“The lactase market value was US$ 289 million in 2024 and is likely to grow at impressive CAGR of 6.8% in the long run to reach US$ 429 million in 2030.”
Market Dynamics
Introduction
Lactase is one of the most important enzymes in the tiny intestines of the human body that facilitates digestion. It facilitates the breakdown of lactose, the primary sugar found in milk and dairy products, into its two monosaccharide components: glucose and galactose. These simpler sugars can be easily digested and absorbed by the small intestine to allow energy to be obtained from lactose. It will be crucial to look at the functions of lactase and its role in the lives of those who have to face lactose intolerance.
Recent Market JVs and Acquisitions:
A huge number of strategic alliances including M&As, JVs, etc. have been performed over the past few years:
- In December 2023, Kerry Group PLC is acquiring part of the global lactase enzyme business from Chr. Hansen and Novozymes as part of the approval process for their merger. This acquisition includes assets and trade from Chr. Hansen's lactase business and a subsidiary of Novozymes, for a total of €150 million. The lactase business generated about €40 million in revenue in 2022 and is expected to close in the first half of 202
- In June 2022, Royal DSM (Koninklijke DSM N.V.), a science-based company focused on nutrition and health, joined forces with Firmenich, a leader in fragrances and flavors, to create DSM-Firmenich. This strategic merger aims to solidify DSM-Firmenich's position as a powerhouse in the combined markets of nutrition, wellness, and beauty. The companies targeted completion of the merger in 2023
Recent Product Development:
- In May 2023, Creative Enzymes CO now introduced a new type of lactase on the market for lactose-free sugar-reduced dairy products to satisfy the growing consumers’ need for lactose-free food. It can be added to milk products and drinks, yogurts, and other organically derived dairy products.
- In November 2021, CHR. Hansen Holdings A/S launched its next-gen enzyme solution Sweety Y-3. Through this, the added sugar content of yogurt can be reduced and natural sugar can be enhanced. It helps maintain the quality of dairy products without added sugar. This launch will help the company to increase its market share in the lactase market.
- In April 2021, IFF is introducing Nurica™ enzyme in China; for dairy producers, it is now possible to produce a high quality product that will enable customers to meet their health requirements more effectively and at the same time boost the revenue rates. The Chinese market will benefit from the new product known as Nurica™ from the IFF company, which is found under the Danisco® food ingredients range that has been absorbed into the IFF family.
Market Segments' Analysis
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Segmentations
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List of Sub-Segments
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Segments with High Growth Opportunity
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Source-Analysis
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Yeast, Fungi, and Bacteria.
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Yeast holds the largest share of the lactase market.
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Form-Analysis
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Liquid and Dry.
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The liquid segment is said to be dominated by Form in the market for lactase market.
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Application-Analysis
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Food & Beverages (Milk, Cheese, Yogurt, Ice Cream, and Others) and Pharmaceutical Products & Dietary Supplements.
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Food & Beverages segment holds the largest share of the lactase market.
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Region Analysis
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Asia-Pacific, Europe, North America, and The Rest of the World.
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North America is the largest, Whereas Asia-Pacific is the fastest-growing region in the lactase market.
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By Source Type
“Yeast is expected to hold the largest share of the market during the forecast period.”
- The lactase market is segmented into yeast, fungi, and bacteria.
- Yeast is expected to hold the largest share of the market during the forecast period.
- Safety is the most important thing and it is worth noting that Kluyveromyces lactis and Kluyveromyces fragilis produce lactase which has GRAS approval by the FDA. Yeast-derived lactase is also recognized as a preferred preference because of the trustworthy safety profile it possesses. Additionally, there is a wealth of information regarding the application of this technique especially for making cheap enzymes which is necessary in the fermentation industries.
- In various uses, it is preferred that organisms like the yeasts’ lactase enzymes should operate under the correct acidity. This is understandable as they are most consumed and able to be added within the dairy foods group. At the same time, however, the lactase producers’ strategies for controlling the market could shift over time.
By Form Type
“Liquid segment is said to be dominating by Form of the market during the forecast period.”
- The market is segmented into Liquid and dry.
- The liquid segment is said to be dominating by source in the market during the forecast period.
- Liquid lactase is rapidly growing and is predicted to replace regular lactase in the market soon. This rise is driven by two key factors: the two characteristics that any successful technology tool should have: convenience and versatility. Compared to dry lactase, the liquid one is more useful and can be used in many foods and beverages including lactose-free dairy products. Also, liquid lactase is an easy-to-use solution for single usage by drops or tablets for easy administration to the target consumer.
- In addition to this, an increase in the first-population’s knowledge of lactose intolerance and the potential of lactase in the market is encouraging growth and hence, liquid lactase demand. This form is for this purpose particularly appropriate because this form is easy to use has clearly stated dosage indications, and is therefore suitable, especially for those suffering from lactose intolerance.
By Application Type
“The food & Beverages segment is said to be holding the largest share of the market during the forecast period.”
- The market is segmented into Food & Beverages (Milk, Cheese, Yogurt, Ice cream, and Others), Pharmaceutical Products & Dietary Supplements.
- Food & Beverages segment is said to be holding the largest share of the market during the forecast period.
- Food & Beverages are the biggest application segment influencing the lactase market since lactose is a natural product of the milk. Lactase which helps split lactose is one of the key components in the production of lactose-free products.
- Such a huge demand for lactase is seen majorly because of the ever-growing segment of Food & Beverages, especially lactose-free milk, yogurt, cheese, and other dairy products. These lactose-free products will gain more recognition in the Lactase market where the Food & Beverages segment will remain dominant. One of the motivations for consumers to purchase natural and organic food products is the necessity to keep good health and associate it with environmental concerns which are related to genetically modified (GM) crops. These non-GM soybean varieties are used to produce soy-based foods and drinks; this gives consumers who prefer and perhaps see this as a safer and more environmentally friendly option the ability to buy GM-free soy-based foods and beverages.
Regional Analysis
“North America is the largest, Whereas Asia-Pacific is the fastest growing market for lactase during the forecast period”.
- In terms of regions, North America is the largest market for lactase during the forecast period.
- It is a prevalent condition in the North American population: many people have some level of lactose intolerance. This translates to a strong demand for lactase in two ways: a) lactase-fortified food products such as milk and other dairy products that claim to be lactose-free b) Lactase enzyme pill supplements particularly for those who have low lactase levels in their stomachs.
- People in North America aspire to be healthy and would spend money on products that would support their vision. Thus, the growth of lactose intolerance drives the demand for lactose-free products and enzymes such as lactase in North America, which dominates the lactase market.
- The Economic growth in the APAC region, increasing concern towards lactose intolerance, increasing population, and the upbeat change in dietary habits are playing as a catalyst for thereby making it the fastest-growing region for the Lactase market.
Key Players
The market is mildly fragmented across the region. Most of the major players compete in some of the governing factors including price, service offerings, regional presence, etc. The following are the key players in the lactase market:
Here is the list of the Top Players (Based on Dominance)
- CHR. Hansen Holdings A/S
- Kerry Group plc.
- Koninklijke DSM N.V.
- Novozymes A/S
- Novact Corporation
Note: The above list does not necessarily include all the top players in the market.
Are you the leading player in this market? We would love to include your name. Write to us at [email protected]
Report Features
This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
- COVID-19 impact and its recovery curve.
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
The global lactase market is segmented into the following categories.
Lactase Market, by Source Type
- Yeast (Regional Analysis: North America, Europe, Asia-Pacific, and The Rest of the World)
- Fungi (Regional Analysis: North America, Europe, Asia-Pacific, and The Rest of the World)
- Bacteria (Regional Analysis: North America, Europe, Asia-Pacific, and The Rest of the World)
Lactase Market, by Form Type
- Liquid (Regional Analysis: North America, Europe, Asia-Pacific, and The Rest of the World)
- Dry (Regional Analysis: North America, Europe, Asia-Pacific, and The Rest of the World)
Lactase Market, by Application Type
- Food & Beverages (Regional Analysis: North America, Europe, Asia-Pacific, and The Rest of the World)
- Milk (Regional Analysis: North America, Europe, Asia-Pacific, and The Rest of the World)
- Cheese (Regional Analysis: North America, Europe, Asia-Pacific, and The Rest of the World)
- Yogurt (Regional Analysis: North America, Europe, Asia-Pacific, and The Rest of the World)
- Ice cream (Regional Analysis: North America, Europe, Asia-Pacific, and The Rest of the World)
- Others (Regional Analysis: North America, Europe, Asia-Pacific, and The Rest of the World)
- Pharmaceutical Products & Dietary Supplements (Regional Analysis: North America, Europe, Asia-Pacific, and The Rest of the World)
Lactase Market, by Region
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, The UK, Russia, and Rest of Europe)
- Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)
Research Methodology
- This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s lactase market realities and future market possibilities for the forecast period.
- The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
- The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
- This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
- More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
- We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
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Company Profiling
- Detailed profiling of additional market players (up to three players)
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Competitive Benchmarking
- Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances
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