Enzyme sales grew by 1% in LCY and by 4% in DKK in 2009. Sales were affected by the volatile and uncertain business environment experienced across a wide range of industries. From quarter to quarter and from industry to industry, sales development was uneven over the year.
The overall enzyme market was stable in 2009. The value of the global market was approximately DKK 16 billion based on our estimates. The enzyme industry did not see any major new market entrants in 2009, and the overall global competitive positioning between the players in the industry did not change either. Novozymes maintained its global market share at 47%.
Sales of enzymes for the detergent industry continued to develop positively, with sales growth of 6% in LCY and 7% in DKK. The main driver behind this growth was the fact that mid- and low-tier detergents now contain more enzymes in order to improve performance. This entailed not only increased penetration of basic enzymes, but also higher use of more advanced enzymes. Sales were, however, impacted negatively by consumers trading down to detergents with fewer or no enzymes. In the US, mid- and low-tier brands still contain fewer enzymes than corresponding brands in Europe. In consequence, enzyme sales in the US were affected more negatively by the trading down than enzyme sales in Europe.
Enzyme sales to the biofuel industry experienced positive sales growth of 3% in LCY and 7% in DKK. However, Novozymes’ biofuel enzyme sales lagged behind the overall development in the market for biofuel enzymes. From late 2008 to mid-2009, lower oil prices decreased the demand for biofuels in the US. In combination with overcapacity in the industry and volatile corn prices, this meant financial difficulties for biofuel producers. Some of Novozymes’ customers were hit particularly hard and subsequently went out of business, which is why Novozymes lost some market share in the US from 2008 to 2009. Novozymes’ enzyme sales were affected most at the beginning of the year, but market share improved during 2009 as sales picked up. Novozymes’ market share remained above 60% throughout the year. Enzyme sales to the European biofuel industry showed good growth in LCY, although the industry is still small compared to the US industry.
Enzyme sales to the textile industry were lower in 2009 due to lower global consumption of textiles and the continued fashion trend for darker denims, which do not require enzyme treatment for a stonewashed look.
Enzyme sales to the food industries were 3% lower in LCY and 1% lower in DKK. The main reason for this was weaker sales to the brewing industry. Lower raw material prices discouraged the use of enzymes, and beer volumes on key markets were down. Enzyme sales to the baking industry increased slightly in LCY compared to 2008 as global bread volumes remained stable and demand for healthy concepts for baked goods increased.
Sales of feed enzymes were 5% lower in LCY and 3% lower in DKK. The lower sales were primarily caused by lower animal feed volumes and strong competition in the European phytase enzyme market. Feed enzymes that aim to increase protein uptake in poultry showed a good development in 2009, albeit from low starting levels. Novozymes is currently the only company offering a product for this application: RONOZYME® ProAct. The product has been introduced in parts of Latin America, Asia, and Africa, and is awaiting approval on the key European and US markets.