The global lactose-free cheese market share is estimated to be worth USD 865.1 million by 2025. It is projected to reach USD 1,973.2 million by 2035, reflecting a CAGR of 8.6% over the assessment period 2025 to 2035.
The Lactose-free Cheese’ market’s growth is anticipated to be attributed to its widespread usage in the food & beverage industry, where it aids in moisture absorption, keeps the product’s free-flow texture, and organoleptic qualities, thus extending its shelf life. It’s also utilized in other industries like animal feed, where increased demand for high-quality feed and an expansion in the number of feed additives, particularly in the compound feed industry, have been significant growth drivers of the market.
This was owing to its application in various end-use industries ranging from food & beverage, animal feed to fertilizers where it is used to prevent the lumping of powder form of products by creating a water-repelling layer of dust particles and absorbing the excess moisture.
Market Drivers and Trends: Lactose-free dairy products, including cheese, have gained popularity as they provide essential nutrients such as vitamins and calcium to those who are lactose intolerant. Consumers are increasingly drawn to lactose-free options due to their expanding health appeal. The quality and variety of lactose-free dairy products have significantly improved, offering a broader range of choices, which has fueled the rapid growth of this market segment.
Consumer Insights: According to a survey by FMI, 40% of customers purchased plant-based products for health benefits, 30% were interested in trying them, and 25% did so due to lactose intolerance in their households. While plant-based alternatives hold a smaller market share, they have seen a surge in popularity, driven by increasing awareness of their environmental and health benefits. The Plant-Based Foods Association (PBFA) reported an 11.4% increase in U.S. plant-based food retail sales in 2019, highlighting the growing demand for these products.
Regional Insights:
- United States: The U.S. market for lactose-free cheese is set to grow, driven by the increasing focus on health and wellness. Companies are targeting consumers with allergies and lactose intolerance, offering improved flavors and quality in plant-based dairy alternatives.
- United Kingdom: The demand for clean-label products and plant-based alternatives is pushing the growth of lactose-free cheese. Consumers in the U.K. are increasingly incorporating cheese into various fast-food products and recipes, boosting market expansion.
- China: High lactose intolerance rates, especially in East Asia, are driving the demand for lactose-free dairy products. As dairy consumption rises, the market for lactose-free cheese is expected to grow, supported by the country’s aging population and increasing health awareness.
The expansion of e-commerce, increased internet penetration, and the growing use of smartphones make online shopping a convenient option for consumers. Online platforms offer a wide range of products and hassle-free home delivery services, contributing to market growth.
Competition Outlook
The competition landscape of the lactose-free cheese market is intense. Arla Foods Amba, UK Ltd., and Amy’s Kitchen, Inc., among others are some of the major market players and contribute significantly in terms of research & development investment as well as further towards the creation premium-quality lactose-free cheese. Such companies also seek to multiply the investment that they can dedicate to the efficient manufacturing of developing innovative products to maintain product quality, growth rates, as well as its efficiency.
For instance:
- In April 2024, Prairie Farms Dairy unveiled its four new lactose free dairy options i.e. Gold Standard for cottage cheese & sour cream in 16-ounce tubs and lactose free whole & 2% milk in gallons. The lactose free gallon option offers the convenience of a larger multi-serve container and more value.
- In March 2024, Daiya Foods launched its new dairy-free cheese shreds tailored especially for food service companies. Daiya Oat Cream blend shreds have a developed a perfect recipe for a full melt, providing great cheese coverage.
General Mills, Arla Foods -Top Two Lactose-free Cheese Brands That Will Satisfy Your Craving
General Mills, Inc. is an American company that produces and markets branded consumer goods for sale in retail establishments. The company’s ‘accelerate’ strategy directs how it builds brands, innovates nonstop, scales up, and stands up for what’s right in the world. A few of its well-known trademarks in its portfolio are Cheerios, Nature Valley, Blue Buffalo, Häagen-Dazs, Old El Paso, Pillsbury, Betty Crocker, Yoplait, Annie’s, Wanchai Ferry, Yoki, and others.
- In March 2022, with the introduction of Cinnamon Toast Crunch Creamy Cinnamon Spread, B&G Foods is providing consumers its first chance to spread, swirl, and drizzle the flavor of their favorite cereal over just about everything. Similarly, in May 2022, General Mills disclosed that it will pay Eagle Family Foods Group USD 610 Million for the operations of Hamburger Helper and Suddenly Salad. The closing of this deal is anticipated for later this year.
Arla Foods Amba, on the other hand, is a Danish-Swedish multinational cooperative with headquarters in Viby, Denmark. It is the biggest dairy firm in the UK, as well as the largest producer of dairy products in Scandinavia. The Swedish dairy cooperative Arla and the Danish dairy business MD Foods merged on April 17, 2000, to create Arla Foods. According to milk volume, Arla Foods is the fourth-largest dairy firm in the world and seventh in terms of revenue.
- In 2022, Arla created the Don’t Cancel the Cow advertising campaign, alleging that the increasing vegetarianism among young people is the reason the dairy industry’s future is questionable. Through this campaign, the company is focusing on millennials as they are more aware about the effects that cows’ milk has on the environment.
Leading Brands
- General Mills,
- Alpro UK Ltd.
- Amy’s Kitchen, Inc.
- Arla Foods Amba
- Violife ( Flora Food Group)
- Miyoko’s Creamery
- Field Roast
- Treeline Cheese
- Kite Hill
- Prairie Farms Dairy
- Daiya Foods, Inc.
- Cabot Creamery
- Others
Key Segments of the Report
By Product Type:
As per Product Type, the industry has been categorized into Blue Cheese, Brick Cheese, Camembert Cheese, Cheddar Cheese, Cottage Cheese, Mozzarella Cheese, and Others.
By Form:
As per Form, the industry has been categorized into Cheese Blocks, Cheese Slice, Cheese Spread, Triangle, and Others.
By Distribution Channel:
This segment is further categorized into Business to Business and Business to Consumer.
By Region:
Industry analysis has been carried out in key countries of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia & Pacific, Central Asia, Russia and Belarus, Balkan & Baltics, and the Middle East & Africa.
About Future Market Insights (FMI)
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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