion. Thus, with the rising food and beverage industry, the demand for biocatalysis & biocatalysts in the country will also increase, which is anticipated to further drive the biocatalysis & biocatalysts market in North America during the forecast period.
Biocatalysis & Biocatalysts Market Drivers
Increasing Personal Care & Cosmetic Industries
The personal care and cosmetic sector are booming in varied regions due to the increasing demand for cosmetics from the consumers. According to International Trade Administration (ITA), France ($324 million) is the largest exporter to Korea in 2017, and, the total cosmetic production of France increased from 22,236 in 2018 to 22,680 in 2019. Also, South Korea is the 8th largest cosmetics market in the world, representing nearly 3.0% of the global market. In 2017, South Korea’s market size was approximately $8.8 billion, the total local production increased by 3.6% from the previous year and the market is growing by an annual growth rate of 4.7% for the last 5 years (2013-2017). The United States imports accounted for 24.7% of the total import market share at $291 million. Biocatalysts such as lipases and peroxidase are being extensively used in the personal care industry as they have anti-microbial applications. Peroxidase is found to play an important role in the breakdown of eumelanin, which led to the development of skin-lightening-related products. On the other hand, lipases due to their outstanding ability to metabolize lipids have found their way into formulations involving products for nose cleansing, makeup beauty masks, and hair care. Thus, the increasing personal care and cosmetic sector act as a driver for the biocatalysis & biocatalysts market during the forecast period.
Increasing Biopharmaceutical Industry
The biocatalysis & biocatalysts market growth is spurred by the rapid expansion of the biopharmaceutical industry mainly due to the growing population, urbanization, increasing disposable income, and increasing demand for pharmaceuticals across the region. The usage of biocatalysis in the pharmaceutical industry is expanding at a lucrative rate owing to the increased access to enzymes and the ability to engineer those enzymes to meet the demands of industrial processes. Biocatalysts are currently in the production of pharmaceuticals or their intermediates such as antibiotics, statins, and enantiomerically pure building blocks, and more. According to the European Federation of Pharmaceutical Industries and Associations (EFPIA), the Brazilian, Chinese and Indian markets grew by 11.4%, 7.3%, and 11.2% respectively during the period 2014-2018. In 2018, the Australian government announced it would invest $1.3 billion in the Health and Medical Industry Growth Plan to drive a new era of better health care in Australia. With the increasing pharmaceutical industries, the world demand for biopharmaceuticals will also increase, which acts as a driver for the biocatalysis & biocatalysts market during the forecast period.
Biocatalysis & Biocatalysts Market Challenges
Drawbacks Related To Biocatalysis & Biocatalysts
Due to its high efficiency, low cost, and no secondary contamination, the use of biocatalysis & biocatalysts such as horseradish peroxidase and laccase for the removal of aqueous recalcitrant pollutants has aroused many interests. However, its application has been limited by low stability and poor reusability of the free enzymes. Severe biocatalysis disadvantages, including limited operating regions, substrate inhibition, product inhibition, aqueous solution reactions, and delicate environments, makes it vulnerable. In addition, biocatalysts protein molecules are rather unstable in aqueous media and many enzymes are cofactor-dependent. All these factors are limiting the biocatalysis & biocatalysts market growth during the forecast period.
Covid-19 Impact on The Biocatalysis & Biocatalysts Market
Due to the covid-19 outbreak, many countries are under shut down owing to which the market is witnessing a period of low demand from its end-use industries. After frequent panic buying in many places in mid-March, food and daily necessities are now being stockpiled again owing to which the demand for packaging is on a downfall. In addition, the COVID-19 pandemic is affecting operations of various industries including food and beverages, as most of the countries have issued “stay at home guidance” i.e., lockdown. As biocatalysis & biocatalysts are extensively used in these industries, the declining operation of these industries globally is directly limiting the biocatalysis & biocatalysts market growth during the pandemic. Furthermore, the shipment orders of biocatalysis & biocatalysts are being heavily affected due to the import & export restrictions and non-availability of vessels and blank sailing.
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the biocatalysis & biocatalysts market. In 2019, the market of biocatalysis & biocatalysts has been consolidated by the top five players accounting for xx% of the share. The major key players in the biocatalysis & biocatalysts market are Novozymes, Koninklijke DSM N.V., Codexis, Inc., Chr. Hansen A/S, Amano Enzyme Inc., E. I. du Pont de Nemours and Company, Biosyntha Technology Ltd., Biocatalysts Ltd., and Piramal Group.
In June 2018, Codexis, Inc. has entered into a strategic collaboration with Porton Pharma Solutions to deploy Codexis’ world-leading biocatalyst technology within the global development and manufacturing business of Porton’s custom intermediate and active pharmaceutical ingredients (API).
In April 2020, Biocatalysts Ltd launched a new enzyme Lipomod™ 888MDP. This non-genetically modified microbial lipase preparation is an appropriate alternative to pancreatic lipase and is both Kosher and Halal, as well as vegetarian, vegan, and GMO VLOG compliant due to its microbial origin.
In May 2020, Biocatalysts Ltd launched a new enzyme Lipomod™ 767P. It is a non-genetically modified microbial lipase preparation suitable for both the hydrolysis and esterification of oils and fats. Its broad spectrum pH profile means it can be used in applications across a wide range of substrate types.