The Freedonia Group predicts market value will grow six percent annually to $1.5bn in 2013, compared with an average annual growth rate of 16 percent between 1998 and 2008.
Although market growth will continue to be strong, it will lag behind the impressive growth of the past decade as the impact of the recession and the maturation of developed regions such as North America and Western Europe come into play.
Between 1998 and 2008, the world food and beverage enzyme market grew from $435m in value to $1.12bn, a massive 157 percent increase.
Increasing consolidation of the food and beverage industry, particularly in developed regions where the impact of the global economic crisis has been felt especially keenly, will continue to result in downward pricing pressures as companies seek to achieve greater economies of scale, the report states.
Growth will come primarily from expanding markets and applications, such as when manufacturers seek more effective ingredients for specific applications, according to The Freedonia Group.
The bakery market, where enzymes have several applications including shelf-life extension, volume expansion and dough strengthening, is the largest sector with market value predicted to reach $490m by 2013, up 42 percent on 2008. Enzymes for application in dairy products are next in line with sales estimated at $390m in 2013.
Asia Pacific is expected to extend its lead as the largest enzyme market by 2013. Last year, the market was worth $300m, ahead of North America ($295m) and Western Europe ($280m). By 2013, the Asia Pacific market is predicted to grow to $460m, compared with North America ($360m) and Western Europe ($340m) and to reach a market value of $700m by 2018.
The food enzymes market has benefited greatly from innovation in recent years, according to Leatherhead International’s 2008 Food Additives Report. It cites enzymes which extend the shelf-life of baked goods or imitate meat and cheese flavorings in a wide range of prepared dishes as driving growth in the marketplace.