The Lactase sales reached USD 219.9 million in 2022, worldwide demand for the Lactase industry shows year-on-year growth of 4.6% in 2023 and thus, the target product sales are expected to reach USD 220.1 million in 2024. Over the projection period (2024 to 2034), global Lactase sales are projected to rise at a 4.8% compound annual growth rate (CAGR) and reach a sales valuation of USD 351.8 million by 2034 end.
Lactase, an enzyme found in the guts of humans and other animals involved in lactose splitting to glucose and galactose. Lactose is found in milk products, and lactase helps in their breakdown. Some populations fail to digest the lactose contained in milk products due to the absence of lactase enzymes. Given this problem, lactase is added to dairy products or lactase supplements are administered so that lactose can be broken down before its consumption.
The increasing prevalence of lactose intolerance is a major driver behind the expanding industry for lactase especially across regions such as Asia and Africa. The sugar present in milk and dairy products called lactose cannot be digested by individuals suffering from less secretion of the target enzyme from the small intestine. This condition leads to gastrointestinal symptoms such as bloating, diarrhea, and abdominal pain upon consuming dairy. Numerous factors contribute to higher incidence rates of lactose intolerance resulting in increased demand for more lactase.
The global distribution pattern of lactose-intolerant individuals is greatly depending on genetics. For instance, most people born in Europe and North America retain their ability to produce lactase throughout life thereby having fewer cases of intolerance compared with those from Asia and Africa where cultural variety has resulted in considerable cases of impaired digestion being witnessed among different communities.
This genetic diversity amounts to a significant proportion of people who suffer from symptoms related to lack or reduced capacity within themselves hence generating a need for better alternatives like taking external digestive aids or turning to food choices without this kind of particular sugar component.
| Attributes | Description |
|---|---|
| Estimated Global Lactase Market Value (2024E) | USD 220.1 million |
| Projected Global Lactase Market Value (2034F) | USD 351.8 million |
| Value-based CAGR (2024 to 2034) | 4.8% |
High-tech advancements and inventions in the production of lactase from different sources such as microbial (fungi, yeast), animals, and plants have also played an essential role. Enhanced methods of extracting and stabilizing lactase have made it more effective and affordable, thereby enhancing its appeal. These advancements ensure that lactase supplements and lactose-free products meet the needs of a broader consumer base, including those in regions with high lactose intolerance prevalence.
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The below table presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for the global Lactase industry. This analysis reveals crucial shifts in sales performance and indicates revenue realization patterns, thus providing stakeholders with a better vision of the industry growth trajectory over the year. The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December
| Particular | Value CAGR |
|---|---|
| H1 | 3.5% (2023 to 2033) |
| H2 | 3.9% (2023 to 2033) |
| H1 | 4.5% (2024 to 2034) |
| H2 | 4.8% (2024 to 2034) |
The above table presents the expected CAGR for the global Lactase industry over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 3.5%, followed by a slightly higher growth rate of 3.9% in the second half (H2) of the same decade.
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 4.5% in the first half and remain relatively moderate at 4.8% in the second half. In the first half (H1) the target sales witnessed a decrease of 25 BPS while in the second half (H2), witnessed an increase of 10 BPS.
Technological advancements in enzyme extraction and purification processes
One major technological innovation involves the application of advanced fermentation techniques. Modern bioreactors incorporated with precise control systems provide optimal growth conditions for microorganisms producing lactase such as Aspergillus oryzae and Kluyveromyces lactis. These bioreactors maintain the ideal temperature, pH levels, and nutrient supply for high lactase yields.
Purification processes have seen significant improvements as well. Nonetheless, it is worth mentioning that the traditional methods of purification like precipitation and filtration have been replaced with more advanced techniques such as chromatography or membrane filtration enabling selective isolation of lactase with a purity level of above 90%.
Another notable breakthrough has been made in enzyme stabilization procedures. This has further extended its applicability by making lactase stable under different environmental conditions for instance temperature variations and pH differences among others. Lactase can be encapsulated using different techniques like nanocapsulation or microencapsulation which prolong its life span through protection against degradation.
These methods therefore ensure that lactase remains active throughout the entire value chain thus ensuring constant performance in terms of taste, texture, and other organoleptic properties of products such as dairy goods, health supplements, and formula diets devoid of lactose.
Increasing demand for lactose-free dairy products
Health awareness among consumers is growing about lactose intolerance. These are people who know that they are lactose intolerant due to the symptoms they experience such as bloating, gas, and abdominal pain, particularly between the ages of 18 and 34, which has made them shift to lactose-free products with no side effects. Lactase enzyme added to lactose-free milk provides a hands-on solution for people who suffer from lactose intolerance because it allows them to enjoy milk and milk products without any discomfort.
Customers have become more conscious of their health and are progressively focused on digestive health as part of their overall well-being. This is where lactose-free products come into play since they offer all the nutritional values that traditional dairy foods provide like calcium, vitamin D, and protein while avoiding all the gastrointestinal issues related to lactose.
As a result, even those who do not have a problem digesting lactose are choosing carbohydrate-free alternatives as part of a balanced diet plan hence increasing demand for this target product.
Development of plant-based lactase products to cater to vegan consumers
The recent surge in veganism and plant-based diets has impacted the industry of lactase, particularly through the manufacture of plant-based enzymatic supplements targeting vegans. This trend is driven by increased consumer focus on health, environment, and ethical considerations alongside developments in food technology that make the production of plant-based enzymatic substances feasible and attractive.
Furthermore, with an increase in the vegan population, there has been a corresponding rise in demand for products satisfying vegan lifestyles such as supplements including enzymes like lactase that do not originate from animal sources.
Manufacturers now need to come up with alternative ways such as making plant-based enzymes considering consumers’ shift towards these products. Another reason why companies producing enzymatic supplements must consider using plants instead of animals is their environmental sustainability.
Usually, plant-based enzyme manufacturing causes a less negative impact on the environment compared to the one using animals. This manufacturing of target products from plant sources leads to the release of fewer greenhouse gases, less water consumption, as well as more efficient output processing.
Regulatory authorities supporting and promoting lactose-free products
Different regulations have been established by the regional and global regulatory authorities on lactose-free foods due to increasing incidents of lactose-intolerant populations as a public health concern. Moreover, they have been enacted to ensure safety, efficacy, and consumer trust in Lactase-based products which in turn results in their demand.
For example, the USA Food and Drug Administration (FDA), European Food Safety Authority (EFSA), and Food Safety Standard Authority of India (FSSAI) are some of the regulatory agencies that have put in place food and dietary supplements standards for safety and efficacy of lactase enzyme consumption.
They create regulatory frameworks that give directions to the manufacturers, which facilitates lactase-based product production and selling. After following the rules and regulations made by authorities, they can manufacture a target enzyme that is of good quality, and safe enough which in turn develops the trust of the end-use industry or consumers.
This is also contributed by government initiatives as well as health organizations aimed at creating awareness about lactose intolerance and the benefits of lactase supplements. It has led to increased sales of lactase enzymes globally.
Global lactase sales increased at a CAGR of 4.6% from 2019 to 2023. For the assessment period of 2024 to 2034, the projections showcase that the sale value will expand at a CAGR of 4.9%.
This slow and steady increase in the sales of target products as ingredients for the dairy and dairy products industry over recent years is attributed to consumer awakening on lactose intolerance among consumers globally, which has been brought about by increasing cases of populations affected by this disorder.
The growth in incidences of individuals diagnosed with the condition had a huge impact on lactose intolerance treatment sales since there was an increase in demand for both lactase as an ingredient and milk without sugar. Moreover, regulations from authorities for lactose-free products ensured product safety, and efficacy raising customer confidence.
Further improvements in technology through biotechnological innovations are necessary for enhancing production capacities as well as the efficiency levels of these enzymes such as Lactase enzyme inhibitors. These include enhanced fermentation processes, genetic modification applications involving different sources involved during the extraction process; and enzyme stabilization methods used in reducing costs of making them accessible to people more affordably would also make these substances useful when utilized together with other food additives like starches, etc.
The global Lactase enzyme industry has many big players or MNCs such as Koninklijke DSM N.V., Kerry, Novoenzymes, IFF, Nature Bioscience, Armora Pharma, etc. that comprise a significant share of the global sales which comes under Tier 1 of the lactase industry structure. These companies have numerous manufacturing facilities.
These distinguish themselves based on supply chains or distribution networks that allow them to supply their products worldwide. They maintain quality checks across the processing line and throughout the supply chain and reduce costs due to advanced manufacturing technology with high efficiency.
Tier 2 players such as Merck KGaA (Sigma-Aldrich), Rajvi Enterprise, Antozyme Biotech Pvt Ltd, Infinita Biotech, etc often concentrate on certain limitations based on their product type or the sources, manufacturing facility, end-use applications with the distribution and supply chains network and have formed strategic partnerships with other companies to expand their reach.
On the other hand, Tier 3 companies are small in terms of their production facilities with very little geographical expansion. They may not have advanced technology and wide global reach. They operate with a local presence and serve a niche industry sector. Such players focus on product quality with traditional processing technology and customer satisfaction rather than commercialization.
However, the sale is proceeding towards fragmentation as more and more players are entering into the sector from various parts of the globe. The sector is also heavily influenced by government regulations. Overall, the industry comprises a dynamic and complex nature, with MNCs playing the role of a trendsetter.
The following table shows the estimated growth rates of the top countries for target products. China and India are set to exhibit the recording CAGRs of % and 6.2%, respectively, through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| United States | 5.5% |
| Germany | 5.0% |
| China | 6.1% |
| India | 6.2% |
| Australia | 7.4% |
The sales for target products in the United States are projected to exhibit a CAGR of 5.5% from 2024 to 2034. By 2034, revenue from the sales of target products in the country is expected to reach USD 111.5 million.
A significant portion of the USA population experiences lactose intolerance, leading to increased demand for lactase supplements and lactose-free products along with the increased concern regarding digestive health. Innovations in lactase enzyme production and delivery methods have improved the effectiveness and convenience of lactase supplements, attracting more consumers in the USA.
The sales for target products in Germany are projected to exhibit a CAGR of 4.2% from 2024 to 2034. By 2034, revenue from the sales of target products in the country is expected to reach USD 55.4 million.
Due to the existing well-developed food processing industry, and the health-conscious population, there is a strong demand for dairy enzymes in most European countries, especially in Germany. The presence of big players like DSM and Chr. Hansen Holding A/S with a diverse product portfolio and the improvement in product production with more efficacy drives the sales of target products in positive growth.
The sales for target products in India are projected to exhibit a CAGR of 6.2% from 2024 to 2034. By 2034, revenue from the sales of target products in the country is expected to reach USD 50.4 million.
The increasing population suffering from lactose intolerance opting for products that are lactose-free such as lactose-free milk, yogurt, etc. Effective marketing strategies and awareness campaigns by manufacturers and health organizations have educated consumers about the benefits of lactase products. Favorable regulations and guidelines ensure the safety and efficacy of lactase supplements, boosting consumer confidence and sales growth.
| Segment | Microbial (By Source) |
|---|---|
| Value Share (2024) | 45.6% |
The lactase from microbial source segment is anticipated to register a CAGR of 5.2% during the assessment period of 2024 to 2034, to reach a sales valuation of USD 162.0 million in 2034.
Microbial species of mold and yeast such as Aspergillus oryzae and Kluyveromyces lactis are commonly used because they can be cultivated under controlled conditions to yield high amounts of lactase enzyme. The fermentation processes involved in microbial cultivation are well-established, allowing for the optimization of growth conditions to maximize enzyme production. This high yield is crucial for meeting the large-scale demand in the food and pharmaceutical industries.
Another reason for the industrial manufacturing of lactase enzyme from microbial origins such as filamentous fungi is due to its more heat stability broader pH, and acid stability, and is best suited for acid whey processing.
| Segment | Dry (By Form) |
|---|---|
| Value Share (2024) | 56.3% |
The lactase in the dry form is anticipated to register a CAGR of 6.0% during the forecasted period of 10 years from 2024 to 2034, to reach a valuation of USD 200 million by the end of 2034.
Lactase enzyme in the dry form dominates the sales due to its ease of transportation, ease of use during processing, and extended shelf life. Advanced and improved production technology manufactures the dry form of target product in the concentrated form which needs to be used in very small quantities making it easy to processor.
The key players in the lactase industry are continuously innovating to introduce new formulations of lactase from diverse sources via innovative processes. Key manufacturing companies are involved in strategies such as merger acquisitions, partnerships, and collaborations among others in the sectors to expand production capacity and cater to a wider audience due to the increasing population of lactose intolerant individuals.
Brands must strategize ways to retain their sales share by prioritizing sustainability, ethical sourcing, and reducing their carbon footprint.
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The global lactase sales are estimated at a value of USD 220.1 million in 2024.
Sales of Lactases increased at 4.6% CAGR between 2019 and 2023.
Advanced Enzyme Technologies, Aumgene Biosciences, Novact Corporation, Creative Enzymes, Merck KGaA (Sigma-Aldrich), Koninklijke DSM N.V., Rajvi Enterprise, Antozyme Biotech Pvt Ltd., Kerry Group plc, Infinita Biotech, IFF, Nature Bioscience, Oenon Holdings, Armora Pharma are some of the leading players in this sector.
The North American sales are projected to hold a revenue share of 28.6% over the forecast period.
The sales are projected to grow at a forecast CAGR of 4.9% from 2024 to 2034.
As per source, the industry has been categorized into Animal, Microbial, Plants
This segment is further categorized into Liquid and dry.
This segment is further categorized into Food and Beverages and healthcare.
Industry analysis has been carried out in key countries of North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa.
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Lactase Market
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