Focusing on customers and regional markets: Novozymes Household Care business grows 9% in 2013

During recent years, Novozymes has worked to develop the business based on innovation, closer customer collaboration, and focus on regional markets.

​Efficient stain removal and clothes washed clean at low temperatures. These are some of the benefits you get by adding enzymes to your laundry detergent. Novozymes’ sales to the household care industry grew by 9% in 2013 and now represent 36% of the company’s turnover.

The Household Care business has generally performed very well in recent years, and from 2008 to 2013 the business has grown around 10% per year.

“Our growth in household care has been driven by strong demand from customers who are seeking to improve wash performance, enable low-temperature washing and replace traditional chemicals with sustainable enzyme technology,” says Andrew Fordyce, Executive Vice President at Novozymes. “Sales to emerging markets are also a significant growth contributor.”

Biotechnology to change the industry
Today Novozymes has over 60% of the global market share for laundry detergent enzymes and approximately 300 customers worldwide. Retaining this leadership position requires continuous innovation and growth in both existing and new markets. Part of Novozymes’ strategy is to focus on regional and customized solutions – for example by developing special products for emerging markets.

“Novozymes sees great potential in emerging markets where use of enzymes is currently low”, says Andrew Fordyce. “India, for instance, is an attractive market for Novozymes given its huge consumer base, and our focus is starting to pay off.”

Tailor-made enzymes
Washing clothes is a simple chore, but the way clothes are washed around the world differs significantly. Novozymes seeks to understand consumer requirements in every region so as to develop suitably targeted enzyme innovations.

“Our researchers are constantly learning about the raw materials used in detergent production in different regions, and how to optimize enzymes to suit local formulations”, says Andrew Fordyce. “At the same time, our partners are becoming more open and thereby helping to develop products that meet specific market needs.”

Such close collaboration with a customer enabled Novozymes to come up with the first enzymatic laundry soap bar for the Latin American market in mid-2013, helping consumers save on soap, water and time.

Super-compaction in Japan
Meanwhile, Novozymes continues to provide targeted innovation in mature markets. In Japan, for example, where the market share of liquid detergents is growing due to strong demand for compaction, the company helped a key customer deliver an alternative: a super-compact powder detergent that also uses fewer surfactants.

“We enabled the manufacturer to save on the raw materials needed in product formulation and packaging, thereby also lowering transportation costs”, explains Andrew Fordyce. “Consumers received an efficient detergent requiring just one rinse cycle per wash, saving on both water and electricity bills.”

Novozymes’ financial results for the fiscal year 2013 were announced earlier today. Read more here.