Alcohol Enzymes Market

Market Overview

The global alcohol enzymes market size was valued at USD 604 million in 2021, presumed to reach USD 900 million, expanding at a CAGR of 5.1% during the forecast period. Alcohol enzymes are proteins utilized in the manufacturing of alcoholic beverages. Additionally, it contains brewing enzymes. Animals, plants, and microorganisms all contribute to their production. An enzyme's primary purpose is to convert complex carbohydrates into simple sugars, thereby shortening the duration and lowering the cost of a process. There are numerous enzyme-dependent processes involved in both brewing and alcohol generation. Enzymes are employed to modify recipes to generate tailored beers, such as low-calorie beers, to sustain colossal production. Numerous enzymes can be utilized to accelerate the brewing or fermentation processes. Enzymes are also a part of the bioethanol manufacturing process, with biorefineries producing bioethanol being the primary users of alcohol enzymes.

The food & beverage industry is presently driving the worldwide alcohol enzymes market. Also driving the global alcohol enzymes market is the rising demand for bioethanol. However, alcohol consumers are the driving force behind the increasing demand for alcohol enzymes. Enzymes enable brewers to employ locally sourced ingredients, which would otherwise be problematic due to inconsistent quality control. Enzymes result in a reduction in production time, an increase in capacity, and the utilization of alternative raw materials. It is anticipated that the stringent regulatory framework associated with enzyme production will restrict the market penetration of new products, restraining the growth of the global alcohol enzymes market.

Market Dynamics

Demand from Alcoholic Beverages Industry and Biofuel Industry

Displaying income and lifestyles has impacted global consumption habits, increasing demand for packaged beverage goods and other FMCG items. Millennials are the largest consumers of alcoholic beverages. Millennials have recently favored liquor and other spirits over beer and wine. No longer devoted to previous brands or specific varieties of wine, young consumers no longer display brand allegiance. They are always searching for novel beverages. This enables distillers to provide new goods by utilizing locally available ingredients, enhancing product diversity.

This transformation in consumer habits has resulted in an increase in the manufacturing of alcoholic beverages. In addition, the proliferation of online alcohol sales has raised the demand for alcoholic drinks in nations such as the United States and the need for premium alcoholic beverages. Therefore, the growth of the younger population and the expansion of the alcoholic beverage market is anticipated to substantially impact the need for food processing aids, particularly alcohol enzymes. Enzymes provide craft brewers and distillers choices regarding raw material quality and type, increased throughput, taste control, and uniform product quality from small manufacturing batches. Therefore, the alcoholic beverage sector is now driving the worldwide alcohol enzymes market.

Global energy usage is projected to increase by 28% between 2015 and 2040. As a result, there is a growing demand for renewable and sustainable energy options to fulfill the increasing worldwide demand. Due to the expected depletion of fuel energy sources, bioethanol has gained significance as an alternative source of energy. Hence, investment is crucial in the manufacture of bioethanol. Moreover, during oil supply fluctuations, ethanol's position as a substitute predominates and permits shock attenuation. Excessive reliance on oil imports poses a persistent threat to the economy and environment; therefore, the production and usage of ethanol make a nation more energy secure. Government rules requiring the blending of ethanol with gasoline also contribute to the rising demand for fuel ethanol. These factors increase the need for bioethanol production, boosting the worldwide alcohol enzymes market.

Market Restraining Factors

The Cost for Developing Enzymes 

The production of enzymes necessitates significant investment and research capacity. Regulatory boards, including the Joint Food and Agriculture Organization of the United Nations/World Health Organization Expert Committee on Food Additives, the European Food Safety Authority, and the U.S. Food and Drug Administration, must evaluate an enzyme before its commercial release. The United States' primary product-oriented regulation, whereas the European Union focuses on industrial processes. Both systems have compiled lists of permitted enzymes or are doing so to enable commerce while ensuring consumer health and welfare. Consequently, enzyme manufacture is expensive, and the screening procedure is rigorous. During the forecast period, these factors are anticipated as restraints on the worldwide alcohol enzymes market.

Global Alcohol Enzymes Market Opportunities

The Production of Low-Cost Enzymes

Future development and improvement of catalytic proteins are necessary to expand the industrial enzyme market, especially alcohol enzymes. Using techniques of genetic manipulation, it is possible to increase enzyme productivity. Introducing new products is anticipated to assist market participants in gaining a competitive advantage. In June 2020, DuPont will release Spezyme HN Alpha-Amylase Blend for ethanol liquefaction and viscosity minimization at various temperatures and pH levels. Various enzyme properties, including catalytic activity, thermostability, and specificity, can be improved in industrial circumstances. Hence, such product launches allow the alcohol enzymes market to expand further.

Regional Analysis

The region-wise segmentation of the global alcohol enzymes market includes North America, Europe, Asia-Pacific, and LAMEA.

The Asia Pacific and Europe will Dominate the Regional Market 

The Asia Pacific will command the market with the largest share while growing at a CAGR of 6.1%. The increasing population and increasing main end-users of enzymes in these nations are currently driving market expansion. China aims to obtain 22% to 24% of its energy from renewable sources by 2030, and biofuels are a part of this goal. Following the Paris Agreement, Japan has committed to cutting its greenhouse gas (GHG) emissions by 26 % by 2030, relative to 2013. The biofuel program is a component of Japan's effort to combat climate change and maintain a stable energy supply. China ratified the Paris Agreement in September 2016 and has committed to reaching peak CO2 emissions before 2030, reducing the CO2 intensity of its fuel, increasing the number of renewables in its primary energy mix to 20%, and increasing the volume of its forest stock. Such commitments are anticipated to fuel market expansion for alcohol enzymes over the forecast period.

Europe will expand at a CAGR of 3.5% and hold USD 224 million. Germany and the United Kingdom dominate the alcohol enzymes market in Europe. Germany is a significant market for the U.S. distilled spirits sector due to its size, wealth, and keen interest in premium imported distilled spirits. According to a survey by the Distilled Spirits Council of the United States, approximately 65% of the market's value comprises imported spirits. Numerous micro-distilleries have sprung up around the nation in response to the rising demand for craft whiskey. During the forecast period, the continued growth of the craft distillery industry is anticipated to create new opportunities for the German market for alcohol enzymes.

Since 2015, greenhouse gas emission (GHG) reduction targets have superseded energy-based targets for transport fuels. In Germany, the Fuel Quality Directive (FQD) aim of a 6% reduction in GHG emissions from transport by 2020 has been implemented, with intermediate steps of a 3.5% reduction in 2015 and 2016 and a 4% percent reduction beginning in 2017. This is predicted to enhance biofuel consumption in the United States. Reducing GHG targets boosts the market for biofuels, hence expanding biofuel production capacity. Consequently increases the demand for alcohol enzymes.

Segmental Analysis

The global alcohol enzymes market is classified based on type, end-user, and region.

On the Basis of Type

Based on type, the categories include Carbohydrase, Proteases, Lipases, and Others.

The carbohydrase section is envisioned to grow at a CAGR of 5% and hold the largest market share. Carbohydrases are a group of enzymes primarily responsible for converting complex sugars into simple sugars during brewing. Amylase, cellulose, lactase, mannanases, and pectinase are among the most prevalent carbohydrase. Alpha, beta, and gamma-amylase are the three classifications of amylase. On the market for alcohol enzymes, amylase is an essential carbohydrase type. In addition to their involvement in enhancing the sugar yield for fermentation, α and β-amylase are required for malting and mashing barley. The use of additional carbohydrate enzymes, including glucoamylase and pullulanase, is optional for brewers; however, these enzymes are utilized judiciously to assure a more rapid and abundant glucose production and, thus, a higher beer yield.

The proteases section will hold the second-largest share. Proteases are a category of enzymes that break down protein-peptide bonds. These enzymes facilitate the breakdown of proteins into polypeptides, oligopeptides, and amino acids. Animals, plants, and microbes are all sources of proteases. The proteases ficin and papain are derived from the latex of fig and pawpaw plants, respectively.

Nonetheless, proteases derived from microorganisms are commonly used in industrial applications due to their widespread availability and rapid development rate. Compared to lipase and amylase, protease has a broader function. In addition to decomposing proteins and carbohydrates into amino acids, ficin and papain are employed as chill-resistant enzymes that hydrolyze proteins.

On the Basis of End-User

Based on end-user, the categories include Food & Beverages, pharmaceuticals, chemicals, Cosmetics, Biofuel, and Others.

The food & beverages sector is envisioned to grow at a CAGR of 4.9% and hold the largest market share. Alcohol enzymes are employed in brewing and producing alcohol (ethanol). Enzymes increase brewhouse efficiency in brewing by degrading beta-glucans completely, reducing wort viscosity, boosting wort separation rate, enhancing beer filtration efficiency, and minimizing haze. Various alcoholic drinks, such as beer, wine, and distilled spirits, are produced with enzymes. Multiple applications for enzymes in brewing exist. This category is the primary driver of the global alcohol enzymes market due to many beverage firms and their ongoing efforts to enhance sales. This market segment is currently led by Asia-Pacific countries, Europe and North America. In terms of flavor and consistency, alcoholic beverage manufacturers continuously develop new products. Now, the market for alcoholic beverages is being driven by the rising number of consumers.

The chemical sector will hold the second-largest share. Ethanol is recognized as a universal solvent, reagent, and crucial industrial chemical in the chemical industry. The oxidation of ethanol into acetaldehyde is a significant industrial application of ethanol. It is a solvent for synthesizing organic compounds, including glycol ethers, ethyl amines, and ethyl propenoate. Paints & coatings, pharmaceutical, plastics, and rubber sectors are the primary drivers of demand. The synthesis of acetic acid, acetic anhydride, ethyl acetate, n-butanol, pyridine, and vinyl acetate requires the use of acetaldehyde. In 2018, a team of academics from Chulalongkorn University, Thailand, published a report stating that the manufacture of acetaldehyde via the ethanol dehydrogenation pathway appears highly interesting due to the technology's environmental friendliness. It is a cost-effective and environmentally sustainable alternative to standard business procedures.

Recent Developments

• In 2022, BASF SE and Confoil jointly launched DualPakECOâ. The paper tray's interior is coated with ecovio® PS 1606 from BASF, a partially bio-based and certified biodegradable biopolymer explicitly developed for coating paper or board food packaging.