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Lactase Market

ID: MRFR/FnB/8923-HCR
200 Pages
Snehal Singh
October 2025

Lactase Market Research Report By Application (Food and Beverage, Dietary Supplements, Pharmaceuticals, Animal Feed), By Source (Microbial, Plant, Animal), By Form (Liquid, Powder, Granules), By End User (Food Manufacturers, Pharmaceutical Companies, Retail Chains, Research Institutions) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

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Lactase Market Summary

As per MRFR analysis, the Lactase Market Size was estimated at 1.236 USD Billion in 2024. The Lactase industry is projected to grow from 1.318 in 2025 to 2.492 by 2035, exhibiting a compound annual growth rate (CAGR) of 6.58 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Lactase Market is experiencing robust growth driven by rising consumer awareness and innovation.

  • The demand for lactose-free products continues to rise, particularly in North America, which remains the largest market.
  • Innovation in product formulations is evident, with a notable increase in plant-based alternatives gaining traction in the Asia-Pacific region.
  • The Food and Beverage segment dominates the market, while the Dietary Supplements segment is emerging as the fastest-growing area.
  • Key market drivers include increasing lactose intolerance awareness and the expansion of dairy alternatives, which are shaping consumer preferences.

Market Size & Forecast

2024 Market Size 1.236 (USD Billion)
2035 Market Size 2.492 (USD Billion)
CAGR (2025 - 2035) 6.58%

Major Players

DuPont (US), Novozymes (DK), DSM (NL), Chr. Hansen (DK), Enzymes (US), Amano Enzyme (JP), Südzucker (DE), Kerry Group (IE), BASF (DE)

Lactase Market Trends

The Lactase Market is currently experiencing a notable transformation, driven by a growing awareness of lactose intolerance among consumers. This condition, which affects a significant portion of the global population, has led to an increased demand for lactase supplements and lactose-free products. As individuals seek to alleviate digestive discomfort, the market is witnessing a surge in innovative product offerings that cater to diverse dietary needs. Furthermore, the rise of health-conscious consumers is prompting manufacturers to explore new formulations and delivery methods, enhancing the overall appeal of lactase products. In addition to the rising awareness of lactose intolerance, the Lactase Market is also influenced by broader trends in the food and beverage industry. The shift towards plant-based diets and clean label products is reshaping consumer preferences, leading to a demand for lactase in non-dairy alternatives. This trend suggests that lactase may play a crucial role in the development of lactose-free options for various food categories, including dairy substitutes and baked goods. As the market evolves, it appears that the integration of lactase into innovative formulations will be essential for meeting the needs of a diverse consumer base, ultimately driving growth in this sector.

Rising Demand for Lactose-Free Products

The Lactase Market is witnessing an increasing consumer preference for lactose-free options. This trend is largely driven by heightened awareness of lactose intolerance and the desire for digestive comfort. As more individuals seek alternatives to traditional dairy products, manufacturers are responding by expanding their lactose-free product lines.

Innovation in Product Formulations

There is a notable trend towards innovation in lactase product formulations. Companies are exploring new delivery methods and combinations with other ingredients to enhance efficacy and consumer appeal. This focus on innovation is likely to attract a broader audience, including those who may not have previously considered lactase supplements.

Growth of Plant-Based Alternatives

The Lactase Market is also influenced by the rising popularity of plant-based diets. As consumers increasingly opt for non-dairy alternatives, the demand for lactase in these products is expected to grow. This trend indicates a potential for lactase to become a key ingredient in the development of lactose-free plant-based foods.

Lactase Market Drivers

Expansion of Dairy Alternatives

The proliferation of dairy alternatives is significantly influencing the Lactase Market. With the increasing popularity of plant-based diets, consumers are gravitating towards non-dairy options such as almond, soy, and oat milk. This shift is not merely a trend; market data suggests that the dairy alternatives segment is projected to grow at a compound annual growth rate of over 10% in the next five years. As these alternatives often contain lower levels of lactose, the demand for lactase products that complement these diets is likely to rise. Manufacturers are responding by formulating lactase supplements that cater specifically to consumers seeking to enhance their experience with dairy alternatives. This dynamic interplay between dairy alternatives and lactase products is expected to shape the market landscape significantly.

Regulatory Support for Lactase Products

Regulatory support for lactase products is becoming an influential driver in the Lactase Market. Governments and health organizations are increasingly recognizing the importance of lactose-free options for public health. This recognition has led to the establishment of guidelines and regulations that promote the availability of lactase supplements and lactose-free foods. For instance, certain regions have implemented labeling requirements that facilitate consumer access to lactose-free products, thereby enhancing market visibility. Additionally, regulatory bodies are encouraging research and development in the lactase sector, which may lead to innovative product offerings. As regulatory frameworks continue to evolve, they are likely to create a more favorable environment for the growth of the lactase market, ultimately benefiting both consumers and manufacturers.

Increasing Lactose Intolerance Awareness

The rising awareness of lactose intolerance among consumers is a pivotal driver in the Lactase Market. As more individuals recognize their inability to digest lactose, the demand for lactase supplements and lactose-free products surges. Recent studies indicate that approximately 65% of the adult population experiences some form of lactose malabsorption. This growing awareness propels consumers towards products that alleviate discomfort associated with lactose consumption, thereby expanding the lactase market. Furthermore, educational campaigns by health organizations contribute to this trend, emphasizing the importance of dietary adjustments for those affected. Consequently, manufacturers are increasingly focusing on developing innovative lactase products to cater to this expanding consumer base, which is likely to enhance market growth in the coming years.

Rising Health Consciousness Among Consumers

The growing trend of health consciousness among consumers is a significant driver in the Lactase Market. As individuals become more aware of the health implications of their dietary choices, there is a marked shift towards products that promote digestive health. Lactase Market supplements are increasingly viewed as a means to facilitate the consumption of dairy products without adverse effects. Market Research Future indicates that the dietary supplement sector is expanding, with lactase products gaining traction among health-conscious consumers. This trend is further supported by the increasing prevalence of health-related information available through various media channels, which encourages consumers to seek out solutions for lactose intolerance. Consequently, the lactase market is poised for growth as more individuals prioritize their digestive well-being.

Technological Advancements in Lactase Production

Technological advancements in the production of lactase enzymes are emerging as a crucial driver in the Lactase Market. Innovations in biotechnology have led to the development of more efficient and cost-effective methods for producing lactase, which enhances product availability and affordability. For instance, the use of recombinant DNA technology has enabled the production of high-purity lactase enzymes, which are essential for various applications in food processing. Market data indicates that the enzyme production sector is experiencing a robust growth trajectory, with lactase enzymes being a key contributor. As production techniques continue to evolve, the Lactase Market is likely to benefit from increased supply and reduced costs, thereby attracting a broader consumer base.

Market Segment Insights

By Application: Food and Beverage (Largest) vs. Dietary Supplements (Fastest-Growing)

The Lactase Market exhibits a diverse application landscape, with the Food and Beverage segment capturing the largest share, driven by increasing consumer demand for lactose-free products. Dietary Supplements are gaining momentum, appealing to health-conscious consumers seeking digestive aids. Pharmaceuticals and Animal Feed follow but hold lesser market shares, reflecting niche applications with specific consumer bases. Together, these segments showcase the robust growth potential within the Lactase Market, highlighting a shift in consumer preferences towards lactose intolerance solutions.

Food and Beverage (Dominant) vs. Dietary Supplements (Emerging)

The Food and Beverage segment stands out as the dominant application in the Lactase Market, with manufacturers focusing on developing lactose-free dairy products and specialty foods to cater to growing lactose intolerance awareness. Meanwhile, the Dietary Supplements segment emerges as a promising area, appealing to a health-oriented audience looking for digestive health solutions. This segment is characterized by convenient, over-the-counter lactase enzyme products that support lactose digestion, enabling individuals to enjoy dairy with ease. Both segments reflect a shift toward health and wellness, with innovative products emerging to meet the evolving needs of consumers.

By Source: Microbial (Largest) vs. Plant (Fastest-Growing)

In the Lactase Market, the source segment is primarily dominated by microbial sources, which account for a significant portion of the market share. This dominance is attributed to the widespread availability and well-established production processes associated with microbial lactase derived from microorganisms. On the other hand, plant-based sources are emerging strongly, given the rising consumer preference for vegan and gluten-free options. As a result, both microbial and plant sources are important in shaping the market dynamics.

Microbial (Dominant) vs. Plant (Emerging)

Microbial lactase remains the dominant source in the Lactase Market due to its efficiency and cost-effectiveness in production. Derived from specific strains of fungi or bacteria, microbial lactase offers a reliable enzyme solution for dairy processing, particularly in lactose-free products. Meanwhile, plant-based lactase is emerging as a significant player, appealing to health-conscious consumers and those with dietary restrictions. This growing interest in plant-derived options is driven by the increasing demand for natural products and the shift towards plant-based diets, which is reshaping consumer preferences and creating new growth opportunities.

By Form: Liquid (Largest) vs. Powder (Fastest-Growing)

In the Lactase Market, the 'Form' segment is predominantly occupied by liquid lactase products, which hold the largest share due to their ease of use and wider acceptance among consumers. These liquid forms are often preferred for their immediate solubility and effectiveness in various food applications. Conversely, powder lactase products are emerging as a significant player, gaining traction due to their convenience and longer shelf life, appealing more to health-conscious consumers seeking stable lactose intolerance solutions.

Liquid (Dominant) vs. Powder (Emerging)

Liquid lactase products are currently the dominant form in the market, appealing to a broad consumer base for their ease of incorporation into various foods and digestive aids. The convenient packaging and immediate effectiveness make it a preference among end-users, particularly those who consume dairy products regularly. On the other hand, powder lactase products represent an emerging trend due to their versatility and portability, making them attractive to consumers who prefer to adjust their lactase intake according to their dietary needs. The rising popularity of fitness and wellness trends is further driving the demand for powdered forms as they can be easily added to shakes and supplements.

By End User: Food Manufacturers (Largest) vs. Pharmaceutical Companies (Fastest-Growing)

In the Lactase Market, the distribution among end users reveals that Food Manufacturers hold the largest share, leveraging lactase enzymes to enhance the digestibility of dairy products catering to lactose-intolerant consumers. They encompass a broad range of applications from ice cream to baked goods, driving the demand significantly across various demographics. On the other hand, Pharmaceutical Companies are emerging with a rapidly increasing share, capitalizing on lactase supplements aimed at improving digestive health, especially as awareness grows regarding lactose intolerance and its management.

Food Manufacturers (Dominant) vs. Pharmaceutical Companies (Emerging)

Food Manufacturers represent the dominant segment in the Lactase Market due to their extensive use of lactase enzymes in product formulations. These manufacturers utilize lactase to produce lactose-free dairy products, appealing to a rising health-conscious consumer base. Their established market infrastructure and strong relationships with retailers allow them to efficiently distribute these products. Conversely, Pharmaceutical Companies are emerging as a significant force by developing innovative lactase enzyme supplements. They target health-conscious consumers and expand their offerings in digestive health. Their growth is fueled by increasing consumer awareness of lactose intolerance and the benefits associated with enzyme supplementation, making them an important player in shaping the market's future.

Get more detailed insights about Lactase Market

Regional Insights

The Lactase Market exhibited significant regional segmentation in 2024, showcasing diverse valuations across various regions. North America led the market with a valuation of 0.45 USD billion in 2024, which is expected to grow to 0.95 USD billion by 2035, highlighting its majority holding in the industry.

Europe followed closely with a value of 0.35 USD billion in 2024, anticipated to rise to 0.75 USD billion, reflecting the growing awareness of lactose intolerance and a demand for lactase supplements.

South America, although smaller, showed substantial growth potential, transitioning from 0.1 USD Billion to 0.2 USD Billion within the same period, emphasizing increasing lactose-free product trends.

Asia Pacific is projected to achieve a rise from 0.25 USD billion to 0.55 USD billion, driven by a rising population and changing dietary habits. Meanwhile, the Middle East and Africa, valued at 0.09 USD Billion in 2024 and expected to reach 0.15 USD Billion by 2035, indicate emerging opportunities as healthcare awareness improves.

This structured breakdown of the Lactase Market revenue underscores the importance of regional trends, where North America and Europe capture a significant share, driven by consumer health consciousness and increased lactase product availability.

Lactase Market Regional Image

Key Players and Competitive Insights

The Lactase Market has witnessed significant growth as consumer demand for lactose-free products rises due to the increasing prevalence of lactose intolerance globally. In this competitive landscape, various companies are vying for market share, presenting different strengths and unique selling propositions that distinguish them from one another.

The market is characterized by a mix of established players and emerging companies, each leveraging advancements in technology and research to meet consumer preferences effectively.

Market players are focusing on product innovations driven by health consciousness, the rise of veganism, and the demand for enriched dairy products. Furthermore, strategic partnerships, collaborations, and acquisitions are common as companies look to enhance their product portfolios and expand their global footprint, indicating a dynamic and evolving environment within the lactase sector.

Lactalis Ingredients stands as a robust player in the Lactase Market, backed by a strong reputation and extensive distribution networks. The company's strength lies in its ability to capitalize on its established brand presence and experience in the dairy industry.

Lactalis Ingredients offers a diverse range of lactase products designed for various applications, positioning itself as a key solution provider for lactose intolerance issues. Its focus on innovation ensures that it meets the evolving needs of consumers seeking healthy and lactose-free alternatives.

By continually increasing its research and development efforts, Lactalis Ingredients enhances its product offerings, solidifying its competitive advantage in the market. Additionally, the company's strategic approach of forging partnerships with food manufacturers and retailers amplifies its market presence, allowing for wider consumer reach and brand loyalty.

Aumgene Biosciences is another noteworthy entity in the Lactase Market, distinguished by its commitment to biotechnological advancements and high-quality lactose-free solutions.

The company specializes in offering a range of lactase enzymes that cater to the needs of both pharmaceutical and food sectors, highlighting its versatility and adaptability in diverse applications.

Aumgene Biosciences is recognized for its innovative product development, which is reflected in its continued emphasis on research and technological investment.

This commitment also positions the company favorably during mergers and acquisitions, as its expertise makes it an attractive partner or acquisition target for larger firms seeking to expand their capabilities in the lactase domain.

Through its focused growth strategies and dedication to high-quality solutions, Aumgene Biosciences is ensuring a firm foothold in the global arena, promoting increased awareness and accessibility of lactose-free products to consumers worldwide.

Key Companies in the Lactase Market market include

Industry Developments

  • Q2 2024: DSM-Firmenich launches new high-purity lactase enzyme for lactose-free dairy applications DSM-Firmenich announced the launch of a next-generation lactase enzyme designed to improve the taste and texture of lactose-free dairy products, targeting manufacturers seeking cleaner label solutions.
  • Q1 2024: Novozymes expands lactase production capacity at Denmark facility Novozymes completed a major expansion of its Denmark manufacturing site to increase output of lactase enzymes, responding to rising global demand for lactose-free dairy processing.
  • Q2 2024: Chr. Hansen and Arla Foods announce partnership to develop advanced lactase solutions Chr. Hansen and Arla Foods entered a strategic partnership to co-develop new lactase enzyme formulations for use in premium lactose-free dairy products across Europe.
  • Q3 2024: DuPont Nutrition & Health receives regulatory approval for new lactase enzyme in China DuPont Nutrition & Health secured approval from Chinese food safety authorities for its latest lactase enzyme, enabling expanded sales to Chinese dairy manufacturers.
  • Q2 2024: Kerry Group acquires lactase technology startup Enzylab Kerry Group announced the acquisition of Enzylab, a biotech startup specializing in lactase enzyme innovation, to strengthen its portfolio in the lactose-free dairy sector.
  • Q1 2025: Valio opens new lactase enzyme R&D center in Helsinki Valio inaugurated a research and development center focused on lactase enzyme technology, aiming to accelerate innovation in lactose-free dairy products.
  • Q2 2025: Chr. Hansen appoints new Head of Lactase Market Business Unit Chr. Hansen named Dr. Anna Madsen as the new Head of its Lactase Market Business Unit, signaling a renewed focus on enzyme innovation and market expansion.
  • Q3 2024: DSM-Firmenich signs supply agreement with major US dairy producer for lactase enzymes DSM-Firmenich entered into a multi-year supply contract with a leading US dairy company to provide lactase enzymes for large-scale lactose-free milk production.
  • Q4 2024: Novozymes secures contract to supply lactase enzymes to Southeast Asian beverage manufacturer Novozymes won a significant contract to supply lactase enzymes to a top beverage company in Southeast Asia, supporting the launch of new lactose-free drink lines.
  • Q1 2025: DuPont Nutrition & Health launches fast-acting lactase enzyme for dietary supplements DuPont Nutrition & Health introduced a new fast-acting lactase enzyme aimed at dietary supplement manufacturers, enabling improved efficacy for lactose-intolerant consumers.
  • Q2 2025: Kerry Group announces partnership with Indian dairy cooperative for lactase enzyme supply Kerry Group formed a partnership with a major Indian dairy cooperative to supply lactase enzymes, supporting the cooperative’s expansion into lactose-free dairy products.
  • Q3 2025: Valio launches new lactose-free milk powder using proprietary lactase technology Valio unveiled a new lactose-free milk powder product, leveraging its proprietary lactase enzyme technology to meet growing demand in international markets.

 

Future Outlook

Lactase Market Future Outlook

The Lactase Market is projected to grow at a 6.58% CAGR from 2024 to 2035, driven by increasing lactose intolerance awareness and demand for dairy alternatives.

New opportunities lie in:

  • Development of lactose-free product lines for mainstream retailers.
  • Investment in innovative lactase enzyme formulations for enhanced efficacy.
  • Expansion into emerging markets with tailored marketing strategies.

By 2035, the Lactase Market is expected to achieve robust growth, reflecting evolving consumer preferences and market dynamics.

Market Segmentation

Lactase Market Form Outlook

  • Liquid
  • Powder
  • Granules

Lactase Market Source Outlook

  • Microbial
  • Plant
  • Animal

Lactase Market End User Outlook

  • Food Manufacturers
  • Pharmaceutical Companies
  • Retail Chains
  • Research Institutions

Lactase Market Application Outlook

  • Food and Beverage
  • Dietary Supplements
  • Pharmaceuticals
  • Animal Feed

Report Scope

MARKET SIZE 20241.236(USD Billion)
MARKET SIZE 20251.318(USD Billion)
MARKET SIZE 20352.492(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)6.58% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledMarket analysis in progress
Segments CoveredMarket segmentation analysis in progress
Key Market OpportunitiesRising lactose intolerance awareness drives demand for innovative Lactase Market solutions and products.
Key Market DynamicsRising consumer demand for lactose-free products drives innovation and competition in the lactase market.
Countries CoveredNorth America, Europe, APAC, South America, MEA

Market Highlights

Author
Snehal Singh
Assistant Manager - Research

High acumen in analyzing complex macro & micro markets with more than 6 years of work experience in the field of market research. By implementing her analytical skills in forecasting and estimation into market research reports, she has expertise in Packaging, Construction, and Equipment domains. She handles a team size of 20-25 resources and ensures smooth running of the projects, associated marketing activities, and client servicing.

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FAQs

What is the current valuation of the Lactase Market as of 2024?

The Lactase Market was valued at 1.236 USD Billion in 2024.

What is the projected market size for the Lactase Market in 2035?

The Lactase Market is projected to reach 2.492 USD Billion by 2035.

What is the expected CAGR for the Lactase Market during the forecast period 2025 - 2035?

The expected CAGR for the Lactase Market during the forecast period 2025 - 2035 is 6.58%.

Which companies are considered key players in the Lactase Market?

Key players in the Lactase Market include DuPont, Novozymes, DSM, Chr. Hansen, and others.

What are the main application segments of the Lactase Market?

The main application segments include Food and Beverage, Dietary Supplements, Pharmaceuticals, and Animal Feed.

How does the Food and Beverage segment perform in terms of market valuation?

The Food and Beverage segment is projected to grow from 0.6 to 1.2 USD Billion during the forecast period.

What sources of lactase are available in the market?

The Lactase Market includes microbial, plant, and animal sources, with microbial expected to grow from 0.6 to 1.2 USD Billion.

What forms of lactase are currently available in the market?

Lactase is available in liquid, powder, and granule forms, with liquid and powder both projected to grow from 0.496 to 0.992 USD Billion.

Who are the primary end users of lactase products?

Primary end users include Food Manufacturers, Pharmaceutical Companies, Retail Chains, and Research Institutions.

What is the projected growth for the Animal Feed segment in the Lactase Market?

The Animal Feed segment is expected to grow from 0.136 to 0.292 USD Billion by 2035.

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