# Industrial enzymes: Cycles

Steady growth, with dips when energy costs spike

Source page: https://www.materialinsights.org/chemicals/enzymes/cycles/

What this tab covers How its prices and margins move: past booms and busts with price levels, the spread or margin that the industry watches, the drivers of the cycle and the metrics to track.

Enzymes are not a price-cyclical commodity. Prices are set by contract and value in use, and are not public. The cycle shows up in volumes and margins: US ethanol output and the farm economy drive bioenergy sales; detergent reformulation drives household care; livestock disease drives feed. Leaders have kept steady mid-single-digit organic growth and high margins, with dips when energy and raw material costs spike, as in 2022 (indicative). Novonesis grew 7% organically in 2025 and guided 5-7% for 2026.
 The spread to watch **No product spread; leaders' gross and EBITDA margins**

Novonesis adjusted gross margin 59.1% and adjusted EBITDA margin 37.1% in 2025 (Novonesis Annual Report 2025).

#### Booms and busts

1. 2008-2009

Financial crisis and US ethanol plant bankruptcies hit bioenergy enzyme sales (indicative).

not public; company sales growth slowed (indicative)

2. 2022

Energy, sugar and logistics cost inflation squeezed margins; producers raised prices (indicative).

not public

3. 2024-2026

Novozymes and Chr. Hansen merged into Novonesis; 2025 organic growth 7%, Q4 4%; Food & Health 8%, Planetary Health 6%.

adjusted EBITDA margin 37.1% (2025), guided 37-38% for 2026 (Novonesis)

#### What drives the cycle

- **Ethanol output.** Grain ethanol in the US, Brazil and India uses amylases and glucoamylases.
- **Detergent reformulation.** Cold-wash and compaction trends raise enzyme dosing.
- **Livestock output and phosphate prices.** Dear phosphate makes phytase more valuable.
- **Biotech advances.** New strains and enzymes create new uses and protect margins.

#### Metrics to track

| Metric | Why it matters | Where to track it |
|---|---|---|
| **Novonesis organic sales growth by segment** | Best public read of the industry | Novonesis quarterly reports |
| **US ethanol production** | Bioenergy enzyme volumes | US EIA |
| **Advanced Enzyme Technologies results** | Indian market read | BSE/NSE filings |

## Other sections

- [Summary](https://www.materialinsights.org/chemicals/enzymes/index.md)
- [Overview](https://www.materialinsights.org/chemicals/enzymes/overview/index.md)
- [Correlation](https://www.materialinsights.org/chemicals/enzymes/correlation/index.md)
- [Production route](https://www.materialinsights.org/chemicals/enzymes/routes/index.md)
- [Production](https://www.materialinsights.org/chemicals/enzymes/production/index.md)
- [Feedstocks](https://www.materialinsights.org/chemicals/enzymes/feedstocks/index.md)
- [Trading](https://www.materialinsights.org/chemicals/enzymes/trading/index.md)
- [Movement](https://www.materialinsights.org/chemicals/enzymes/movement/index.md)
- [Regulation](https://www.materialinsights.org/chemicals/enzymes/regulation/index.md)
- [Characteristics](https://www.materialinsights.org/chemicals/enzymes/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/chemicals/enzymes/emissions/index.md)
- [Relationships](https://www.materialinsights.org/chemicals/enzymes/links/index.md)