The lactase market achieved a value of USD 214.2 million in 2021. Going forward, it is projected to grow at a compound annual rise rate (CAGR) of 4.9 percent during the forecast period. The market rise is driven by factors such as the increasing demand for lactose-free dairy products and ongoing product development and innovations in other application areas. Lactase is mainly used in the food and beverage industry to make dairy products lactose-free by reducing or eliminating lactose content. The rising cases of lactose intolerance worldwide and the growing concern for digestive issues are key factors contributing to the demand for lactase.

Additionally, health-conscious consumers are driving the demand for lactose-free, reduced-sugar, low-allergenic, high-protein, low-fat, and plant-based products, which require lactase to reduce the lactose content in dairy products.

While lactase is commonly derived from yeast, there is ongoing research and development exploring other sources of lactase enzymes, including bacteria and fungi. Bacterial-sourced lactase enzymes offer advantages such as ease of fermentation, high activity, and stability, making them suitable for lactose hydrolysis. Probiotic organisms are used as a source of lactase enzymes for food and food systems. Fungal sources of lactase enzymes are effective for hydrolyzing lactose in acidic substances like whey due to their optimal acidic pH range.

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The COVID-19 pandemic has impacted the lactase market, with consumers shifting towards online retail platforms for lactase products. Post-COVID, the market is expected to be profitable as consumers show increased interest in immunity-boosting dairy products. Dairy associations in China, for example, have formulated guidelines promoting the consumption of lactose-free milk for lactose-intolerant individuals to enhance immunity.

The lactose intolerant population globally is increasing, leading to the production of lactose-free dairy products to help individuals avoid gastrointestinal problems. Health awareness and wellness concerns among consumers also contribute to the growth of lactose-free dairy products.

Innovative solutions and product development play a crucial role in driving market growth. Companies are continuously developing and manufacturing new lactase solutions. For example, Royal DSM introduced the Maxilact Super lactase enzyme, which allows dairy manufacturers to produce high-quality, lactose-free, and sugar-reduced dairy products. Novozymes extended its presence in East Africa to meet consumer demand for enzyme products.

Shifting consumer preferences towards dairy-free alternatives, driven by concerns such as cow milk allergy, calorie worries, lactose intolerance, and hypercholesterolemia, pose a challenge to the growth of lactose-free dairy products. The demand for plant-based dairy alternatives has increased due to lactose and cholesterol-free characteristics, making them suitable for consumers with specific dietary needs.

The food and beverage industry dominates the lactase market due to the increasing consumption of high-quality foods. Lactase enzymes are used to break down lactose in dairy products, allowing manufacturers to produce low-fat, low-sugar, protein-rich, and fiber-rich products. The launch of new delivery forms and lactase-based dietary supplements further contributes to market growth.

The dry lactase category holds a prominent share in the global lactase market as lactase powder is a non-toxic biological enzyme used in various food and dietary supplement applications. Digestive problems are prevalent among a significant portion of the population, driving the demand for lactase-based solutions.

Key players in the lactase market include Novozymes, Merck KGaA, Calza Clemente, Specialty Enzymes & Biotechnologies, Amano Enzyme Inc., Sternenzyme, Senson, Nature’s Way Products, LLC, Chr. Hansen A/S, Natural Factors Inc., and DSM Chemicals. These companies are engaged in developing innovative lactase solutions and expanding their presence in various regions.

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