The Global Agriculture Enzyme Market was valued at USD 281.50 Million in 2022 and is projected to reach USD 650.20 Million by 2030, registering a CAGR of 10.13% for the forecast period 2023-2030.
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Market Definition
Agricultural enzymes are a type of catalyst that quickens the chemical process that releases soil-bound nutrients and makes them accessible to plant roots. Without an agricultural enzyme, these nutrients would have stayed in the soil and been inaccessible to the plants. Including agricultural enzymes in the feed helps to improve the quality and yield of the plants. One of the main reasons propelling the agricultural enzyme market's expansion is the global population's growing concern for the environment. The market is growing more quickly due to the growing demand for pest-specific bio-control agents, the growing popularity of organic farming, and the desire for organic food. Increased regulatory pressure, negative consequences associated with synthetic plant protectants, and higher production yields from scarce arable land all have an impact on the market. In addition, the agricultural enzyme market is positively impacted by the growth of precision farming, an increase in investments, a focus on agricultural productivity and higher-quality food grains, and a trend toward agro-biologicals.
Market Size:
- 2022: USD 281.50 Million
- 2030: USD 650.20 Million
- CAGR (2023-2030): 10.13%
Agriculture Enzyme Market Dynamics
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Drivers : Increase demand for organic food fueling market expansion
Market for agricultural enzymes global demand for organic food is expected to rise at a compound annual growth rate due to growing awareness of the harmful effects of pesticides and an increase in demand for agricultural enzymes. Enzymes used in organic agriculture enable the production of safe, regulated, high-quality, and certified food. Because of this, they maintain a robust ecology and have a positive impact on the economy and environment. Furthermore, the growing health concerns brought on by an increasing number of cases of biochemical poisoning worldwide are a key factor driving the growth of the agricultural enzyme market. The increased use of pesticides results in residues in food products, which poses major health risks to people. Furthermore, consumers are growing more conscious of the dangerous consequences associated with the use of chemical pesticides in food. Food-borne chemical pesticide poisoning can cause cancer, hormone disruption, and birth defects. Organic food products are becoming more and more popular as a result of growing consumer awareness of the increased use of pesticides and fertilizers in vegetables grown on farms. Enzymes can enhance nutrient uptake and soil health, which can raise crop yields. For organic farmers, who are unable to increase yields with synthetic fertilizers, this is crucial. Post-harvest losses can be decreased with the aid of enzymes. Given that organic produce is more prone to spoiling than produce grown conventionally, this is particularly crucial, overall, this factor fuels the growth of market.
For instance, in February 2023, as per latest report published by International Federation of Organic Agriculture Movement (IFOAM) Germany and FiBL Switzerland in 2022, the Global Organic Market has been growing at a Compounded Annual Growth Rate (CAGR) of 8.7 % during last six years (2015-2020). In value terms, the market size has grown from US $ 84 billion in 2015 to US $ 129 billion in 2020 suggesting that the demand for chemical free organic produces has increased in the international market.
Increasing global population fuel the growth of market
There will likely be a greater need for agricultural enzymes as the world's population rises. Since agricultural enzymes are a more sustainable option than synthetic fertilizers and pesticides, this trend is good for the environment. The need for animal feed is rising along with the population. Enhancing the quality of animal feed with agricultural enzymes can result in healthier animals and increased meat yield. A renewable energy source that is gaining popularity is biofuels. Biofuels can be made with agricultural enzymes, which can lessen our dependency on fossil fuels. The market for goods made from biomaterials is expanding as well. Plastics and medications are just two examples of the many bio-based products that can be made with agricultural enzymes. A number of factors, such as the growing global population, the growing demand for organic food, and growing environmental concerns, are driving the growth of the agriculture enzyme market. The need for agricultural enzymes is anticipated to rise even more as long as these trends persist. The creation and application of agricultural enzymes are supported by governments everywhere. This includes offering grants for the purchase of enzymes, financing research and development, and encouraging the use of enzymes through extension initiatives. Agriculture enzyme adoption is accelerating thanks to government support, which is also fueling market expansion.
For instance, in November 2022, according to UN Department of Economic and Social Affairs, the global population is projected to reach 8 billion on 15 November 2022, and India is projected to surpass China as the world’s most populous country in 2023, according to World Population Prospects 2022, released today on World Population Day..
Recent Developments
December 2021, BASF has launched the new enzyme product Natupulse TS for animal feed. Natupulse TS is a non-starch polysaccharide (NSP) enzyme. As an endo-1,4-ß-D-mannanase, it hydrolyzes ß-mannans into smaller components, e.g., manno-oligosaccharides (MOS). The addition of ß-mannanase to the feed decreases digesta viscosity, increases the digestibility of the feed and ensures a more sustainable production.
February 2021, FMC Corporation, a leading global agricultural sciences company, has entered into a strategic collaboration with Novozymes, the world leader in biological solutions, to research, co-develop and commercialize biological enzyme-based crop protection solutions for growers around the world.
Restraint : Strict government regulations could limit the market growth
Governments may impose stringent regulations on the use and production of agricultural enzymes in order to protect the environment and public health. In order to comply with these standards, businesses must invest in technologies and procedures, which may raise expenses and reduce the profitability of some products.
Governments may impose restrictions on the use of specific enzymes because of possible health risks, environmental concerns, or other regulatory issues. This may restrict the variety of enzymes available for use in agricultural applications, which could have an impact on market expansion. Certain enzymes may be subject to import or export restrictions by governments, which could have an impact on the products' global trade. This may make it more difficult for businesses in this industry to access markets and opportunities. Certain agricultural enzymes are generated through biotechnological methods, and the use and release of genetically modified organisms (GMOs) may be subject to government regulations. Growth and entry into the market may be hampered by compliance with these regulations. Public opinion may affect strict laws intended to safeguard consumers and the environment. Governments may impose more stringent regulations in response to widespread worries about the safety or moral implications of specific agricultural enzymes, which could hinder market expansion.
For instance, in August 2022, according to Parliament of Sri Lanka, banning the importation of certain chemical fertilizers including glyphosate, at its meeting held on 08.02.2022. The Gazette had been presented to Parliament on 20.01.2022 and referred to the Committee.
Challenges : High cost of production major challenge for agriculture enzyme market.
Agricultural enzyme production is expensive, which can lower a company's profit margin. This is due to the sometimes-high costs associated with labor, raw materials, and R&D. In order to pay for their expenses, businesses might have to raise the price at which they sell their goods. likewise set a cap on research and development spending. If businesses are uncertain that they will be able to recover their investment, they might be less willing to spend in the development of new agricultural enzymes. This may impede the creation of fresh, cutting-edge goods that could aid in resolving issues facing the agriculture sector. The demand for agricultural enzymes may decline due to their high cost. Given that synthetic fertilizers and pesticides are frequently less expensive, farmers may be more inclined to select them. Even though there is a growing demand for sustainable agriculture practices, this may impede the growth of the agriculture enzyme market. All things considered the agriculture enzyme market faces a major challenge from the high cost of production.
Opportunities : Developing novel agriculture enzyme is significant opportunity.
It is possible to create novel agricultural enzymes with increased stability and efficacy, which will enable them to endure challenging environmental conditions and carry out their intended function more successfully. This may result in higher crop yields, less damage from pests and diseases, and better soil health. It is possible to create novel agricultural enzymes that specifically target pests, illnesses, or crop stressors. This makes it possible to treat agricultural issues more accurately and effectively, which lessens the need for broad-spectrum chemical interventions. Innovative agricultural enzymes can offer long-term substitutes for artificial fertilizers and pesticides. These products can minimize the risk of pesticide residues in food, promote biodiversity, and lessen environmental impact by utilizing the natural power of enzymes. New crops, areas, and uses for enzyme-based products can be reached by developing innovative agricultural enzymes. Companies that invest in innovation may see an increase in revenue and market share as a result. By allocating resources towards the creation of innovative agricultural enzymes, businesses can leverage the increasing need for efficient and sustainable crop management strategies, promote worldwide food security, and secure a substantial portion of the burgeoning agriculture enzyme industry.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 0.81 Billion |
| Market Forecast in 2030 | USD 1.69 Billion |
| Compound Annual Growth Rate (CAGR) | 18.41 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Type, By Crop, By Product Type & By Region |
| By Type |
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| By Crop |
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| By Product Type |
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| By Region |
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| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2030 |
Segment Analysis of the Agriculture Enzyme Market
The Agriculture Enzyme Market is segmented by type, crop, product type and region.
By Type : The Phosphatase segment held the largest market share in 2022
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By type is sub segmented into phosphatase, dehydrogenase, sulfatase. The phosphatase segment accounted for highest market share in global agriculture enzyme market for 2022. Enzymes such as phosphotransferases, alcohol dehydrogenases, and sulfatases are commonly utilized to improve soil quality and accelerate crop growth. The main industry players create the technology needed to turn microbes into these products. The microorganisms involved in production grow in steel tanks that are tightly sealed and supplied with ingredients such as corn, sugar, starch, and soy. These microbes increase crop yields and reduce the need of pesticides in the food sector. Furthermore, phosphatases are widely recognized for being a highly reliable indicator of phosphorus deficiency in the soil. The ability of agricultural enzymes to dissolve soil particles will also propel the phosphatase segment's growth.
On the other hand, the dehydrogenase segment has the significant market share over the forecast period, due to an essential enzyme for the biological oxidation of soil is dehydrogenase. They also show soil microbiological activity. The functions carried out by dehydrogenase are associated with microorganism respiration. They also show any disturbance brought on by pesticides.
By Crop : The cereals & grains segment was the leading segment in 2022
By crop, which is divided into cereals & grains, oilseeds & pulses, fruits & vegetables. The cereals & grains segment accounted for largest share 40% in global agriculture enzyme market for 2022. The demand for cereal and grains is being driven by factors such as changing lifestyles, rising disposable incomes, increasing food and calorie needs, and expanding urbanization. Since grains are grown in most other countries, the need for agricultural enzymes is expected to expand soon. Almost all countries farm cereals and grains; therefore, this fact is anticipated to propel the market. Cereals and grains are essential to processing cereal because they are thought to enhance quality and safeguard against crop pests. The fiber and germ from the crop can allegedly be removed by these products added to grains and cereals.
On the other hand, the fruits and vegetables segment are anticipated to expand over the forecast period, Customers' views of health are shifting as a result of the use of chemicals in agriculture, and this is influencing their preferences for organic fruits and vegetables. Certain fruits and vegetables, such as strawberries, bananas, and apples, have therapeutic benefits that include lowering inflammation, preventing cancer, and strengthening the immune system.
By Product Type : The Fertility Products segment was the leading segment in 2022
By Product Type, which is divided into fertility products, growth enhancing products, control products. The fertility products segment accounted for largest share in global agriculture enzyme market in 2022. The soil is the major source of nutrients for plants, it helps in the biological processes and provides protection to groundwater and plants. Soil enzymes are the major indicator of fertility and they respond to climatic changes, industrial waste, and agriculture chemicals. A more environmentally friendly substitute for synthetic fertilizers is fertility enzymes. Long-term soil health is improved and environmental impact is minimized as they lessen the need for chemical inputs. Fertility enzymes are a desirable choice for organic growers because they are in harmony with organic farming methods.
Growth enhancing products segment is anticipated to register rapid growth in forecast period, these products when used on crops induce effects such as proper flowering and enhanced cell division, thus contributing to proper plant growth. Farmers find growth-enhancing enzymes to be a flexible and appealing option because they can be applied to a wide range of crops, such as cereals, fruits, vegetables, and ornamentals.
Regional Analysis
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North America has the largest revenue market share 45% in 2022, because of the region's growing environmental concerns, awareness of agricultural biotechnology, and use of advanced farming techniques. Thanks to the part enzymes play in the process, farmers in North America are still able to grow healthier crops with higher yields. Well-known businesses like Monsanto Company, Stoller USA Inc., Bio Works, Inc., and E. I. du Pont de Nemours and Company control the majority of the agricultural enzymes market in North America. The US is heavily involved in agriculture and has tight laws and regulations in place. According to the US Department of Agriculture, special rules have been put in place for the importation of goods produced by microorganisms. Due in large part to the presence of important players and significant investments in technological advancement, North America and Europe are mature markets. Both the United States and Mexico are making significant technological investments to create chemical-free agricultural products.
On the other hand, Asia Pacific accounted for the significant share over the forecast period, because emerging economies like China and India are present. Owing to its massive investments in agriculture, China is anticipated to be the largest market during the forecast period. China has seen the largest increase in arable land worldwide in recent years. The country is making large investments in chemical-free agricultural industry products.
List of the prominent players in the Agriculture Enzyme Market:
- Bayer Cropscience AG
- BASF SE
- DowDuPont
- Syngenta AG
- Novozymes A/S
- DSM N.V.
- Bioworks Inc
- AB Enzymes
- Agrinos
- Stoller USA Inc.
- Aries Agro Limited
- Agri Life
- Deepak Fertilizers
- Petrochemicals Corporation Limited
- Greenmax Agro Tech
- Ecozyme
Segmentation Analysis of the Agriculture Enzyme Market
By Type
- Phosphatase
- Dehydrogenase
- Sulfatase
- Cereals & Grains
- Oilseeds & Pulses
- Fruits & Vegetables
- Growth Enhancing Products
- Fertility Products
- Control Products
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Impact of the COVID-19 Pandemic on the Agriculture Enzyme Market:
The pandemic has caused supply chain disruptions and raw material price increases, driving up the cost of producing and shipping agricultural enzymes. In addition, the economic uncertainty brought on by the pandemic has caused some farmers to reduce their use of agricultural inputs, including enzymes. However, as consumers' concerns about the environmental impact of food production have grown, the pandemic has also increased demand for sustainable agriculture practices. The demand for agricultural enzymes has increased because they provide a sustainable substitute for chemical pesticides and fertilizers. Furthermore, some farmers have experimented with new technologies as a result of the pandemic, like precision agriculture, which can be used to maximize the use of agricultural enzymes. Overall, the COVID-19 pandemic is probably going to have a mixed effect on the market for agricultural enzymes. In the upcoming years, the market is predicted to expand, but at a slower rate than it would have in the absence of the pandemic. Businesses that can create cutting-edge products and adjust to shifting market conditions will do well.
