Home / Food & Beverages / Lactase Market by Source (Yeast, Fungi, Bacteria), Form (Liquid, Dry), Application (Food & Beverage, Pharmaceutical Products & Dietary Supplements), Region (North America, Europe, APAC, South America, RoW) - Global Forecast to 2026
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Lactase Market by Source (Yeast, Fungi, Bacteria), Form (Liquid, Dry), Application (Food & Beverage, Pharmaceutical Products & Dietary Supplements), Region (North America, Europe, APAC, South America, RoW) - Global Forecast to 2026

ID:MR2399 | Jul-2020 | Global | 258 Pages


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According to MarketandReport, the lactase market is estimated to be valued at USD 217 million in 2020 and is projected to reach USD 293 million by 2026, recording a CAGR of 6.3 %, in terms of value. Factors such as rising cases of lactose-intolerant and growing demand from lactose-free dairy product manufacturers and increasing innovation and new product development in the application areas are projected to drive the growth of the lactase industry during the forecast period. However, the growth of the market is inhibited by factors, such as shifting preferences toward dairy-free alternatives and high processing cost and lack of technical expertise for lactase extraction.

Scope of the Report:

Drivers: Rising cases of lactose-intolerance and growing demand from lactose-free dairy product manufacturers

Lactase enzyme find its major applications in the food & beverage industry, majorly for dairy products, as it reduces the lactose content and makes the products lactose-free. The rise in lactose intolerant population globally is one of the major factors driving the growth of lactase market, which is used in the production of lactose-free dairy products.

The demand for lactose-free dairy food products is driven by the increase in incidences of food allergies and intolerances. According to the National Center for Biotechnology Information (NCBI), nearly 65% of the global population is prone to lactase deficiency. Thus, this has led to an increase in the production of lactose-free dairy products, which helps the lactose-intolerant population to avoid gastrointestinal problems. People with lactose intolerance are unable to digest lactose present in the milk due to the lack of an enzyme called lactase, which naturally occurs in the intestinal tract of children and adults. It causes bloating and diarrhoea after consuming any dairy product, especially milk. Lactase converts the milk sugar found in dairy products, such as milk, ice cream, and cheese, to readily digestible sugars, such as glucose and galactose. Without adequate lactase, the lactose in food ferments in the intestine produces undesirable side effects. In addition, the increase in health awareness and wellness concerns among consumers is a key factor that is projected to drive the growth and demand for lactose-free dairy products.

Restraints: Shifting preferences toward dairy-free alternatives

One of the major functional requirements by consumers, in recent times, have been the need for dairy alternatives for removing the problems of cow milk allergy, calorie concerns, lactose intolerance, and prevalence of hypercholesterolemia. The consumption of plant-based dairy products has been increased owing to the absence of lactose and cholesterol in the dairy products, which makes the products suitable for a group of population suffering from heart disease and lactose intolerance and in general for all. Moreover, in recent years, plant sources such as legumes and cereals have been highly accepted as functional food and nutraceuticals because of the health promoting components present in them such as minerals, dietary fibers, antioxidants and vitamins. Owing to these benefits over dairy products, the demand for plant-based dairy is increasing. The rising opportunity in the dairy free sector is restraining the growth of lactose-free dairy products, which can be a one of the restraints for the lactase enzyme, as it is the prime raw material used for processing regular dairy products into lactose-free dairy products.

Opportunities: Research & development and new sources of lactase extraction

Lactase is usually extracted from yeast. However, an extensive research & development is going on regarding the other sources of lactase enzymes, such as bacteria and fungi. Lactase enzymes extracted from bacterial sources have been used for lactose hydrolysis because of numerous benefits, such as their ease of fermentation, high activity, and the stability of the enzyme. Lactase enzymes sourced from a probiotic organism are used for food and food systems. Fungal sources of lactase enzymes possess optimal acidic pH range of 2.2 to 5.4. Owing to this, lactase sourced from fungi are more effective for the hydrolysis of lactose found in acidic substances, such as whey. These fungi-based enzymes are highly stable enzymes. The increasing research & developments about various sources of lactase enzymes gives opportunity to the lactase enzyme market to grow in the period forecasted.

Challenges: High processing cost and lack of technical expertise for lactase extraction

Small & medium-sized enterprises have efficient cost management due to limited capital and resources. Many quality and productivity improvement techniques are generally not finding a place in SMEs (small-and medium-sized enterprises) due to the lack of knowledge and resources to implement the same. However, the high costs involved in adapting to new technologies, production, and extraction procedures have restricted SMEs from improving their operations. Moreover, the process of lactase extraction requires technical expertise and abundant knowledge, which is majorly not present with the SMEs. Thus, extraction of lactase enzymes with fully equipped knowledge and expertise is among the major challenges for the lactase enzyme market.

Lactase enzyme modification technologies such as encapsulation of enzymes can be used to increase the shelf-life of enzymes. However, encapsulation of lactase has been considered an alternate strategy to overcome lactose intolerance and negative sensory properties of lactose-free milk. In addition, this technique is easily transferrable to other manufacturing sites and does not need sophisticated equipment. Enzyme encapsulation processes help in preserving native enzyme structures and activities. Furthermore, it can provide efficient protection against enzymatic degradation. Perhaps, the technical skills required for the encapsulation process is possessed by very less number of people. Therefore, the lack of skills among workforce is the major challenge for the lactase extraction process.

By source, the yeast segment is projected to account for the largest share in the lactase market during the forecast period

Yeast is a largely-used source for the extraction of lactase enzyme. Kluyveromyces lactis and Kluyveromyces fragilis (Sacchoramyces fragilis) are recognized as safe” (GRAS) by the Food & Drug Administration (FDA). Therefore, lactase enzyme sourced from yeast finds major applications in the food & beverage industry, especially in the dairy industry.

By form, liquid segment is projected to be the fastest growing segment in the lactase market during the forecast period

The liquid form of enzymes is generally less stable than the solid form, although it may have higher activity and better functionality than the powder form. It is directly used in the liquid form or sprayed and absorbed on a solid carrier. Among all applications, the liquid form of lactase enzyme is widely used in the food & beverage industry and pharmaceutical applications for products, such as syrups. Liquid lactase enzyme accelerates chemical, biological, and metabolic reactions by altering a reaction's efficiency and results in making the pharmaceutical product more efficient for human use.

Asia Pacific is projected to be the fastest growing region during the forecast period

The Asia Pacific region is projected to be the fastest-growing market during the forecast period. The increasing awareness about lactose intolerance among consumers and expansion of companies providing lactose-free products in the region are some of the major factors driving the growth of lactase in the region.

Key Market Players:

Chr. Hansen Holding A/S (Denmark), Kerry Inc. (Ireland), Koninklijke DSM N.V. (Netherlands), Novozymes (Denmark), Merck KGaA (Sigma-Aldrich) (Germany), DuPont (US), Senson (Finland), Amano Enzyme Inc. (Japan), Advanced Enzyme Technologies (India), Enmex (Mexico).

Target Audience:

  • Raw material suppliers
    • Culture Media Suppliers
    • Cell line suppliers
  • End users, which include the following:
    • Milk manufacturers/suppliers
    • Yogurt manufacturers/suppliers
    • Cheese manufacturers/suppliers
    • Ice-cream manufacturers/suppliers
    • Pharmaceutical products manufacturers/suppliers
    • Dietary supplements manufacturers/supplier
  • Commercial research & development (R&D) institutions and financial institutions
  • Traders, distributors, and retail suppliers of lactase enzyme
  • Government and research organizations
  • Associations, regulatory bodies, food safety agencies, and other industry-related bodies:
    • Food and Drug Administration (FDA)
    • European Food Safety Authority (EFSA)
    • United States Department of Agriculture (USDA)
    • Food Standards Australia New Zealand (FSANZ)

This research report categorizes the lactase market based on source, form, application and region.

By Source

  • Fungi
  • Yeast
  • Bacteria

By Form

  • Dry
  • Liquid

By Application

  • Food & beverage
    • Milk
    • Cheese
    • Yogurt
    • Ice-cream
    • Others*
  • Pharmaceutical products & dietary supplements

*Others include confectionery, milk powder, infant milk formula, butter, spreads, and sour cream

By Region

  • North America
  • Europe
  • Asia Pacific
  • South America
  • Rest of the World (RoW)
  • Middle East
  • Africa

Recent Developments

In March 2020, Novozymes launched Saphera Fiber, a new lactase enzyme. It can be used to increase the content of fibers while reducing sugar in fermented and non-fermented dairy products. Its usage will cater to the rising demand for clean-label products, as it can be used to manufacture dairy product sustainably with less use of artificial or chemically produced ingredients

In June 2019, Novozymes (Denmark) expanded its presence in East Africa, which allowed the company to meet the consumer demand for enzyme products.

In May 2019, Novozymes (Denmark) became the first multinational company to partner with Alibaba’s 1688 platform in industrial biotechnology in China. Novozymes’ enzymes are now available online through Alibaba’s platform.

In October 2019, DuPont Danisco launched Nurica, a dairy enzyme to help the lactose-free product manufacturers to meet the consumer demand for clean-label products. Danisco provides improved nutrition, better taste, texture, and greater cost-efficiency. This new product launch will help the company to strengthen the product portfolio and will also help the company to become a global leader in high-value enzymes for catering to the dairy industry.

In March 2018, DSM launched a new product range of dairy enzyme, called Maxilact Smart, which has a higher enzyme activity. This product is a major development in the enzyme industry, as it would help dairy producers to meet the growing demand for lactose-free dairy products in the market.

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