Lactase Market

How big is Lactase Market in 2026?

Demand for lactase is projected to expand at 3.6% CAGR between 2026 and 2036. Industry value grows from USD 1.6 billion in 2025 to USD 1.7 billion in 2026 and is anticipated to reach USD 2.4 billion by 2036.

The lactase market is expected to witness a growth of 3.6% CAGR during 2026 to 2036. The market value is growing from USD 1.6 billion in 2025 to USD 1.7 billion in 2026 and is anticipated to reach USD 2.4 billion by 2036. Lactase is widely used in milk, yogurt, whey ingredients, infant formula and digestive products for reducing the lactose content. In May 2025, the Food and Agriculture Organization stated that its Dairy Market Review covers global milk production, trade and prices during 2024[1]. Increasing milk processing is resulting in development of more products where lactose is reduced without removing the dairy ingredients. FMI believes that wider application in dairy, food and nutrition products is expected to drive the growth of lactase market during the forecast period.

Regional demand trajectories diverge across geographies as individual countries reflect distinct dairy consumption and processing conditions. South Korea lactase market is expected to grow at 4.2% CAGR, while Japan is anticipated to expand at 3.7% CAGR through 2036. In April 2026, Kerry opened expanded lactase manufacturing capacity in Ireland for lactose-free dairy products and sugar-reduced formulations[2]. South Korea is witnessing growing use of imported dairy ingredients, whereas Japan has established application in yogurt, confectionery and food-service products. Lactase products requires different activity under acidic and neutral pH, due to which source of enzyme and its final application continues to influence the supplier selection. Product documents and consistent residual-lactose result are expected to remain a major commercial requirement in both the countries.

Key Takeaways

• Demand centers on lactose management and formulation economics. Suppliers gain repeat business when hydrolysis is supporting both digestive positioning and processor targets such as lower added sugar.
• Based on type, fungal holds 76.9% in 2026, owing to broad commercial use of Aspergillus-derived lactase in digestive products and acidic-enzyme applications.
• By application, food&beverages accounts for 31.1% in 2026, as food processors can deploy lactase during manufacturing across multiple lactose-reduced formats.
• In 2026, dry lactase represents 50.0% of form demand, as granulated and dried enzyme preparations suit controlled dosing, storage, and supplement premix workflows.
• South Korea is projected to grow at 4.2% CAGR through 2036, whereas Japan is forecast at 3.7% CAGR owing to dairy product renovation.
• Notable companies in the lactase market include Novozymes A/S, DuPont de Nemours Inc., Koninklijke DSM N.V.,  Advanced Enzyme Technologies Limited, Kerry Group plc, Amano Enzyme Inc., Biocatalysts Ltd., Merck KGaA, and Novact Corporation.

Analyst Perspective

“Lactase demand is spread across industrial dairy processing as well as digestive products. In my experience, repeat purchase mainly depends on whether the selected lactase reaches the required lactose level at acceptable dosage and meets the applicable food-enzyme requirement.”

- Nandini Roy Choudhury, Principal Consultant, Future Market Insights.

How is the lactase market segmented?

The lactase market is segmented by type, application, form, and region. Fungal leads type at 76.9%, food&beverages accounts for 31.1% of application, and dry represents 50.0% of form demand in 2026.

• By type: fungal and neutral.
• By application: food&beverages, dairy products, dietary supplements, pharmaceuticals, and infant formula.
• By form: dry and liquid.
• By region: North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia and Pacific, and Middle East and Africa.

Why does fungal lead the Type category?

Based on type, fungal lactase is projected to account for 76.9% in 2026 owing to established use in acidic food products and digestive formulations.

Fungal lactase is widely used in acidic food products and digestive formulations, owing to its activity at lower pH. In September 2026, the FDA inventory listed GRAS Notice 1329 for an Aspergillus oryzae lactase intended for lactose-free milk and lactase-treated whey[3]. Availability of fungal lactase for milk, whey and nutrition products is increasing the application of this enzyme. These factors are expected to support the growth of fungal lactase segment over the forecast period.

• Fungal accounts for 76.9% of Type revenue in 2026. Its lead is mainly due to established use of Aspergillus-derived lactase across supplement and food-processing applications where acidic activity is useful for commercial application.
• As of September 8, 2026, the FDA GRAS inventory listed Advanced Enzyme Technologies Limited as notifier for an Aspergillus oryzae lactase intended for lactose-free milk and lactase-treated whey. The FDA letter was still pending, illustrating both fungal-product activity and the approval and qualification step required for a specific preparation.

What keeps Food&Beverages central to the Application category?

Food&Beverages is estimated to hold 31.1% of application revenue in 2026, supported by multiple processing points for lactose reduction in commercial manufacturing.

Food and beverage manufacturers are increasingly using lactase for reducing lactose before the final product reaches to the consumers. Lactase separates lactose into glucose and galactose, due to which the treated food can also provide higher perceived sweetness. In May 2025, USDA reported approval of 11 new food materials and food additives, including three products derived from genetically modified microorganisms[4]. Continued approval activities for food-processing ingredients is supporting the formulation work. Increasing use of lactase for lactose control and sweetness adjustment is expected to drive the Food&Beverages segment demand.

• Food&Beverages holds 31.1% of Application revenue in 2026. Its position is mainly due to the number of processing points where lactase can be dosed before the downstream finished product is sold.
• In April 2026, Kerry Group plc opened expanded lactase manufacturing capacity in Carrigaline for lactose-free and sugar-reduced dairy processing. The investment shows why food processors value scalable supply and application support when they move reformulations from trials into commercial production.

Why does Dry retain the largest share of the Form category?

Dry lactase is estimated to represent 50.0% of form revenue in 2026, driven by storage, transport, and controlled dosing advantages in powders and supplements.

Dry lactase is mainly used in tablets, powdered blends, infant formula and ingredient premixes. The dry form provides measured dosing and does not require a liquid carrier during storage and handling. The IFCN World Dairy Map 2025 reported that dairy farms having more than 10 cows account for nearly 60% of world's milk production[5]. Concentrated dairy processing is increasing requirement for enzyme forms which can be handled in scheduled production. Increasing use of powdered supplements and premixes is anticipated to support the demand for dry lactase over the forecast period.

• Dry represents 50.0% of Form revenue in 2026. Its position is supported by storage, transport and dosing advantages across supplements, ingredient premixes and selected food applications.
• In March 2024, Biocatalysts Ltd. added large-scale freeze-drying equipment at its Cardiff manufacturing site to enable more customized enzyme formulations. The investment was not disclosed as lactase-dedicated, but it shows the manufacturing capability needed to tailor stable dry enzyme formats.

What are the drivers, restraints, and opportunities in the lactase market?

In the lactase market, the key driver is lactose management, the key restraint is authorization and plant validation, and the key opportunity is application-specific enzymes in fermented dairy and supplements.

• Driver: A large lactose-malabsorption population and processor interest in lactose-reduced formulations create the recurring demand for lactase.
• Restraint: Regulatory status, process validation and proof of residual-lactose performance can delay supplier approval and qualification.
• Opportunity: Tailored enzymes for low-pH dairy, infant formula and supplement formats can convert narrower technical needs into higher-value applications.

Lactose Digestion and Sugar Reduction Support Demand

Lactose digestion remains one of the key factors influencing demand for lactase products. A Royal Society of Chemistry study published in August 2025 examined lactose intake, lactase-persistence genotype and gut microbiome results among 330 healthy U.S. adults[6]. Lactase tablets and drops are consumed directly, whereas dairy manufacturers add the enzyme before the product is sold. Increasing number of lactose-reduced dairy and digestive products is expected to drive the growth of lactase market.

Regulatory Approval and Production Testing Restrict Adoption

Regulatory approval and production testing can restrict the adoption of a new lactase preparation. FDA states that enzyme preparations may be food additives or GRAS substances and provides separate records for individual preparations[7]. Apart from the regulatory status, processors requires correct dosage and residual-lactose result on their own production line. Longer approval and testing period is expected to hamper quick changes of suppliers in lactase market.

Application-Specific Enzymes Create Growth Positions

Application-specific lactase products are creating growth opportunities in dairy and digestive applications. The OECD-FAO Agricultural Outlook 2025-2034 projects world milk production to increase by 1.8% per year over the next decade[8]. More milk entering into processing will provide additional application points for lactose control. Expansion of lactase product portfolio for low-pH dairy, infant formula and supplement products is expected to create new avenues for the manufacturers.

Which country CAGRs are profiled in the lactase market?

Country	CAGR
South Korea	4.2%
Japan	3.7%
UK	3.3%
USA	3.0%
Germany	2.6%

How do country-level CAGRs compare in the lactase market?

South Korea is projected to record the highest CAGR of 4.2%, followed by Japan at 3.7%, UK at 3.3%, USA at 3.0% and Germany at 2.6% during 2026 to 2036. Different dairy production, consumption and processing conditions are expected to affect the lactase demand in each country.

• South Korea: Domestic milk contraction and rising cheese imports shift the commercial opening toward value-added dairy applications and imported ingredient processing.
• Japan: A mature dairy system with weak drinking-milk demand is supporting lactase where it allows product renovation, digestive positioning or process efficiency rather than volume-led expansion.
• UK: A large milk-processing base is supporting enzyme demand, while food-enzyme authorization is creating a clear approval and qualification gate for suppliers.
• USA: A large lactose-malabsorption population is supporting demand, but the mature processing base makes cost-in-use and changing proof important for incremental growth.
• Germany: A major EU dairy-manufacturing base provides many processing applications, although lower lactose-malabsorption prevalence in northern Europe tempers an intolerance-only growth thesis.

Country growth rates represent the expected pace of market expansion and not the absolute market value.

Country-wise Analysis

• South Korea lactase market is expected to grow at 4.2% CAGR from 2026 to 2036. In November 2025, USDA forecast 2026 milk production at 1.93 million tons and cheese imports at 153,000 tons[9]. Lower domestic milk output is increasing the role of imported dairy ingredients in processing applications. Increasing demand for premium and digestive dairy products is expected to support the South Korea lactase market growth.
• Japan lactase market is anticipated to grow at 3.7% CAGR over the assessment period. In December 2025, USDA forecast 2026 raw-milk production near 7.38 million tons and reported softer household milk consumption[10]. Milk is increasingly directed towards butter, cheese and processed dairy products. Product renovation and growing need for digestive positioning is anticipated to support lactase market growth in Japan.
• UK lactase demand is forecast to rise at 3.3% CAGR through 2036. Defra reported 15.8 billion litres of milk for human consumption in 2025, an increase of 5.0% from 2024[11]. Large milk volume provides several product lines where lactose reduction can be applied. Presence of dairy processing facilities and availability of suitable food-enzyme documents is expected to support UK lactase market growth.
• USA lactase market is estimated to expand at 3.0% CAGR through 2036. USDA Economic Research Service updated its Dairy Data in September 2026, covering supply, utilization, trade and per-capita dairy consumption[12]. Different dairy product streams provides wider application points for lactose hydrolysis. Expanding lactose-reduced dairy and digestive products is expected to upkeep lactase demand in the USA.
• Germany lactase sector is projected to record 2.6% CAGR during the assessment period. Eurostat reported in November 2025 that EU farms produced 161.8 million tonnes of raw milk during 2024[13]. Germany has several dairy plants where lactase can be used for lactose control as well as sweetness improvement. Product renovation is expected to support steady growth of lactase market in Germany.

Who are the notable companies in the lactase market?

Notable companies include Novozymes A/S, DuPont de Nemours Inc., Koninklijke DSM N.V.,  Advanced Enzyme Technologies Limited, Kerry Group plc, Amano Enzyme Inc., Biocatalysts Ltd., Merck KGaA, and Novact Corporation.

Competition in lactase market includes large industrial enzyme manufacturers along with specialty formulation suppliers. Novozymes A/S is represented through Novonesis after its combination with Chr. Hansen, whereas the Maxilact product line is marketed under dsm-firmenich. Kerry Group plc, Advanced Enzyme Technologies Limited and Biocatalysts Ltd. are focusing on dairy processing and formulation capabilities. Amano Enzyme Inc., Merck KGaA and Novact Corporation also supply lactase for digestive, specialty or laboratory applications.

• Industrial dairy lactase platforms: Novozymes A/S, Koninklijke DSM N.V., Advanced Enzyme Technologies Limited and Kerry Group plc focus on large-scale dairy processing and formulation capabilities.
• Specialty enzyme and formulation channels: Amano Enzyme Inc., Biocatalysts Ltd., Merck KGaA and Novact Corporation address narrower digestive, custom-enzyme, research or formulation needs.
• Reconfigured legacy biosciences portfolios: DuPont de Nemours Inc. remain relevant to competitive history, but current standalone lactase capability is not scored where public evidence points to transferred or combined businesses.

Competitive Benchmarking: Lactase Market

Company	Industrial Dairy Processing	Source & Form Breadth	Application Support	Geographic Reach
Novozymes A/S	High	High	High	Global reach through Novonesis; current dairy biosolutions are marketed across regions.
DuPont de Nemours Inc.	Unscored	Unscored	Unscored	Current lactase reach not verified after Nutrition & Biosciences merged with IFF in 2021.
Koninklijke DSM N.V.	High	High	High	Global legacy dairy platform now marketed within dsm-firmenich.
Advanced Enzyme Technologies Limited	Medium	Medium	Medium	Documented contacts and operations across Asia, America and Europe.
Kerry Group plc	High	Medium	High	Global enzyme network; Carrigaline site supports customers across more than 80 countries.
Amano Enzyme Inc.	Unscored	Medium	Medium	Japan-based group with enzyme manufacturing and commercial support in the Americas.
Biocatalysts Ltd.	Medium	Medium	High	United Kingdom manufacturing with custom enzyme development for international food and life-science customers.
Merck KGaA	Unscored	High	Unscored	Global life-science catalog reach through Sigma-Aldrich; industrial dairy reach not verified.
Novact Corporation	Medium	High	Medium	United States base with stated enzyme and food-ingredient activity across the Americas.

Scoring is based on documented lactase products, source and form range, application support and geographic presence. Unavailable public information is left Unscored.

Key Developments in the Lactase Market

• In April 2026, Kerry Group plc opened expanded lactase manufacturing capacity in Carrigaline, which is supporting commercial production of lactose-free and sugar-reduced dairy products.
• In July 2025, USDA reported that national authorities approved new food materials and additives, including enzymes derived from genetically modified microorganisms. The development shows continuing approval activity for food-processing enzymes.
• In May 2025, FDA recorded GRAS Notice 1276 for a cellulase enzyme preparation produced by Trichoderma reesei. The notice indicates that individual enzyme preparations requires separate use and safety records.

Key Players in the Lactase Market

Industrial Dairy Lactase Platforms

• Novozymes A/S
• Koninklijke DSM N.V.
• Advanced Enzyme Technologies Limited
• Kerry Group plc

Specialty Enzyme and Formulation Suppliers

• Amano Enzyme Inc.
• Biocatalysts Ltd.
• Merck KGaA
• Novact Corporation

Reconfigured Legacy Biosciences Portfolios

• DuPont de Nemours Inc.

Lactase Market - Report Scope

Coverage field	Report scope
Market breakdown	Type, Application, Form, and Region
Quantitative Units	USD Billion
Market Definition	Revenue includes commercial lactase products under the stated Type, Application and Form categories. Finished-product revenue, dosing equipment, testing systems and adjacent products are excluded.
Regions Covered	North America; Latin America; Western Europe; Eastern Europe; East Asia; South Asia and Pacific; Middle East and Africa
Countries Covered	USA, UK, Germany, Japan, South Korea, and additional countries in the full report
Key Companies Profiled	Novozymes A/S, DuPont de Nemours Inc., Koninklijke DSM N.V.,  Advanced Enzyme Technologies Limited, Kerry Group plc, Amano Enzyme Inc., Biocatalysts Ltd., Merck KGaA, Novact Corporation
Forecast Period	2026 to 2036

Lactase Market - Research Methodology

Method	Approach
Primary Research	The research includes primary interviews with manufacturers, distributors, end users, purchasing teams and industry experts. Interviews cover purchasing decisions, product evaluation, pricing, adoption barriers and approval requirements.
Desk Research	Desk research covers government statistics, regulatory publications, trade data, technical literature, company information and official announcements. Sources are checked for date, relevance and market scope.
Market Sizing and Forecasting	Market sizing combines baseline value, historical performance, segment structure, pricing, volume, adoption and country demand. Segment and regional estimates are reconciled with the final market value.
Data Validation	Market estimates are checked against public data, company developments, trade indicators and primary interviews. Adjacent products and overlapping revenue are excluded from the lactase market.

Lactase Market by Segments

Lactase Market segmented by Type:

• Fungal
• Neutral

Lactase Market segmented by Application:

• Food&Beverages
• Dairy Products
• Dietary Supplements
• Pharmaceuticals
• Infant Formula

Lactase Market segmented by Form:

• Dry
• Liquid

Lactase Market by Region:

• North America
  • United States
  • Canada
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Chile
• Western Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Benelux
  • Nordics
• Eastern Europe
  • Poland
  • Czech Republic
  • Romania
  • Hungary
• East Asia
  • Japan
  • South Korea
• South Asia and Pacific
  • ASEAN
  • Australia and New Zealand
• Middle East and Africa
  • GCC Countries
  • South Africa
  • Türkiye
  • Israel

Research Sources and Bibliography

• [1] Food and Agriculture Organization of the United Nations. (2025, May 22). Dairy Market Review: Overview of global market developments in 2024. https://www.fao.org/markets-and-trade/commodities-overview/basic-foods/dairy/en
• [2] Kerry Group plc. (2026, April 20). Kerry opens expanded biotechnology manufacturing hub in Ireland to meet growing global demand for lactase enzymes. https://www.kerry.com/about/news-and-media/2026/kerry-opens-expanded-biotechnology-manufacturing-hub-in-ireland
• [3] U.S. Food and Drug Administration. (2026, September 8). GRAS Notice 1329: Lactase enzyme preparation produced by Aspergillus oryzae. https://www.fda.gov/food/generally-recognized-safe-gras/gras-notice-inventory
• [4] U.S. Department of Agriculture, Foreign Agricultural Service. (2025, May 19). New food materials and additives approved, including GMM-derived enzymes.
• [5] IFCN Dairy Research Network. (2025). World Dairy Map 2025.
• [6] Tang, Y., Oliver, A. S., Alkan, Z., Korf, I., Huang, L., Kable, M. E., & Lemay, D. G. (2025). Association of lactose intake and lactase persistence genotype with microbial taxa and function in healthy multi-ethnic U.S. adults. Food & Function, 16(18), 7393-7407.
• [7] U.S. Food and Drug Administration. (2025). Enzyme preparations used in food: Partial list.
• [8] Organisation for Economic Co-operation and Development & Food and Agriculture Organization. (2025, July 15). Dairy and dairy products: OECD-FAO Agricultural Outlook 2025-2034. https://www.oecd.org/en/publications/oecd-fao-agricultural-outlook-2025-2034_601276cd-en/full-report/dairy-and-dairy-products_1dd2e5a6.html
• [9] U.S. Department of Agriculture, Foreign Agricultural Service. (2025, November 25). Korea: Dairy and products annual.
• [10] U.S. Department of Agriculture, Foreign Agricultural Service. (2025, December 8). Japan: Dairy and products annual.
• [11] Department for Environment, Food & Rural Affairs. (2026, September 3). Agriculture in the United Kingdom 2025: Chapter 8, livestock.
• [12] U.S. Department of Agriculture, Economic Research Service. (2026, September 14). Dairy data.
• [13] Eurostat. (2025, November 20). Milk production reached 161.8 million tonnes in 2024.

This bibliography is provided for reader reference. The full report contains the complete reference list and detailed citations.

This Report Answers

• How large is the Lactase Market in 2026 and what value is projected for 2036?
• Which industry pressures support the demand for lactase across food, dairy and digestive applications?
• Why does Fungal hold the leading position within the Type category?
• Which profiled companies supply lactase, enzyme-formulation or related market capabilities?
• What limits lactase adoption or supplier changing after a buyer identifies a potential application?
• What should buyers evaluate before purchasing a lactase preparation for commercial use?