The global lactose-free dairy products market surpassed an estimated valuation of US$15 Bn in 2022. Fairfield Market Research envisions an upward growth trajectory for the market as the exceptional growth of dairy-free trend prevails in tandem with expanding veganism.
Market Analysis in Brief
In the past few years, consumers have shown an inclination to dairy alternatives due to various reasons such as lactose intolerance, allergies, dietary restrictions, and ethical considerations. This has resulted in increased demand for lactose-free dairy products as it offers a viable option for consumers seeking alternatives to traditional dairy products. Additionally, the advances in food processing technologies have enabled vendors to enhance the quality and quantity of lactose-free options. Given this fruitful landscape, the lactose-free dairy products market is projected to reach sound maturity. Leveraging the opportunity, vendors in the market are introducing a wide range of lactose-free dairy products to meet consumer preferences and demands. This in turn is further contributing to the expansion of the lactose-free dairy products industry.
Key Report Findings
Rising Incidence of Lactose Intolerance
Lactose intolerance is a condition where individuals have difficulty digesting lactose, the sugar present in dairy products. This condition affects a significant population worldwide. The growing prevalence of lactose intolerance has led to individuals seeking alternative dairy products that are lactose-free. To cater to this demand, manufacturers of lactose-free dairy products are diversifying their product offerings.
As a result, there is increased availability of products such as lactose-free milk, vegan cheese, yogurt, and ice cream. Considering these trends, it is predicted that the lactose-free dairy products market will attain remarkable growth in the upcoming years.
Heightened Adoption of Alternative Milk Products
Today, several consumers are opting for plant-based or vegan diets due to rising animal welfare and environmental concerns. These individuals are seeking alternatives to animal-based products, including dairy products. This has led to the adoption of alternative milk products made from sources such as almonds, soy, coconut, and rice. This trend provides ample opportunities for the lactose-free dairy products market to thrive and grow.
The high cost associated with lactose-free ingredients is expected to hamper the growth of the lactose-free dairy products market. Lactose-free ingredients such as lactase enzymes, which are used to break down lactose, are expensive to produce. There is also an additional cost associated with the manufacturing of lactose-free products. Such factors impact the final price of lactose-free products, making them more expensive than their lactose-containing counterparts.
Overview of Key Segments
Lactose-free Milk Encounters Widespread Consumer Acceptance
Based on the product type, the lactose-free dairy products market is primarily categorised into milk, ice-cream, yogurt, and processed milk products. The milk segment held a prominent share, primarily owing to the high traction of hazelnut milk among young consumers. It is estimated to sustain its dominance over the forecast period due to the rise in product launches by key industry participants. On the other hand, the yogurt segment is anticipated to witness the highest growth during the projected timeframe. Rising awareness about the health benefits of lactose-free yogurts is acting as a key growth catalyst for the segment.
Soya Yogurt Captures Consumer Interest
Soya yogurts, as lactose-free dairy products, have gained significant traction. These yogurts contain healthful and unsaturated fats and are considered to lower cholesterol and blood sugar levels. Prominent market players across the globe are focusing on developing high-quality soya yogurts with innovative flavours. The burgeoning sales of soya yogurts are in turn driving the growth across the lactose-free dairy products market.
Demand for Organic Lactose-free Dairy Products Ascends
Based on the nature, the lactose-free dairy products market is segmented into organic and conventional lactose-free dairy products. The organic lactose-free dairy product category is expected to command a noteworthy market position. The numerous advantages of organic dairy products are enabling it to gain a competitive edge. For instance, the organic lactose-free dairy product does not contain antibiotics and additional growth hormones that are detrimental to health.
Supermarkets Lead in Sales
The lactose-free dairy products market has a wide range of distribution channels, including supermarkets/hypermarkets, online channels, and convenience stores, among others. Supermarkets/ hypermarkets are forecasted to be the major contributor to the market growth owing to the affordability, choice of brand, and trustworthiness associated with it. Meanwhile, the online segment is expected to be the fastest-growing segment due to the rising sedentary lifestyle and advancements in technology.
Growth Opportunities Across Regions
Asia Pacific to Acquire Competitive Superiority with Rising Lactose Intolerance Awareness
Asia Pacific’s lactose-free dairy products market is exhibiting great potential to be a key regional player. The rising prevalence of lactose intolerance coupled with growing disposable income is creating significant revenue opportunities for the regional market. India, China, and Japan are the key players in the region. Furthermore, manufacturers in the region are launching new lactose-free dairy products and flavors. The harmonization of these dynamics is anticipated to underpin a steady growth across Asia Pacific’s lactose-free dairy products.
Key Market Players in Lactose-free Dairy Products Industry
Manufacturers in the lactose-free dairy products market are strategically expanding their market presence in high-growth potential regions. Product innovations and substantial investments in the latest technology are among the major marketing strategies of the vendors.
Prominent industry participants accelerating their growth trajectory across the lactose-free dairy products include Arla Foods amba, Danone S.A., General Mills, Inc., Gujrat Cooperative Milk Marketing Federation (AMUL), Johnson & Johnson Services, Inc., Lifeway Foods, Inc., Nestle S.A., Organic Valley, Saputo, Inc., and Smithfoods, Inc. Some of the additional companies in the lactose-free dairy business include Agri Mark, Inc., Fonterra Group, Lala U.S., The Kraft Heinz Group, Prairie Farms Dairy, and The Coca-Cola Company.
Regional Classification of the Global Lactose-free Dairy Products Market is Described Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability
Key Elements Included In The Study: Global Lactose-free Dairy Products Market
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