The global feed enzymes market is experiencing strategic shifts, with BASF reviewing options for its business in the sector.
BASF, a pioneer in feed enzymes and the company behind Natuphos - the world’s first commercial phytase launched in 1991 - confirmed it is assessing strategic options for its feed enzymes business within the nutrition and health division.
The German chemical company emphasized that the review applies solely to its feed enzymes business and does not affect other enzyme portfolios.
A spokesperson noted that BASF is still in the “very early stage of this process” and will define the scope as the evaluation progresses.
The decision to review the portfolio reflects BASF’s focus on strengthening its nutrition ingredients business around core value chains, such as vitamins and carotenoids, while seeking partners for whom feed enzymes are a strategic priority.
“The feed enzymes business features globally established brands, a robust innovation pipeline, and a highly skilled team with market and technical expertise, making it an attractive opportunity for partners committed to advancing innovation in this area,” the spokesperson added.
Novonesis finalizes DSM-Firmenich acquisition
Meanwhile, Novonesis completed its acquisition of DSM-Firmenich’s stake in their 25-year-old feed enzymes alliance in June. The €1.5bn (US$1.54bn) deal, covering sales and distribution activities, generated roughly €300m in annual net sales in 2024. After transaction costs and capital gains tax, DSM-Firmenich received around €1.4bn in net cash.
The divestment forms part of DSM-Firmenich’s broader plan to separate its Animal Nutrition & Health (ANH) unit, with full exit from the business underway. Dimitri de Vreeze, CEO of DSM-Firmenich, praised the alliance’s track record, noting its role in establishing a global leadership position in feed enzymes and expressing confidence in Novonesis’ stewardship.
For Novonesis, full control of the alliance aligns with its animal biosolutions growth strategy.
“We will be uniquely positioned to serve both current and new feed enzyme and probiotics customers across our markets and regions,” said Kim Müller Christensen, vice president, marketing and strategy, animal and plant biosolutions at Novonesis. He highlighted opportunities to cross-sell enzymes and probiotics, particularly in the US, Latin America, and Europe, and said the debt-financed acquisition will deliver “highly attractive earnings.”
Industry implications
These developments illustrate a broader trend of consolidation and strategic refocusing in the feed enzymes sector. While BASF seeks partners to drive innovation and unlock growth potential, Novonesis has strengthened its market position by taking full control of a proven alliance, aiming to integrate enzymes and probiotics across the animal biosolutions value chain.
