Lactose-Free Products Market: Riding the Wave of Health Consciousness with 7.1% CAGR Growth

Rapid Rise lactose-free products market Set to Soar from US$ 9.2 Billion (2022) to US$ 15.8 Billion by 2032, Fueled by Dietary Preferences, Health Consciousness, and Innovative Offerings such as Lactose-Free Milk with Probiotics.

The demand for lactose-free products is rising as more people look for dairy substitutes due to dietary restrictions or lactose sensitivity. A wide range of goods, including milk, cheese, ice cream, and yoghurts, are lactose-free to satisfy consumers looking for tasty, easily digestible meals without compromising on flavour or nutritional value. In the upcoming years, the market for lactose-free goods is expected to continue growing as product innovation and awareness both expand.

The market for lactose-free products is expected to increase at a compound annual growth rate (CAGR) of 7.1 percent, from USD 9.2 billion in 2022 to US$ 15.8 billion in 2032. Since lactose is absent from lactose-containing goods, their calorie profiles are lower. Consequently, lactose-free products are projected to gain market share as health-conscious customers show an increasing interest in them. Due to growing industry innovation, the health benefits of lactose-free dairy products have expanded dramatically, providing the lactose-free product market with enormous growth opportunities.

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The lactose-free products market is experiencing a rapid surge, anticipated to soar from USD 9.2 billion in 2022 to an estimated USD 15.8 billion by 2032. This growth is fueled by increasing dietary preferences, health consciousness, and innovative offerings, such as lactose-free milk with probiotics. Consumers, driven by lactose sensitivity or dietary limitations, are seeking dairy alternatives, boosting the demand for lactose-free goods, including milk, cheese, ice cream, and yogurts.

Key Points:

  1. Market Growth: The market is expected to achieve a Compound Annual Growth Rate (CAGR) of 7.1%, emphasizing its rise from USD 9.2 billion in 2022 to USD 15.8 billion in 2032.
  2. Health Consciousness: Lactose-free products, with lower calorie profiles, are gaining market share as health-conscious consumers show increasing interest in these alternatives.
  3. Product Trends: Lactose-free products claiming gluten-free and reduced sugar are contributing to market growth, with lactose-free milk with probiotics being a popular trend.
  4. Market Segmentation:
    • By Type: Milk segment dominates, holding around 35.7% of revenue, expected to grow with a CAGR of 5.2%.
    • By Form: No-added sugar segment is expected to dominate, holding more than 35.6% revenue share, with a projected 4.1% CAGR.
    • By Nature: Conventional nature dominates with a 76.0% share in 2022, projected to grow at a CAGR of 5.7%.
  5. Geographical Insights:
    • North America: The United States holds over 79.2% of the North American market, with a projected CAGR of 5.3%.
    • East Asia: China dominates the East Asian market with a 35.6% market share and a predicted CAGR of over 6.4%.
    • Europe: Germany is expected to account for more than 19.2% of the European market in 2022, with a CAGR of roughly 5.3%.
  6. Competitive Landscape: Key manufacturers focus on R&D for innovative product offerings, and strategic moves like mergers and acquisitions.
  7. Key Players: Nestle S.A, The Coco Cola Company, Danone Company S.A., Johnson and Johnson Services, Inc., and Dairy Farmers of America, Inc. are prominent players in the market.
  8. Industry Developments:
    • Nestlé Health Science’s majority investment in Orgain and Coca-Cola’s acquisition of Fairlife LLC showcase strategic moves in response to changing customer expectation.
  9. Forecast by Region: Increased per capita spending on dairy products is expected to drive revenue growth across developed and developing countries, offering significant growth opportunities for lactose-free dairy products.
  10. Get Informed: Explore the influence of increasing investments in the lactose-free products market – Access Sample Report.
  11. Book a Session: Clarify doubts or queries related to the lactose-free products market – Book a one-on-one session.
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The market for lactose-free products is growing thanks to items that make claims about being gluten-free and having less, no, or less sugar. One of the most well-liked lactose-free product trends is lactose-free milk with probiotics.

Key Takeaways from Market Study 

  • By type, milk segment is dominating the segment holding around 35.7% of the revenue and it is expected to grow with CAGR of 5.2% over the forecasted period.
  • By form, no-added sugar segment is expected to dominate the lactose-free products market holding more than 35.6% revenue share and it is expected to grow with around 4.1% CAGR over the forecast period.
  • By nature, conventional nature is dominating the lactose-free productsmarket with around 76.0% share in 2022 and a CAGR of5.7% over the forecasted period.
  • Among sales channel, retail is dominating the lactose-free products market, however online retailers is expected to dominate the market in 2032.
  • In the North American lactose-free products market, the United States holds more than 79.2 percent of the market, which is expected to grow at a CAGR of roughly 5.3 percent over the projected period.
  • China currently dominates the East Asian Lactose-free Products market, with a market share of over 35.6 percent and a CAGR of over 6.4 percent predicted over the forecast period.
  • According to FMI, Germany is expected to account for more than 19.2 percent of the European Lactose-free Products market in 2022, with a CAGR of roughly 5.3 percent over the forecast period

Competitive Landscape 

Key manufacturers of global lactose-free products market are majorly focusing on research and development in order to develop innovative and unique product offering. 

In addition to this, key players in the lactose-free products market are also concentrating on merger, acquisition and joint ventures to expand their geographical presence and also to increase the existing production capacity. 

Some of the key players profiled in the report are Nestle S.A, The Coco Cola Company, Danone Company S.A., Johnson and Johnson Services, Inc., and Dairy Farmers of America, Inc. 

Nestlé Health Science agreed to buy a majority investment in Orgain, a leader in plant-based nutrition, from creator Dr. Andrew Abraham and Butterfly Equity in February 2022, with the latter remaining a minority shareholder. O 

  1. In January 2020, the Coca-Cola Company purchased the remaining ownership in Fairlife LLC from its joint venture partner Select Milk Producers in order to meet rapidly changing customer expectations for lactose-free products. 
  2. In April 2020, Valio and Palmer Holland (US) announced a collaborative venture to bring lactose-free powders to the US market. 

Global Lactose Free Dairy Products Market: Forecast by Region 

In a majority of the developed as well as developing countries, increased per capita spending on dairy products is expected to drive revenue growth of lactates and related ingredients. This growing demand for milk and milk products offers significant growth opportunities for dairy products manufacturers. This is boosting the consumption and sales of lactose free dairy products across various regional markets. 

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What drives the lactose free dairy products market? 

The global lactose free dairy products market is primarily driven by the rising prevalence of lactose intolerance around the world. In addition to this, the increasing demand for healthier alternatives to milk will enable the market grow considerably in the coming years. 

What are the key witnessed in the lactose free dairy products market? 

Speaking about key challenges witnessed, taste has remained a constant cause of concern among consumers. Lactose free dairy products can have an undesirable taste because of arylsulfatase present in them. This could hamper the market’s growth potential to an extent. 

About Future Market Insights, Inc.

Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.


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