Lactase Market Set to Reach USD 399.8 Million by 2035 Amid Rising Demand for Lactose-Free Products and Advanced Enzyme Technologies

The global lactase market is witnessing remarkable growth, driven by increasing awareness of lactose intolerance, the rising demand for lactose-free dairy products, and technological advancements in enzyme production. Valued at USD 250.5 million in 2025, the market is projected to expand at a robust CAGR of 4.8% from 2025 to 2035, reaching an estimated USD 399.8 million by 2035.

Lactase, a critical digestive enzyme that breaks down lactose in milk and milk-based products, has become essential in the food and beverage, nutraceutical, and pharmaceutical industries. Its applications range from lactose-free milk and dairy products to nutritional supplements for lactose-intolerant individuals, reflecting the growing consumer preference for gut-friendly and functional foods.

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Rising Global Lactose Intolerance and Consumer Trends Fuel Market Growth

Lactose intolerance affects over 65% of the global population, particularly among Asians, Africans, and South Americans. This widespread condition has triggered demand for lactose-free dairy products, including milk, cheese, yogurt, and ice cream, all produced with lactase enzymes to remove lactose without compromising nutrition or taste. Companies such as Lactaid, Arla Foods, and Danone are heavily investing in these products, responding to a health-conscious and increasingly digestive-aware consumer base.

The growing popularity of plant-based milk alternatives, such as almond, soy, oat, and coconut milk, has also driven innovation in lactase-enriched formulations, offering consumers both taste and digestive comfort. Meanwhile, probiotics and gut-health supplements continue to gain traction, creating additional opportunities for lactase integration in functional foods.

Technological Advancements and New Product Formats

Recent advances in enzyme technology have enabled manufacturers to produce more thermostable and highly active lactase enzymes. These innovations enhance production efficiency, product quality, and shelf-life, benefiting both large-scale commercial dairy operations and smaller manufacturers. Biotech-driven enzyme systems have also lowered costs, allowing for broader accessibility of lactase supplements and fortified foods.

Emerging players, particularly in India and Mexico, are leveraging R&D to develop novel lactase products and business models. Companies like Advanced Enzyme Technologies and Enmex are exploring creative applications and green, naturally sourced enzyme solutions to appeal to environmentally conscious consumers. Their entry into the market is fostering innovation and providing fresh competition for established global players.

Market Leaders and Competitive Landscape

The lactase market is concentrated among Tier 1 companies such as Chr. Hansen (Denmark), Koninklijke DSM N.V. (Netherlands), and Novozymes (Denmark), which dominate through large-scale production, robust R&D, and strategic partnerships. Tier 2 companies, including Kerry Inc. (Ireland), focus on niche markets, offering premium, specialty foods and nutrition solutions.

Tier 3 players, representing smaller entrants, are innovating in product formats, direct-to-consumer sales, and online platforms. This diversification allows new entrants to compete through agility, creativity, and eco-conscious branding.

Strategic Responses to Market Shifts

Established brands are actively responding to shifting consumer preferences:

• Functional and Nutritional Dairy: Nestlé (Switzerland) launched lactose-free baby foods and protein drinks, while Danone (France) expanded its Actimel and Alpro lactose-free yogurt lines. Arla Foods (Denmark) introduced protein-enriched lactose-free milk for health-conscious consumers.
• Plant-Based and Lactase-Enriched Products: Ben & Jerry's (Unilever) released lactase-treated crossover ice creams, Oatly (Sweden) introduced lactase-treated oat milk, and General Mills (USA) launched lactase-treated plant yogurts, achieving significant retail uptake.
• E-Commerce and Subscription Models: Walmart, Amazon, and Alibaba's Tmall are expanding online sales of lactase products, while subscription models by Lactaid and Swanson Health have increased direct-to-consumer orders substantially.

Regional Insights

The USA market is driven by health-conscious consumers, functional foods, and strong biotech capabilities. Regulatory approvals by the FDA further support lactase adoption in infant nutrition and dairy products. Germany's market growth is fueled by strict food safety regulations, high-quality dairy demand, and a rise in flexitarian and vegan segments. China represents one of the fastest-growing markets, where over 90% of adults are lactose intolerant, creating immense opportunities for lactase-fortified products and online retail distribution. India's market is also expanding rapidly, reflecting increasing consumer awareness and lactose intolerance prevalence.

Product Segment Trends

• Microbial Lactase: Dominates with 68.7% market share due to cost-effectiveness, thermal stability, and wide applicability in dairy and pharmaceuticals.
• Liquid Lactase: Preferred for industrial-scale dairy processing, accounting for 61.2% of the market, owing to ease of mixing, superior solubility, and efficiency in lactose hydrolysis.

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Looking Ahead

With the global lactose-free and functional dairy market expanding, investment in enzyme innovation, sustainability, and consumer-focused product development is expected to drive continued growth. Leading manufacturers and new entrants alike are shaping a future where digestive health, nutritional enrichment, and clean-label solutions define the lactase market.

Key Players: Koninklijke DSM N.V., Kerry, Novozymes, IFF, Nature Bioscience, Armora Pharma, Merck KGaA (Sigma-Aldrich), Rajvi Enterprise, Antozyme Biotech Pvt Ltd, Infinita Biotech.

Explore FMI's related ongoing Coverage in Food and Beverage Domain:

Lactase Market Share Analysis: https://www.futuremarketinsights.com/reports/lactase-market-share-analysis

UK Lactase Market: https://www.futuremarketinsights.com/reports/united-kingdom-lactase-market

USA Lactase Market: https://www.futuremarketinsights.com/reports/united-states-lactase-market

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This release was published on openPR.