Bio-Lactase Enzyme Market Report 2025

The bio-lactase enzyme market size has grown strongly in recent years. It will grow from $1.16 billion in 2024 to $1.27 billion in 2025 at a compound annual growth rate (CAGR) of 8.8%. The growth during the historical period was driven by rising cases of lactose intolerance, increasing dairy consumption, growing demand for digestive health supplements, higher usage in infant formula, and greater awareness of enzyme-based food processing.

The bio-lactase enzyme market size is expected to see strong growth in the next few years. It will grow to $1.75 billion in 2029 at a compound annual growth rate (CAGR) of 8.4%. The growth during the forecast period is expected to be driven by the expanding vegan population, rising demand for lactose-free products, increasing health consciousness, broader applications in nutraceuticals, and growing investments in enzyme research. Key trends include advancements in enzyme extraction technologies, innovations in lactose-free dairy alternatives, improved fermentation techniques, development of microencapsulated lactase, and innovations in plant-based enzyme production.

The rising vegan population is driving the growth of the bio-lactase enzyme market due to increasing demand for lactose digestion support in plant-based diets. A vegan diet avoids all animal-derived foods, focusing entirely on plant-based options, and its popularity is rising as more people recognize the health benefits of plant-based eating in reducing risks of chronic diseases such as heart conditions, obesity, and type 2 diabetes. Bio-lactase enzymes assist in breaking down hidden lactose present in certain fortified or processed foods, preventing symptoms of lactose intolerance and supporting healthier digestion. For instance, in March 2024, a report by Smart Protein UK and ProVeg International noted that 38% of people followed a flexitarian, pescatarian, vegetarian, or vegan diet by 2023, up from 35% in 2021, with flexitarians contributing the most to this rise.

Innovation in fast-acting lactase enzymes is enhancing the market by providing immediate relief for lactose sensitivities. These enzymes function instantly with the first mouthful of lactose-containing food, reducing bloating, gas, and diarrhea. In May 2023, DSM-Firmenich launched Maxilact Next, the fastest pure lactase enzyme available, improving lactose-free dairy production efficiency, shortening processing times, and supporting clean-label formulations by reducing the need for additives. This innovation underscores the focus on consumer-centric and technologically advanced enzyme solutions.

In January 2024, Novozymes A/S merged with Chr. Hansen to form Novonesis, creating a global leader in biosolutions. With over 10,000 professionals and expertise across more than 30 industries, Novonesis supports businesses worldwide in achieving objectives while promoting environmental responsibility, expanding capabilities in bio-lactase enzyme production and innovation.

Major players in the bio-lactase enzyme market are BASF SE, Merck KGaA, DSM-Firmenich AG, DuPont Nutrition & Health, Kerry Group plc, Novozymes A/S, Oenon Holdings Inc., Amano Enzyme Inc., Sisco Research Laboratories Pvt. Ltd., Advanced Enzyme Technologies Ltd., Nature BioScience Pvt. Ltd., SternEnzym GmbH & Co. KG, Enzyme Development Corporation, Infinita Biotech Pvt. Ltd., Creative Enzymes, Mitushi Biopharma, RAJVI Enterprise, Calza Clemente S.r.l., Antozyme Biotech Pvt. Ltd., and Biolaxi Corporation.

North America was the largest region in the bio-lactase enzyme market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in bio-lactase enzyme report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the bio-lactase enzyme market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The accelerated imposition of U.S. tariffs and the emerging trade conflicts in spring 2025 are significantly influencing the food and beverage sector by raising the costs for imported ingredients including olive oil, cheese, and tropical fruits, forcing food brands to reformulate products or accept lower margins. Beverage makers face similar pressures, with aluminum can tariffs increasing packaging expenses. Retaliatory tariffs on U.S. agricultural exports (e.g., soybeans, pork) have also disrupted farm-to-processing supply chains. Companies are reformulating recipes, sourcing locally where possible, and hedging commodity purchases to manage volatility.

Bio-lactase enzyme is a natural protein that facilitates the breakdown of lactose into simpler sugars, such as glucose and galactose. It acts as a catalyst, accelerating the chemical reaction that splits lactose, a sugar commonly found in milk. The enzyme’s activity depends on specific temperature and pH conditions, and its effectiveness can vary based on the surrounding environment.

The main types of bio-lactase enzyme products include liquid, powder, and capsules or tablets. Liquid bio-lactase is a fluid form used to break down lactose in dairy products, improving digestibility. It is sourced from microbes, fungi, yeast, and other origins, and distributed through online platforms, supermarkets, hypermarkets, specialty stores, and more. Applications span food and beverages, pharmaceuticals, dietary supplements, and animal feed, serving end users such as infant formula producers, dairy processors, clinical nutrition providers, and others.

The bio-lactase enzyme market research report is one of a series of new reports that provides bio-lactase enzyme market statistics, including the bio-lactase enzyme industry global market size, regional shares, competitors with the bio-lactase enzyme market share, detailed bio-lactase enzyme market segments, market trends, and opportunities, and any further data you may need to thrive in the bio-lactase enzyme industry. This bio-lactase enzyme market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The bio-lactase enzyme market consists of sales of acidic lactase, natural lactase, and crude enzyme extracts. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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