innovations in feed enzymes - unmet needs
TRANSCRIPT
Innovations in Feed Enzymes- Unmet Needs
Dr. Kaushik Ramakrishnan ShankarSenior Research Analyst
Chemicals Materials and Foods17th August 2010
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Agenda
• Market Overview
• Revenue and Volume Trends
• Revenues by Geography
• Research Services from Frost & Sullivan
• Key Challenges
• Is there a Need for Innovation?
• What is Happening in the Market Now?
• Industry Innovations: Round Up
• What is Happening in Academia?
• The Biggest Opportunity for Growth!
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Feed Enzymes – Revenue and Volume Trends
Phytases are predominant in the feed enzymes market with a 70% volume share and 58% revenue sharePhytases are predominant in the feed enzymes market with a 70% volume share and 58% revenue share
2006 2009 2016
Volume trends
2006 2009 2015
Revenue Trends
� Feed enzymes are expected to reach $722.4 Million by 2015 with a revenue CAGR of 9.8 %
� Volume CAGR is expected to be 9.2%, with the market expected to reach 131.2 Million pounds by 2015
Source: Frost & Sullivan
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Revenue Share by Geography
Feed Enzymes Market :
Revenue Share by Geography
13%13%
15%
40%7%
7%
5%
S.E.Asia China
U.S. Europe
Australia and New Zealand Brazil
India
Europe contributes the most to revenues of the total market with a 40% shareEurope contributes the most to revenues of the total market with a 40% share
Source: Frost & Sullivan
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Frost & Sullivan’s Expertise in Feed Ingredients
Animal Feed Ingredients studies
Chinese Animal Feed Additives*Industry Outlook – U.S. Pet Food Ingredients
APAC Animal Feed Additives*
European Market for Nutritional Ingredients in Animal FeedStrategic analysis of the European Animal Feed ProbioticsMarket
European Market for Feed Phytogenics*
U.S. Market for Feed Phytogenics*Strategic Analysis of the U.S. Animal Feed Direct Fed Microbials (DFM) Market
U.S. Market for Nutritional Ingredients in Animal FeedEuropean Companion Animal Feed Prebiotics Market
European Market for Shelf Life Stabilizers in Animal FeedEU Food and Feed Shelf-Life Extension Antioxidants Market
U.S. Market for Shelf Life Stabilizers in Animal FeedU.S. Food and Feed Shelf-Life Extension Antioxidants Market
Upcoming (2010 – 2011)Existing (2007-2009)
European market for Digestive Health Ingredients in Animal Feed – M55C
U.S. Digestive Health Ingredients in Animal Feed Market – N75E
Existing Frost & Sullivan reports on feed enzymes (2010)
* - proposed 2011
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Key Challenges
LowLowLowLittle or no innovation in product development
MediumMediumMediumIncrease in R&D costs
MediumMedium-HighHighVolatility in animal feed prices
5-7 Years3-4 Years1-2 YearsChallenge
LowLowLowLittle or no innovation in product development
MediumMediumMediumIncrease in R&D costs
MediumMedium-HighHighVolatility in animal feed prices
5-7 Years3-4 Years1-2 YearsChallenge
This could be a direct result of • NonNon--existent market requirement for innovationexistent market requirement for innovation
• Increased cost of R&D
Source: Frost & Sullivan.
Definitely not under the control of enzyme manufacturers!
Can be controlled by enzyme manufacturers with solutions like shifting R&D to cost
effective locations in Asia
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Is there a Need for Innovation?
Innovation is
Imperative for Maintaining Growth Targets
Low Penetration RateA 5% increase year on year in penetrationof enzymes among farmers can increase
growth by 1%This is difficult to achieve considering that
customer base is becoming fragmented
Decreasing Compound Feed ProductionCompound feed production in EU fell from 132 Million Tons in 2008 to 127 MillionTons in 2009. Underlying dairy and meat production systems are not contracting
by inference, route to market is getting difficult for enzyme manufacturers
Source: Frost & Sullivan.
Resistance by Farmers to Spend More on Additives- Farmer resistance is due to the challenge that is beyond the
control of enzyme manufacturers- Fluctuating cost of feed and increasing cost of production
Increasing Cost of Enzyme Manufacture
Farmer resistance to cost of enzymes is an existing challenge
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What is Happening in the Market Now?
Heat stability in enzymes has been a buzzword in the industry with nearly all manufacturers focusing on introducing heat stable enzymes
Source: Frost & Sullivan.
New NSP Enzymes
New NSP Enzymes
Heat Stable Enzymes
Heat Stable Enzymes
Projecting the effect of new enzymes as therapeutic supports under conditions of microbial infection in poultry and swine increase their penetration
Lower inclusion rates in compound feed, leading to lower costs for farmers. Potential to increase penetration rate
Increased use in pelletised feed forms. Increased penetration rates in compound feed, due to higher assured enzyme activity infinal product
Improved Specific
Activity of Enzymes
Improved Specific
Activity of Enzymes
2009PhytasePhyzyme XPDanisco
2008Protease for PoultryRonozyme Pro-ActDSM//Novozymes
Year of LaunchFunctionProductCompany
Innovation Roundup
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What is Happening in Academia?
Phytase resistant to digestive enzymes in
shrimp and pigs
XAP (Xylanase, Amylase, Protease) with phytase for greater nutrient utilization in
poultry
Phytase as anti-nutritional factor
chelators
Treatment of corn-soybean meal with phytase producing
Brewer’s yeast
Optimum pH and proteolysis resistance
In-situ enzyme production
Admixture of phytaseand NSP for greater
nutrient utilization
Acid stable phytase from
Citrobacter sp
Phytase + 25-hydroxycholecalciferol (25-OH D(3)) to broiler diets has been shown effective at reducing total
P concentrations in broiler litter
Focus of academic research is on improving enzyme functionality
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The Biggest Opportunity for Growth
Environment
2006 2009 2015
Reducing Mineral Phosphorous in DietsDecreased feed inputs cost
Decreased phosphorous runoff
Reducing Green House Gas EmissionsDecrease total N input into the production system
Decrease intestinal methane production
Diets based on barley, wheat and canola are higher in NSPs which when substituted with
NSP enzymes can reduce intestinal production of methane by microbes
Proteases can substantially reduce the amount of Non-protein Nitrogen supplemented in
diets of animals, thereby reducing the excretion of urea (excessive N) into the environment.
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Biggest Opportunity for Growth…..
Potential to access global carbon trade
Alternative “route to market” to
compound feed manufacturers
Quantifying Actual Emission Reductions
Involving all Stakeholders
New Products Tailor-madefor Environment/Nutritional/Dual Benefits
Promote “Sustainable” Image ofDairy and Meat Production Systems
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