The global Lactose-free milk market was valued at USD 5,843.6 Mn in 2019 and is projected to reach USD 13,133.2 Mn by 2027, expanding at a CAGR of 10.6% during the forecast period. Lactose-free milk contains lactase, an enzyme that breaks down lactose. This milk is prepared by adding lactase to regular milk, which breaks down lactose into simple sugars. These sugars are easy to digest. For lactose intolerant individuals, it is difficult to avoid the indulgence and nutritious content of dairy food products. Lactose-free milk has nearly the same texture, taste, and nutrient profile compared to regular milk. Lactose-free milk is a great source of protein, vitamin D, and micronutrients such as phosphorus, calcium, vitamin B12, and riboflavin.
The lactose-free market is anticipated to grow significantly during the forecast period. This growth is attributed to growing health consciousness coupled with increasing purchasing power of customers. Moreover, growing health concerns among customers and rising awareness regarding lactose intolerance is anticipated to fuel the market during the forecast period. Lactose-free milk offers various health benefits such as improving digestive health and bone health and providing complete protein to the body. Lactose in milk often causes digestive problems such as bloating, excessive gas problems, or nauseous after the consumption of milk. This can be avoided by alternating lactose-free milk products.
Increasing awareness among customers about lactose-free products has led to an increase in the growth of numerous product lines including flavored milk. Growing lactose intolerant population is projected to encourage the consumption of lactose-free milk in the coming years. This creates opportunities for key players to launch new lactose-free products with enhanced flavors and tastes. Development and innovations in lactose-free milk packaging is anticipated to gain consumer attention during the forecast period. Customers are adopting convenient beverage substitutes like flavored milk to keep them nourished while on the go, due to busy work-life schedules. This is anticipated to drive the demand for fortified and ready-to-drink lactose-free flavored milk products that fulfill the customers’ need for nutritional breakfast.
High prices of lactose–free milk products are anticipated to hamper the market growth during the forecast period. Raw milk is treated with a pasteurization process for increasing its shelf-life and enhancing the consistency of milk while converting it into lactose-free milk. For converting normal milk to lactose-free milk, the raw milk is processed with lactase enzymes for breaking down the compound lactose into two sugar forms, namely, galactose and glucose. This process of converting raw milk into lactose-free milk surges the price of lactose-free dairy products as compared to regular packaged dairy goods. Lactose-free milk is provided under the superior or premium product type, which caters to a small customer population, wherein regular milk is a commodity delivered at cost-effective prices, due to which it is consumed by a large-scale population.
The COVID-19 pandemic is causing economic hardships for businesses, consumers, and communities across the world. Manufacturers are facing exclusive challenges caused by the crisis, and the lactose-free milk market is no exception. Lactose-free milk manufacturers are anticipated to face variations in demand, owing to the COVID-19 pandemic, with significantly disruptive effects on the supply chain and revenues. These forces are expected to affect the demand outlook. Additionally, the COVID-19 outbreak is affecting production. Lactose-free milk manufacturers are expected to have weakening links in their supply chain, as some suppliers and vendors are facing financial or operational struggles, particularly in those regions hit hard by COVID-19, such as Europe and Asia Pacific-based supply chain partners.
In terms of type, the global lactose-free milk market is segmented into plain milk and flavored milk. The plain milk segment accounted for a significant share of the market in 2019, owing to increasing popularity of lactose-free products among consumers. The plain milk segment accounted for the market a share of 74.9% in 2020. The flavored milk segment is anticipated to expand at a CAGR of 10.1% during the forecast period. New improvements in flavors and packaging are trending in the flavored milk segment, with companies introducing locally preferred flavors. This, in turn, is anticipated to fuel the flavored milk segment.
On the basis processing, the global lactose-free milk market is segmented into ultra-high temperature milk and fresh/pasteurized milk. The fresh/pasteurized milk segment accounted for 63.8% share of the market in 2020. Increased operational efficiency offered by this processing method is the primary driver for the substantial segment share. The ultra-high temperature milk processing segment is projected to expand at substantial CAGR of 10.9% during the forecast period. This growth is attributed to the extended shelf life offered by this method. In addition, the ultra-high temperature milk processing method has numerous advantages such as less processing time and high quality. This, in turn, is projected to fuel the growth of the ultra-high temperature milk segment during the forecast period.
Based on sales channel, the lactose-free milk market is categorized as online and offline. The offline segment accounted for 70.9% share of the market in 2019. The online segment is expected to gain traction in the future, as it offers a variety of products with specific features and product descriptions. This increases the flexibility for consumers to compare and choose the product. Moreover, online channels offer various discounts and offers that customer avail of at the time of purchase. Increasing internet penetration and growing popularity of the online shopping of dairy products is also anticipated to boost the growth of the online segment during the forecast period.
On the basis of regions, the market is categorized as North America, Europe, Asia Pacific, Latin America, and Middle East & Africa (MEA). North America held a significant share of the market in 2019 owing to product innovation offered by manufacturers in this region. Moreover, increasing number of health-conscious people is anticipated to drive the market in this region. The market in Asia Pacific is expected to expand at a significant CAGR during the forecast period due to factors such as increasing disposable income, changing lifestyle standards, and growing demand for premium & health-benefiting products. The untapped market in Asia Pacific anticipated to create growth opportunities for manufacturers in the lactose-free milk market owing to increasing awareness about lactose intolerance.
Some frequently asked quetions about this report!
Additional company profiles can be provided on request.
Yes, the report covers various lactose-free milk market by processing as ultra-high temperature milk and fresh/pasteurized milk.
According to this Growth Market Reports, the market from lactose-free milk market is likely to register a CAGR of 10.6% during period 2020-2027, with an anticipated valuation of USD 13,133.2 million by the end of the 2027.
In addition to market size (in USD Million), market volume (Million Liters), and Company Market Share (in % for base year 2019), other data such macro-economic factors, COVID-19 Impact on the lactose-free milk market is available in final report.
Factors such as competitive strength and market positioning are key areas considered while selecting top companies to be profiled.
The Lactose-free milk market is anticipated to grow significantly during forecast period due to growing lactose intolerant population, awareness regarding self-diagnosis, and availability of lactose-free products with added health benefits.
The market is expected to witness sluggish growth with slow increase in terms of demand during 2019-2020 owing to the negative impact of COVID-19 pandemic on the lactose-free milk market.
The base year considered for the Lactose-free milk market report is 2019. The complete analysis period is 2017 to 2027, wherein, 2017 & 2018 are the historic years, and the forecast is provided from 2020 to 2027.
Major Manufactures include Arla Foods amba, LALA, PRAIRIE FARMS DAIRY, Organic Valley, and Borden Dairy Company.
Some other reports from this category!