The global lactose-free dairy products market size is anticipated to project robust growth in the forecast period owing to its growing popularity of sugar-free content, easy to digest, combined with viable nutrients such as being high in phosphorus, calcium, vitamin D, and vitamin B12. Therefore, the focus on growing awareness among consumers regarding the significance of lactose-free dairy products is constantly on boost.
Lactose-free dairy is becoming a popular choice among consumers owing to the wide range of products that are readily found at. One of the most significant changes the market has seen in recent years is the diversity of products. A wider variety of dairy product categories are becoming found at without lactose. Launches of UHT (ultra-heat treated) lactose-free milk were the main drivers of the slight increase in sales of shelf-stable lactose-free dairy products. Historically, in the majority of countries, this was the only lactose-free food option. Though more products are being launched in the chilled section, which is often near plant-based substitutes, this suggests that the product is moving into the mainstream where it will be easier for consumers to find.
Furthermore, due to the advantages of milk and milk products that support both adults and children's health, these products play a crucial role in human nutrition. These milk and milk products supply roughly 30% of the dietary fats and proteins and about 80% of the calcium. Demand for milk and processed milk products has increased to triple due to the growing population, particularly since the market is witnessing a rising preference for cheese variations and low-lactose/lactose-free milk products. Significantly, the manufacturing industries of this market are focused more on the processing of dairy products that supports improving the quality of milk by using diverse enzymes from microbial, plant, and animal sources.
The market is experiencing a rapid demand from European nations for these products. Only 65% of European consumers who restrict lactose in their diets do so for health and intolerance reasons. According to the data, Europe accounted for 72% of new lactose-free product launches in 2020, with the number of launches increasing by around 8% annually since 2016. Desserts and confectionery are two indulgent product categories that have experienced particularly robust innovation.
Furthermore, a country like the United States is also one of the significant contributors to this market expansion. For instance, according to Dairy Industries news, the retail market for lactose-free milk achieved USD 1.7 billion in 2020, with 201 million gallons sold. The category's volume and monetary growth in 2020 was 19%. Up from 18% in 2019 and 15% in 2015, an astounding 21% of households made purchases of lactose-free milk in 2020.
Dairy products without lactose are widely found at and offer excellent opportunities for lactose intolerant people to take advantage of the wide variety of healthy and delectable products made from milk. The promotion of the many different lactose-free dairy options and their advantages (like sugar reduction and prevention of sandiness) along with consumer awareness of the nutritional importance of dairy products may further increase the market penetration of these products. Lactose-free products have the potential to draw in new customers for the dairy industry as a whole who were underserved by traditional dairy products. As a result, these products present the opportunity to increase the size of the overall market with the continuous and numerous new product launches in this rapidly growing dairy industry segment.
Download Free Sample ReportRising issue of Lactose Intolerance Propelling the Demand for Lactose-Free Dairy Products
The market is expanding due to the growing health consciousness to satisfy needs linked to the issue of the higher sugar level, digestion issues, and the rising popularity of lactose-free dairy products. The inability of the small intestine's lactase to hydrolyze lactose into glucose and galactose results in lactose intolerance (LI). The human ethnic groups and nationalities that make up the LI people vary greatly. As a result, less than 10% of North Europeans suffer, compared to over 75% of Africans and Amerindians.
A common digestive issue is lactose intolerance. In fact, it has an impact on about 65% of the world's population. It's interesting that it's more common in South and East Asia than it is in the Western world, which includes North America, Europe, and Australia.
A digestive enzyme called lactase is deficient in those who have it. The primary sugar in milk, lactose, must be broken down by the enzyme lactase. Without lactase, lactose can pass through the digestive tract undigested and result in uncomfortable symptoms like nausea, pain, gas, bloating, and diarrhea. People who have this condition may avoid foods that contain lactose, such as dairy products, out of fear that they will experience these symptoms.
Growing Popularity Among Asia- Pacific Countries Aiding the Market Growth
A significant factor in the lactose-free products market trends is the accelerating demand for these lactose-free dairy products in Asian countries. Over the past five years, there has been a 209% growth in lactose-free dairy product launches in APAC. The most widely found at lactose-free dairy products are white, flavored, sipping yogurt, and liquid cultured milk. Flavored milk, processed cheese, and butter without lactose are all growing in the area. For instance, according to the DSM poll data, people in China are more likely to choose lactose-free dairy over conventional dairy for their public health benefits than for any other reason. According to a survey of Chinese consumers, 82% of respondents believe lactose-free dairy is healthier than conventional dairy. And 81% of people agree that lactose-free dairy products are more accessible to absorb than traditional dairy. In China, the top three justifications for selecting lactose-free dairy products over conventional ones are better health (65%), easier digestion (36%), and nutritional value (36%).
Moreover, according to Mintel, 25% of Indians are encouraged to consume more or use lactose-free dairy products. And even 85% of Thai consumers claim to be interested in dairy milk that is easier on the stomach, including lactose-free versions.
Rising Marketing Tactics Driving the Market Growth
People are becoming significant aware of issues like lactose intolerance and the availability of lactose-free equivalents due to the increasing internet penetration, market advertisements, and the rise in the number of users of various social media platforms.
For instance, for its Clover spread and a new free-from version of its Cathedral City Nibbles kids' snack, the dairy behemoth Saputo, Inc., has launched a family-oriented digital marketing campaign. The new lactose-free Nibbles have 'mild lighter' cheese as their main ingredient and have 53 calories per mini bag.
Market Segmentation
The global lactose-free dairy products market is segmented based on product type, category, distribution channel, region, and competitional landscape. Based on product type, the market is further fragmented into milk, yogurt, cheese, ice-cream, and others (cream, butter, etc.). Based on category, the market is categorized into organic and inorganic. Based on distribution channel, the market is segmented into supermarkets/hypermarkets, departmental retailers, convenience retailers, online, and others (includes direct sales, etc.).
Company Profiles
Arla Foods AMBA, The Danone Company Inc., Cooperative Regions of Organic Producer Pools (Organic Valley), Dairy Farmers of Americas, Inc., General Mills, Inc., Prairie Farms Dairy, Inc., Saputo Inc., Nestle S.A., The Coca-Cola Company, Agropur Cooperative
Attribute | Details |
Base Year | 2022 |
Historical Years | 2018 – 2021 |
Estimated Year | 2023 |
Forecast Period | 2024 – 2028 |
Quantitative Units | Revenue in USD Billion and CAGR for 2018-2022 and 2023-2028 |
Report Coverage | Revenue forecast, company share, competitive landscape, growth factors, and trends |
Segments Covered | Product TypeCategoryDistribution ChannelRegionCompany |
Regional Scope | North America, Europe, Asia-Pacific, Middle East & Africa and South America |
Country Scope | United States; Canada; Mexico; United Kingdom; Germany; France; Italy; Spain; Poland; Netherlands; China; India; Japan; South Korea; Australia; New Zealand; Malaysia; Brazil; Argentina; Colombia; Iran; South Africa; Turkey; Saudi Arabia; Israel |
Key Companies Profiled | Arla Foods AMBA, The Danone Company Inc., Cooperative Regions of Organic Producer Pools (Organic Valley), Dairy Farmers of Americas, Inc., General Mills, Inc., Prairie Farms Dairy, Inc., Saputo Inc., Nestle S.A., The Coca-Cola Company, Agropur Cooperative |
Customization Scope | 10% free report customization with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and Purchase Options | Avail of customized purchase options to meet your exact research needs. Explore purchase options |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request) |
Report Scope
In this report, the global lactose-free dairy products market has been segmented into the following categories, in addition to the industry trends which have also been detailed below
- Lactose-Free Dairy Products Market, By Product Type
- Milk
- Yogurt
- Cheese
- Ice-cream
- Others
- Lactose-Free Dairy Products Market, By Category
- Lactose-Free Dairy Products Market, By Distribution Channel
- Hypermarkets/Supermarkets
- Departmental Stores
- Convenience Stores
- Online
- Others
- Lactose-Free Dairy Products Market, By Region
- North America
- United States
- Canada
- Mexico
- Europe
- United Kingdom
- Germany
- France
- Italy
- Spain
- Poland
- Netherlands
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Australia
- New Zealand
- Malaysia
- South America
- Brazil
- Argentina
- Colombia
- Middle East & Africa
- Iran
- South Africa
- Turkey
- Saudi Arabia
- Israel