Lactose-Free Dairy Market by Type (Milk, Cheese, Yogurt, Others), by Form (Solid, Liquid, Powder), by Distribution Channel (Hypermarkets/Supermarkets, Convenience Stores, Online Channels, Others): Global Opportunity Analysis and Industry Forecast, 2021-2031

Lactose-Free Dairy Market Research, 2031

The global lactose-free dairy market size was valued at $11.45 billion in 2021, and is projected to reach $24.36 billion by 2031, growing at a CAGR of 8% from 2022 to 2031.

COVID-19 pandemic affected the farmers and the employees due to stringent lockdown rules initiated by the government. The pandemic has increased volatility and uncertainty for the dairy companies as production was getting disrupted due to lack of resources. Fluctuations in prices due to lower availability of milk in the market, impacted the overall price of the finished product. There was a decrease in the quality of raw materials as the farmers were trying to increase the volume of the products to meet the demand from the dairy companies. The rise in transportation costs resulted in regular delays in product distribution across the globe.

Lactose-free dairy is a commercial product made from lactose-free milk. Lactose is a kind of sugar found in milk that some people find difficult to digest. Lactose-free dairy products are made by combining lactase with regular cow milk. Lactase is an enzyme that is spontaneously produced in the small intestine of an individual and is responsible for the breakdown of lactose in the body. It is a commercially available enzyme that may be isolated from yeasts such as Kluyveromyces fragilis and Kluyveromyces lactis, as well as molds such as Aspergillus niger and Aspergillus oryzae. Lactose-free dairy products have a taste, texture, and nutritional profile identical to ordinary milk and milk products in the market.

Intense competition in the lactose-free dairy market has encouraged market players to focus on strong branding and improved advertisements to attract the interest of the consumer. Branding and advertisement play a vital role in gaining consumer cognizance regarding the products. As a result, players are venturing into lucrative marketing campaigns to lure consumers. Furthermore, an increase in product launches of lactose-free dairy products fortified with vitamins and minerals attracts consumers to opt for the product. Strong branding by the market players and the introduction of clear labels on the products help the consumers to identify the ingredients used in the product and the benefits they can get from the consumption of the product. For instance, in 2022, Chobani Ultra-Filtered Milk, a lactose-free, protein-rich ultra-filtered milk, was introduced by Chobani LLC. Chobani Ultra-Filtered Milk is prepared with a unique filtering process that removes lactose and cuts sugar in half. It has a thick and creamy texture, is high in calcium and vitamin D, and contains all nine necessary amino acids. Clear branding and new product launches attract consumers and enhance the lactose-free dairy market growth.

The lactose-free dairy market is segmented on the basis of type, form, distribution channel, and region. On the basis of type, the market is categorized into milk, cheese, yogurt, and others. On the basis of form, it is segregated into solid, liquid, and powder. On the basis of distribution channel, it is divided into hypermarkets/supermarkets, convenience stores, online channels, and others. On the basis of region, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, the UK, France, Italy, Spain, and Rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea and Rest of Asia-Pacific), and LAMEA (Brazil, Turkey, South Africa, Argentina, and Rest of LAMEA).

On the basis of product type, the milk segment gained a major share in the global lactose-free dairy market in 2021 and is expected to sustain its market share during the forecast period as milk is the most common form of lactose-free dairy that is used by the global population for consumption.

On the basis of form, the liquid segment gained a major share in the global market in 2021 and is expected to sustain its market share during the forecast period. The liquid is the most common form in which lactose-free dairy is available in the market. The global consumption of milk in liquid form is the highest and it is an important part of the daily diet of the consumer.

On the basis of distribution channel, the hypermarkets/supermarkets segment accounted for around 35% of the global lactose-free dairy market share in 2021 and is expected to sustain its share during the forecast period. Hypermarkets/supermarkets offer a convenient experience of diverse shopping under a single roof to the consumers. Hypermarkets/supermarkets provide the consumers a premium advantage, i.e., higher availability of lactose-free dairy products at discounts, the assistance of sales representatives, and easy checkouts. These advantages are expected to drive the growth of hypermarkets/supermarkets during the forecast period.

On the basis of region, Europe dominated the lactose-free dairy market in 2021 and is expected to remain dominant during the lactose-free dairy market forecast period. The dominance of the lactose-free dairy market is largely due to the deep product knowledge among the consumers and increase in consumption due to its health benefits in the Europe region

The players operating in the global lactose-free dairy industry have adopted various developmental strategies to expand their lactose-free dairy market size, increase profitability, and remain competitive in the market. The key players profiled in this report include Arla Foods amba, Danone S.A., General Mills, Inc., Gujrat Cooperative Milk Marketing Federation (AMUL), Johnson & Johnson Services, Inc., Lifeway Foods, Inc., Nestle S.A., Organic Valley, Saputo, Inc., and Smithfoods, Inc. Some of the additional companies in the lactose-free dairy business include Agri Mark, Inc., Fonterra Group, Lala U.S., The Kraft Heinz Group, Prairie Farms Dairy, The Coca-Cola Company, and others.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the lactose-free dairy market analysis from 2021 to 2031 to identify the prevailing lactose-free dairy market opportunity.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the lactose-free dairy industry segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global lactose-free dairy market trends, key players, market segments, application areas, and market growth strategies.

 Key Market Segments & Key Market Players