VRG Technologies, Inc.

WORLDWIDE INDUSTRIAL APPLICATIONS FOR ENZYMES TO TOP $1.8 BILLION IN 2002
A new era of advances in enzyme technology now exists. Genetic engineering is being applied, not only to source valued enzymes in easier-to-grow microorganisms but also to modify and tailor enzyme protein properties to customer requirements. Companies are exploring extreme environments in search of enzymes having properties more in tune with industrial needs. Researchers are applying molecular evolution to stretch and alter enzyme specificities. Enzymes are being harnessed to work in partially organic solvents so they can have new applications. The prospects for this industry look bright, with increased market penetration expected in several existing applications, as new applications under exploration come to fruition and new technologies improve the needed performance characteristics enzymes must have for industrial applications.

According to a soon-to-be-released BUSINESS COMMUNICATIONS COMPANY, INC. study RC-147NA Industrial Enzymes: Products, Technologies and Applications, the worldwide total for industrial applications of enzymes was valued at $1.5 billion in 1997 and is projected to rise to $1.8 billion by 2002. This reflects an average annual growth rate (AAGR) of 4.0%. Food and animal feed applications continue to dominate the industrial enzymes market on a worldwide basis.

The food and animal feed applications segment will increase from $705.0 million in 1997 to $833.1 million in 2002, an AAGR of 3.5%. Leading applications are the manufacture of starch-derived syrups, alcoholic beverages, dairy products and animal feed. Lesser applications are baked goods, fruit and vegetable processing, protein processing and vegetable oil extraction. While the food market for enzymes is relatively mature, BCC points out that opportunities exist for new and improved enzymes in niche uses. Moreover, the animal feed sector has considerable room for growth.

Detergents are the next most significant market outlet for industrial enzymes. Enzymes for laundry detergents dominate this sector, followed by enzymes for dishwashing detergents. BCC projects that this segment will rise from $475.2 million in 1998 to $600.9 million in 2002.

Textile enzymes are the third most significant segment of this market. The major enzymes in this category are enzymes for processing cotton and cellulosic textiles, followed by enzymes for processing leather and fur. Enzymes for silk and wool are minor. This segment is projected to increase at an AAGR of 2.0% into 2002.

Other outlets for industrial enzyme applications include pulp and paper and chemicals manufacture.

Enzymes are proteins consisting of long chains of amino acids held together by peptide bonds. As catalytic agents, they help speed up chemical processes just by their presence in a reaction. They cannot function indefinitely, have limited stability, and are therefore used only once in commercial applications. Their catalytic activity was exploited long before they were recognized as enzymes. The making of beer, wine, cheese, and bread is thousands of years old, and each of these fermentation processes harnessed the activities of enzymatic organisms. Because a particular enzyme operates on only one substrate, the catalyzed reaction will generate only one product and no other. Another virtue is their money-saving mild temperature requirement. Still another is that they generally operate in aqueous solution, which not only is cheaper than organic solvents, but also is safer in the environment, to say nothing of freedom from fires, explosions, and worker hazard.

According to a soon-to-be-released study from Business Communications Co., Inc. (www.bccresearch.com)  RC-147NB  Enzymes for Industrial Applications, the total U.S. consumption of enzymes is estimated at $514.1 million in 2000. Growing at an AAGR (average annual growth rate) of 4.1% during the 5-year forecast period, this market is expected to reach $629.3 million in 2005.

Food and animal feed applications dominate the market, accounting for just under half of the total value in 2000. Carbohydrases and proteases are the principal enzyme types serving these applications.

Cleaning compounds are the next most important, with about 22% of the total and is also the second fastest growing sector with an AAGR of 5%. This category includes laundry detergents, dishwashing detergents, and other cleaners. Proteases, amylases, lipases, and cellulases all serve this market.

The manufacture of chemicals is the third most important market, with about 14% of the value. Fermentation alcohol makes up most of this market segment, and has grown more rapidly than any other part of the entire market. Other segments include pharmaceuticals (steroids and antibiotics), amino acids, proteins, and lipids (triglycerides, phospholipids).

Textile, leather, and fur applications follow with about 9.5%. The major part of this application is cotton and cellulosic textiles, which use mainly cellulases and amylases. The last major market is pulp and paper, which accounts for about 6%. The most notable use is that of xylanase for the prebleaching of pulp, which helps to reduce bleach requirements and thus reduces pollution problems. Amylase is also used here. A big potential market in pulp bleaching exists, if enzymes could perform direct bleaching instead of the chemicals, especially chlorine, that are now used.