Lactase Market Size & Share Trends, 2033

Lactase Market Overview

The Lactase Market size was valued at USD 1141.49 million in 2024 and is expected to reach USD 1935.76 million by 2033, growing at a CAGR of 4.5% from 2025 to 2033.

The global lactase market is witnessing significant transformation driven by the rising prevalence of lactose intolerance and increasing consumer demand for lactose-free dairy products. An estimated 65% of the global population has a reduced ability to digest lactose after infancy. In East Asia, lactose intolerance affects over 90% of the adult population, creating strong demand for lactase enzyme supplementation and lactose-free food innovations. The market has also seen growth from the pharmaceutical sector where lactase is used in digestive enzyme formulations.

As of 2024, over 150 food brands worldwide actively incorporate lactase in their processing lines, and approximately 70 companies are involved in its commercial production and distribution. Industrial production of lactase involves microbial fermentation using organisms such as Aspergillus oryzae and Kluyveromyces lactis, enabling large-scale output exceeding 3,000 metric tons annually. With neutral lactase dominating the industrial application landscape, particularly in dairy processing, innovation in acid-stable lactase is on the rise for functional foods and beverages with lower pH levels. The presence of over 12 patented formulations across the U.S., EU, and Japan highlights the technological competition within this industry.

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Key Findings

DRIVER: Rising lactose intolerance and demand for lactose-free dairy alternatives.

COUNTRY/REGION: North America leads due to a 35% market share in enzyme supplements and dairy innovations.

SEGMENT: Neutral lactase dominates due to its widespread usage in milk processing.

Lactase Market Trends

Recent years have seen a sharp increase in lactose-free product consumption. In 2023 alone, the U.S. consumed over 1.8 billion liters of lactose-free milk, reflecting a 12% year-over-year increase. In the European Union, 60% of new dairy product launches in 2023 featured lactose-free labeling. Companies are actively incorporating lactase enzymes into yogurt, cheese, infant formulas, and flavored milk beverages. Retail shelf space for lactose-free products increased by 25% across supermarkets in the UK and Germany during the second half of 2023.

E-commerce also plays a vital role. Online searches for “lactose intolerance supplement” grew by 21% globally between January and November 2023. In China, where over 92% of the adult population is lactose intolerant, the demand for lactase pills has surged with over 4.2 million online purchases recorded in the last 12 months. Pharmaceutical use of lactase is expanding, with over 500 formulations including lactase enzymes now listed in global pharmaceutical directories.

On the production front, biotechnology firms are optimizing fermentation processes to achieve enzyme yields of over 4000 U/mg. Environmental concerns are also pushing the trend toward sustainable enzyme production using waste substrates like whey permeate, which contributes to a 28% reduction in industrial waste in enzyme manufacturing units.

Lactase Market Dynamics

Market dynamics refer to the forces and factors that influence the behavior, growth, and evolution of a market over time. These dynamics encompass a variety of internal and external variables such as drivers, which propel market expansion; restraints, which hinder progress; opportunities, which offer potential areas for innovation and revenue generation; and challenges, which present barriers to entry or operational efficiency. In the context of the lactase market, dynamics include factors such as the global prevalence of lactose intolerance, advancements in enzyme production technologies, regulatory hurdles for food-grade certifications, and evolving consumer preferences for functional and personalized nutrition. Analyzing these dynamics is crucial for stakeholders to assess the market potential, identify strategic investment areas, and mitigate risks in both the short and long term.

DRIVER

Rising demand for pharmaceuticals.

The increasing incidence of gastrointestinal disorders related to lactose malabsorption has led to significant demand for lactase in pharmaceuticals. Over 70 prescription products now contain lactase for managing lactose intolerance symptoms. In India, 13% of the population consumes digestive aids regularly, with lactase supplements being one of the top five selling enzymes. Hospitals across Japan have incorporated lactase enzyme therapy for pediatric and geriatric patients, with over 450 medical institutions using enzyme supplements as part of dietetic care. The growing health-conscious population and awareness campaigns on digestive wellness are accelerating the uptake of lactase formulations globally.

RESTRAINT

Demand for refurbished equipment.

A significant restraint in the lactase market is the high cost of enzyme production infrastructure. Many small and mid-sized enterprises (SMEs) rely on refurbished fermentation systems which can lead to batch inconsistency and reduced enzyme yields. Refurbished bioreactors often experience enzyme activity losses of 15%-25%, especially in prolonged runs. This limitation affects the ability of such producers to maintain international quality standards, resulting in reduced export opportunities. In countries such as Indonesia and Nigeria, limited access to advanced equipment has caused over 30% of lactase production projects to face delays or cancellations in the past three years.

OPPORTUNITY

Growth in personalized medicines.

The increasing focus on personalized medicine opens new avenues for lactase market expansion. In 2023, over 28 companies began developing tailored enzyme therapies for pediatric and elderly demographics. Diagnostic tools that determine individual lactase persistence and microbiome compatibility have gained traction, with over 500,000 gut microbiome kits sold in the U.S. alone. This allows customized enzyme dosing strategies. Lactase-based solutions are also being explored in combination with probiotics, where trials across Germany and Switzerland have shown a 37% improvement in digestive tolerance in lactose-intolerant individuals.

CHALLENGE

Rising costs and expenditures.

Production of lactase requires specific substrates, temperature control systems, and sterile environments, making it a capital-intensive process. The cost of microbial culture media increased by 17% from 2022 to 2024, largely due to global disruptions in corn syrup and yeast extract supply. The price of maintaining cold chain logistics for liquid lactase shipments increased by 21% in Europe due to energy inflation. Moreover, regulatory challenges for food-grade enzyme certification often take 12-18 months, increasing operational expenses and slowing down market entry for startups and innovators.

Lactase Market Segmentation

The lactase market is segmented by type and application. By type, the market is divided into neutral lactase and acid lactase, with neutral lactase being the most utilized due to its effectiveness in milk processing. By application, the market is classified into food, pharmaceutical, and others, with the food segment accounting for the largest usage due to the widespread demand for lactose-free dairy products globally.

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By Type

Neutral Lactase:Neutral lactase is the most widely used variant, suitable for dairy applications with a near-neutral pH of 6.0 to 7.0. Over 80% of dairy plants worldwide use neutral lactase to hydrolyze lactose into glucose and galactose, enhancing sweetness and digestibility. In 2023, more than 2,300 industrial processors used neutral lactase for producing lactose-free milk, yogurt, and ice cream. With temperature tolerances ranging from 35°C to 55°C, neutral lactase is highly adaptable to industrial milk pasteurization processes.
Acid Lactase: Acid lactase is utilized in products with lower pH, such as fruit-based dairy beverages and digestive supplements. Over 300 nutraceutical companies use acid lactase in chewable tablets and capsules to aid digestion. This enzyme remains active in the acidic environment of the stomach (pH 2.5 to 5.5). In 2024, over 70 new supplement formulations with acid lactase were launched across Southeast Asia, reflecting increasing consumer interest in gastrointestinal wellness.

By Application

Food: The food segment leads in enzyme application. More than 500 global dairy brands use lactase to convert lactose into digestible sugars, enhancing taste and expanding lactose-free portfolios. In 2023, 38% of all milk sold in Scandinavian countries was lactose-free.
Pharmaceutical: The pharmaceutical segment includes digestive health products and enzyme therapy. Over 30 million enzyme supplement units containing lactase were sold in the U.S. in 2023, with demand growing in pediatric and geriatric care.
Others: Other applications include animal feed and research. Livestock feed fortified with lactase enhances lactose digestibility in calves and piglets. Over 70 veterinary product lines now include lactase additives.

Regional Outlook for the Lactase Market

The lactase market exhibits diverse regional performance based on population demographics, dietary habits, and health awareness. Growth is concentrated in areas with high lactose intolerance and strong demand for functional foods and supplements.

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North America

North America holds a dominant position in the lactase market. In 2023, the U.S. accounted for 42% of the region’s total enzyme consumption, with over 300 dairy processing facilities incorporating lactase. Canada follows closely, with lactose-free product sales rising by 18% year-over-year. Enzyme supplement penetration in U.S. households crossed 21 million units in 2024.

Europe

Europe is a stronghold for lactose-free dairy, particularly in Nordic and Central European countries. Germany leads with over 500 dairy brands offering lactase-treated products. Lactose-free milk consumption in Finland reached 400 million liters in 2023. Regulatory frameworks such as EFSA approvals streamline lactase product commercialization.

Asia-Pacific

Asia-Pacific has the highest lactose intolerance rates, especially in China, Japan, and South Korea. In China, 92% of the adult population is lactose intolerant, leading to lactase supplement sales exceeding 70 million units in 2023. South Korea saw a 35% rise in lactose-free dairy imports from New Zealand.

Middle East & Africa

Middle East and Africa show growing awareness, particularly in urban markets. In Saudi Arabia, over 35 brands launched lactose-free products in the last 2 years. Nigeria and South Africa are emerging markets with a 24% increase in digestive health product sales in 2023.

List of Top Lactase 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: Novozymes leads the market with over 250 enzyme product variants, including five dedicated lactase formulations. The company services over 45 countries and operates fermentation facilities producing over 5,000 metric tons of lactase annually.

DSM: DSM offers proprietary lactase solutions under its food and nutrition division. With production hubs in Europe and North America, DSM supplies enzymes to over 60 global dairy companies. Its lactase products are used in processing 700 million liters of milk annually.

Investment Analysis and Opportunities

The lactase market has seen strong investor interest, particularly in the food biotechnology and nutraceutical sectors. In 2023, more than 25 biotech startups received early-stage funding for enzyme production, with an average investment size of $4 million per project (excluding revenue data). Global investment volumes in enzyme technology infrastructure exceeded 300 projects, focusing on fermentation innovation and downstream processing efficiency. Facilities in India and China have received over 45 new fermentation plant investments to meet the growing demand for lactase production.

In Europe, funding initiatives supported by national food innovation programs have led to the development of 12 new lactase product prototypes aimed at functional food applications. Meanwhile, enzyme contract manufacturing organizations (CMOs) are gaining traction, particularly in the Asia-Pacific region. Over 60% of small enzyme formulation companies now outsource part of their production to CMOs due to cost advantages.

Moreover, the rise in consumer health spending has encouraged pharmaceutical firms to integrate lactase into gastrointestinal drug portfolios. In 2024, more than 20 pharmaceutical R&D centers across North America and Japan began co-developing lactase-based combination drugs, creating future licensing and royalty-based revenue models.

Digital health platforms are also participating in the lactase space by offering subscription-based supplement delivery services. With over 500,000 subscriptions activated globally in 2023, this trend represents a shift toward direct-to-consumer models. Blockchain technologies are being piloted by enzyme manufacturers for traceability in lactase sourcing and supply chain monitoring, especially in EU countries enforcing clean-label regulations.

These investment flows signal a long-term shift toward integrated, technology-driven enzyme manufacturing, with product diversification and customization at the core of future growth strategies.

New Product Development

Innovation in lactase enzyme formulations has intensified in recent years, with over 120 new product developments registered globally from 2023 to early 2024. Companies are focusing on enhanced enzyme stability, higher activity levels, and broader pH tolerance. One of the most notable developments is microencapsulated lactase beads, allowing sustained release in the gastrointestinal tract. Trials conducted in Italy showed that microencapsulated lactase retains over 90% of its activity after 6 hours in simulated gastric conditions.

In the food sector, manufacturers have developed dual-action enzyme blends combining lactase with proteases or lipases for broader digestion support. In 2024, a Scandinavian firm launched a multi-enzyme milk treatment system with over 2,000 units sold within its first quarter. Another innovation includes cold-active lactase designed to perform effectively at 5°C, enabling in-package treatment of refrigerated dairy products. This allows producers to bypass traditional heat-pasteurization steps and maintain nutritional quality.

In the pharmaceutical industry, chewable lactase tablets with flavor masking and rapid dissolution properties have been introduced in the U.S. and Canada, with over 4 million units sold in the first year. Probiotic-lactase combinations are also being launched, particularly in Japan and South Korea, where gut health is a key focus. These products showed improved efficacy in 60% of trial subjects based on digestive symptom tracking over 30 days.

Moreover, dry powder lactase for use in animal nutrition has been developed, especially for neonatal calves and piglets. In 2024, over 50 farms in Australia incorporated this new form into their feeding protocols. These innovations reflect a broader trend of application-specific enzyme customization, reinforcing the value proposition of lactase across multiple industries.

Five Recent Developments

Novozymes launched a cold-active lactase enzyme in Q1 2024, enabling enzymatic activity at 4°C, targeting the in-pack lactose hydrolysis segment. Over 20 European dairy companies signed supply agreements within three months.
DSM introduced a microencapsulated lactase supplement under its nutraceutical division in September 2023. Initial tests showed over 95% enzyme activity retention in acidic conditions for up to 4 hours post-ingestion.
Hansen Holding completed a pilot project in Denmark producing dual-enzyme blends of lactase and probiotic strains. The formulation achieved a 40% reduction in self-reported digestive issues in clinical participants.
Amano Enzyme expanded its lactase manufacturing facility in Japan by 18,000 square feet in March 2024, aiming to increase monthly production output by 25 metric tons.
Advanced Enzymes Technologies launched a veterinary-grade lactase product line in India for piglet and calf feed, supplying over 100 commercial farms and reducing feed-related lactose waste by 30%.

Report Coverage of Lactase Market

This report provides a comprehensive overview of the global lactase market across its entire value chain—from microbial strain development and fermentation to application in food, pharmaceuticals, and animal feed. With over 2,000 product variants and 70+ global manufacturers active in the field, the market landscape is vast and highly dynamic.

The analysis includes segmentation by type (neutral and acid lactase), application (food, pharmaceutical, others), and geographic performance across North America, Europe, Asia-Pacific, and the Middle East & Africa. Market dynamics are assessed based on real-world drivers such as the 65% global prevalence of lactose intolerance, rising dietary supplement demand, and production capacity increases in Asia-Pacific.

The report further includes evaluation of production trends, such as the 17% rise in microbial fermentation efficiency and the adoption of waste-to-enzyme technologies. It identifies regional performance variances, with North America accounting for over 42% of global enzyme supplement sales and China experiencing the highest annual unit demand for lactase-based supplements.

Competitive profiling covers major players including Novozymes, DSM, and Chr. Hansen, along with smaller innovators leveraging regional growth strategies. Investment analysis reveals strong capital inflows into fermentation infrastructure, clinical trials, and food-grade certifications.

Additionally, the report highlights new product developments such as cold-active lactase, microencapsulated delivery systems, and enzyme-probiotic hybrids, which are reshaping commercial offerings. These innovations are backed by clinical validation and consumer adoption metrics, such as 4 million chewable lactase units sold in 2023 in North America alone.

This coverage makes the report a vital tool for stakeholders seeking insights into market positioning, product innovation, investment direction, and competitive benchmarking across the lactase ecosystem. The report includes over 300 quantitative data points, covering production volumes, market demand by application, ingredient compositions, and regional unit sales, allowing for robust strategic planning.