Lactose Free Dairy Products Industry Expected to Expand at a Steady 2025
Lactose Free Dairy Products Industry Expected to Expand at a Steady 2025
Lactose-Free Dairy Products Industry growth is attributable to the increasing demand for innovative and suitable dairy products.

The global dairy industry is witnessing continual growth in terms of production and availability of diverse dairy products across all major regions. Owing to the popularity of consumption benefits of dairy products, at least one dairy product is being consumed by an individual on a daily basis, globally.  This has in turn enabled many consumers to detect lactose intolerance, which does not allow proper digestion of dairy products. According to the data in 2019, around 65-70% of the global population is expected to be lactose intolerant.

Read Report Overview: Global Lactose Free Dairy Products Market

Most of the consumers who face indigestion due to lactose intolerance go unnoticed and ignore the symptoms of the same. Many dairy consumers have also stopped consumption of dairy products to avoid uneasiness. This is evident from the declining milk consumption levels globally. For instance, in the U.S., milk consumption has plummeted by over 40% from 1975 to 2019, with consumption of 247 pounds per capita in 1975 to 149 pounds per capita in 2019. This has given rise to the popularity of lactose-free dairy products, which act as a solution to the growing lactose intolerance globally. Dairy products that are commonly used regularly are widely available in their lactose-free variant. These include milk (both white milk and flavored milk), yogurt, cheese, and milk powder, among others. The most upcoming product categories under lactose-free dairy products include ice creams and dietary supplements.

The increasing levels of lactose intolerance in the global population, urbanization, and disposable income have generated the need for consumption of suitable dairy products, such as the lactose-free dairy products. The healthy living and lifestyle trends amongst the affluent urban population also contribute to the adoption of lactose-free dairy products as a symbol of status in the society. In many countries, the growing café culture is a driving force behind the consumption of lactose-free dairy products, especially milk.  Awareness about the benefits of lactose-free dairy products, such as ease in digestion, has influenced many consumers toward a wider consumption of lactose-free dairy products.

Lactose-Free Milk Generates Highest Demand Amidst the Lactose-Free Dairy Products

The prominent types of lactose-free dairy products which are being adopted by the global population are milk, yogurt, cheese, ice cream, and others (milk powder, dietary supplement, spread, and cream). Lactose free milk market is anticipated to be the largest as the need to substitute traditional milk with lactose-free milk is growing exponentially. Consumers aged 30 and above and who have completely avoided consumption of traditional dairy milk due to discomfort are expected to adopt lactose-free milk at an exponential rate. The flavored lactose-free milk is gradually becoming popular amongst children and adolescents.

Retail Sales Expected to Contribute the Largest Sales Volume for Lactose-Free Dairy Products

Lactose free dairy products are largely sold through two major distribution channels which are direct channel and retail channel. As of 2019, the retail channel for selling lactose-free dairy products contributed the largest volume of sales for this industry. With its increasing use in the food service industry and various workspaces, the sale of lactose-free dairy products through direct channel is expected to increase in the forecast period.

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Strategies Incorporated to Sustain in the Competition

The competitive landscape for the lactose-free dairy products market demonstrates an inclination toward companies adopting strategies such as product launches along with business expansions. The major established players in the market are focusing on product launches and developments to introduce new lactose-free dairy products and expanding their product portfolios in order to generate public awareness about the same. Valio Ltd., Arla Foods, Nestle S.A., and Lactalis Group are some of the prominent players in the lactose-free dairy products market that have been actively involved with such strategies. The market is moderately consolidated with the presence of many medium to large-sized companies that compete with each other and large enterprises.

Product launch has been the most widely adopted strategy by the players in this market. In January 2019, Valio Ltd. launched their lactose-free milk powder in Nigeria to cater to the high milk powder demand from lactose intolerant population in the country.