The global lactose-free cheese market size is expected to reach a valuation of USD 676.3 Million by the end of 2022. The market is set to accelerate at a CAGR of 8.4% during 2022 to 2032. It is anticipated to be valued at USD 1,515.1 Million in 2032.
Lactose-free dairy can provide those who cannot digest lactose with essential nutrients found in traditional dairy products, such as vitamins and calcium. Consumers are moving towards this product category because of its broad and expanding health appeal.
Quality and variety of lactose-free dairy products have improved dramatically in recent years, allowing consumers to select from a wider range of choices. As a result, lactose-free cheese has become the dairy industry's fastest-growing segment.
Lactose-free cheese eaters have found that veganism is a healthy and essential option. According to a customer survey by FMI, 40% of customers bought plant-based products because they believed they were healthier, 30% as they wanted to try them, and 25% because someone in their home has lactose intolerance. Plant-based alternatives thus account for a smaller share of the lactose-free cheese market than the product.
Plant-based foods, on the other hand, have experienced a recent surge in terms of popularity. Plant-based foods and beverages will continue to be exhibiting high demand throughout the forecast period. According to the Plant-Based Foods Association (PBFA), plant-based food retail sales in the USA increased by 11.4 percent in 2019.
| Attributes | Key Statistics |
|---|---|
| Global Lactose-free Cheese Market Estimated Size (2022E) | USD 676.3 million |
| Projected Market Valuation (2032F) | USD 1,515.1 million |
| Value-based CAGR (2022 to 2032) | 8.4% |
| Collective Value Share: Top 3 Countries | 33.8% |
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Dairy consumers’ views are shifting all around the world. Consumers, particularly in dairy’s most famous markets, have reacted to concerns about allergens, hormone usage, and perceived unhealthiness of various dairy products, which were once hailed as an integral part of a balanced diet in many cultures.
This is further altering the environment for dairy producers all around the globe, as they are trying to keep up with changing consumer views and subtleties in consumer attitudes from region to region. They are also capitalizing on varying dairy consumption prospects to expand their businesses. However, lactose is a significant proportion of many fresh dairy products.
For lactose intolerant people, it is not necessary to completely avoid dairy products' indulgence and nutritional value. Thus, the lactose-free dairy market is the fastest-growing segment in the dairy industry. Owing to the aforementioned factors, the global lactose-free cheese market is expected to grow at a CAGR of 8.4% from 2022 to 2032.
Increasing Demand for Plant-based Food Products
Nutritional and health claims are considered novel ways of endorsing a particular food's beneficial qualities. Manufacturers’ claims, such as lactose-free, vegan, fat-free, gluten-free, non-GMO, and kosher, positively impact consumer purchasing decisions when comparing products from different brands.
Although many of the products that carry such claims have traditionally been devoid of animal products, plant-based claims have surged 68% globally over the last five years as companies exhibited an opportunity to tap into the growing demand, according to FMI. These factors are anticipated to fuel the global lactose-free cheese market in the assessment period.
Principal Consultant
Lactose-free Cheese Brands in the USA Are Targeting Consumers Suffering from Allergies
People with allergies or intolerances, such as lactose intolerance, were the main target consumers for USA-based firms twenty years ago. The flavor of plant-based dairy replacements was distinct, and expectations were low.
Plant-based foods have expanded into new uses, such as yogurt and cheese, as the allergen-free market has grown rapidly, and product flavor & quality have considerably improved. People in the USA are aware that plant protein has a lesser environmental impact than animal protein, which has become a major motivation.
In North American countries like the USA, health and wellness are a vital part of a person’s life, especially among millennials. People suffering from allergies are set to continue to support the plant-based sector, which would push the USA lactose-free cheese market in the next decade.
High Demand for Clean Label Products in the UK to Spur Sales of Cheese without Lactose
The stratospheric rise of plant-based alternatives is a third area where lactose-free cheese is positioned to serve as a key ingredient, a major food industry trend in the UK today. Over the next few years, the lactose-free cheese market is expected to grow at a higher rate than the dairy cheese industry across the UK Plant-based choices, clean labeling and more sustainable supply chains that come with them are set to exhibit high demand.
In addition, lactose-free cheese tastes just as good on a veggie burger as it would on beef or turkey burgers. Rising incorporation of cheese into numerous fast food products and unique recipes to gain healthy plant-based proteins and components is projected to drive the UK lactose-free cheese market in the evaluation period.
Dairy-free Cheese to Gain Traction in China with Increasing Cases of Lactose Intolerance
According to DSM, a science-based firm focusing on nutrition, health, and sustainable living, a country like China has at least 40% more lactose intolerance sufferers than a European country. Lactose digestion is hampered in 90-100 percent of East Asian and 80 percent of Central Asian adults.
This is due to human civilizations' historical reliance on dairy as a significant source of nutrition. Adults in Europe can consume milk because their forefathers lived in places where dairying flourished, thereby passing down gene variants that keep lactase active into adulthood. In some parts of the world, such as China, dairy production has historically been more challenging, and people have lost their capacity to digest milk after childhood.
Dairy consumption continues to climb in China, even though most of the population is lactose intolerant. Besides, the increasing geriatric population and growing awareness about health & wellness in the country are projected to boost the lactose-free cheese market in the next decade.
Consumers Prefer Purchasing Gluten and Dairy Free Cheese from Online Retailers
Based on the distribution channel, the online retailers sub-segment under the B2C segment is projected to dominate the global lactose-free cheese market by 2032. Expansion of the e-commerce sector with increasing penetration of the internet and growing use of smartphones is likely to push sales of lactose-free cheese in the upcoming decade. Online retailers provide access to a wide range of products on the same platform and offer hassle-free home delivery services to consumers. These advantages of online shopping are projected to drive the lactose-free cheese market worldwide.
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As lactose-free products are gaining immense popularity these days across the globe, there is a growing trend among consumers to try out new products. Today’s consumers lo longer confine themselves to traditional three meals a day, but they are likely to try out unique products which are emerging in the lactose-free cheese market.
Snacking trend is tremendously popular in developed countries across North America, including the USA, especially among the millennial population. Hence, vegan snaking menus are likely to lift up sales of vegan cheese over the forecast period, thereby pushing the lactose-free cheese market. Key players are also conducting research & development activities to come up with novel products.
For instance,
General Mills, Arla Foods, Daiya Foods Inc. –Top Three 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 October 2019, a cheese producing facility in Bahrain received an estimated €50 million (USD 55 Million) investment from Arla Foods. By 2025, Arla hopes to grow the yearly production in Bahrain under its Puck, Arla, Dano, Kraft, and Private Label brands to more than 100,000 tons.
Similarly, 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.
Daiya Foods Inc. is a dairy-alternative food manufacturer established in Burnaby, British Columbia, Canada. The first products from Daiya are cheese substitutes manufactured from tapioca flour and coconut oil that have a consistency and melting quality similar to cheese. The company ensures that its products are not made from any dairy, soy, wheat, barley, gluten, or nuts.
In January 2022, to cater to the growing demand for plant-based meals, Daiya Foods announced a new sales and distribution cooperation with Hyundai Green Food. Similarly, in April 2020, Daiya announced the launch of a large number of delicious new products with the intention of pleasing both people and the world.
| Attribute | Details |
|---|---|
| Estimated Market Size (2022) | USD 676.3 million |
| Projected Market Valuation (2032) | USD 1,515.1 million |
| Value-based CAGR (2022 to 2032) | 8.4% |
| Forecast Period | 2022 to 2032 |
| Historical Data Available for | 2016 to 2021 |
| Market Analysis | Value (USD Million) and Volume (MT) |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; and the Middle East & Africa |
| Key Countries Covered | USA, Brazil, Mexico, Germany, UK, China, India, Japan, Australia, and GCC Countries |
| Key Segments Covered | Product Type, Form, Distribution Channel, and Region |
| Key Companies Profiled | Alpro UK Ltd.; Amy's Kitchen, Inc.; Arla Foods Amba; Barry Callebaut AG; Cargill, Inc.; Chr. Hansen Holdings A/S; Daiya Foods, Inc.; Dean Foods Company; Edlong Dairy Technologies; Emmi AG; Fonterra Co-operative Group Ltd.; Galaxy Nutritional Foods, Inc.; General Mills, Inc.; Green Valley Organics; HP Hood LLC; Land O'Lakes, Inc.; Murray Goulburn Co-operative Co. Limited (Devondale Murray Goulburn); Tine AS; WhiteWave Foods Company; Others |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The lactose-free cheese market is set to reach nearly USD 676.3 Million by 2022.
The North America lactose-free cheese market is expected to register 6.8% CAGR between 2022 and 2032.
The lactose-free cheese market is expected to grow at 7.0% CAGR between 2022 and 2032.
The Japan lactose-free cheese market will grow at 8.6% CAGR between 2022 and 2032.
The India lactose-free cheese market will grow at 9.7% CAGR between 2022 and 2032.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Analysis 2016 to 2021 and Forecast, 2022 to 2032 5. Global Analysis 2016 to 2021 and Forecast 2022 to 2032, By Product Type 5.1. Blue Cheese 5.2. Brick Cheese 5.3. Camembert Cheese 5.4. Cheddar Cheese 5.5. Cottage Cheese 5.6. Cream Cheese 5.7. Mozzarella Cheese 5.8. Romano Cheese 5.9. Swiss Cheese 5.10. Other Processed Cheese 6. Global Analysis 2016 to 2021 and Forecast 2022 to 2032, By Form 6.1. Cheese Blocks 6.2. Triangle 6.3. Rectangle 6.4. Circle 6.5. Square 6.6. Cheese Slice 6.7. Cheese Spread 6.8. Cheese Spray 7. Global Analysis 2016 to 2021 and Forecast 2022 to 2032, By Distribution Channel 7.1. B2B 7.2. B2C 7.2.1. Hypermarkets/Supermarkets 7.2.2. Convenience Stores 7.2.3. Specialty Stores 7.2.4. Traditional Groceries 7.2.5. Online Retailers 8. Global Analysis 2016 to 2021 and Forecast 2022 to 2032, By Region 8.1. North America 8.2. Latin America 8.3. Europe 8.4. East Asia 8.5. South Asia 8.6. Oceania 8.7. MEA 9. North America Analysis 2016 to 2021 and Forecast 2022 to 2032, By Country 10. Latin America Analysis 2016 to 2021 and Forecast 2022 to 2032, By Country 11. Europe Analysis 2016 to 2021 and Forecast 2022 to 2032, By Country 12. East Asia Analysis 2016 to 2021 and Forecast 2022 to 2032, By Country 13. South Asia Analysis 2016 to 2021 and Forecast 2022 to 2032, By Country 14. Oceania Analysis 2016 to 2021 and Forecast 2022 to 2032, By Country 15. MEA Analysis 2016 to 2021 and Forecast 2022 to 2032, By Country 16. Key Countries Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. Alpro UK Ltd. 18.2. Amy's Kitchen, Inc. 18.3. Arla Foods Amba 18.4. Barry Callebaut AG 18.5. Cargill, Inc. 18.6. Chr. Hansen Holdings A/S 18.7. Daiya Foods, Inc. 18.8. Dean Foods Company 18.9. Edlong Dairy Technologies 18.10. Emmi AG 18.11. Fonterra Co-operative Group Ltd. 18.12. Galaxy Nutritional Foods, Inc. 18.13. General Mills, Inc. 18.14. Green Valley Organics 18.15. HP Hood LLC 18.16. Land O'Lakes, Inc. 18.17. Murray Goulburn Co-operative Co. Limited (Devondale Murray Goulburn) 18.18. Tine AS 18.19. WhiteWave Foods Company 18.20. Others 19. Assumptions & Acronyms Used 20. Research Methodology
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Lactose-free Cheese Market
