Rethink Tomorrow

Macro and industry trends

Global macro trends Growth drivers and growth barriers

Macro and industry trends impact Novozymes and emphasize the need for innovation and strong positioning of our solutions.

In 2016, the world market for industrial enzymesImprovement in water and energy efficiency (and reduction of CO2 intensity) is measured by the reduction in an index that comprises resource use divided by gross profit, compared with the same index for 2014 efficiency levels. Consequently, these indexes measure Novozymes’ ability to create value while reducing its environmental footprint. expanded by 1.7% to an estimated DKK 25.4 billion. Novozymes remained the market leader with an estimated 48% market share, followed by DuPont with an estimated 19%.

In the growing market for microorganismsMicroscopic, living, single-celled organisms such as bacteria and fungi., which is particularly influenced by trends in the agricultural industry, improving yields and complementing traditional chemistry and fertilizers remain priorities. This industry continues to attract increased attention from established agricultural chemical companies. In 2016, a consolidation wave swept the industry, with mergers announced by Bayer–Monsanto, Syngenta–ChemChina and Dow–DuPont, among others.

The world around us

To ensure long-term success, Novozymes needs to understand how developments in the external world translate into specific macro and industry trends with the potential to drive or hinder growth in each of our end markets. While some trends are specific to one industry, Novozymes has also identified five macro trends that are globally relevant, impact multiple sectors or represent a fundamental shift in business as usual. These trends emphasize the need for new and transformative innovation as well as strong positioning of Novozymes’ solutions.


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Identifying global macro trends

Novozymes has conducted an analysis of global macro trends to inform its longterm strategy development and sharpen its integrated reporting.

One of the starting points for the analysis was to better understand how the global challenges articulated in the UN Sustainable Development Goals translate into specific drivers of and barriers to business growth for Novozymes.

The analysis also included information from diverse sources, such as reports on global risks and opportunities, peer benchmarks and Novozymes’ enterprise risks. Internal stakeholders prioritized trends according to relevance to Novozymes’ business and importance to stakeholders. The top macro trends were validated through a series of dialogues with Novozymes’ senior management and consultations with selected investors and customers.

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