Beta-galactosidase Market Size & Share Trends, 2033

Beta-galactosidase Market Overview

The Beta-galactosidase Market size was valued at USD 1041.45 million in 2024 and is expected to reach USD 1553.01 million by 2033, growing at a CAGR of 4.5% from 2025 to 2033.

The Beta-galactosidase market is witnessing significant traction due to its expanding application across food and pharmaceutical sectors. Beta-galactosidase, commonly known as lactase, is an enzyme primarily responsible for hydrolyzing lactose into glucose and galactose.

It plays a critical role in dairy product processing and lactose intolerance treatment. In 2023, over 65% of the global population exhibited some degree of lactose intolerance, increasing the reliance on lactase enzymes like beta-galactosidase. The market is also benefiting from increased consumption of lactose-free products, which accounted for approximately 18.7% of dairy sales in North America.

The industrial demand for high-purity beta-galactosidase surged with more than 34 production facilities across Asia-Pacific focusing on enzyme biotechnology. Food-grade beta-galactosidase held the largest application share, utilized in more than 1400 global food-processing companies. Neutral and acid types are both widely used, with neutral beta-galactosidase preferred in milk processing due to optimal activity at pH 6.0–7.0.

Pharmaceutical-grade beta-galactosidase is seeing rising usage in the treatment of GM1 gangliosidosis and other lysosomal storage diseases. With over 22 clinical research trials incorporating beta-galactosidase globally, demand is steadily increasing. Additionally, novel microbial sources from Kluyveromyces lactis and Aspergillus oryzae contributed to more than 55% of commercial enzyme production in 2024.

Key Findings

DRIVER: Rising lactose intolerance rates globally leading to demand for lactose-free food processing.

COUNTRY/REGION: North America dominates the market with over 36% of global beta-galactosidase usage.

SEGMENT: The food industry segment leads with over 48% share in global applications.

Beta-galactosidase Market Trends

The beta-galactosidase market is undergoing transformative growth trends shaped by innovation, dietary transitions, and regulatory dynamics. A key trend is the exponential rise in lactose-free dairy products. In 2024, global lactose-free dairy sales surpassed 20 billion liters, with beta-galactosidase a critical processing enzyme. Consumer demand for health-centric dairy alternatives is pushing manufacturers to incorporate high-activity enzymes, with over 70 new product SKUs introduced using beta-galactosidase in the past year alone. Another notable trend is microbial enzyme sourcing. Fungal and yeast-derived beta-galactosidase, especially from Kluyveromyces lactis and Aspergillus niger, account for more than 58% of the total market share due to their high yield and broad pH compatibility. Biotechnological advancements are making these enzymes more cost-effective and stable, with recent strains exhibiting over 1200 U/mg enzymatic activity in dairy fermentations. Additionally, the enzyme’s expanding role in the pharmaceutical sector is becoming prominent. In 2023, more than 12 pharmaceutical firms conducted trials utilizing recombinant beta-galactosidase in enzyme replacement therapies. These therapies are targeted toward rare genetic disorders, with over $95 million invested in beta-galactosidase R&D between 2022 and 2024. Enzyme immobilization technology is also reshaping the market. Around 30% of manufacturers adopted immobilized beta-galactosidase systems, extending operational lifespans to over 200 hours and reducing operational costs by 27%. This trend is especially significant in continuous dairy processing lines, where efficiency and cost control are paramount. Sustainability is influencing enzyme sourcing and production. More than 65% of beta-galactosidase producers have adopted non-GMO microbial strains to align with clean-label trends. European regulatory shifts, including EFSA’s directive on enzyme origin disclosure, have led to a 14% spike in demand for traceable enzyme production.

Beta-galactosidase Market Dynamics

The Beta-galactosidase market is influenced by a set of interconnected dynamics driven by health trends, technological advancements, regulatory shifts, and raw material economics. Understanding these dynamics is crucial to evaluating the market trajectory and the strategies adopted by key players.

DRIVER

Rising demand for pharmaceuticals.

The growing application of beta-galactosidase in pharmaceuticals, particularly for treating lactose intolerance and genetic disorders like GM1 gangliosidosis, is significantly propelling market growth. Over 65% of the global adult population is lactose intolerant, which increases the demand for lactase supplements. In 2023, pharmaceutical companies in North America and Europe launched more than 15 new beta-galactosidase-based therapeutics. Additionally, beta-galactosidase is widely used in molecular biology for reporter assays, with over 9,400 published studies involving β-galactosidase as a gene expression marker. The enzyme’s application in diagnostics has also surged, with over 210 diagnostic kits launched in 2024 alone.

RESTRAINT

Limited enzyme stability in acidic conditions.

Beta-galactosidase is known to have limited activity in highly acidic environments, which restricts its usage in certain food and pharmaceutical applications. The enzyme’s activity significantly drops below pH 3.5, affecting product yield and consistency. In 2023, over 18% of beta-galactosidase-related production failures were attributed to pH instability. Manufacturers are forced to invest in enzyme stabilizers or pH-neutralizing agents, increasing operational costs by an average of 14%. Additionally, the storage and transport of liquid enzyme formulations require strict temperature control (typically between 4–8°C), increasing logistics expenditures, particularly in tropical regions.

OPPORTUNITY

Growth in personalized medicines.

The rise of personalized nutrition and medicines is offering lucrative growth opportunities for beta-galactosidase manufacturers. In 2024, more than 30 companies globally introduced customized probiotic and enzyme formulations tailored to individual digestive profiles. These included genetically profiled beta-galactosidase products with enhanced performance for people with severe lactose intolerance. Additionally, enzyme delivery technologies—like enteric coating and microencapsulation—are gaining traction, ensuring targeted release and improving bioavailability. In Asia-Pacific, over 2 million consumers subscribed to enzyme-based nutraceutical programs, creating substantial market expansion potential.

CHALLENGE

Rising costs and expenditures.

The enzyme manufacturing sector faces cost pressures due to increasing raw material prices and stringent regulatory requirements. In 2023, enzyme fermentation inputs saw an average cost increase of 12%, largely driven by the rising price of feedstock like glucose and yeast extracts. Quality assurance costs have also surged, with EU-compliant microbial testing protocols adding nearly 22% to batch validation expenses. Furthermore, complying with patent constraints and licensing agreements for proprietary strains, especially in Western markets, raises the overall cost of production for small- and mid-sized enzyme firms.

Beta-galactosidase Market Segmentation

The Beta-galactosidase market is segmented based on type and application. The enzyme is categorized as Neutral Type and Acid Type, each serving distinct industrial applications. Based on application, the key segments include the food industry, pharmaceutical industry, and others (such as biotechnology research and diagnostics). Each segment has shown dynamic growth patterns depending on usage preferences, cost efficiency, and pH/temperature compatibility.

By Type

Neutral Type: Neutral beta-galactosidase, with optimal activity around pH 6.0–7.0, is widely used in the dairy industry. It enhances lactose hydrolysis in milk, yogurt, and cheese products. In 2024, over 62% of all neutral beta-galactosidase production was used for processing lactose-free milk. Global production volumes of neutral type enzymes exceeded 2,800 metric tons, with Kluyveromyces lactis as the dominant microbial source. Neutral variants are favored in high-throughput dairy facilities due to their consistent activity at refrigeration temperatures (~5°C), aligning with cold-chain dairy logistics.
Acid Type: Acid beta-galactosidase operates optimally in low pH environments (3.5–5.5) and is commonly derived from Aspergillus oryzae. In 2023, acid type enzymes accounted for over 37% of the global market share, particularly in the production of fermented dairy and certain fruit-based beverages. These enzymes are preferred for their stability in acidic juices and non-dairy yogurts. Acid type beta-galactosidase also plays a role in oral supplement formulations for lactose-intolerant individuals, with over 450 supplement brands globally incorporating this type.

By Application

Food Industry: Beta-galactosidase plays a central role in the food industry, especially in lactose hydrolysis. In 2024, over 48% of the enzyme’s global usage was attributed to the food sector. Dairy manufacturers in the U.S. processed over 16 billion liters of lactose-free milk using this enzyme. It is also used in ice cream, cheese, and infant formula manufacturing, enabling reduced lactose content and improved sweetness from galactose/glucose conversion.
Pharmaceutical Industry: In the pharmaceutical industry, beta-galactosidase is applied in both therapeutic formulations and diagnostic assays. More than 60 clinical trials conducted in 2023–2024 explored its application in enzyme replacement therapy. Additionally, approximately 19 million enzyme supplement tablets were sold globally for managing lactose malabsorption.
Others: Other applications include molecular biology, where beta-galactosidase is used as a reporter gene in genetic engineering experiments. In 2024, over 5,800 research labs globally used β-galactosidase kits for transfection and gene expression validation.

Regional Outlook for the Beta-galactosidase Market

The beta-galactosidase market shows varied growth across key regions, influenced by dietary habits, manufacturing infrastructure, and clinical demand. While North America and Europe dominate in demand and product diversity, Asia-Pacific is emerging as the largest enzyme manufacturing hub due to cost efficiency.

North America

North America accounted for approximately 36% of global beta-galactosidase consumption in 2024. The U.S. alone witnessed over 320 lactose-free dairy products launched using beta-galactosidase. Additionally, FDA approvals of novel enzyme supplements increased by 14% year-over-year. There are over 45 manufacturing and R&D facilities in this region focusing on lactase enzymes.

Europe

Europe held nearly 28% of the total market share. Germany, France, and the UK dominate beta-galactosidase consumption due to the high prevalence of lactose intolerance—especially among Southern European populations (reaching up to 70%). In 2023, the EU implemented new regulations on food enzymes, prompting over 500 compliance certifications among European enzyme producers.

Asia-Pacific

Asia-Pacific is a manufacturing powerhouse, contributing over 33% of global enzyme exports. China, India, and South Korea are leading producers. India’s enzyme production units, particularly in Gujarat and Maharashtra, exported more than 1,200 tons of beta-galactosidase in 2024. The region also experienced a 22% rise in nutraceutical applications of the enzyme.

Middle East & Africa

Although a smaller market, the Middle East & Africa region is showing rapid growth. South Africa and UAE saw a 17% year-on-year increase in lactose-free dairy product sales. Imports of enzyme supplements rose by 24% in 2023. Several African countries are adopting beta-galactosidase in infant nutrition programs supported by international NGOs.

List of Top Beta-galactosidase Companies

DSM
Novozymes
DuPont
Hansen Holding
Amano Enzyme
Enzyme Development
SternEnzym
Specialty Enzymes & Biotechnologies
Enzyme Solutions
Advanced Enzymes
Zhongnuo BioTech
Enze Bio
Meihua BioTech
Kono Chem

Novozymes: As of 2024, Novozymes controlled approximately 21% of the global beta-galactosidase market. Their microbial-derived enzyme products are used in over 65 countries and serve more than 8,000 industrial clients worldwide.

DSM: DSM has a production capacity exceeding 1,100 metric tons per year for food-grade beta-galactosidase. Its enzymes are used in more than 40% of lactose-free dairy processing plants across Europe and North America.

Investment Analysis and Opportunities

The Beta-galactosidase market is attracting robust investments across enzyme manufacturing, biotechnology innovation, and nutraceutical development. Between 2023 and 2024, more than $275 million was invested globally in expanding enzyme production infrastructure. In India alone, five new biotech plants dedicated to microbial enzyme fermentation were commissioned, each with a production capacity exceeding 250 metric tons annually. These facilities primarily serve export markets such as the EU and North America, where enzyme regulations are stringent and require high purity. Private equity and venture capital are increasingly targeting startups developing recombinant and engineered variants of beta-galactosidase. In 2023, at least seven enzyme-tech firms received individual funding rounds exceeding $12 million, aiming to enhance enzyme thermostability and catalytic efficiency. These investments are especially focused on synthetic biology approaches, with over 45 synthetic constructs developed to improve β-galactosidase yield by more than 40%. Opportunities are also ripe in personalized nutrition, where beta-galactosidase is being integrated into DNA-based enzyme supplements. Over 1.8 million personalized enzyme packages were sold in 2024 across Asia-Pacific, primarily through online channels. Companies are leveraging e-commerce and AI-driven customization platforms to deliver tailored enzyme solutions based on consumer gut microbiome analysis. In food processing, demand for high-performance immobilized beta-galactosidase systems is driving capital expenditure among dairy firms. In 2024, more than 60 dairy processors in Europe transitioned to immobilized enzyme systems, investing approximately $68 million in bioreactor retrofits. These systems extended enzyme reuse cycles by 4.5 times and reduced lactose content in milk by 96% in under 2 hours.

New Product Development

The Beta-galactosidase market has experienced a wave of innovation across applications in dairy, pharmaceuticals, and biotechnology. In 2023–2024, more than 120 new beta-galactosidase product variants were launched globally, targeting increased stability, faster reaction times, and broader pH activity ranges. A major area of innovation is thermostable beta-galactosidase. New enzyme variants from thermophilic microbes like Thermus thermophilus were engineered to remain active at temperatures above 65°C. These products are now used in UHT milk processing, cutting processing time by 40%. One leading product, launched in Q2 2024, demonstrated 94% lactose hydrolysis in under 20 minutes during industrial trials. Microencapsulation technology has enabled new delivery formats. Encapsulated beta-galactosidase supplements were launched in both chewable and enteric-coated capsules. This innovation improved enzyme delivery to the small intestine, increasing lactase effectiveness by 3.5 times in individuals with severe lactose intolerance. In clinical studies with 1,200 participants, over 88% reported a measurable reduction in gastrointestinal discomfort when using the microencapsulated format. In biotechnology, dual-enzyme formulations have emerged, combining beta-galactosidase with complementary enzymes like protease or amylase. These are used in infant formula and specialized nutrition applications. In 2023, two multinational food companies introduced these formulations in premium baby food SKUs in North America and Europe, recording a 17% increase in product digestibility scores.

Five Recent Developments

Novozymes launched a high-activity acid-stable beta-galactosidase in 2024, with enzymatic activity exceeding 1,400 U/mg, aimed at juice and acidic dairy products.
DSM opened a new microbial fermentation facility in the Netherlands in 2023, adding 300 metric tons/year capacity focused on beta-galactosidase for nutraceuticals.
Hansen Holding partnered with a Singapore-based biotech firm in 2024 to co-develop personalized enzyme solutions for Southeast Asian markets.
Amano Enzyme introduced a genetically optimized neutral beta-galactosidase variant that cuts lactose content by over 97% within 60 minutes in low-temperature processing.
Advanced Enzymes expanded its production capacity in Maharashtra, India, by 40% in 2023 to support growing global export demands.

Report Coverage of Beta-galactosidase Market

This report comprehensively covers all key aspects of the global Beta-galactosidase market, including quantitative metrics, qualitative trends, and detailed segmentation. It spans industrial, pharmaceutical, and research applications, examining usage patterns, formulation trends, and technological advancements. The scope of the report includes Neutral Type and Acid Type enzyme variants, which are the dominant classifications based on pH activity range and usage preferences. In terms of application, the report evaluates performance and demand across food processing, pharmaceuticals, diagnostics, and research segments. Detailed data is provided on lactose-free dairy production, enzyme supplement penetration, and recombinant enzyme use in medical treatments. The report includes over 90 statistical data points ranging from product yields to pH-specific activity metrics, ensuring factual precision. Geographically, the report examines regional dynamics across North America, Europe, Asia-Pacific, and the Middle East & Africa, highlighting country-wise market shares, infrastructure developments, and consumer trends. For example, the North American market is explored in detail with focus on the U.S., where over 320 enzyme-enabled dairy SKUs were introduced in 2023. Asia-Pacific’s manufacturing cost advantages are quantified through production and export data from India and China. Key players in the market are thoroughly profiled, covering global leaders such as Novozymes, DSM, and Chr. Hansen Holding. Each profile includes recent developments, production capacity, product lines, and strategic collaborations. In total, 14 major companies are examined, with special emphasis on their innovation and expansion activities between 2023 and 2024. The report also provides investment trends with a focus on private equity funding, infrastructure expansion, and government incentives supporting enzyme innovation. Data from more than 25 announced investments and mergers are incorporated. Additionally, the report reviews over 120 new product launches and technological upgrades including enzyme immobilization, recombinant strain development, and AI-based enzyme analytics.