The global lactose-free products market size was valued at around USD 25 billion in 2021 and is expected to reach around USD 51 billion by 2031, expanding at a CAGR of 9.4% during the forecast period, 2023–2031. The growth of the market is attributed to the various health benefits and the rising population of lactose intolerance across the globe.
Lactose is a type of sugar that is present naturally in milk and dairy products. Lactose-free food is a commercial product that is free of lactose, meant for those who are unable to digest lactose. Lactose-free products provide the essential nutrients present in regular dairy products. These products have similar taste and texture, are rich in calcium and vitamin D, and contain all the nine necessary amino acids.
A wide variety of lactose-free products are available in the market to cater to the growing health-conscious consumers. Consumption of lactose-free products is increasing across the world, as the demand for low-calorie products is rapidly increasing among people suffering from lactose intolerance.
The COVID-19 pandemic has hampered many businesses across the globe, the lactose-free products market was also affected adversely due to strict lockdown rules initiated by the government, which disrupted the production and availability of resources. To increase the volume of the products to meet the high demand from various companies globally, farmers were continuously trying to decrease the quality of raw materials. Rise in the cost of transportation caused delays in distribution across the globe.
Lactos-Free Products Market Trends, Drivers, Restraints, and Opportunities
- A large number of people are increasing adopting healthy diets that are free from foods such as gluten-free, dairy-free, and sugar-free. This, in turn, is expected to driving the demand for lactose-free products in the coming years.
- Rapid adoption of alternative milk and milk products due to the growing number of people with lactose intolerance and rising preference for vegan products having low-calories are expected to fuel the market.
- Hazelnut milk and milk products are naturally gluten- and lactose-free. Additionally, they impart a sweet and nutty taste. Thus, it is preferred in and as beverages and in desserts. This, in turn, is likely to drive the market across the globe.
- Growing demand for soya yogurt, as it delivers healthy, contains unsaturated fats, and has the ability to reduce cholesterol and blood sugar levels is likely to fuel its consumption by diabetic and health conscious consumers. This, in turn, is likely to drive the lactose-free products market in the coming years.
- Unflavored lactose-free products leave an undesirable after taste, which decreases their consumption, thereby restricting the market.
Scope of the Lactose-Free Products Market Report
The report on the global lactose-free products market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been 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 Products Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2021
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Historic Data
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2019–2020
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Forecast Period
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2023–2031
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Segmentation
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Type (Milk, Cheese, Yogurt, Ice Cream, Confectionery Products, and Others), Form (Liquid, Powder, and Semi-solid), Category (Organic and Inorganic), Fat Content (Whole Milk, Reduced fat milk, Fat-free Milk), Distribution Channel (Offline [Supermarket/Hypermarket, Departmental Stores, Convenience Stores, and Others] and Online [E-commerce Platform and Company Website)]
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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, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Gujarat Cooperative Milk Marketing Federation; Valio LTD; Danone Company S.A.; Nestle S.A.; The Coca-Cola Company; Johnson and Johnson Services Inc.; General Mills Inc.; Lifeway Foods Inc.; Lala U.S., Inc.; Organic Valley; Dairy Farmers of America, Inc.; Dean Foods; Shamrock Foods; Saputo Inc; Prairie Farms Dairy; Agri-Mark, Inc.; SmithFoods, Inc.; Granlatte Societa Cooperativa Agricola ARL; Meggle; and Drums Food International Pvt Ltd
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Lactose-Free Products Market Segment Insights
On the basis of type, the lactose-free products market is divided into milk, cheese, yogurt, ice-cream, confectionery products, and others. The milk segment held a substantial share of the market due to the factors such as the rise in the adoption of hazelnut milk and the growth in the demand for lactose-free milk products among lactose-intolerance consumers for its health benefits across the globe.
In terms of form, the market is segregated into liquid, powder, and semi-solid. The growth of the liquid segment is due to the rise in the consumption of beverages among the health enthusiasts. Liquid lactose-free beverages are extensively used in café chains.
Based on category, the lactose-free products market is bifurcated into organic and inorganic. The organic segment has grown a modest pace owing to the high benefits of organic products. Organic products raised do not contain antibiotics and/or added growth hormones, thus fueling the segment.
In terms of fat content, the market is segregated into whole milk, reduced fat milk, and fat-free milk. The reduced-fat milk segment is projected to expand at a rapid pace during the forecast period. Conversely, growing awareness of the ill effects of fatty foods and beverages results in diseases such as obesity, diabetes, and chronic heart diseases, and others fuels the fat-free milk segment.
On the basis of distribution channel, the market is categorized as offline and online. The offline segment is categorized as supermarket/hypermarket, departmental stores, convenience stores, and others, while the online segment is fragmented into e-commerce platform and company website. The supermarkets/hypermarkets sub-segment held a key share of the market due to exponential growth of a wide variety of products and purchasing convenience such as affordability, choice of brand, and trustworthiness. Offers and discounts launched by these merchandisers are expected to drive the sale of lactose-free dairy products. Online retail is an emerging sector, which is fueling the segment at a considerable CAGR in the coming years owing to high discounts and home delivery options offered by online retail stores.
Based on region, the global lactose-free products market is classified into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the forecast period due high awareness about lactose intolerance and rising demand for cream-based products and yogurt. In North America, lactose intolerance is common among people, which is boosting the sale of the lactose-free products. People are shifting from dairy to lactose-free dairy due to health concerns among the young generation. In the US lactose-free products have become a crucial part of supermarkets/hypermarkets. However, the market in Asia Pacific is projected to expand at a fast pace in the coming years due to rapid urbanization, change in food habits, and increase in the adoption of western diets. Rising migrant population in Asia Pacific and an exponential rise in the lactose intolerance population in China and Japan is expected to fuel the market in this region.
Segments
The global lactose-free products market has been segmented on the basis of
By Type
- Milk
- Cheese
- Yogurt
- Ice Cream
- Confectionery Products
- Others
By Form
By Category
By Fat Content
- Whole milk
- Reduced fat milk
- Fat-free milk
By Distribution Channel
- Offline
- Supermarkets/Hypermarkets
- Departmental Stores
- Convenience Store
- Other Sales Channel
- Online
- E-commerce Platform
- Company Website
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Market Players
- Gujarat Cooperative Milk Marketing Federation
- Valio LTD
- Danone Company S.A.
- Nestle S.A.
- The Coca-Cola Company
- Johnson and Johnson Services Inc.
- General Mills Inc.
- Lifeway Foods Inc.
- Lala U.S., Inc.
- Organic Valley
- Dairy Farmers of America, Inc.
- Dean Foods
- Shamrock Foods
- Saputo Inc
- Prairie Farms Dairy
- Agri-Mark, Inc.
- Others
Competitive Landscape
Key players operating in the global lactose-free products market are Gujarat Cooperative Milk Marketing Federation; Valio LTD; Danone Company S.A.; Nestlé S.A.; The Coca-Cola Company; Johnson and Johnson Services Inc.; General Mills Inc.; Lifeway Foods Inc.; Lala U.S., Inc.; Organic Valley; Dairy Farmers of America, Inc.; Dean Foods; Shamrock Foods; Saputo Inc; Prairie Farms Dairy; Agri-Mark, Inc.; SmithFoods, Inc.; Granlatte Societa Cooperativa Agricola ARL; Meggle; and Drums Food International Pvt Ltd.
Some of these players have adopted a series of business development strategies including merger & acquisition, partnerships & collaboration, product launches, and increase in production capacity expansion to boost their consumer base and market share.
- In 2020, Valio, a Finland-based dairy and food firm, collaborated with Palmer Holland to distribute lactose-free milk powders.
- In January 2020, The Coca-Cola Company acquired the remaining stakes in Fairlife LLC from its joint venture partner Select Milk Producers to meet the rapidly changing needs of buyers.
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