Allied Market Research

Alcohol Enzymes Market is Expected to Reach $804.6 Million by 2027


quote As the demand for alcohol increases from the end uses, so will the demand for alcohol enzymes. The market is currently dominated by alcoholic beverage production and is expected to continue. In addition, rising production of bioethanol will further boost the alcohol enzymes market. Alcohol enzymes have the ability to increase the productivity of brewers and biorefineries by reducing raw materials and optimizing the process. The development of enzymes at low production costs and high catalytic activity will offer fresh opportunities for the global alcohol enzymes market growth during the forecast period. quote

Eswara Prasad
Manager, Materials & Chemicals at Allied Market Research

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According to a new report published by Allied Market Research, titled, "Alcohol Enzymes Market by Type and End-user: Opportunity Analysis and Industry Forecast, 2020-2027," 

The global alcohol enzyme market was valued at $553.1 million in 2019, and is projected to reach $804.6 million by 2027, registering a CAGR of 4.9% from 2020 to 2027.

Alcohol enzymes are industrial enzymes that are specifically synthesized for use in brewing and alcohol production. Enzymes are industrially produced from animals and plants by extraction, or from microbial sources. However, majority of the alcohol enzymes are based on microorganisms due to their easy availability and ease of production. In addition, microbial enzymes are active and are more suitable for genetic modifications. Amylase, Glucanase, Cellulase, Protease, Lipase, and Xylanase are the major types of alcohol enzymes that are used in various brewing processes such as malting, fermentation, wort separation, filtration, maturation, and viscosity reduction. 

The global alcohol enzymes market is presently driven by the increasing demand for alcoholic beverages and bioethanol. In brewing, alcohol production, as well as in bioethanol production, enzymes increase Key Performance Indicators (KPIs) including yield, conversion and filtration times. Bioethanol as a fuel blend is increasing as many countries mandate its use in motor fuel. As bioethanol is cheaper and environmentally-friendly alternative for gasoline or petroleum fuel cars, its production has increased in recent years. In 2018, Archer Daniels Midland Company and DuPont Industrial Biosciences announced a collaboration to develop, produce and market cellulase enzymes for operators of grain-based ethanol plants. Enzymes meant for food & beverage applications must comply with Food Improvement Agents Package (FIAP) as well as Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH).  In addition, enzyme development is capital intensive and requires long period of timing from trials to commercial release. 

A range of specific properties can be enhanced in enzymes, including the catalytic activity, thermostability, and specificity, under industrial conditions. R&D activities in protein engineering is estimated to play a major role in the future growth of the global alcohol enzymes market. The development of modern biotechnology is an important driving force for the enzyme industry to move forward. Contemporary biotechnology such as sequencing technology and protein engineering will contribute to enzyme development and production. 

The global alcohol enzymes market is segmented based on type, end-user, and region. Based on the type, the global alcohol enzymes market is studied into carbohydrase, proteases, lipases, and others. In 2019, the carbohydrase segment was the largest revenue-generating segment, accounting for a market share of 41.3% in the overall market. The end-users of alcohol enzymes are food & beverage, pharmaceutical, chemical, cosmetics, biofuel, and others. In 2019, the food & beverage segment was the largest revenue-generating segment, accounting for a market share of 36.8% in the overall market. On the basis of region, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, Asia-Pacific accounts for the largest share of the market, followed by Europe and North America. The major companies profiled in this report include Advanced Enzyme Technologies, Associated British Foods Plc, BASF SE, Biotechnology Research and Information Network AG, Creative Enzymes, DSM Royal,  DuPont, Kerry Group Plc, Laffort, and Novozymes.

Key findings of the study

  • The Asia-Pacific alcohol enzymes market is projected to grow at the highest CAGR of nearly 5.9%, in terms of revenue, during the forecast period.
  • By type, the lipases segment is anticipated to witness the high growth rate of 6.0%, in terms of revenue, during the forecast period.
  • By end-user, the pharmaceutical segment is anticipated to witness the high growth rate of 6.6%, in terms of revenue, during the forecast period.

Impact Of Covid-19 On The Global Alcohol Enzymes Market

  • The COVID-19 pandemic has negatively affected the global economy, thereby changing consumer spending patterns globally.
  • The temporary closure of bars and restaurants hit the beverage alcohol sales, adding to this was the travel restrictions which hampered the tourism activity. Both the factors led to a decline in alcohol production.
  • The supply chain of both the enzyme production as well as alcohol production was impacted. This led to a huge supply-demand gap.  
  • The biofuels industry has been hit hard by the sharp decline in fuel demand due to the coronavirus outbreak.
  • Development of enzymes is a continuous process and takes long time. The pandemic halted the development phase of new enzymes, which may delay its commercial release. 
  • Financial turbulence in the leading economies may delay commissioning of new biofuel facilities
  • The retail sector has taken a significant hit with supermarkets, malls and theatres being closed. 
  • On the positive side, there was a demand for medicinal drugs, which led to increased demand for enzyme formulated for the healthcare system
  • Financial turbulence in the leading economies may delay commissioning of new renewable electricity projects, wind mills & tidal energy farms, biofuel facilities, and renewable heat investments. 

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quote Alcohol Enzymes Market by Type (Carbohydrase, Proteases, Lipases, and Others) and End-User (Food & Beverage, Pharmaceutical, Chemical, Cosmetics, Biofuel, and Others): Opportunity Analysis and Industry Forecast, 2020–2027 quote

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