Lactase Market Report

The demand for the lactase market is expected to boost due to the rising awareness about dietary supplements. Lactase breaks down lactose, the milk sugar, and those lacking it may experience digestive problems. Lactase supplements enable individuals to consume dairy without issues, meeting the rising demand for managing lactose intolerance and enhancing comfort with dairy products. As per the data of the National Library of Medicine, the global dietary supplements market was valued at US$152 billion in 2021, and as per the forecast, the market is expected to experience a boom by 2028, reaching the mark of US$300 billion. Also, the demand for the lactase market is expected to increase due to the popularity of veganism, and plant-based diets have influenced the lactase industry, with a focus on producing plant-based enzymatic supplements for vegans. As per the data of WorldAnimalFoundation June 2024, there are a total 88 million vegans in the world, which is considered to be around 1-2 percent of the world’s population, and also dairy alternatives are used by 40% of consumers. Thus, the rising vegan population has increased demand for animal-free products like lactase supplements.

The major problem faced by the customer is that a huge number of customers are unable to have milk and milk-based products due to lactose intolerance. The option for the above problem is lactose-free milk, but they are costlier as compared to the cost of regular milk. The reduction of lactose from various dairy products and milk has been explored using various different methods. The cost of lactose-free products is high due to the added cost of the lactose hydrolysis process. Consumers are increasingly seeking dairy alternatives to address issues like cow milk allergy, calorie worries, lactose intolerance, and hypercholesterolemia. Factors driving this shift include price, taste, and environmental concerns. Plant-based products are more cost-effective than meat and dairy options. The popularity of lactose-free products is rising with the use of enzymes. Dairy alternatives and vegan options offer diverse ingredients, flavours, and textures. Thus, the rising cost of lactose-free milk and environmental concerns restrain market growth.

In May 2022, Ireland-based Kerry Group, a leading nutrition company, opened its largest and most advanced taste manufacturing facility in Hammarsdale, a town in the KwaZulu-Natal province of South Africa. The new 10,000m2 site represented a R650m ($40.54m) investment and served customers across Africa. The factory was one of Kerry Group's most environmentally friendly facilities, boasting low energy usage equipment as well as solar power generation, waste heat capture, and water capture capabilities. The opening formed part of South Africa's presidential drive to encourage sustainable, equitable, and inclusive investment. In November 2021, Chr. Hansen launched its next-generation SWEETY® culture, the latest addition to its sugar reduction portfolio for fresh dairy. Using the power of fermentation, SWEETY® enabled producers to maintain the enjoyable level of sweetness their customers loved, all while reducing added sugar by up to 1g for every 100g of yogurt. SWEETY® Y-3 was the newest innovation within Chr. Hansen's sugar reduction portfolio. "The SWEETY® culture used nature's process of fermentation to cut the sugar and keep the sweetness. It worked by converting lactose to glucose, naturally enhancing the sweetness perception in yogurt and enabling organic and VLOG labelling." SWEETY® Y-3 built on the previous generation by offering thicker, more indulgent texture capabilities.

North America can be considered a lucrative market due to the rising number of lactose intolerance cases. Lactose intolerance is on the rise in North America due to increased awareness, changing dietary habits, and genetic factors. Better diagnostic tools also contribute to higher reported rates as more people identify and manage their condition. According to the data of the National Library of Medicine, a total of 30 million American adults suffer from lactose intolerance by age 20. Especially in the United States, 36% of people have lactose malabsorption, and in the case of African Americans, the problem can occur as early as age 2. Thus, due to the rising number of patients for lactose malabsorption, the lactase market is expected to rise. Also, Europe can be considered a lucrative market due to its booming food and beverage industry. As per the data from Data & Trends, the European Union is considered the largest exporter for the food and beverage industry globally, with exports of US$ 203 billion and a surplus of US$ 81 billion. Furthermore, the European Union food and beverage industry in 2023 will cost US$ 1 trillion and is considered the largest manufacturing industry in the European Union.