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Click below to download The Novozymes Report 2015 in PDF format.

  •  The big picture
  •  Our business
  •  Governance
  •  Accounts and performance
  •  Supplementary

###FACTBOX VIDEO###Household Care_Article

In 2015, Novozymes’ sales to the Household Care industry increased by 1% organically and by 6% in DKK compared with 2014. Sales growth was driven by customers’ continued interest in enhancing wash performance and optimizing detergent formulations for cost and sustainability. Emerging market growth was relatively strong with the exception of Latin America, which contracted.

“Household Care is a strong and diverse business built on technology, relationships and years of experience, ###FACT:TIMELINE###and we continue to see the Household Care business as a cornerstone of our growth ambitions,” Andrew Fordyce, Executive Vice President for Business Operations. “Our competitive advantage lies in mastering the innovation value chain and working with partners to deliver the right solutions for both developed and emerging markets.”

Novozymes believes there are significant growth opportunities in developed markets, where the company focuses on performance at low temperatures, formulation optimization and new brand claims. At the same time, emerging markets represent a great opportunity for the company. “Here we focus on showcasing what we’ve demonstrated in the more developed markets, such as the power of enzymes when it comes to stain removal, fabric care and strong brand building for detergent producers,” Fordyce explains.

“Customers have different demands, depending on where and how they operate. Creating value for each of them is about bridging our scientific advancements with their specific needs.”

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Diverse demands in emerging markets

Some customers in emerging markets are primarily interested in robust enzyme stability in liquid detergents, while some seek effective solutions for low-temperature washing, and others want low-cost solutions. In South Asia and East Africa, for example, consumers want detergents that treat specific food stains and perform in demanding conditions, such as cold-water washing by hand, and at the right price point.

“Customers have different demands, depending on where and how they operate,” Fordyce says. “Creating value for each of them is about bridging our scientific advancements with their specific needs.”

To meet diverse end-consumer needs and drive penetration of enzymes to the next level in emerging markets, Novozymes has stepped up local innovation efforts. For instance, the company has invested in a unique hand-wash laboratory in Bangalore to develop enzymatic solutions that help customers produce more efficient detergents for hand washing with less water and effort. Hand washing is still largely uncharted territory for enzymes, and more than half the world's population still wash their clothes by hand.

Three focus areas

Novozymes spends around 14% of its revenue every year on R&D. Household Care claims a large share of this, with scientists in various locations such as Copenhagen, Beijing and Bangalore engaging in both basic research and application development with focus on:

  • Building and strengthening partnerships: Maintaining Novozymes’ long-standing collaborations with the world’s largest detergent producers and being their preferred partner
  • Enabling broader penetration in emerging markets: Helping existing and future partners adopt enzyme technology in emerging markets by developing dedicated innovations
  • Exploring novel biological solutions and new wash categories: Continuously developing the Household Care market by delivering novel biological technology, for example for cold-water washing, thereby enabling better performance and brand positioning