Lactase Market Size – By Source (Animal, Fungus, Plants), By Application (Milk, Yogurt, Ice cream, Cheese, Dietary Supplement), By Form (Liquid, Dry), Growth Prospects, Regional Outlook & Global Forecast, 2024 – 2032

Lactase Market Size

Lactase Market size was valued at USD 249 million in 2023 and is estimated to grow at 6.3% CAGR from 2024 to 2032. The market refers to the segment of the food industry involved in the production and distribution of lactase enzymes, which play a crucial role in breaking down lactose in dairy products. Lactase is essential for individuals with lactose intolerance, as it facilitates the digestion of lactose, making dairy products more accessible. The market is driven by the increasing prevalence of lactose intolerance worldwide, coupled with rising consumer awareness of digestive health.
 

Growing demand for lactose-free and dairy-free products, along with advancements in enzyme technology, further propels the growth of the lactase market. Additionally, the expanding application of lactase in various food and beverage products, such as milk, yogurt, ice cream, and dietary supplements, contributes to the market's sustained expansion.

One significant pitfall in the lactase market is the perceived high cost associated with lactase supplements or lactose-free products. While these offerings are designed to cater to the needs of individuals with lactose intolerance, the perception of elevated prices may act as a deterrent for widespread adoption, particularly in markets where consumers are highly price sensitive. This cost perception can hinder the market's penetration, limiting accessibility for a broader consumer base and potentially slowing down the overall growth of the market.
 

Lactase Market Trends

In the lactase industry, several noteworthy trends are shaping the industry landscape. A prominent trend involves the continuous surge in demand for lactose-free and dairy-free products, driven by evolving consumer preferences towards healthier and more inclusive dietary choices. This trend aligns with the growing awareness of lactose intolerance and the desire for easily digestible alternatives.
 

Additionally, there is a discernible shift towards enhanced product innovation and formulation, with manufacturers increasingly incorporating lactase enzymes into a diverse range of food and beverage applications beyond traditional dairy, including plant-based alternatives. The lactase market is also witnessing a rise in strategic collaborations and partnerships among key industry players to leverage expertise, broaden market reach, and capitalize on emerging opportunities. As technological advancements persist, the integration of advanced enzyme technologies further propels the efficacy and applicability of lactase in various product formulations, fostering continued growth and adaptation to evolving consumer demands.
 

Lactase Market Analysis

Based on Source, the animal segment dominated around USD 86.5 million revenue in 2023. The sources of lactase, including animal, fungus, plants, and others, play a crucial role in shaping the growth dynamics of the lactase market. Animal-derived lactase, traditionally sourced from mammals, has been a cornerstone in lactase production. However, with the rise of alternative and sustainable practices, fungal and plant-based sources are gaining prominence.
 

Fungi, particularly certain strains of Aspergillus, are utilized for their efficient lactase production through biotechnological processes. Plant-derived lactase, sourced from organisms like yeasts or genetically modified plants, represents an evolving trend aligning with the growing demand for plant-based and vegan-friendly products. The exploration of diverse sources reflects the industry's commitment to innovation and sustainability, providing a spectrum of options to meet the varied needs of consumers with lactose intolerance and driving growth in the market.
 

Based on application, the food & beverages segment accounted for 29% of the lactase market share in 2023. The diverse applications of lactase in products such as milk, yogurt, ice cream, cheese, dietary supplements, and others are pivotal in propelling the growth of the market. As awareness of lactose intolerance expands globally, the demand for lactase-enriched products has seen remarkable growth across the dairy sector. Lactase plays a key role in making these dairy items more accessible to individuals with lactose intolerance, fueling its integration into a variety of dairy-based applications.
 

Furthermore, the incorporation of lactase in dietary supplements caters to the increasing consumer focus on digestive health, boosting the market's expansion beyond traditional food products. The versatility of lactase application is evident in its use across diverse segments, reflecting the dynamic nature of the market and its ability to meet the evolving preferences of consumers seeking lactose-free alternatives across various food and nutritional categories.
 

In the dynamic lactase market, growth drivers vary across different forms, namely liquid and dry. The increasing consumer demand for lactose-free products continues to propel the market forward. In the liquid lactase segment, the convenience factor plays a crucial role, as it facilitates easy incorporation into various liquid dairy products. Additionally, the growing trend of plant-based milk alternatives further augments the demand for liquid lactase.
 

On the other hand, in the dry lactase segment, the extended shelf life and ease of transportation contribute significantly to its market growth. The rise in health-conscious consumers seeking lactase for dietary supplements and fortified foods further fuels the expansion of the dry market. Overall, evolving consumer preferences, health awareness, and the diversification of dairy alternatives collectively drive the growth of the market in both liquid and dry forms.
 

The U.S. lactase market size held over USD 64.6 million in 2023, attributed to several factors, including a robust dairy industry, heightened consumer awareness about lactose intolerance, and a growing market for lactose-free products. The country's well-developed infrastructure and advanced research capabilities further contribute to its leadership position in market growth. As the U.S. continues to witness an increasing demand for lactase across various applications, ranging from dairy products to dietary supplements, its commanding revenue share underscores its pivotal role in shaping the market landscape.
 

Lactase Market Share

In the highly competitive lactase industry, several key players have emerged as industry leaders, playing a pivotal role in shaping the landscape of lactase production and distribution. Lactose India Limited stands out as a prominent market player, leveraging its extensive expertise in lactase manufacturing. The company's commitment to quality and innovation has contributed significantly to its market prominence. Additionally, DFE Pharma has carved a niche for itself with a focus on providing high-quality lactase products for pharmaceutical and food industries. Their strategic partnerships and investments in research and development have fortified their position as a major contributor to the market.
 

Armor Pharma, another noteworthy player, has established itself as a reliable supplier of lactase for pharmaceutical applications, emphasizing pharmaceutical-grade lactase production. This dedication to meeting the stringent standards of the pharmaceutical industry has earned Armor Pharma a distinguished position in the market. Furthermore, Valio Ltd., with its global presence, has become a key player in the lactase market, offering a diverse range of lactase products. The company's emphasis on sustainable and ethical practices in lactase production aligns with evolving consumer preferences, contributing to its market influence. Together, these top market players exemplify the dynamic and competitive nature of the market, each bringing unique strengths and innovations to meet the growing demand for lactase worldwide.
 

Lactase Market Companies

Major companies operating in the lactase industry include:

• Amano Enzyme Inc.
• Alpavit Käserei Champignon Hofmeister GmbH & Co. KG
• Armor Pharma
• BASF SE
• Chr. Hansen Holding A/S
• DFE Pharma
• DSM Nutritional Products
• Kerry Group Plc
• Lactose India Limited
• Meggle Excipients & Technology
• Merck & Co., KgAa
• Novozymes A/S
• Valio Ltd.
   

Lactase Industry News

• July 2023: Hansen Holding A/S expands its lactase production facility in Poland to meet growing demand in the European market. SM Nutritional Products announces plans to build a new lactase manufacturing plant in China to cater to the booming Asian market.
   
• June 2023: Novozymes A/S unveils its next-generation lactase enzyme, offering enhanced activity and stability for lactose-free dairy products. Kerry Group Plc launches its "LactolLite" line of low-calorie, lactose-free yogurt in the US market.
   

The lactase market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million & Kilo Tons from 2018 to 2032, for the following segments:

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Market, By Source

• Animal
• Fungus
• Plants

Market, By Application

• Milk
• Yogurt
• Ice cream
• Cheese
• Dietary Supplement
• Other

Market, By Form

• Liquid
• Dry

The above insurrection has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands
  • Poland
  • Russia
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Indonesia
  • Thailand 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE