Lactase Market is anticipated to record a CAGR of 6.3% from 2024 to 2032, driven by the increasing prevalence of lactose intolerance among the global population. It affects a substantial portion of the population, leading to digestive discomfort upon consuming dairy products. As awareness about lactose intolerance grows, there is a rising demand for lactase supplements to aid in the digestion of lactose, thereby driving the growth of the market.

Additionally, with an increasing number of consumers opting for plant-based or lactose-free alternatives due to health, ethical, or dietary reasons, F&B manufacturers are incorporating lactase enzymes into their products to cater to this demand. In February 2024, food and drinks manufacturing & distribution company Kerry Group acquired the combined lactase enzymes business of bioscience companies Chr Hansen and Novozymes.

Lactase industry is segmented on the basis of source, application, form, and region.

Plant segment is poised for substantial growth in the forecast period, due to the increasing consumer preference for plant-based alternatives and the rising demand for lactose-free products. As more individuals adopt plant-based diets for health, environmental, or ethical reasons, there is a growing need for lactase enzymes derived from plant sources to facilitate the production of dairy-free and lactose-free products. Additionally, advancements in biotechnology and enzyme engineering have enabled the extraction and purification of lactase enzymes from various plant sources, including fungi and bacteria.

Ice cream segment will generate notable revenues for the market during 2024-2032, as its popularity continues to rise globally, particularly among lactose-intolerant individuals seeking indulgent yet digestible treats. Manufacturers are increasingly incorporating lactase enzymes into their formulations to create lactose-free or reduced-lactose ice cream varieties, catering to a broader consumer base and addressing dietary restrictions. Moreover, innovations in enzyme technology have led to the development of lactase enzymes that maintain the texture, flavor, and creaminess of traditional ice cream while effectively breaking down lactose.

Europe lactase industry is slated to witness a significant growth rate through 2032, attributed to the stringent regulatory standards regarding food safety. The growing inclination of lactose-free and dairy-free diets among European consumers, driven by health consciousness and dietary preferences, fuels the product demand. Moreover, advancements in enzyme technology and bioprocessing methods, coupled with increasing investments in R&D further stimulates the regional industry growth.