Lactase Market Size, Share, and Industry Analysis by Source (Fungi, Bacteria, and Yeast), Analysis by Form (Liquid and Dry), Analysis by Application (Food & Beverages [Milk, Cheese, Ice-Cream, and Others]), Pharmaceuticals Products, and Dietary Supplements), and Regional Forecast till 2032

The global lactase market is experiencing substantial growth, driven by the rising demand for lactose-free products. Lactase, an enzyme crucial in breaking down lactose in dairy products, is becoming essential in diverse food and beverage applications as lactose intolerance affects a significant portion of the population worldwide. The market growth is particularly in regions where dairy is a dietary staple and consumers seek alternatives to improve digestive comfort without compromising on dairy flavors.

Increased consumer awareness around digestive wellness and dietary inclusivity is also pushing brands to incorporate lactase into their product lines, promoting better market penetration across varying demographics. The National Institutes of Health (NIH) indicates that lactose intolerance is more common among specific ethnic groups, with approximately 65% of the global population experiencing reduced ability to digest lactose after infancy.

Lactase Market Driver

Growing Lactose-free Dairy Products Popularity Fuels Industry Growth

A primary driver in the lactase market is the expanding lactose-free dairy segment, propelled by evolving consumer preferences for digestive-friendly products. Major dairy brands are capitalizing on this trend by introducing lactose-free versions of popular items such as milk, yogurt, and cheese, fueling demand for lactase. Additionally, the popularity of plant-based diets has made lactose-free options appealing to a broader audience as more consumers choose dairy alternatives. Technological advancements in enzyme extraction and stabilization also enhance lactase production efficiency, reducing costs and supporting market growth.

Lactase Market Restraint

Complex Production Process and Technology Requirments to Hamper the Market Growth

One of the challenges hindering the market expansion is the complex and costly production process of lactase enzyme extraction. The development of lactase solutions requires specialized equipment and precision, which can increase production expenses. Additionally, to enter the industry, start-ups need to invest huge capital to establish advanced infrastructure. As a result, this restricts new entrants to the industry.

Lactase Market Opportunity

Increasing Companies' Penetration Activities to Propel the Market

As the product demand is emerging in developing nations such as China and India, companies are focusing on the expansion of lactose-free product ranges. With rising disposable incomes and growing awareness about lactose intolerance, these markets are poised for the introduction of diverse lactose-free options, from beverages to baked goods. Collaborations between global lactase producers and regional food manufacturers could lead to tailored products that resonate with local tastes, further enhancing market reach and fostering new revenue streams for lactase suppliers.

Segmentation

Key Insights

The report covers the following key insights:

• Overview of Parent Market


• Supply Chain Analysis


• Regulatory Analysis


• Industry SWOT Analysis


• Key Industry Developments


• Qualitative Analysis Related to COVID-19

Analysis by Source

Based on source, the market is divided into fungi, bacteria, and yeast.

The fungi-based lactase segment is leading the market due to its effectiveness in high-temperature conditions, making it suitable for industrial applications such as dairy processing. This stability has allowed manufacturers to adopt fungi-derived lactase for large-scale production, especially in regions with high demand for lactose-free dairy.

The yeast-derived lactase segment is one of the fastest growing segments, especially in the Asia Pacific and South American regions, where traditional fermentation techniques using yeast are familiar. This segment is anticipated to grow as more local manufacturers explore cost-effective lactase production tailored to regional needs.

Analysis by Form

Based on form, the market is fragmented into liquid and dry.

The liquid lactase segment dominates the market, particularly in the food and beverage sector. Its ease of integration into dairy products during processing allows manufacturers to produce lactose-free items efficiently. The U.S. and European markets lead in liquid lactase usage due to high lactose-intolerant populations and a well-established dairy processing industry.

The dry lactase segment is growing at the highest CAGR during the forecast period due to its stability and extended shelf life, making it ideal for dietary supplements and pharmaceutical applications. This form’s portability and extended potency in supplement formats appeal to consumers seeking digestive aids, boosting demand in the Asia Pacific and South American markets, where dietary supplements are seeing increased adoption.

Analysis by Application

On the basis of application, the market is divided into food & beverages [milk, cheese, ice-cream, and others]), pharmaceuticals products, and dietary supplements.

The food and beverage segment, led by dairy applications such as milk, cheese, and ice cream, holds a substantial market share with large population of lactose-intolerant consumers who demand a variety of lactose-free products. Technological advancements in enzyme integration further support growth in this sector, especially in lactose-free milk alternatives.

The dietary supplement segment is expanding at the highest growth rate, driven by the rise in health supplements targeting digestive health. This segment is particularly gaining traction in emerging countries, where consumers increasingly seek enzyme-based supplements as a preventive health measure. The rising acceptance of enzyme therapy in digestive health management fuels segment growth.

Regional Analysis

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Based on region, the market has been studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

North America leads the lactase market due to its significant lactose-intolerant population, especially in the U.S. and Canada. This high demand has encouraged large dairy manufacturers to develop diverse lactose-free products, further expanding the market. Additionally, strong awareness about digestive health supports continued growth in dietary supplements containing lactase.

Europe is experiencing steady growth, with countries such as Germany, France, and the U.K. showing high demand for lactose-free dairy. The region's stringent food quality standards and increasing focus on digestive health create opportunities for lactase in the food and beverage industry. European consumers are gradually adopting lactase-based supplements, aiding global market growth.

Key Market Players

• DuPont Nutrition & Biosciences (U.S.)


• DSM (Netherlands)


• Novozymes (Denmark)


• Kerry Group (Ireland)


• Chr. Hansen Holding A/S (Denmark)


• Amano Enzyme Inc. (Japan)


• Advanced Enzyme Technologies (India)


• Specialty Enzymes & Probiotics (U.S.)


• Senson (Finland)


• Mitushi Biopharma (India)

Key Industry Development

• In June 2023, DSM-Firmenich, a global food ingredients manufacturing company, launched its highly-valued range of Maxilact® lactase enzymes - Maxilact®Next. Maxilact®Next is around 25% faster than the former fastest market reference utilized for milk processing, reducing the hydrolysis time by 25% when dosed at the same level.


• In May 2020, DuPont Nutrition & Biosciences (DuPont) announced the introduction of BonlactaTM, their newest enzyme for the lactose-free dairy industry, in North America. This special product enables cost reduction and process optimization, allowing a variety of lactose-free dairy products to be produced at competitive prices throughout North America.