The Germany lactose-free milk market was valued at USD 221.5 Million in 2020 and is anticipated to reach USD 366.2 Million by 2028, expanding at a CAGR of 6.5% during the forecast period. Lactose-free milk contains lactase to aid in lactose digestion and has the same nutritional profile as regular milk. Lactose-free milk, like regular milk, is a good source of protein, with roughly 8 grams in a 1-cup (240-ml) consumption.
It is abundant in calcium, phosphorus, vitamin B12, and riboflavin, which are all vital micronutrients. Furthermore, several varieties are fortified with vitamin D, a crucial nutrient involved in a variety of elements of health that is found only in few foods.

Lactose Free Market Dynamics
Factors such as ease of digestion and bioavailability drive the demand for lactose-free milk, propelling the industry. Lactose-free milk has calcium, vitamin A, vitamin D, and protein content as conventional milk and dairy products. Consumption of lactose-free milk has several benefits. Lactose intolerance symptoms are avoided by drinking lactose-free milk. It assists in the formation of strong bones and teeth. It aids in the development and regeneration of muscle tissue, clear vision, healthy complexion, and a strong immune system.
Nerve function, muscular contraction, and blood clotting are all crucial functions of lactose free milk. The market is expected to grow in the forecast period, due to these qualities offered by lactose-free milk products.
Lactose-free milk is made by pasteurizing milk at an ultra-high temperature (UHT) to extend its shelf life and enhance its consistency while converting it to lactose-free milk. Lactase enzymes are used to break down complex lactose disaccharide into two simple sugars, glucose and (monosaccharides) galactose, in order to turn regular milk into lactose-free milk.
Lactose-free dairy products are more expensive than regular packaged dairy products, due to the process of turning milk into lactose-free milk. Lactose-free milk is supplied under the premium product category, which caters to a limited customer group, whereas conventional milk is a commodity offered at low prices, allowing it to be consumed by a vast number of people.
On the other hand, manufacturers are offering different types of flavors in lactose-free milk products. Hence, customers get different varieties with valuable nutrition. Companies are offering different types of attractive packaging to market the product. Customers re attracted, due to high quality products and innovative packaging techniques. These aspects are expected to aid the lactose-free milk market to gain substantial growth in the forecast period.
Milk consumption in Germany decreased by 29% by December 2020, which was a severe loss for millions of farmers, due to the shutdown of hotels, restaurants, and roadside tea shops as part of a statewide lockdown to prevent the spread of coronavirus. The milk market is saturated with excess supplies, with producers in certain places selling at 50% discount in order to survive. Distress sales are taking place in rural areas where private and cooperative dairies are unable to contact farmers for procurement, due to transportation disruptions.
After COVID-19 began to spread in key milk-producing states such as Bavaria, Bremen, and Hamburg, this scenario emerged. While milk production continues, the drop in consumption deters farmers from investing in the coming season, as prices of milk derivatives such as skimmed milk powder (SMP) plummeted, due to lack of exports during the Germany pandemic. Milk consumption dropped by 29% in the last month, due to the shutdown of hotels, restaurants, and roadside tea vendors; however, domestic consumption increased.
Lactose Free Market Segment Insights
Based on types, the Germany lactose-free milk market is segmented into flavored milk, plain milk, and others. During the projected period, the flavored milk segment is expected to constitute a substantial market share in the forecast period. In the flavored milk segment, companies are introducing locally preferred varieties with innovations in flavors and packaging.
As a result, the flavored milk market is expected to grow. The plain milk segment accounted for a considerable market share in the future, due to the growing popularity of lactose-free products among customers.

In terms of processing, the Germany lactose-free milk market is segmented into ultra-high temperature milk, and fresh/pasteurized milk. In 2020, the fresh/pasteurized milk segment accounted for a significant portion of the market. The significant segment share is attributed to the increased operational efficiency of this processing approach. During the projection period, the ultra-high temperature milk processing segment is expected to grow at a significant percent, due to long shelf life offered by this method of processing. Ultra-high temperature milk processing provides several advantages, including short processing time and high quality. As a result, the ultra-high temperature milk segment is expected to rise during the projection period.

In terms of sales channels, the Germany lactose-free milk market is segmented into online and offline. The online segment is expected to gain a substantial market share in the forecast period, as it offers a variety of products with specific features and product descriptions. It offers customers a variety of options when it comes to comparing and selecting products.
The online segment is expected to grow at a significant CAGR throughout the projection period, due to the increased use of e-shopping by customers. Customers take advantage of numerous discounts and offers available on online channels at the time of purchase. Increasing internet penetration and the popularity of online dairy shopping are expected to support the growth of the online segment during the forecast period.

Key Benefits for Industry Participants & Stakeholders
- In-depth Analysis of the Germany Lactose-free Milk Market
- Historical, Current, and Projected Market Size in terms of Value and Volume
- Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
- Industry Drivers, Restraints, and Opportunities Covered in the Study
- Recent Industry Trends and Developments
- Competitive Landscape & Strategies of Key Players
- Neutral Perspective on Global Germany Lactose-free Milk Market Performance
Segments
Types
- Plain Milk
- Flavored Milk
- Others
Processing
- Ultra-High Temperature Milk
- Fresh/Pasteurized Milk
Sales Channels
Key Players
- ALDI Nord
- Arla Foods amba
- EDEKA ZENTRALE Stiftung & Co. KG
- Kaufland
- Milchwerke Berchtesgadener Land-Chiemgau eG
- OMIRA GMbh
- PRIVATMOLKEREI NAARMANN GMBH
- REWE Markt GmbH
- Schwarzwaldmilch GmbH
Competitive Landscape
Key players in the Germany Lactose-free Milk Market include, ALDI Nord, Arla Foods Amba, EDEKA ZENTRALE Stiftung & Co. KG, Kaufland, Milchwerke Berchtesgadener Land-Chiemgau eG, OMIRA GMbh, PRIVATMOLKEREI NAARMANN GMBH, REWE Markt GmbH, and Weihenstephan.
