Lactose Free Dairy Products Market Outlook 2032
The global lactose free dairy products market size was USD 13.03 Billion in 2023 and is projected to reach USD 21.8 Billion by 2032, expanding at a CAGR of 5.8% during 2024–2032. The market growth is attributed to the rising demand for healthy dietary options.
Increasing prevalence of lactose intolerance and consumer preference for healthy dietary options are fueling demand for lactose-free dairy products, propels the market. Lactose-free dairy products offer a viable alternative to traditional dairy for individuals with lactose intolerance, providing them with access to nutritious and flavorful options without discomfort. Moreover, the rising trend of veganism and plant-based diets is fueling the adoption of lactose-free dairy products among a broad demographic beyond lactose-intolerant individuals.
Impact of Artificial Intelligence (AI) in Lactose Free Dairy Products Market
The use of artificial intelligence is likely to boost the lactose free dairy products market. AI algorithms are utilized in quality control systems to detect defects and ensure compliance with regulatory standards. Furthermore, AI-driven predictive maintenance solutions help minimize downtime and optimize equipment performance, resulting in increased productivity and cost savings.
Lactose Free Dairy Products Market Dynamics
Major Drivers
Increasing awareness about lactose intolerance is expected to drive the market. Consumers are becoming conscious of their dietary needs, leading to a rising shift toward lactose-free alternatives. Moreover, the growing trend of health consciousness and wellness food consumption among millennials and Gen Z is boosting the demand for lactose free dairy products, including rice milk.
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As per a report released by Texas Health Resources on April 25, 2023, 80% of millennials prioritize health benefits when selecting foods, whereas this figure stands at 64% for baby boomers.
Existing Restraints
Limited product availability and distribution channels are expected to hinder the market during the forecast period. Distribution channels for specialized dairy products are often less developed as compared to mainstream dairy products, leading to challenges in reaching underserved regions. Furthermore, higher production costs as compared to traditional dairy items discourages their widespread adoption further hindering the market.
Emerging Opportunities
High consumer demand for innovative and diverse lactose-free dairy products is expected to create immense opportunities for the players competing in the market. Manufacturers are introducing new product formulations, flavors, and packaging formats to cater to evolving consumer preferences. Moreover, the growing demand for lactose-free products enriched with vitamins, minerals, probiotics, and other functional ingredients further boosts the market.
Scope of the Lactose Free Dairy Products Market Report
The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics are included in the report.
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Attributes
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Details
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Report Title
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Lactose Free Dairy Products Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2023
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Historic Data
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2017 -2022
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Forecast Period
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2024–2032
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Segmentation
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Product (Milk, Condensed Milk, Milk Powder, Ice cream, Cheese, Yogurt, and Others), Form (Solid, Powder, and Liquid), and Distribution Channel (Convenience Store, Online Channels, and Hypermarket/Supermarket)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Alpro; Arla Foods amba; Cabot Creamery; Danone; GCMMF; General Mills Inc; Green Valley; Lifeway Foods, Inc; Nestle; Organic Valley; Saputo Inc; The Kroger Co; and Valio Oy
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Lactose Free Dairy Products Market Segment Insights
Product Segment Analysis
Based on product, the lactose free dairy products market is divided into milk, condensed milk, milk powder, ice cream, cheese, yogurt, and others. The yogurt segment held the major share of the market in 2023, due to the shift toward healthy dietary choices, including lactose-free yogurt products.
Yogurt is widely perceived as a nutritious and convenient snack option, making it a popular choice among health-conscious consumers seeking dairy alternatives. Moreover, the manufacturers are introducing a variety of lactose-free yogurt options, including plain, flavored, and Greek-style varieties to cater to wide options thereby fuelling the segment.
The ice cream segment is expected to expand at a significant growth rate in the coming years, owing to the rising demand for lactore free ice cream products. Manufacturers are leveraging ingredients, such as almond milk, coconut milk, and soy milk to create dairy-free bases for lactose-free ice cream, catering to a wide audience of lactose-intolerant and health-conscious consumers. Moreover, rising demand for premium and artisanal lactose free ice cream products further propels the segment during the foreast period.
Form Segment Analysis
On the basis of form, the global market is segregated into solid, powder, and liquid. The powder segment is anticipated to expand at a substantial CAGR during the forecast period. Powdered lactose-free dairy products offer several advantages, including longer shelf life, convenience in storage and transportation, and versatility in usage.
Consumers easily reconstitute powdered dairy alternatives with water to create milk, yogurt, or other dairy-based products according to their preferences. Moreover, the advancements in powder processing technologies to improve the taste, texture, and nutritional profile of lactose-free powdered products as compared to liquid products further boost the segment.
Distribution Channel Segment Analysis
Based on distribution channel, the lactose free dairy products market is segmented into convenience store, online channels, and hypermarket/supermarket. The hypermarket/supermarket segment led the market in terms of revenue in 2023, as they offer a wide range of lactose-free dairy products providing consumers with convenience and accessibility. The presence of trusted and established brands in hypermarkets and supermarkets instills confidence in consumers and influences purchase decisions. These factors are expected to fuel the segment during the forecast period.
The online channels segment is projected to register a robust growth rate during the assessment years, owing to the surge in convenient and accessible digital purchases of lactose-free dairy products. Consumers are ordering their favorite lactose-free items from the comfort of their homes, with doorstep delivery options. Moreover, the ongoing shift in consumer behavior towards digital adoption and e-commerce for retail online grocery shopping is boosting the segment.
- As per the report published by Forbes on March 28, 2024, online retail purchases are expected to reach 20.1% of total retail purchases in 2024. Additionally, this figure is anticipated to rise to 23% by 2027.
Regional Outlook
In terms of region, the global lactose free dairy products market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America held a major market share in 2023. The region's well-established dairy industry and extensive distribution networks have facilitated the availability and accessibility of lactose-free options across retail channels. Moreover, increasing number of people suffering with lactose intolerance and growing demand for dairy alternatives in the region boost the market.
According to a report published by the American College of Gastroenterology in October 2021, around 15% of adult Caucasians and 85% of adult African-Americans in the US experience lactose intolerance.
The market in Asia Pacific is projected to grow at a significant pace in the years to come, owing to the region's large population and rising disposable incomes fueling the demand for dairy alternatives, including lactose-free products. Moreover, the shift toward western dietary patterns and lifestyles is leading to increased consumption of lactose fee diary milk products further propelling the market.
Segments
The lactose free dairy products market has been segmented on the basis of
Product
- Milk
- Condensed Milk
- Milk Powder
- Ice cream
- Cheese
- Yogurt
- Others
Form
Distribution Channel
- Convenience Store
- Online Channels
- Hypermarket/Supermarket
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Alpro
- Arla Foods amba
- Cabot Creamery
- Danone
- GCMMF
- General Mills Inc
- Green Valley
- Lifeway Foods, Inc
- Nestle
- Organic Valley
- Saputo Inc
- The Kroger Co
- Valio Oy
Competitive Landscape
Key players competing in the global lactose free dairy products market are Alpro; Arla Foods amba; Cabot Creamery; Danone; GCMMF; General Mills Inc; Green Valley; Lifeway Foods, Inc; Nestle; Organic Valley; Saputo Inc; The Kroger Co; and Valio Oy.
These companies use development strategies including mergers, acquisitions, partnerships, collaboration, and product launches to expand their consumer base worldwide. For instance,
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In November 2023, Dream, a key producer of organic, natural, and non-GMO plant and fruit-based products, launched its latest offering a new organic rice milk. This dairy-free alternative boasts a creamy taste and texture reminiscent of traditional dairy milk while containing 8g of total fat per serving. Additionally, Dream has introduced another variant of organic rice milk with 2% fat, providing a smooth, creamy mouthfeel, and featuring 5g of total fat per serving.
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