Lactose Free Milk Market Value To Hit USD 1562.8 Mn in 2033

Updated · Dec 20, 2024

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Table of Contents

Introduction
Key Takeaways
Lactose-Free Milk Statistics
Emerging Trends
Use Cases
Major Challenges
Market Growth Opportunities
Recent Development
Conclusion

Introduction

The global Lactose-Free Milk Market has been experiencing significant growth, driven by rising consumer awareness about lactose intolerance, health-conscious dietary trends, and a growing preference for dairy alternatives. The market size is expected to reach approximately USD 1562.8 million by 2033, up from USD 619.2 million in 2023, marking a robust compound annual growth rate (CAGR) of 9.7% from 2024 to 2033.

This surge is primarily attributed to the increasing demand for lactose-free milk, particularly in regions with high lactose intolerance rates, such as North America and parts of Europe. Growing health concerns, the rise of vegan and plant-based diets, and enhanced product offerings are further contributing to market expansion.

As more consumers look for alternatives to regular dairy products due to digestive issues or dietary preferences, lactose-free milk is gaining popularity. Market opportunities lie in the increasing penetration of lactose-free milk in emerging markets, where awareness about lactose intolerance is growing.

Additionally, innovations in product formulations and flavors, along with improvements in packaging and distribution channels, are expected to foster market growth. The market is also expanding due to increased availability in retail outlets, supermarkets, and online platforms. Furthermore, manufacturers are capitalizing on the demand for organic and non-GMO lactose-free milk variants to attract a broader consumer base.

As the global lactose-free milk market continues to evolve, the combination of rising demand, new product introductions, and regional market expansion presents promising opportunities for growth in the years to come. As consumers seek out healthier alternatives and more inclusive food options, the lactose-free milk market stands to benefit from both demographic trends and changing consumer preferences.

Key Takeaways

The Global Lactose-Free Milk Market size is expected to be worth around USD 1562.8 Million by 2033, from USD 619.2 Million in 2023, growing at a CAGR of 9.7% during the forecast period from 2024 to 2033.
Liquid lactose-free milk dominated the market By Form segment with a 74.3% share.
Plain lactose-free milk dominates the market position in the By Category segment of the Lactose-Free Milk Market with a 64.2% share.
Supermarkets/Hypermarkets dominated the lactose-free milk market with a 48.2% share.
Household Consumption dominated the By End-Use segment of the lactose-free milk market with a 56.1% share.
APAC dominates the lactose-free milk market with a 46.1% share at $285.4 million.

Lactose-Free Milk Statistics

The Rise of Lactose-Free Milk

Lactose-free milk retail volume sales are up 6.7% year to date (through Sept. 17, 2023).
Lactose-free milk holds a 7.6% volume share of milk in 2023.
Up to 75% of the world’s population is estimated to be lactose intolerant to some degree.
The lactose-free dairy market is expected to reach a €9 billion turnover by 2022.
Lactose-free dairy continues to outgrow overall dairy (7.3% vs 2.3%).

Consumer Awareness for Lactose-Free Options

81% of likely voters said it is important for public school lunches to provide lactose-free milk options.
80% of likely voters believe it’s important for federal nutrition programs to offer lactose-free milk options.
64% of Americans say they’ve never consumed lactose-free milk.
76% of Americans have never consumed lactose-free flavored milk.
68% of Americans have never tried other lactose-free dairy options besides milk.

Lactose-Free Milk in Schools and Institutions

Sales of lactose-free milk in schools increased from 0.2% in 2022 to 0.6% in 2023.
Lactose-free milk sales on U.S. military bases are more than 28 times greater than in schools.
Less than 1% of school milk is lactose-free.
Lactose-free options represented 8% of all milk volume sales in 2023 across retail and institutions.
In China, lactose-free dairy sales grew from $341m in 2010 to $828m in 2015.

Emerging Trends

Rising Health Consciousness: Consumers are becoming more health-conscious and seeking alternatives to regular milk due to concerns about digestion and overall health. Lactose-free milk offers a solution for those with lactose intolerance, fueling its increasing demand across various demographics.
Product Diversification: Manufacturers are introducing a wide range of lactose-free milk products, such as flavored milk, organic variants, and fortified options with added vitamins and minerals. This diversification caters to diverse consumer preferences and helps expand the market beyond basic offerings.
Increased Availability in Retail Channels: The availability of lactose-free milk in supermarkets, online stores, and convenience stores is on the rise. This wider accessibility is making it easier for consumers to incorporate lactose-free options into their everyday diets, contributing to higher market adoption.
Innovative Packaging Solutions: Companies are investing in sustainable and user-friendly packaging solutions, such as eco-friendly cartons and convenient single-serve bottles. This innovation not only appeals to environmentally conscious consumers but also enhances convenience for busy, on-the-go lifestyles.
Growing Popularity of Plant-Based Alternatives: As the popularity of plant-based diets grows, lactose-free milk made from cow’s milk is increasingly being compared with plant-based alternatives like almond, oat, and soy milk. While the market for plant-based milk is rising, lactose-free dairy continues to gain traction due to its dairy content and nutritional benefits.

Use Cases

Dietary Solutions for Lactose Intolerant Consumers: Lactose-free milk is a go-to choice for individuals with lactose intolerance, offering a way to enjoy dairy products without digestive discomfort. It provides the nutritional benefits of regular milk, such as calcium and protein, without the lactose content.
Alternative for Health-Conscious Shoppers: Many consumers choose lactose-free milk as part of a healthier lifestyle. It appeals to people who want to avoid digestive issues, bloating, or discomfort associated with regular milk, while still benefiting from essential nutrients like vitamins and minerals.
Catering to Vegan and Dairy-Free Diets: While not a plant-based milk, lactose-free milk is often used as a suitable dairy option for those who want to reduce their dairy intake. It serves as a compromise between traditional milk and plant-based alternatives, meeting the needs of individuals with mixed dietary preferences.
Product Innovation in Food Industry: Lactose-free milk is being incorporated into various food products like ice cream, cheese, and baked goods. Its versatility allows manufacturers to cater to a broader audience while still providing consumers with familiar dairy-based foods without lactose.
Support for Aging Population: As people age, they often experience a decline in lactase production, leading to lactose intolerance. Lactose-free milk provides a solution for older adults to maintain their calcium and vitamin D intake without experiencing the discomfort that regular milk may cause.

Major Challenges

Higher Production Costs: Producing lactose-free milk often requires additional processes, such as enzyme treatment, to remove lactose. This increases production costs, which can lead to higher retail prices compared to regular milk. This price difference can be a barrier for cost-conscious consumers.
Limited Consumer Awareness: Despite growing popularity, many consumers are still unaware of the benefits of lactose-free milk. Educating consumers about lactose intolerance and the advantages of lactose-free options remains a challenge, especially in emerging markets where dairy consumption is deeply ingrained in local diets.
Taste and Texture Differences: Some consumers report that lactose-free milk has a slightly different taste or texture compared to regular milk. While manufacturers are working to improve these aspects, the perception of taste differences can limit its acceptance among those who prefer traditional dairy products.
Supply Chain and Distribution Issues: Lactose-free milk has a shorter shelf life compared to regular milk, which creates logistical challenges in distribution. This limited shelf life can lead to product wastage and restricts its availability in remote or less developed regions.
Competition from Plant-Based Alternatives: Lactose-free milk faces stiff competition from plant-based milk like almond, oat, and soy milk. These alternatives not only cater to lactose-intolerant consumers but also attract those seeking vegan or allergen-free diets, making it harder for lactose-free dairy milk to dominate the market.

Market Growth Opportunities

Expansion in Emerging Markets: As awareness of lactose intolerance grows, there are significant opportunities to expand lactose-free milk in emerging markets. Increasing urbanization and rising disposable incomes in regions like Asia and Latin America present a promising avenue for market growth.
Product Innovation and Diversification: There is an opportunity for companies to innovate by offering lactose-free milk in various forms, such as organic, fortified, or with added flavors. These innovations can attract a broader customer base, including health-conscious consumers, athletes, and those with dietary restrictions.
Growth in Online Retail: E-commerce platforms are becoming an increasingly popular channel for purchasing lactose-free milk, particularly among busy, tech-savvy consumers. Strengthening online presence and offering convenient delivery services can tap into this growing trend of online grocery shopping.
Increased Demand in Foodservice Industry: More restaurants and cafes are adding lactose-free milk to their menus, responding to the increasing number of lactose-intolerant individuals. This opens new avenues for growth within the food service sector, especially in urban areas with diverse consumer needs.
Health and Wellness Trends: With rising consumer interest in health and wellness, lactose-free milk is gaining traction as part of a healthier lifestyle. Companies can capitalize on this trend by promoting the nutritional benefits of lactose-free milk, such as its high calcium and protein content, to health-conscious customers.

Recent Development

Alpro: Alpro is a leader in plant-based alternatives, including lactose-free milk, offering a variety of dairy-free products made from soy, almonds, and oats. The company focuses on providing sustainable, environmentally friendly options that cater to health-conscious consumers seeking lactose-free and plant-based alternatives.
Arla Foods amba: Arla Foods is a global dairy cooperative that offers a wide range of dairy products, including lactose-free milk. With a strong emphasis on sustainability and quality, Arla’s lactose-free offerings are designed to meet the needs of consumers with lactose intolerance while maintaining the taste and nutritional benefits of regular milk.
Blooming Sweet Life Corp.: Blooming Sweet Life Corp. specializes in lactose-free and dairy-free products, focusing on offering innovative alternatives for people with lactose sensitivity. Their products cater to those seeking healthier lifestyles, and the company focuses on high-quality formulations to meet consumer demand for dietary inclusivity.
Cabot Creamery Corporation: Cabot Creamery, known for its premium dairy products, offers a range of lactose-free milk and cheese options. The cooperative provides rich, flavorful products designed for people who have difficulty digesting lactose, all while maintaining the high standards and quality the brand is known for.
Fonterra Co-operative Group Limited: Fonterra is a major global dairy exporter, offering lactose-free milk as part of its broad product portfolio. With a focus on sustainability, innovation, and nutrition, Fonterra caters to both domestic and international markets, providing solutions for lactose-intolerant individuals who still want to enjoy dairy benefits.
Green Valley Creamery: Green Valley Creamery specializes in organic and lactose-free dairy products. Their offerings, which include milk, yogurt, and cheese, are produced without artificial additives or preservatives, making them an attractive option for consumers looking for healthier, natural alternatives to traditional dairy products.
Hiland Dairy Foods: Hiland Dairy Foods produces a wide range of lactose-free dairy products, including milk, cheese, and cream. The company aims to offer high-quality, nutritious alternatives to people with lactose intolerance, ensuring their products meet the growing demand for lactose-free options without compromising on taste.
Johnson & Johnson: While primarily known for its healthcare products, Johnson & Johnson has ventured into the lactose-free sector through its nutritional products. The company focuses on providing dairy solutions that cater to the health and wellness needs of consumers, with lactose-free options designed to support overall health.
Lactalis: Lactalis is one of the world’s largest dairy companies, offering a variety of lactose-free dairy products under several brands. Their lactose-free milk, cheese, and yogurt options are designed for individuals with lactose intolerance while ensuring the same creamy taste and nutritional value as regular dairy products.
McNeil Nutritionals: McNeil Nutritionals, a subsidiary of Johnson & Johnson, offers lactose-free milk products under its consumer health portfolio. The company focuses on providing convenient, accessible, and nutritious solutions for people with lactose intolerance, with a special emphasis on maintaining product quality and consumer satisfaction.
Nestlé S.A.: Nestlé offers a wide range of lactose-free dairy products, including milk and ice cream, under several brands. The company is committed to innovation and sustainability, focusing on providing nutritious, lactose-free options for individuals with dietary restrictions while continuing to lead in the global dairy market.
Organic Valley: Organic Valley is a cooperative that specializes in organic dairy products, including a growing range of lactose-free milk. Known for its high-quality, sustainably produced offerings, Organic Valley caters to health-conscious consumers who seek organic and lactose-free alternatives to traditional dairy products.
Saputo Dairy Products: Saputo is a leading global dairy company that offers a variety of lactose-free milk products, including cheese, yogurt, and milk. Known for its commitment to quality, Saputo focuses on providing lactose-free dairy options for individuals with intolerances while maintaining rich flavors and nutritional benefits.
Schwarzwaldmilch GmbH: Schwarzwaldmilch is a German dairy company offering lactose-free milk products as part of its comprehensive dairy range. Their lactose-free offerings are designed to meet the dietary needs of lactose-intolerant individuals, focusing on quality and taste while ensuring digestibility and nutritional value.
Smith Dairy Products: Smith Dairy Products offers a wide selection of lactose-free milk and dairy items, including cream and yogurt. The company is focused on delivering high-quality dairy alternatives that cater to the growing demand for lactose-free solutions, maintaining taste and freshness in all of its products.
The Agropur Dairy Cooperative: Agropur is a large dairy cooperative in North America that offers a wide range of lactose-free dairy products. Its portfolio includes milk, cheese, and yogurt, with a focus on innovation and quality to meet the needs of lactose-intolerant consumers while supporting sustainable dairy practices.
The Coca-Cola Company: Through its acquisition of Fairlife, The Coca-Cola Company has entered the lactose-free dairy market. Fairlife’s offerings include lactose-free milk and beverages that cater to consumers looking for higher-protein, lower-sugar, and lactose-free dairy options, tapping into the growing health-conscious segment.
The Danone Company: Danone, a global leader in dairy products, offers a variety of lactose-free milk and yogurt options under brands like Activia and Alpro. The company emphasizes health and wellness, providing lactose-free products that cater to a growing population of lactose-intolerant individuals.
Valio International: Valio is a Finnish dairy company that specializes in producing lactose-free milk products. Known for its high-quality, nutritional products, Valio is a key player in the lactose-free milk market, offering consumers a range of lactose-free options such as milk, cheese, and yogurt.
General Mills: General Mills offers a selection of lactose-free dairy products, including milk and yogurt, under well-known brands like Yoplait. The company focuses on providing consumers with convenient, tasty, and nutritious lactose-free options that fit into modern, health-conscious diets.
Gujrat Cooperative Milk Marketing Federation: The Gujrat Cooperative Milk Marketing Federation, based in India, offers lactose-free dairy products under its popular Amul brand. With a strong presence in the Indian market, Amul’s lactose-free milk products cater to a growing number of lactose-intolerant consumers while maintaining affordability and quality.

Conclusion

In conclusion, the Lactose-Free Milk Market is experiencing strong growth driven by increasing consumer awareness of lactose intolerance, health trends, and the demand for more inclusive dietary options. With a projected compound annual growth rate (CAGR) of 9.7%, the market is set to expand significantly in the coming years, offering numerous opportunities for product innovation and geographic expansion.

Companies that focus on diversifying their product offerings, improving accessibility, and addressing consumer preferences will be well-positioned to capitalize on the growing demand for lactose-free alternatives. As consumer habits continue to evolve, lactose-free milk is poised to become a staple in households worldwide, offering both health benefits and dietary flexibility. The market’s continued growth will be influenced by the rise of e-commerce, innovations in the food service industry, and increasing market penetration in emerging regions.