Lactose-Free Products Market

Global Lactose-Free Products Market Size (2024 to 2032)

The size of the global lactose-free products market is expected to be worth USD 14.30 billion in 2024 and grow at a CAGR of 8.70% from 2024 to 2032 to achieve USD 27.87 billion by 2032. 

Dairy products contain lactose, which is digested with the help of the enzyme lactase in the body. People who cannot digest this enzyme are lactose intolerant. Lactose is the main source of energy and the sugar molecule present in milk. Lactose consists of glucose and galactose. Lactose-free products are specially prepared for people who are not resistant to lactose. People who are not lactose intolerant do not have enough lactase, an enzyme that breaks down lactose into glucose and galactose. Manufacturers of lactose-free products can add lactose-free dairy products without gastrointestinal symptoms by adding lactose to lactose-free milk, a lactose-breaking enzyme found in dairy products. The demographic growth of lactose intolerance, changes in consumer lifestyle and growth in per capita disposable income are just some of the driving forces worldwide that demand for dairy-free products is expected to increase during the forecast period.

Global Lactose-Free Products Market Drivers

The increase in lactose intolerance patients is one of the main drivers of the global Lactose-Free Products Market growth. In the United States, the scenario is that lactose intolerance in one in three individuals is one way to increase the demand for lactose-free food. Lactose-free drinks are highly used, and there will be an increase in demand during the foreseen period. Increased customer consciousness of the health benefits associated with lactose-free products is expected to lead the lactose-free products market in the calculated period. To remain competitive in the market, suppliers are developing and researching unprecedented lactose-free novel foods. Other factors promoting the development of the global market are a surge in the cases of lactose intolerance patients and increased per capita spending in both developed and developing countries. Lactose intolerance is quite widespread among Latinos. The number of customers with this condition is increasing in major parts of the world, which is also one of the reasons for the increase of the market growth. A major factor driving the development of the worldwide Lactose-Free Products Market is the expanded utilization of natural food and beverages. The easy digestibility and improved bioavailability of the Lactose-Free Products Market are contributing to the development of this market. The continuously growing lactose-free dairy population is one of the main drivers of the global Lactose-Free Products Market. The growing consumption of organic food and beverages is a major driving force in the global market. This is because of the developing awareness of the symptoms of side effects of unethical and synthetic ingredients used in non-organic foods.

The surge in the cases associated with various food allergies in various products that comprise of lactose is a critical factor impeding the developments in this business. Advanced economies have implemented strict rules and regulations to ensure the production of high-quality organic milk. This has increased consumer confidence in lactose-free products. Consumers prefer various dairy products like yogurt, flavored milk, sugar-free products, and cheese in their daily routine. As the innovation of lactose-free dairy products has increased, the health benefits provided by lactose-free dairy products have increased, representing a great opportunity for growth in the Lactose-Free Products Market. Due to lifestyle changes, the impact of social media and the Internet, and increased social awareness, the demand for dairy-free products is expected to increase. The global demographic of the Millennium is increasingly leaning towards vegan products, which is driving the growth of the dairy-free market. All these factors make people prefer dairy-free products, which are driving the growth of the Lactose-Free Products Market, and this is expected to continue during the forecast period. Also, as the number of people in North America and Europe increases, they prefer to buy organic food at high prices. Due to ethical issues related to animal rights and environmental campaigns, the trend towards individual vegan diets and the transition to a vegan lifestyle is a trend.

Global Lactose-Free Products Market Restraints

High competition with dairy substitutes like nuts and grains can impede the development of the Lactose-Free Products Market around the world. Regarding the challenge, flavor remains a constant interest in consumers. Lactose-free products contain aryl sulfatase, which converts the natural composition of milk to paracresol. Cross-contamination of raw materials can alter the market trajectory during the forecast period and affect sales in the Lactose-Free Products Market. Furthermore, the relatively high price of these products may also limit the scope of sales and hinder the growth of the global Lactose-Free Products Market to some extent.

REPORT COVERAGE

This research report on the global Lactose-Free Products Market has been segmented and sub-segmented based on type, form, distribution channel, and region. 

Global Lactose-Free Products Market By Type

• Yogurt
• Cheese
• Milk
• Confectionery Products
• Ice-Cream

The milk sector is expected to represent most of the market for lactose-free products during the forecast period. Lactose-free milk is an excellent source of nutrients like calcium, phosphorus, proteins, vitamin B12, riboflavin, and vitamin D. Lactose-free milk is produced by adding lactase to normal cows. Lactose-free milk is sweeter than normal milk, which helps break down lactose into two forms of sugar during production. This is the key factor driving the growth of the milk segment in the global Lactose-Free Products Market.

Global Lactose-Free Products Market By Form

• Reduced Lactose
• No Added Sugar/Reduced Sugar Claims
• Others

The sugar-free or reduced-sugar segment is expected to be the fastest-growing. With a rising awareness of health problems like obesity and diabetes, consumers are increasingly demanding that they have no sugar or fewer sugary products. To meet the changing needs of consumers, many companies in the dairy industry are focusing on introducing added sugar-free or lactose-free dairy products. The trend to use unsweetened sugar is driving the market for lactose-free products.

Global Lactose-Free Products Market By Distribution Channels

• Hypermarkets/supermarkets
• Online retail stores
• Convenience stores
• Specialty stores

E-commerce may become the most popular sector in the coming years as the acceptance of online shopping and Internet penetration increases.

Global Lactose-Free Products Market By Region

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• Latin America

Of these, Europe is expected to occupy the largest share of the global market as the production of milk in this region is high. North America is expected to witness stable growth. North America is expected to play a significant role in the Lactose-Free Products market in the coming years. This is credited to the rising demand for cream and yogurt-based products, and the demand for organic food is also increasing. The call for cream and yogurt-based products in the region will increase demand. Lactose-free dairy products have become a prominent part of American supermarkets. The Asia Pacific region is expected to show good growth in the Lactose-Free Products Market during the forecast period. This is because per capita spending related to dairy products has increased. The growing immigrant population in the Gulf Cooperation Council (GCC) region is believed to strengthen the Asia Pacific region. The increase in lactose intolerance populations in China and Japan is considered a driving force in the region's markets.

KEY MARKET PLAYERS

Major Key Players in the Global Lactose-Free Products Market are Valio International, Alpro, Galaxy Nutrition Foods, Parmalat SpA, Edlong Dairy Technologies, Dean Foods, Kerry Group, Doves Farm Foods, Amul, Shamrock Foods Company, Green Valley Organics, Crowley Food, OMIRA GmbH, McNeil Nutritionals, Daiya Foods, Arla Foods, Danone Company Inc, Cargill, Murray Goulburn Co-Operative, Nestle, and Fonterra Co-Operative Group Limited

RECENT HAPPENINGS IN THE MARKET

• In January 2020, the Coca-Cola Company published that it had obtained the rest of the shares in Fairlife LLC from its mutual partnering company, Select Milk Producers, in order to meet consumer demand for lactose-free items.
• In April 2020, Valio and Palmer Holland (USA) began a joint enterprise to offer lactose-free powder in the US market.