Advanced Enzyme is in enzymes market it has its production facilities and market presence in USA and India.
The enzymes market is in initial stages of its growth. It is an industry in its growth phase and has huge entry barriers. There are only handful of big companies in the field. The market size is enormous and will grow well in view of the advantages it offers. Some estimates of the market size and opportunity in a research report are reproduced here:
Geographical distribution of the Global Enzyme Market
North America dominates the Global Enzyme market accounting for ~41.5% of the global enzyme demand in 2012, implying a market size of $2.1 billion. Western Europe, Asia Pacific and other regional markets accounted for 21.2%, 21.6% and 15.7% of the Global Enzyme market in 2012. Between 2002 and 2012, the share of North America and Western Europe in the Global enzyme market has been gradually declining, while that of Asia Pacific and other regional markets including Central & South America, Eastern Europe and Africa /Mideast has been on an upswing. The fastest growth in industrial enzyme demand will occur in the world’s developing countries, such as those of the Asia/Pacific region and Central and South America as these areas have not yet adopted the same level of technological development or enzyme use as have countries in North America and Western Europe, and consequently there remains a greater opportunity for market penetration to increase. This trend is expected to continue going forward, with Asia Pacific becoming the second largest enzyme market by 2017, and further outpacing Western Europe by 2022. However, even by 2022, North America shall continue to be the largest regional market, accounting for ~34.8% of the global enzyme demand, with the Asia Pacific region, Western Europe and other regional markets accounting for ~18.1%, ~29.2% and ~18.0% of the market size respectively. Demand for enzymes in the Eastern Europe is also expected to be above average.
Global Industrial Enzymes market
Industrial enzymes constitute the larger portion of the world enzyme demand accounting for ~$3.6 billion, or ~70.8% in 2012. The global demand for industrial enzymes is expected to grow at a 5-year CAGR of 5.6% to reach ~$4.8 billion in 2017 and 10-year CAGR of 5.7%, to reach a size of $6.3 billion by 2022. The strongest demand for industrial enzymes shall be experienced in the sub-segments of food and beverages and animal feed. On a regional basis, Asia Pacific and Central & South America will achieve the fastest growth for Industrial enzymes, going forward till 2022. These areas have generally not experienced the same degree of enzyme technology penetration as is found in North America and Europe, and consequently will realize stronger growth as continued industrialization and rising per capita incomes favour greater enzyme consumption.
North American Enzyme Market:
North America is the largest regional enzyme market globally, accounting for over 40 percent of world demand in 2012. Enzyme demand in North America is heavily concentrated in the United States, which alone accounted for 90 percent of regional demand in 2012. Other promising markets can be found in Canada and Mexico as well, with demand expected to increase in Canada above the regional average, as strong growth in specialty enzymes drives gains. Overall, enzyme demand in North America will advance 4.3 percent per year to over $2.6 billion in 2017. While advances in specialty enzymes will help drive strong overall market growth, enzyme demand will be restrained by the relatively mature nature of most North American industrial enzyme markets, with the maturation of the grain-based ethanol biofuel production market in the US contributing to a significant portion of the slower growth.
The United States is the largest consumer of enzymes in the world, accounting for over 37 percent of the global and 90 percent of the regional demand in 2012. All enzyme markets are found in the US due to the diversity of its advanced economy. Easy access to capital and a business climate that favors both constant productivity enhancements and cost reductions also make it a natural location for the introduction of new applications. Going forward, enzyme demand in the US will advance 4.2 percent annually to $2.4 billion in 2017, as strong growth in specialty enzymes offsets slower growth in biofuel production and maturity in most industrial enzyme markets. Biofuel production enzymes, in particular, will experience much slower advances in demand as the industry matures and future increases in grain-based ethanol consumption mandated under federal law are lower in percentage terms than in years past. Most enzyme types will experience mode rate to strong growth, with cellulases doing particularly well due to the development of the cellulosic ethanol industry. The largest portion of enzyme demand in the US is accounted for by the industrial enzyme segment, which reached $1.3 billion in 2012. Industrial enzymes include a wide variety of markets such as animal feed, cleaning.
Indian market for Enzymes
Though, the market for enzymes in India is relatively small US$ 105 Million in 2012, but will be the fastest growing in the world through 2017. Advances will average more than 10% per year through 2017, driving demand to $173 Million. As with most other markets in the Asia / Pacific region, demand is concentrated in industrial enzymes. However, the rapid development of India’s pharmaceutical and chemical industry is starting to change this, and specialty enzyme demand will outpace industrial enzyme demand going forward.Enzyme demand in India is concentrated in industrial enzymes, particularly the cleaning product (detergent), food and beverage, and textile and leather markets. However, even within these industries, enzyme usage rates are significantly below the developed economies of Japan, North America and Western Europe. To a large extent, this can be traced to the government policies that have made it disadvantageous for companies to grow above a certain size, and restricted access to foreign capital for modernization and roductivity enhancements. Consequently, smaller companies have lacked the assets and financial resources to modernize their operations with the newer, more efficient technologies that make greater use of enzymes. As the economy is slowly opened to increased foreign direct investment, enzyme usage rates should continue to improve.In specialty enzymes, around half the demand is in the Research and Biotechnology space. Strong growth will also be seen in research and biotechnology as the government seeks to promote development of the biotechnology sector to showcase the country’s technological prowess, and Indian pharmaceutical and biotechnology companies increasingly seek to make inroads into the developed markets of the United States, the European Union and Japan by investing in advanced technologies. This same trend will also benefit the biocatalysis market.
Alphageo is in seismic services field and a recent report of HDFC explains the market opportunity of the sector.
There is lot of scope for both these companies. These companies operate not only in niche areas but also have moat and CAGR of 25% should be possible.