Industrial Enzymes Market Size and Trends

The industrial enzymes Market size is valued US$ 7.53 Bn in 2024 and is expected to reach US$ 11.42 Bn by 2031, growing at a compound annual growth rate (CAGR) of 6.1% from 2024 to 2031. Industrial enzymes are proteins that act as catalysts for various biochemical reactions. They are produced through the fermentation of microorganisms like bacteria and fungi. There are various types of industrial enzymes that are used across industries. Proteases help in protein digestion and are used in detergents to remove tough stains. Amylases are used for starch modification in food processing and textile industries. Cellulases and hemicellulases break down cellulose and help in biofuel production from biomass. Lipases are useful in food processing for fat and oil modification.

Industrial Enzymes Market Trends:

Advent of integrated bio-refineries: Growing trend of integrated bio-refineries is having a substantial impact on the industrial enzymes market. Bio-refineries aim to process biomass into a spectrum of marketable products and energy in an integrated manner. By consolidating different processing steps under one roof, bio-refineries help reduce costs, increase efficiencies and maximize the value derived from sustainable feedstocks. This integrated approach relies heavily on the application of specialized industrial enzymes at various stages. Industrial enzymes play a vital role in pre-treatment, hydrolysis, and fermentation processes within bio-refineries. They help break down biomass into fermentable sugars and enable the conversion of those sugars into high-value bio-based chemicals, fuels, and materials. For example, cellulases and hemicellulases are added during the pretreatment phase to deconstruct cellulose and hemicellulose fractions into simpler sugars. Amylases assist in saccharification of starch-containing biomass. Proteases help solubilize proteins for nutrient recycling. Specific enzymes like lipases and cellulases also find application in upgrading processes to produce biodiesel, bioplastics, and other biochemicals. For instances, according to data provided by the International Renewable Energy Agency, global investments in advanced biofuel production capacity increased from US$1 Bn in 2020 to US$2.7 Bn in 2021, with most of this new capacity based on integrated biorefinery concepts.
Consolidation activities among industry players: The consolidation trend among industrial enzyme manufacturers has significantly impacted the industrial enzymes market in recent years. Many large players have either acquired smaller rivals or merged with peers to gain a larger market share and strengthen their product portfolios. For example, in 2020, Dupont acquired LBG's enzyme business and expanded its cleaning and bio-based products portfolio. Similarly, in 2022, AB Enzymes merged with Novozymes to build a robust microbial enzymes business. Such consolidation activities allow companies to benefit from scale economies, integrated supply chains, and expanded geographical reach. It helps them optimize production costs and improve process efficiencies across global operations. The larger consolidated entities can also invest more in research and development (R&D), thus allowing stronger product pipelines and innovation in industrial enzyme technologies over the long run. For instance, post-merger, AB Enzymes significantly increased its R&D investments, thus leading to the launch of more sustainable bio-based products for detergents, leather, and textile applications within two years.