Home > Food & Beverages > Nutraceuticals > Lactase Market
Based on Source, the animal segment dominated around USD 86.5 million revenue in 2023. The sources of lactase, including animal, fungus, plants, and others, play a crucial role in shaping the growth dynamics of the lactase market. Animal-derived lactase, traditionally sourced from mammals, has been a cornerstone in lactase production. However, with the rise of alternative and sustainable practices, fungal and plant-based sources are gaining prominence.
Fungi, particularly certain strains of Aspergillus, are utilized for their efficient lactase production through biotechnological processes. Plant-derived lactase, sourced from organisms like yeasts or genetically modified plants, represents an evolving trend aligning with the growing demand for plant-based and vegan-friendly products. The exploration of diverse sources reflects the industry's commitment to innovation and sustainability, providing a spectrum of options to meet the varied needs of consumers with lactose intolerance and driving growth in the market.
Based on application, the food & beverages segment accounted for 29% of the lactase market share in 2023. The diverse applications of lactase in products such as milk, yogurt, ice cream, cheese, dietary supplements, and others are pivotal in propelling the growth of the market. As awareness of lactose intolerance expands globally, the demand for lactase-enriched products has seen remarkable growth across the dairy sector. Lactase plays a key role in making these dairy items more accessible to individuals with lactose intolerance, fueling its integration into a variety of dairy-based applications.
Furthermore, the incorporation of lactase in dietary supplements caters to the increasing consumer focus on digestive health, boosting the market's expansion beyond traditional food products. The versatility of lactase application is evident in its use across diverse segments, reflecting the dynamic nature of the market and its ability to meet the evolving preferences of consumers seeking lactose-free alternatives across various food and nutritional categories.
In the dynamic lactase market, growth drivers vary across different forms, namely liquid and dry. The increasing consumer demand for lactose-free products continues to propel the market forward. In the liquid lactase segment, the convenience factor plays a crucial role, as it facilitates easy incorporation into various liquid dairy products. Additionally, the growing trend of plant-based milk alternatives further augments the demand for liquid lactase.
On the other hand, in the dry lactase segment, the extended shelf life and ease of transportation contribute significantly to its market growth. The rise in health-conscious consumers seeking lactase for dietary supplements and fortified foods further fuels the expansion of the dry market. Overall, evolving consumer preferences, health awareness, and the diversification of dairy alternatives collectively drive the growth of the market in both liquid and dry forms.
The U.S. lactase market size held over USD 64.6 million in 2023, attributed to several factors, including a robust dairy industry, heightened consumer awareness about lactose intolerance, and a growing market for lactose-free products. The country's well-developed infrastructure and advanced research capabilities further contribute to its leadership position in market growth. As the U.S. continues to witness an increasing demand for lactase across various applications, ranging from dairy products to dietary supplements, its commanding revenue share underscores its pivotal role in shaping the market landscape.