Due to the growing demand for dairy products that support lactose dogmatism or those seeking dairy alternatives that are permitted to provide health benefits, the dynamics of demand for lactose-free dairy products have undergone a significant transformation. Milk, yogurt, trash, and other dairy-based goods are among the lactose-free dairy products that are becoming more and more popular as people place less importance on eating well and staying healthy. Two major factors driving this request trend are the increased awareness of lactose dogmatism and the need for dairy products that are easier on the digestive tract.
There has been a notable increase in the diversity and inventiveness of requests for lactose-free dairy products. To improve the flavor and texture of lactose-free dairy products so that a wider spectrum of customers would find them appetizing, businesses are investing plutocrat on research and development. This has led to the introduction of a large range of lactose-free dairy products, such as Greek yogurts, flavored milks, and distinctive crapola.
Customers who are lactose intolerant or who want to limit their intake of lactose can express a variety of tastes and preferences thanks to the variety of product immolations available. The market for lactose-free dairy products is distinguished by its availability in conventional retail establishments, health food stores, and internet marketplaces. These goods' broad variety guarantees accessibility for customers looking for lactose-free alternatives, which adds to the increasing abandonment of comparable details in vibrant households.
Additionally, the ease of internet shopping has given producers of lactose-free dairy products a wider customer base by enabling them to reach worldwide. Partnerships and alliances are influencing the lactose-free dairy product market dynamics. Companies are forming alliances with nutritionists, dietitians, and health experts to build credibility and communicate the nutritional benefits of lactose-free substitutes. In order to appeal to customers who are health-conscious, collaborative efforts also involve marketing behemoths, who promote the taste and nutritional advantages of lactose-free dairy products. The market for lactose-free dairy products is heavily influenced by customer preferences and health-conscious trends. The growth in lactose sensitivity and the growing focus on digestive health have created a demand for lactose-free dairy products.
The demand for lactose-free goods made from plant-based sources has also expanded as a result of health-conscious movements like flexitarian or plant-based cultures, which have encouraged tourists to learn more about dairy substitutes. The dynamics of the market for dairy products devoid of lactose are impacted by laws and medical recommendations. When letting guests know which foods are lactose-free, labeling requirements guarantee honesty. The positive outlook for the desire for lactose-free dairy products is further supported by health guidelines that highlight the nutritional advantages of dairy and the importance of lactose-free dairy products in resolving health restrictions. The dynamics around calls for dairy products devoid of lactose continue to be troublesome. Some customers might think that these items aren't as delicious or nourishing as conventional dairy products.
In order to address these comprehensions, continued research and development efforts are needed to improve the delicate qualities of lactose-free dairy products and inform customers of their nutritional advantages. Furthermore, the development of lactose-free dairy products is hampered by the competitive geography in the factory-based dairy dairy industry, which makes product isolation and efficient marketing tactics difficult.
Lactose-Free Dairy Products Market Size was valued at USD 14.2 billion in 2023. The Lactose-Free Dairy Products industry is projected to grow from USD 15.07 Billion in 2024 to USD 21.59 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.17% during the forecast period (2024 - 2032). Rising lactose intolerance, growing health and wellness trends, increased availability of lactose-free products, innovations in product development, and increasing demand for non-dairy alternatives are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Lactose intolerance is a condition in which people cannot digest lactose, a sugar found in milk and other dairy products. This condition affects a significant portion of the population, with estimates ranging from 30% to 75% depending on the region. As more people become aware of their lactose intolerance, they are looking for alternative dairy products that are lactose-free, driving the demand for lactose-free dairy products.
The trend towards healthier lifestyles is driving the demand for lactose-free dairy products. Consumers are increasingly looking for dairy products that are low in fat, high in protein, and free from artificial additives. Lactose-free dairy products are often perceived as healthier alternatives to traditional dairy products, as they are easier to digest and may help alleviate digestive issues.
As demand for lactose-free dairy products has grown, so has the availability of these products in the marketplace. Manufacturers are responding to this trend by offering a wide variety of lactose-free dairy products, including milk, cheese, ice cream, and yogurt. This increased availability is making it easier for consumers to find and purchase lactose-free dairy products. Lactose-free milk brands provide dairy-free alternatives for individuals with lactose intolerance.
The lactose-free dairy products market segmentation, based on product type, includes milk, yogurt, ice cream, and others. The milk Lactose-Free Dairy Products segment held the majority share in 2022 contribution to the Lactose-Free Dairy Products market revenue. This is primarily owing to the manufacturers that are also introducing new lactose-free dairy products, such as lactose-free condensed milk and whipped cream, to cater to the growing demand. However, other products, such as lactose-free cheese and yogurt, are also gaining popularity.
The lactose-free dairy products market segmentation, based on Category, includes organic, and conventional. The organic segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period, 2022-2030. The lactose-free dairy products category includes a range of products that are made from milk but have been processed to remove lactose. As the demand for lactose-free dairy products continues to grow, manufacturers are introducing new products and flavors to cater to the diverse needs and preferences of consumers this help in growing demand of this segment. Hence, rising Category of organic for lactose-free dairy products positively impacts the market growth.
Lactose-Free Dairy Products Distribution Channel Insights
The lactose-free dairy products market data has been bifurcated by distribution channel into store-based, and non-store-based. The store-based distribution channel segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period, 2022-2030. They offer a wide range of products and convenient shopping experience. However, specialty stores, such as health food stores, are also popular among consumers looking for lactose-free and other health-oriented products. The online channel is also gaining popularity, as it offers a convenient way to purchase lactose-free dairy products from the comfort of home.
Figure 1: Lactose-Free Dairy Products Market, by Distribution Channel, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. Asia-Pacific Lactose-Free Dairy Products market accounted for USD 6.50 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. This is attributed to the increasing lactose intolerance and rising demand for dairy alternatives. China, Japan, and India are the largest markets for lactose-free dairy products in the region. Manufacturers in the region are introducing new lactose-free dairy products and flavors to cater to the diverse needs and preferences of consumers. Moreover, China Lactose-Free Dairy Products market held the largest market share, and the India Lactose-Free Dairy Products market was the fastest growing market in the Asia-Pacific region
Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: LACTOSE-FREE DAIRY PRODUCTS MARKET SHARE BY REGION 2023 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Lactose-Free Dairy Products market accounts for the second-largest market share due to the high prevalence of lactose intolerance and growing health awareness among consumers. The United Kingdom, Germany, and France are the largest markets for lactose-free dairy products in Europe. Manufacturers in the region are introducing new lactose-free dairy products and flavors to cater to the diverse needs and preferences of consumers. Further, the Germany lactose-free dairy products market held the largest market share, and the UK lactose-free dairy products market was the fastest growing market in the European region
The North America lactose-free dairy products market is expected to grow at the fastest CAGR from 2022 to 2030. The North America lactose-free dairy products market is driven by the high prevalence of lactose intolerance in the region. The United States is the largest market for lactose-free dairy products in North America, with a wide range of lactose-free dairy products available in supermarkets and specialty stores. Canada is also a significant market for lactose-free dairy products, with a growing demand for dairy alternatives.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the Lactose-Free Dairy Products market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Lactose-Free Dairy Products industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the Lactose-Free Dairy Products industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, Lactose-Free Dairy Products industry has provided innovative products with some of the most significant benefits. The Lactose-Free Dairy Products market major player such as Gujarat Cooperative Milk Marketing Federation (India), Valio LTD (Finland), Danone Company S.A. (France), Nestle S.A. (Switzerland), The Coca-Cola Company (U.S.), Johnson and Johnson Services Inc. (U.S.), General Mills Inc. (U.S.), Lifeway Foods Inc. and others are working to expand the market demand by investing in research and development activities.
Nestle S.A is a Swiss multinational food and beverage company founded in 1866. It is one of the largest food companies in the world, with over 2000 brands in its portfolio, including Nescafe, KitKat, Gerber, and Purina. The company's products include baby food, bottled water, cereals, chocolate, coffee, culinary, dairy, and ice cream products. It has been focusing on expanding its portfolio of lactose-free dairy products, catering to the growing demand for dairy alternatives due to lactose intolerance or other dietary preferences. The company offers a wide range of lactose-free dairy products, including milk, creamers, and yogurt, under various brands, such as Carnation, Coffee mate, and Gerber. In January 2021, nestle launched a line of lactose-free creamers under its Coffee mate brand. The new creamers are available in two flavors and are made with almond milk and coconut cream.
Danone S.A. is a multinational food and beverage company headquartered in Paris, France. The company produces a wide range of products, including dairy products, plant-based alternatives, bottled water, infant nutrition, and medical nutrition. It has been focusing on expanding its line of lactose-free dairy products to meet the growing demand from consumers who are lactose intolerant or who choose to avoid dairy for other reasons. In January 2020, Danone North America launched a line of lactose-free yogurt under its Oikos brand. The new yogurt line is available in six flavors and is made with 100% natural ingredients.Drivers and RestraintsThe growing demand for lactose-free milk brands is driven by increased lactose intolerance awareness and health-conscious consumers, while the high cost of production and limited flavor options pose restraints to market expansion.
Lactose-Free Dairy Products Industry Developments
September 2019: Nestle Health Science announced a partnership with Merit Functional Foods and its technology partner Burcon NutraScience to develop and commercialize plant-based protein ingredients.
April 2020: Saputo Dairy Australia acquired Lion Dairy & Drinks, which includes brands such as Dairy Farmers, Pura, and Dare. The acquisition strengthened Saputo's position in the Australian dairy market and expanded its portfolio of lactose-free dairy products.
July 2020: Chobani launched a line of lactose-free Greek yogurt under its Chobani brand. The new yogurt line is available in four flavors and is made with only natural ingredients.
October 2020: Royal FrieslandCampina acquired Best Cheese Holland, a company specializing in the production of premium specialty cheeses, including lactose-free cheeses. The acquisition allowed FrieslandCampina to expand its portfolio of lactose-free dairy products and strengthen its position in the specialty cheese market.
March 2021: Danone North America announced a partnership with Brightseed, a company that uses artificial intelligence to identify plant-based compounds with potential health benefits. The partnership will allow Danone to develop new lactose-free dairy products with enhanced nutritional benefits.
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