Lactase Market Size, Share, Growth, and Regional Forecast, 2026 to 2033

Lactase Market by Product Type (Yeast-derived Lactase, Fungal-derived Lactase, Bacterial-derived Lactase), by Form (Liquid, Dry), by Application (Food & Beverage, Dietary Supplements, Pharmaceuticals), and Regional Analysis from 2025 to 2032

ID: PMRREP22387| 199 Pages | 22 Dec 2025 | Format: PDF, Excel, PPT* | Food and Beverages

Market Growth and Regional Outlook Report by Persistence Market Research

Lactase Market Share and Trends Analysis

The global lactase market is estimated to grow from US$ 317.5 million in 2026 to US$ 474.3 million by 2033. The market is projected to record a CAGR of 5.9% from 2026 to 2033.

A rapidly evolving lactose-free ecosystem is reshaping competitive priorities across regions, product formats, and enzyme technologies. Strong consumer movement toward digestive wellness and premium dairy innovation is accelerating the adoption of versatile, high-efficiency lactase solutions, creating clear leadership pockets and growth hotspots worldwide.

Key Industry Highlights

  • Leading Region: North America maintains its dominant position, driven by strong demand for advanced lactase variants suited for flavored milk, RTD coffees, and expanded lactose-free cheese and cultured dairy portfolios.
  • Fastest-Growing Region: Asia Pacific shows the strongest momentum, supported by rising uptake of enzyme-treated dairy in China, India, Japan, Indonesia, and South Korea, along with higher awareness of lactose intolerance.
  • Fastest-Growing Product Type Segment: Bacterial-derived lactase stands out for its adaptability across a broader pH and temperature range, enabling efficient performance in heated, fermented, and high-protein beverage applications.
  • Market Drivers: Growth in functional dairy beverages is accelerating demand for high-efficiency lactase enzymes that deliver consistent hydrolysis, improved taste profiles, and stable performance across varied processing conditions.
  • Opportunities: Rising demand for lactose-free infant nutrition is creating premium B2B collaboration pathways for enzyme developers offering high-purity, predictable, and formulation-stable lactase solutions.
  • Key Developments: In April 2024, Kerry strengthened its enzymatic footprint with a major acquisition in the global lactase space. In February 2024, Chr. Hansen and Novozymes merged to form Novonesis.
Global Market Attributes Key Insights
Global Lactase Market Size (2026E) US$ 317.5 Mn
Market Value Forecast (2033F) US$ 474.3 Mn
Projected Growth (CAGR 2026 to 2033) 5.9%
Historical Market Growth (CAGR 2020 to 2025) 4.6%

Market Dynamics

Driver - Growth in functional dairy beverages is increasing demand for high-efficiency lactase enzymes

A striking surge in functional dairy beverages is reshaping demand patterns and sharpening focus on high-efficiency lactase enzymes. As consumers move toward protein-fortified shakes, probiotic drinks, and digestive-friendly dairy options, manufacturers are under pressure to deliver lactose-free formulations with cleaner taste, smoother textures, and consistent sweetness profiles.

High-performance lactase enzymes enable faster hydrolysis, reduce processing time, and support the development of premium beverages that appeal to health-conscious buyers seeking convenience and digestive comfort.

Brands creating RTD functional dairy products rely on advanced enzyme systems to maintain stability during cold processing and extended shelf life. This momentum is encouraging suppliers to develop faster-acting, high-purity lactase variants optimized for varied beverage matrices and large-scale production needs.

Restraints - Variability in enzyme activity under different processing conditions

A growing concern across dairy processing plants is the inconsistent performance of lactase enzymes under fluctuating temperatures, pH, and product composition. This variability disrupts hydrolysis efficiency, leading to unpredictable sweetness, uneven lactose reduction, and higher rejection rates during quality checks.

Manufacturers producing lactose-free milk, yogurts, and functional beverages must constantly recalibrate dosing levels, raising operational complexity and costs. Enzymes that perform well at cold temperatures may underperform in high-solids applications, creating formulation challenges for brands aiming for uniform taste and texture.

These inconsistencies slow innovation pipelines, as companies invest additional time in pilot runs and compatibility testing. The resulting uncertainty limits processing flexibility and remains a notable barrier to seamless scale-up in lactose-free production.

Opportunity - Growing demand for lactose-free infant nutrition presents high-value B2B enzyme partnerships

A powerful shift in early-life nutrition is opening a lucrative pathway for enzyme producers as lactose-free and low-lactose infant formulas gain stronger global traction. Formulators are seeking highly efficient lactase ingredients that deliver predictable hydrolysis, clean taste profiles, and stability across complex milk-based matrices.

This drives deeper B2B collaboration between enzyme specialists and infant nutrition manufacturers to co-create tailored solutions that meet stringent safety, purity, and regulatory expectations. Startups bringing precision-fermentation lactase or ultra-stable liquid formats can secure long-term supply agreements as brands diversify product lines for sensitive infants.

As consumer trust in specialized formulas rises, companies that offer validated enzyme performance, technical support, and co-development capabilities stand to capture premium opportunities across global pediatric nutrition markets.

Category-wise Analysis

By Form, Dry Lactase dominates the market.

Dry lactase maintains a commanding industry position because manufacturers value its superior shelf stability, ease of transport, and compatibility with a wide range of dairy-processing environments. Its powder format supports precise dosing, consistent hydrolysis performance, and seamless integration into large-scale production lines for milk, yogurt, cheese, and nutritional powders.

Dry enzymes remain resilient during storage and withstand temperature fluctuations, making them ideal for global supply chains that depend on long-term reliability. Liquid lactase serves important roles in high-speed beverage operations, offering faster dispersion and shorter reaction times. Yet, it faces challenges related to shorter shelf life and stricter cold-chain requirements.

As manufacturers prioritize operational efficiency and predictable performance, dry lactase continues to reinforce its market leadership.

By Product Type, Bacterial-derived Lactase is expected to show promising growth during the forecast period.

Bacterial-derived lactase is projected to grow at a CAGR of 7.3% during the forecast period, gaining momentum as dairy processors seek enzymes that perform efficiently under broader pH and temperature ranges. Its resilience in high-temperature pasteurization and acidic fermentation environments makes it ideal for modern beverage workflows, especially in flavored milk, RTD coffees, and functional dairy drinks where processing stress is intense.

Manufacturers value its predictable hydrolysis rates and adaptability to continuous production systems, supporting higher throughput and reduced batch variability. The rise of fortified lactose-free products is accelerating interest in bacterial strains optimized for cleaner taste profiles and shorter reaction times. As dairy producers pursue enzymes that streamline operations and support innovation, bacterial-derived lactase stands out as a high-growth segment.

Region-wise Insights

North America Lactase Market Trends

North America is the dominant market, holding a 38% share, and its trajectory is shaped by a shift toward advanced enzyme innovation and toward transparent dairy processing standards. In the United States, demand is rising for high-efficiency lactase varieties that maintain activity across diverse heat profiles, supporting the boom in flavored milk, ready-to-drink coffees, and functional dairy beverages.

Brands are prioritizing cleaner sensory outcomes, pushing suppliers to refine enzymes that minimize off-notes in ultra-filtered and protein-enriched formulations. Canada is expanding its portfolio of lactose-free cheeses and cultured products, prompting processors to adopt lactase solutions compatible with artisanal textures and slow-fermentation workflows.

Across the region, QR-enabled traceability, enzyme customization programs, and tighter QA protocols are becoming defining trends in premium lactose-free production.

Asia Pacific Lactase Market Trends

Asia Pacific Lactase Market is expected to grow at a CAGR of 8.7%, driven by rapid dietary shifts and an expanding appetite for lactose-free dairy across both developed and emerging economies. China is accelerating production of enzyme-treated yogurt drinks and lactose-free milk tailored to younger consumers seeking digestive comfort. India is seeing increased adoption of dry lactase in regional dairy cooperatives as awareness of lactose intolerance rises in urban centers.

Japan’s market leans toward precision-fermented and premium lactose-free dairy, prompting processors to demand enzymes with ultra-high stability and cleaner flavor outcomes. Indonesia is expanding its lactose-free ice cream offerings and affordable UHT options, while South Korea is shaping demand for enzyme solutions optimized for high-protein and low-sugar dairy formats that align with active lifestyle trends.

Market Competitive Landscape

The global lactase market exhibits a moderately concentrated structure, with a mix of enzyme specialists and advanced dairy processors competing on purity, stability, and application versatility. Leading companies are expanding high-efficiency enzyme portfolios tailored for UHT milk, fermented drinks, and lactose-free cheese, supported by deep investments in R&D that improve thermal tolerance and flavor neutrality.

Processing innovations, including immobilized enzyme systems and precision-controlled hydrolysis, are becoming core differentiators for large-scale producers. Certifications such as GMP, FSSC 22000, and clean-label approvals help suppliers secure trust across regulated dairy regions.

Companies are also strengthening technical-support programs, educating customers on optimal enzyme dosage, processing conditions, and sensory outcomes. Growing emphasis on digital documentation, application trials, and co-development projects further defines competitiveness across global supply networks.

Key Industry Developments:

  • In April 2024, Kerry Group finalized the acquisition of a significant share of the global lactase enzyme business from Chr. Hansen and Novozymes in a deal valued at €150 million. The move strengthens Kerry’s enzymatic solutions portfolio and expands its presence in high-growth dairy innovation segments.
  • In February 2024, Chr. Hansen and Novozymes united to form Novonesis, a €3.7-billion biosolutions powerhouse. The merger consolidates deep expertise in enzymes, cultures, and sustainable biotech, positioning the new entity as a major force in global bio-innovation.
  • In June 2023, DSM-Firmenich introduced Maxilact Next, positioned as the fastest pure lactase currently available. The enzyme delivers up to a 25% reduction in hydrolysis time, enabling significantly quicker production of lactose-free milk for manufacturers.

Companies Covered in Lactase Market

  • Novonesis
  • DSM-Firmenich
  • IFF
  • Kerry Group
  • Amano Enzyme Inc.
  • Armora Pharma
  • Advanced Enzyme Technologies
  • Biocatalysts
  • Infinita Biotech Private Limited
  • SternEnzym GmbH & Co. KG
  • Others

Frequently Asked Questions

The global Lactase market is projected to be valued at US$ 317.5 Mn in 2026.

Growth in functional dairy beverages is accelerating the need for high-efficiency lactase enzymes, fueling overall market expansion.

The global Lactase market is poised to witness a CAGR of 5.9% between 2026 and 2033.

Rising demand for lactose-free infant nutrition is creating substantial B2B partnership opportunities for enzyme suppliers.

Major players in the global Lactase market include Novonesis, DSM-Firmenich, IFF, Kerry Group,, Amano Enzyme Inc., Armora Pharma, and others

Lactase Market Report Scope

Report Attributes Details
Historical Data/Actuals 2020 - 2025
Forecast Period 2026 - 2033
Market Analysis Value: US$ Mn
Geographical Coverage
  • North America
  • Europe
  • East Asia
  • South Asia and Oceania
  • Middle East and Africa
  • Latin America
Segmental Coverage
  • Product Type
  • Form
  • Application
  • Region
Competitive Analysis
  • Novonesis
  • DSM-Firmenich
  • IFF
  • Kerry Group
  • Amano Enzyme Inc.
  • Armora Pharma
  • Advanced Enzyme Technologies
  • Biocatalysts
  • Infinita Biotech Private Limited
  • SternEnzym GmbH & Co. KG
  • Others
Report Highlights
  • Market Forecast and Trends
  • Competitive Intelligence & Share Analysis
  • Growth Factors and Challenges
  • Strategic Growth Initiatives
  • Future Opportunities and Revenue Pockets
  • Industry Market Analysis Tools

Lactase Market Segmentation

By Product Type

  • Yeast-derived Lactase
  • Fungal-derived Lactase
  • Bacterial-derived Lactase

By Form

  • Liquid
  • Dry

By Application

  • Food & Beverage
    • Dairy Processing
    • Ice Cream & Frozen Desserts
    • Bakery Products
    • Infant Formula
  • Dietary Supplements
  • Pharmaceuticals

By Region

  • North America
  • Europe
  • East Asia
  • South Asia and Oceania
  • Latin America
  • Middle East and Africa

Delivery Timelines
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About Author

Abhijeet Surwase

Abhijeet Surwase

Global Market Consultant

Abhijeet, a seasoned market Consultant, leads our consulting research team, showcasing cross-domain expertise in medical devices, biotechnology, dietary supplements, and functional foods. With extensive experience in the healthcare sector, he excels in executing bespoke research projects tailored to clients' unique needs. Abhijeet has a strong track record of reviewing and contributing to various market reports, playing a pivotal role in identifying emerging opportunities and assessing market risks with precision.

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