How Industrial Enzymes Changing Our Lives!
Industrial enzymes are the types of macromolecular biological that are commercially used in a wide range of industries such as chemical, biofuels, pharmaceuticals, and food & beverage, among others. The expanding food and beverage industry coupled with the recent advancements in enzyme engineering & green chemistry are boosting the demand for industrial enzymes. In the food and beverage industry specifically, the catalysts are used to enhance the end product’s texture, taste, and flavor. Growing demand for cosmetics and personal care products on account of the growing geriatric population in various parts of the world coupled with the rising awareness are contributing to the global industrial enzymes market growth. Furthermore, the demand for industrial enzymes is expected to increase in the coming years owing to increasing application in animal feed products to boost the nutritional value of the animal feed.
Increasing Demand for Products With Longer Shelf Lives and Convenient Storage
The widening of distribution chains, globalization and expansion of companies, a growing number of retail and wholesale outlets, and more have led to the development of food products with a longer life span. Industrial enzymes are used in the products that last for longer times. According to the USDA's Shelf-Stable Food Safety, some canned hams are shelf-stable and can be stored in the pantry up to 2 to 5 years. Due to this, there has been a rise in the demand for longer shelf life products which uses enzymes during the forecast period. Furthermore, packaging, storage, and logistics comprise a substantial part of the costing of the products and industrial enzymes are used in optimization of the production processes making it a better option for manufactures resulting in the investment in research and development in chemical industry.
Growing Demand for Convenience Products
The rise in the number of working populations worldwide is projected to be one of the key drivers to the convenience food market. According to a report by the United States Department of Agriculture (USDA), ready to eat and ready to cook foods amounted to 26% of the household expenditure on food between 1999 and 2010, with the portion of the average household food budget spent on ready to eats growing since 2007. Furthermore, according to APEAL, the Association of European Producers of Steel for Packaging, busier lifestyles have led to increased adoption of convenience products as it saves 50% time on average. Furthermore, the added benefits of portability, portion controlling, easier handling and opening, have further added to the demand for convenience products, thus resulting in an increase in the demand for industrial enzymes all around. In addition to this, multiple studies have shown the connection between advertisement and the demand for convenience products. And with the increase in the advertisement expenditure, the demand for convenience products will further rise, resulting in a snowball in the demand for industrial enzymes in the coming years.
Rapid urbanization coupled with the increasing demand for bioethanol in developing countries around the world is further boosting the demand for industrial enzymes over the forecast period.
According to the latest United Nations statistics, there is a rapid growth in the urban population of the world which has increased from around 751 million to more than 4.2 billion from 1950 to 2018. The migration of people has a consequence of an increase in disposable income, which resulted in the adoption of modern living conditions as well. Thus, all of the above factors created the market for industrial enzymes in various end-user industries.
The increase in cosmetic product demand is highly attributed to the growing middle-class population, especially in the developing economies of the world, thus creating a high consumer base. For instance, the Asia Pacific, by 2030 is projected to hold the maximum middle-class population, where it will represent more than 60% share in the global middle-class population and over 50% share on the basis of middle-class consumption. The graph below depicts the growth in the global middle-class population for the year 2009, 2020, and 2030 in billion units.
Source: OECD Statistics, Knowledge Sourcing Intelligence Analysis
Application in the Animal Feed Industry Is Growing During the Forecast Period
Growing consumption of meat and other end products such as milk, eggs across different regions is considered as one of the prime factors driving the growth of the industrial enzymes market during the forecast period. According to the Organisation for Economic Co-operation and Development, per capita, meat consumption in Brazil has increased from 24.633 kilograms in 2011 to 25.931 kilograms in 2017. Even per capita, meat consumption in Japan has increased from 6.491 kilograms in 2008 to 7.17 kilograms in 2017. Moreover, according to the Food and Agriculture Organization (FAO), milk consumption is expected to increase from 568 million tonnes to 700 million tonnes by 2020. Compound Feed is prepared by blending several raw materials and additives, based on the needs or requirements of the target animals. Compound feed is gaining traction due to its manifold advantages such as consistency, efficiency, economy, quality, and nutrition. Technological developments in the animal feed equipment in conjunction with investments, mergers, and acquisitions in this market is anticipated to expedite the process of compound feed production. For instance, Vermeer Corporation, which has a global presence, acquired family-owned Schuler Manufacturing to expand its feed production technology to provide support to the cattle producers throughout the feeding process. Another example being, in January 2020, Cargill made an investment of $20 million in India in a new premix and supplement manufacturing facility. The company has aimed to invest $240 million in India to expand its presence. This facility is also expected to generate feed additives to be used in Northern India to augment the animal feed industry.
