Specialty Enzymes Market by Source (Microorganism, Plant, Animal), Type (Carbohydrases, Proteases, Lipases, Polymerases & Nucleases), Application (Pharmaceuticals, Diagnostics, Research & Biotechnology), Form & Region - Global Forecast to 2029
[306 Pages Report] According to MarketsandMarkets, the global Specialty enzymes market size is estimated to be valued at USD 6.1 billion in 2024 and is projected to reach USD 9.2 billion by 2029, recording a CAGR of 8.5%.
The growth of specialty enzymes is fueled by increasing demand for effective biocatalysts in pharmaceuticals and diagnostics drives innovation and market expansion. Advancements in biotechnology and genetic engineering enable the development of more efficient and specific enzymes, broadening their application scope. Additionally, investment in healthcare and biopharmaceuticals is increasing, supporting the use of specialty enzymes in developing new therapies and drug formulations. As consumers become more health-conscious, the use of specialty enzymes in nutraceuticals and functional foods is also on the rise, further propelling market growth.
The expanding business has offered lucrative business opportunities to the players who are operating in the market segments. For instance, in February 2024, New England Biolabs (US) launched the NEBNext Enzymatic 5hmC-seq Kit (E5hmC-seq), an enzyme-based method for the specific detection of 5hmC sites, offering high yields and quality data from inputs ranging from 100 pg to 200 ng. By enabling the specific detection of 5hmC, NEB strengthens its position in the enzyme market, providing researchers with advanced tools for epigenetic studies and gene regulation research.
Other major players, such as SEKISUI Diagnostics (US) announced a USD 16.4 million investment to expand cGMP microbial capacity at its Maidstone, Kent site, slated for completion in the second half of 2022. This followed a USD 1.9 million investment in a new Bioprocess Innovation Centre completed in October 2019. This strategic expansion significantly enhanced Sekisui's capabilities in the specialty enzyme market, enabling them to meet growing demand and solidify their position in the microbial biopharma CDMO sector.
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Specialty Enzymes Market Dynamics
Drivers: Supportive Government Policies and Funding
Public funding and incentives for biotechnological research can drive growth and innovation in the specialty enzymes market. The EU's Horizon Europe program, with a budget of USD 103.6 billion for 2021-2027, focuses on research and innovation, including biotechnology, supporting projects aimed at developing advanced biotechnological processes and products. In the United States, the National Institutes of Health (NIH) allocated over USD 42.0 billion for biomedical research in 2022, with part of this funding directed towards biotechnology research, including developing novel enzymes for medical and industrial applications. India's Biotechnology Industry Research Assistance Council (BIRAC) also provides funding and support for biotech startups and research institutions, fostering innovation in enzyme technology through initiatives like the Biotechnology Ignition Grant (BIG) scheme.
One noteworthy government initiative aimed at fostering innovation and growth in the specialty enzymes market, particularly within biotechnology and pharmaceuticals, is the Biotechnology Industry Research Assistance Council (BIRAC) in India. Established by the Department of Biotechnology (DBT), Government of India, BIRAC actively supports biotech startups and research institutions through various funding schemes. Among these initiatives is the Biotechnology Ignition Grant (BIG) scheme, which provides early-stage funding to startups and entrepreneurs with innovative ideas in biotechnology. In July 2020, BIRAC allocated Rs. 50 crores (USD 6.7 million approximately) under the BIG scheme to support approximately 100 startups and entrepreneurs in the biotechnology sector. This funding injection aims to catalyze innovation, encourage entrepreneurship, and accelerate the development of novel enzyme-based solutions for various applications in biotechnology and pharmaceuticals. By providing financial support and fostering a conducive ecosystem for research and development, initiatives like BIRAC's BIG scheme contribute to the growth and competitiveness of the enzyme market in India..
Restraints: High Costs Limiting Specialty Enzymes Market Adoption and Growth
The production of specialty enzymes often involves advanced biotechnological methods, such as recombinant DNA technology, protein engineering, and fermentation processes. These methods require state-of-the-art equipment and highly skilled personnel, which contribute to the overall cost. For example, the production of recombinant enzymes involves the use of genetically modified microorganisms, which must be carefully cultivated, maintained, and controlled to ensure consistent enzyme quality and activity.
The high production costs of specialty enzymes translate to higher prices for end-users in industries such as pharmaceuticals, food and beverages, and biotechnology. This price premium can be a significant barrier to adoption, especially for small and medium-sized enterprises (SMEs) that may not have the financial resources to invest in these high-cost inputs. In the pharmaceutical industry, enzymes are used in drug formulation and production processes. The high cost of these enzymes can significantly impact the overall cost of drug development and manufacturing. For instance, the cost of enzymes used in biocatalysis can account for up to 30% of the total production cost of certain pharmaceuticals. This cost factor can influence the pricing of the final pharmaceutical products, potentially making them less competitive in the market.
Opportunities: Technological Innovations and Wide Industry Scope
A new number of specialty applications of enzymes are being developed to enhance production processes. Several companies in the pharmaceutical industry are incorporating the use of enzymes as an alternative to chemicals to produce drugs with negligible side effects. Gene modification in the existing enzyme has resulted in significant development to enable enzymes to be functional under varying temperatures and pH levels. Specialty enzymes have been commonly used in biotechnology developments to duplicate and insert DNA when required in genetic engineering techniques. Due to advancements in research & biotechnology, the time-efficient diagnosis of various chronic diseases such as cancer, cardiovascular diseases, and lysosomal abnormalities has been found. Research institutes are focusing on high investments in R&D and discovering new applications such as drug cloning and gene modifications.
Here are some examples:
- In November 2023, BRAIN Biotech's interdisciplinary project teams,s comprising experts in microbiology, molecular biology, and bioprocess development, optimized an Aspergillus Niger strain for efficient enzyme and alternative protein production, achieving yields in the double-digit gram-per-liter range. This innovation positions BRAIN Biotech AG to significantly advance in the specialty enzyme market by replacing a large proportion of animal proteins with sequence-identical, microbially produced proteins, enhancing sustainability and efficiency.
- In May 2023, Codexis, Inc. announced the launch of its Enzyme-Catalyzed Oligonucleotide (ECO) Synthesis technology, a new platform for manufacturing RNA oligonucleotide therapeutics at scale. This proprietary technology replaces traditional phosphoramidite chemistry with enzymatic methods, enabling scalable, sustainable production designed to overcome existing manufacturing challenges.
Challenges: High Research and Development Costs
High research and development (R&D) costs are a significant barrier for companies, especially smaller ones, looking to enter the specialty enzymes market. The development of new enzymes requires substantial investments in research, laboratory equipment, personnel, and clinical trials. These expenses can be prohibitive for smaller companies with limited financial resources, thus limiting innovation and competition within the market.
The Pharmaceutical Research and Manufacturers of America (PhRMA) indicates that the pharmaceutical industry's R&D spending reached approximately USD 83.0 billion in 2020 (source: PhRMA Annual Membership Survey, 2020).
Novozymes A/S (Denmark) is a global leader in the production of enzymes and microorganisms. The company invests heavily in R&D to drive innovation and develop new enzyme solutions tailored to various industries, including agriculture, food and beverages, bioenergy, and household care. As of their Annual Report 2023, Novozymes allocated approximately 11.27% of its revenue (approximately USD 290 million) to research and development activities. This substantial investment enables Novozymes to maintain its competitive edge by continuously introducing new products and improving existing ones.
The Specialty Enzymes Market Ecosystem
Proteases is projected to be the fastest-growing segment in the enzyme market during the forecast period.
Proteases have extensive applications in pharmaceuticals, biotechnology, and healthcare. In the pharmaceutical sector, they are crucial for drug formulation and therapeutic treatments, including anti-inflammatory and anticancer drugs, due to their ability to break down proteins into peptides and amino acids. In biotechnology, proteases are vital for protein sequencing, peptide synthesis, and various molecular biology applications, driven by the demand for precise tools in genetic research and biotechnological advancements. In healthcare, they play a significant role in wound care and digestive health products, improving patient outcomes through enzymatic debridement and digestive supplements. Advancements in genetic engineering have further enhanced the efficiency and specificity of proteases, making them indispensable across these sectors.
Microorganism-based specialty enzymes are projected to experience the fastest growth in the forecasted period
This trend is primarily driven by advancements in biotechnology and microbial fermentation techniques, which have significantly enhanced the production efficiency and diversity of enzymes derived from microorganisms. Microbial sources such as bacteria and fungi offer several advantages over traditional plant and animal sources, including higher enzyme yields, faster production times, and the ability to modify enzyme characteristics through genetic engineering. Moreover, the increasing demand for sustainable and eco-friendly manufacturing processes has boosted the adoption of microorganism-based enzymes. These enzymes are often more cost-effective and scalable, making them ideal for large-scale specialty applications in sectors such as research & biotechnology, biocatalysts, diagnostics, and pharmaceuticals. Their versatility allows for the development of enzymes tailored to specific industrial needs, such as thermostable enzymes for high-temperature processes or enzymes with enhanced substrate specificity.
Diagnostics is the fastest-growing application in the specialty enzymes market during the forecast period
One major factor contributing to this growth is the advancement in enzyme-based diagnostic technologies. Enzymes such as polymerases and ligases are essential in molecular diagnostics, including PCR (Polymerase Chain Reaction) and other nucleic acid amplification techniques. These technologies are crucial for the detection of infectious diseases, genetic disorders, and cancer. For example, in March 2023, Thermo Fisher Scientific launched a new line of high-performance enzymes designed to enhance the sensitivity and speed of PCR diagnostics, addressing the growing need for efficient diagnostic tools in clinical settings.
Additionally, the growing emphasis on personalized medicine and early disease detection has spurred innovation in diagnostic technologies. Specialty enzymes are integral to the development of point-of-care (POC) diagnostic devices, which offer quick and reliable results at the patient’s bedside. These devices are increasingly used for managing chronic conditions such as diabetes, where timely and accurate diagnostics are crucial.
Moreover, government initiatives and funding for healthcare infrastructure are propelling the diagnostics sector. Governments worldwide are investing in healthcare systems to enhance diagnostic capabilities, thus driving the demand for specialty enzymes. In October 2021, the Indian government announced the PM Ayushman Bharat Health Infrastructure Mission, pledging approximately USD 8.6 billion over five years to enhance healthcare infrastructure, including the development of diagnostic facilities equipped with advanced enzyme-based technologies nationwide. This initiative aims to bolster healthcare accessibility and improve diagnostic capabilities across India.
Asia Pacific is poised to experience the highest CAGR in the Specialty enzymes market during the forecast period.
The region's pharmaceutical and biotechnology sectors are also expanding rapidly. According to the India Brand Equity Foundation, 2023, India's pharmaceutical industry, which contributes over 20% of the global generics market, relies heavily on enzymes for drug production.
Advancements in biotechnology and increased R&D investments enhance enzyme production capabilities. Japan and South Korea are at the forefront of biotechnological innovations, with South Korea investing over USD 2.5 billion annually in biotechnology R&D (OECD, 2023).
The growing awareness and implementation of sustainable and environmentally friendly practices have further driven the demand for specialty enzymes. Microbial enzymes, in particular, are preferred for their efficiency and eco-friendly nature, aligning with global sustainability goals. Additionally, the region benefits from a strong emphasis on research and development. Numerous academic and research institutions in the Asia Pacific are focused on biotechnology and enzyme research, leading to innovations and advancements in enzyme production and applications.
Asia Pacific: Specialty Enzymes Market Snapshot
Key Market Players
Key players in this market include BRAIN Biotech AG (Germany), Novozymes A/S (Denmark), Codexis, Inc. (US), Sanofi (France), Merck KGaA (Germany), Dyadic International Inc (US), Advanced Enzyme Technologies (India), Amano Enzyme Inc (Japan), F. Hoffmann-La Roche Ltd (Switzerland), New England Biolabs (US), BBI Solutions (UK), Creative Enzymes (US), Bioseutica (Netherland), and SEKISUI Diagnostics (US)
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Report Metric |
Details |
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Market size estimation |
2024–2029 |
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Base year considered |
2023 |
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Forecast period considered |
2024–2029 |
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Units considered |
Value (USD) |
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Segments Covered |
By Type, By Source, By application, By Form and Region. |
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Regions covered |
North America, Europe, Asia Pacific, South America, and Rest of the World |
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Companies studied |
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Target Audience:
- Specialty enzyme raw material suppliers
- Specialty enzyme manufacturers
- Intermediate suppliers such as traders and distributors of enzymes
- Government and research organizations
- Associations, regulatory bodies, and other industry-related bodies
Report Scope:
Specialty Enzymes Market, By Source
- Microorganisms
- Plant
- Animal
Specialty Enzymes Market, By Type
- Carbohydrases
- Proteases
- Lipases
- Polymerases & Nucleases
- Other enzymes
Specialty Enzymes Market, By Application
- Pharmaceuticals
- Research & Biotechnology
- Diagnostics
- Biocatalysts
Specialty Enzymes Market, By Form
- Liquid
- Dry
Specialty Enzymes Market, By Region
- North America
- Europe
- Asia Pacific
- South America
- Rest of the World (RoW)
Recent Developments
- In March 2024, Biocatalysts, part of the BRAIN Biotech Group, enhanced its production capacity by adding a large-scale freeze-drying facility at its Cardiff site. This new facility would support the customization and precise formulation of enzymes for the food, beverage, and life sciences industries. By complying with kosher, halal, ISO9001:2015, and FSSC22000 standards, the facility ensured high-quality and flexible enzyme production..
- In March 2024, Sanofi India Limited (SIL) approved an agreement with Emcure Pharmaceuticals to exclusively distribute and promote SIL’s Cardiovascular products in India. While SIL retains ownership, import, and manufacturing, Emcure would enhance engagement with healthcare professionals and broaden the reach, benefiting patients nationwide and strengthening Sanofi’s market presence.
- In March 2024, Merck invested over USD 324.68 million in a new bioprocessing production center in Daejeon, South Korea, marking its largest life science investment in the Asia Pacific. This expansion, expected to create around 300 jobs by 2028, underscores Merck’s commitment to enhancing its capacity in this rapidly growing region.
Frequently Asked Questions (FAQ):
What are the key product types considered in the study for specialty enzymes, and which segments within North America’s enzyme type are projected to experience promising growth?
The study focuses on three major product types: Carbohydrases, Proteases, Lipases, Polymerases & Nucleases, and Other Enzymes. Within North America’s enzyme type, the subsegment Carbohydrases emerges as the dominant category, showcasing promising growth potential in the projected market trends.
Is there customizable information available specific to the North America specialty enzymes market, and if so, what details are provided?
Yes, Certainly, customization options are available for the North America specialty enzymes market across different segments, encompassing market size, dynamics, forecasts, competitive landscape, and company
profiles. Exclusive insights will be offered for the specified North America countries below:
- US
- Canada
- Mexico
Could you highlight the opportunities identified in the study that are expected to fuel the future growth of the Specialty enzymes market?
The global Specialty enzymes market is characterized by the following opportunities:
Growth in Personalized Medicine: The specialty enzymes market is set to benefit from the increasing demand for personalized medicine. Enzymes are crucial in developing targeted therapies, leading to higher efficacy and fewer side effects, driving market growth and innovation.
Advancements in Diagnostic Technologies: The specialty enzymes market benefits from advancements in diagnostic technologies. Enzymes such as reverse transcriptase and polymerases are essential in developing innovative diagnostic tools, including rapid COVID-19 tests and other infectious disease diagnostics, propelling market growth.
Among the regions studied, which one is anticipated to exhibit the CAGR for the Specialty enzymes market?
Asia Pacific is the fastest-growing market for specialty enzymes due to the rapid expansion of its pharmaceutical and biotechnology sectors, with increasing healthcare expenditure. The region benefits from favorable government policies and significant investments in research and development. Additionally, the rising prevalence of chronic diseases and the demand for advanced medical diagnostics drive the market growth. Countries like China, India, and Japan are leading this expansion, making the Asia Pacific a key region for specialty enzyme development.
How is the competitive landscape structured in the specialty enzymes market?
The market is consolidated, with major players like Novozymes A/S (Denmark), Sanofi (France) and Merck KGaA (Germany) holds significant shares. These companies leverage extensive product portfolios, strategic partnerships, and substantial R&D investments to maintain their market positions. .
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This research involves the extensive use of secondary sources; directories; and databases (Bloomberg and Factiva) to identify and collect information useful for a technical, market-oriented, and commercial study of the Specialty enzymes market. In-depth interviews were conducted with various primary respondents, such as key industry participants, Subject Matter Experts (SMEs), C-level executives of key market players, and industry consultants, to obtain and verify critical qualitative and quantitative information and to assess prospects.
Secondary Research
In the secondary research process, various sources, such as the European Federation of Biotechnology (EFB), American Chemical Society (ACS), Association of Manufacturers and Formulators of Enzyme Products (AMFEP), Enzyme Technical Association (ETA), International Union of Biochemistry and Molecular Biology (IUBMB), Food and Drug Administration (FDA) , Environmental Protection Agency (EPA), European Chemicals Agency (ECHA), Food Safety and Standards Authority of India (FSSAI), Ministry of Health, Labour and Welfare (MHLW) Japan associations were referred to identify and collect information for this study. The secondary sources also include journals, press releases, investor presentations of companies, whitepapers, certified publications, articles by recognized authors and regulatory bodies, trade directories, and paid databases.
Primary Research
The Specialty enzymes market encompasses various stakeholders involved in the supply chain, raw material manufacturers, raw material suppliers, regulatory organizations, and research institutions. To gather comprehensive information, primary sources from both the supply and demand sides were engaged. Primary interviewees from the supply side consisted of manufacturers, distributors, importers, and technology providers involved in the production and distribution of Enzymes. On the demand side, key opinion leaders, executives, and CEOs of companies in the Enzymes industry were approached through questionnaires, emails, and telephonic interviews. This approach ensured a comprehensive and well-rounded understanding of the Specialty enzymes market from various perspectives.
Market Size Estimation
The top-down and bottom-up approaches were used to estimate and validate the market’s and various dependent submarkets’ size. The research methodology used to estimate the market size includes extensive secondary research of key players, reports, reviews, and newsletters of top market players, along with extensive interviews from leaders, such as CEOs, directors, and marketing executives.
Global Specialty Enzymes Market Size: Top-Down Approach
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Data Triangulation
Market Definition
Enzymes are proteins that are composed of amino acids and have the capability to convert a compound (substrate) into another product by catalytic reaction. These catalytic proteins assist in the performance of biochemical reactions. They lower the activation energy of the reaction and then induce it.
Specialty enzymes are primarily utilized to produce pharmaceuticals, and diagnostics solutions, as well as in bio-catalysts and research & biotechnology. They are highly selective catalysts and function in metabolic reactions and in the interconversion of complex molecules to smaller ones.
Stakeholders
- Specialty enzyme raw material suppliers
- Specialty enzyme manufacturers
- Intermediate suppliers such as traders and distributors of specialty enzymes
- Manufacturers of pharmaceuticals, research & biotechnology, diagnostics, and fine chemicals
- Government and research organizations
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Associations, regulatory bodies, and other industry-related bodies:
- European Communities
- World Health Organization (WHO)
- Association of Manufacturers & Formulators of Enzyme Products (AMFEP)
- OECD-FAO Agricultural Outlook
- United States Department of Agriculture (USDA)
- European Union (EU)
- European Medicine Agency
- European Federation of Pharmaceutical Industry Associations (EFPIA)
- Medicines and Healthcare products Regulatory Agency (MHRA)
- Central Drugs Standard Control Organization (CDSCO)
- Ministry of Health, Labour and Welfare (MHLW)
- National Medical Products Administration (NMPA)
- Health Canada
- Therapeutic Goods Administration (TGA)
- Swiss Agency for Therapeutic Products (Swissmedic)
- Brazilian Health Regulatory Agency (ANVISA)
Report Objectives
- To define and measure the global specialty enzymes market with respect to type, source, application, and geography
- Determining and projecting the size of the specialty enzymes market, with respect to product type, source, type, application, and regional markets, over a five-year period, ranging from 2024 to 2029.
- Identifying the attractive opportunities in the market by determining the largest and fastest-growing segments across regions
- Providing detailed information about the key factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges)
- Analyzing the micro markets, with respect to individual growth trends, prospects, and their contribution to the total market
- To strategically profile key players of the global specialty enzymes market and comprehensively analyze their core competencies in each segment
- To track and analyze competitive developments, such as alliances, joint ventures, new product developments, mergers, and acquisitions in the global specialty enzymes market
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to company-specific scientific needs.
The following customization options are available for the report:
Product Analysis
- Product Matrix, which gives a detailed comparison of the product portfolio of each company
Geographic Analysis
With the given market data, MarketsandMarkets offers customizations according to the company-specific scientific needs.
- Further breakdown of the Rest of the European Probiotics market, by key country
- Further breakdown of the Rest of the Asia Pacific Probiotics market, by key country
- Further breakdown of the Rest of South America Probiotics market, by key country
Company Information
- Detailed analyses and profiling of additional market players (up to five)
Growth opportunities and latent adjacency in Specialty Enzymes Market