The Global Lactose-Free Dairy Market size is expected to reach $18.4 billion by 2028, rising at a market growth of 8.1% CAGR during the forecast period.
Glucose & galactose are formed when lactose is broken down in lactose-free milk, which are the two simple sugars that provide lactose-free milk a sweeter flavor than ordinary milk. Some people find lactose, a type of sugar included in milk, difficult to digest. Lactase is used with ordinary cow milk to create lactose-free dairy products.
An individual's small intestine produces the enzyme lactase on its own, which is in charge of breaking down lactose in the body. It is a commercially accessible enzyme that can be isolated from molds like Aspergillus Niger and Aspergillus oryzae as well as yeasts like Kluyveromyces lactic and fragile. Lactose-free dairy products are similar to regular milk and other milk products on the market in terms of flavor, texture, and nutritional value.
Market participants have been compelled to concentrate on strong branding and enhanced advertising as a result of the fierce competition in the lactose-free dairy market. Gaining consumer exposure to the products through branding and advertising is essential. Players are therefore engaging in profitable marketing strategies to entice customers.
Additionally, a rise in the number of lactose-free dairy product launches that are supplemented with vitamins and minerals draws customers to the product. Consumers can recognize the chemicals used in a product and the benefits they can obtain from consuming it due to strong branding by market participants and the implementation of clear labels on the items.
Manufacturers are aiming to make products with more protein components to meet the gradual shift in taste as well as the preference of consumers to maintain a better diet in order to drive the market for lactose-free dairy products. The market for dairy products without lactose is therefore anticipated to grow over the projected period.
The lactose-free market is one of the markets that has suffered because of the COVID-19 outbreak. Business demands have changed to liquidation methods and stock organization as a result of post-pandemic client preference shifts, with consumption at a standstill and inventory building up in stockrooms. It was one of the most severely impacted businesses by the pandemic due to the combined effect of outlet closures as well as balanced results due to the fast deteriorating financial position. Also, because of the strict lockdown measures put in place by the government, the COVID-19 pandemic afflicted both farmers and employees.
Lactose, the sugar in milk, cannot be fully absorbed by those who have lactose intolerance. They can witness diarrhea, gas, and bloating as a result of consuming dairy products. The illness, which is also termed lactose malabsorption, is normally harmless, however, its symptoms can be irritating. Lactose intolerance is typically caused by insufficient amounts of the enzyme lactase, which is produced in the small intestine. The number of lactose intolerant people is rising all over the globe.
Some of the reasons that are fueling the industry, even more, include extensive celebrity and athlete marketing campaigns to promote vegetarianism as a healthy lifestyle choice and the simplicity of product accessibility through an abundance of online retail channels. As a result of the growing penetration of the internet along with the increased number of people using various social media platforms, people are becoming more aware regarding the issues such as lactose intolerance as well as the availability of lactose free substitutes.
When making lactose-free milk, the milk must be pasteurized using the ultra-high temperature (UHT) method in order to extend its shelf life and improve the consistency of the milk while creating lactose-free milk. Milk is processed with lactase enzymes, which break down the complicated lactose disaccharide into two simple sugars, known as glucose and (monosaccharide’s) galactose, to transform regular milk into lactose-free milk.
Based on type, the lactose-free dairy market is segmented into milk, cheese, yogurt and others. The yogurt segment acquired a substantial revenue share in the lactose-free dairy market in 2021. If someone is looking for a dairy substitute because of a preference or a lactose allergy, dairy-free yogurt is a good option because it still has a respectable quantity of healthy fats while being lactose-free. Almonds, coconut, cashews, flaxseed, soy, or oats are the most common bases for dairy-free yogurts that are available in supermarkets.
By distribution channel, the lactose-free dairy market is fragmented into hypermarkets/supermarkets, convenience stores, online channels and others. In 2021, the hypermarkets/supermarkets segment generated the maximum revenue share in the lactose free dairy market. Supermarkets and hypermarkets give customers the convenience of shopping for a variety of items under one roof. Customers benefit greatly from shopping at hypermarkets and supermarkets because there is a greater selection of lactose-free dairy products available at lower prices, salespeople are on hand to help, and checkout is simple. During the projection period, these benefits are anticipated to fuel the market growth in this segment.
| Report Attribute | Details |
|---|---|
| Market size value in 2021 | USD 10.8 Billion |
| Market size forecast in 2028 | USD 18.4 Billion |
| Base Year | 2021 |
| Historical Period | 2018 to 2020 |
| Forecast Period | 2022 to 2028 |
| Revenue Growth Rate | CAGR of 8.1% from 2022 to 2028 |
| Number of Pages | 217 |
| Number of Tables | 373 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Form, Type, Distribution Channel, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Region wise, the lactose-free dairy market analyzed across North America, Europe, Asia Pacific and LAMEA. The Europe region led the lactose free dairy market with the largest revenue share in 2021. The market dominance of lactose-free dairy products in Europe is largely attributable to customers' extensive product awareness and rising consumption as a result of the product's favorable health effects. Other factors such as the large number of vendors across the region providing lactose-free dairy products are also supporting regional market growth for lactose free dairy market.
Free Valuable Insights: Global Lactose-Free Dairy Market size to reach USD 18.4 Billion by 2028
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Johnson & Johnson and Nestle S.A. are the forerunners in the Lactose-Free Dairy Market. Companies such as The Coca-Cola Company, General Mills, Inc. and Dairy Farmers of Americas, Inc. are some of the key innovators in Lactose-Free Dairy Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Dairy Farmers of Americas, Inc., Danone, S.A. (Sofina Group), General Mills, Inc., Lifeway Foods, Inc., Nestle S.A., Saputo, Inc., The Coca-Cola Company, Organic Valley, Johnson & Johnson, and Prairie Farms Dairy, Inc.
By Form
By Type
By Distribution Channel
By Geography
The Lactose-Free Dairy Market size is projected to reach USD 18.4 billion by 2028.
Rising Prevalence Of Lactose Intolerance, Awareness, And Self-Diagnosis are driving the market in coming years, however, The High Cost Of Lactose-Free Ingredients restraints the growth of the market.
Dairy Farmers of Americas, Inc., Danone, S.A. (Sofina Group), General Mills, Inc., Lifeway Foods, Inc., Nestle S.A., Saputo, Inc., The Coca-Cola Company, Organic Valley, Johnson & Johnson, and Prairie Farms Dairy, Inc.
The expected CAGR of the Lactose-Free Dairy Market is 8.1% from 2022 to 2028.
The Milk segment acquired maximum revenue share in the Global Lactose-Free Dairy Market by Type in 2021 thereby, achieving a market value of $6.6 billion by 2028.
The Europe market dominated the Global Lactose-Free Dairy Market by Region in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $6.3 billion by 2028.
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