The global lactose-free products market size is valued at USD 13.5 billion in 2023. The market is expected to reach USD 23.9 billion by 2033 at a CAGR of 5% from 2023 to 2033.
| Attributes | Details |
|---|---|
| Global Lactose-free Products Market Size (2023E) | USD 13.5 billion |
| Global Lactose-free Products Market Projected Size (2033F) | USD 23.9 billion |
| Value CAGR (2023 to 2033) | 5% |
| Top 3 Countries' Market Share | 46.3% |
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Consumer opinion about 'free-form' is rapidly evolving,' as a result, the sales of allergen-free ingredients are expected to grow exponentially by 2033, and consumer purchasing patterns in light of COVID-19 may push this to an even higher level.
The lactose-free products market growth was aided by increased organic food and beverage consumption from 2018 to 2022. As a result, lactose-free products are more expensive to appeal to a more affluent customer base, while ordinary products are much cheaper.
The eating habits of consumers are rapidly evolving. People are more on-the-go, have a hectic schedule, and their eating habits are more erratic. Lactose-free product manufacturers are constantly adapting to satisfy the rising demand for lactose-free products from today's consumers.
The latest trends in the lactose-free products market include products that are relatively compact and more convenient, products that blur traditional category borders, and offerings that range from delectable to nutritionally packed.
Companies like Genius Juice are driving enormous product development with their new plant-based protein smoothie line and plant-based organic coconut smoothies, while Gen Z provides a growing customer base for lactose-free products, increased availability of non-dairy alternatives, such as soy milk, and the recently expanded assortment of coconut milk products.
Lactose-free Products have a lower calorie profile due to the lack of lactose; this factor is boosting the demand for lactose-free products among health-conscious consumers, which is expected to grow the lactose-free products market share.
The surge in health benefits offered by lactose-free dairy products has resulted from increased innovation in the lactose-free dairy market, which represents important growth opportunities for the lactose-free products market.
Gluten-free and low/no/reduced sugar claims in lactose-free products help to widen the market base. Lactose-free milk products with probiotics, for example, are among the latest trends in the lactose-free products market.
During the forecast period, factors such as rising consumer awareness of lactose intolerance and rising demand for reduced-added-sugar or no added sugar products are expected to propel the lactose-free products market share forward.
Manufacturers are aiming to produce products with more protein components to satisfy the recent shift in taste and desire of customers who want to follow a better diet in order to accelerate the market size. As a result, the sales of lactose-free products are predicted to grow rapidly over the forecast period.
North America is predicted to remain an important market, accounting for the majority of the market share in 2023. The USA holds more than 79.2% market share in the North American lactose-free products market, which is predicted to increase at a CAGR of around 5.3% over the forecast period. In 2023, the USA is estimated to hold the highest share of the Lactose-free products market in North America.
Over the last few years, there has been an increase in the consumption of lactose-free products. This is due to the nutritional value of lactose-free products and their ability to prevent concerns such as allergies and lactose intolerance.
The sales of lactose-free products are rising as they are becoming more popular among health-conscious consumers, who prefer lactose-free products over regular dairy products. People are also interested in trying new products, which is one of the factors for the escalating lactose-free products market growth.
The demand for lactose-free products is projected to rise as consuming lactose-free products aids in the breakdown of lactose in the body and helps to maintain the body's lactase enzyme count.
According to FMI, Germany is estimated to hold more than 19.2% share in the Europe lactose-free products market in 2023 and it is estimated to grow with a CAGR of around 5.3% in the forecast period.
Compared to the global average of 65 percent, the region's population is lactose intolerant to a lesser extent, with approximately 25 percent of the total population lactose intolerant.
With the increased use of allergy kits, people are self-diagnosing themselves as lactose intolerant, resulting in a large consumer base for lactose-free products such as milk, butter, cream, and so on. This factor is anticipated to boost the lactose-free product demand in the region during the forecast period.
The kits are not completely foolproof, but the fast-paced lifestyle combined with the ease of access to suck kits helps consumers save time and money on diagnostics.
Major players in the market are proposing self-analyzing apps and websites that allow consumers to test them for lactose intolerance. This is due to the proliferation of the lactose-free products market in Europe.
China is dominating the East Asia market holding a significant lactose-free products market share of more than 35.6%. It is expected to grow with a CAGR of around 6.4% in the forecast period. While in South Asia Indian market is driving growth owing to rapid urbanization.
A higher occurrence of lactose intolerance is observed in the Asian and Hispanic populations. Both of these populations are largely concentrated in the Asia Pacific and Latin America, respectively. In both regions, the market is new and is expected to gain traction over the forecast period as product penetration propels the growth of lactose-free products.
Growing adult population share in the developed regions generates more sales of lactose-free products owing to their ease of digestion and reduced effects of lactose intolerance, urbanization, and increased number of lactose intolerant population.
The corn segment is expected to dominate the source segment, holding more than 35.7% of the market share in 2023. It is expected to grow with a CAGR of around 5.2% over the forecast period.
Among the source segment, milk is expected to represent the majority of the lactose-free products industry in 2022. This is owing to the rising demand for lactose-free Products from the Asia-Pacific market.
There are multiple factors escalating the growth of lactose-free milk, some explicit factor having a positive impact on the market is increased awareness regarding lactose-free products available in the market through extensive marketing and advertising efforts of manufacturers.
Consumers are expected to respond positively to manufacturers of lactose-free products, owing to the growing mature consumer base for lactose-free products. Consumers are expected to be interested in the new lactose-free product launches.
This is consistent with the growing demand for processed lactose-free product portfolios and offerings other than the ice cream and yogurt market.
Well-established supermarkets and other distribution channels, such as eCommerce are expected to increase the global lactose-free products market share, which, when merged with the globally developed market for lactose-free dairy products, is expected to drive the lactose-free milk products over the forecast period.
Among the form segment, no-added-sugar is expected to dominate the market, holding more than 35.6% share in 2023. It is expected to grow with a significant CAGR of around 4.1% over the forecast period.
People are becoming more interested in no added sugar products as they become more aware of the health risks associated with excessive sugar consumption. To meet changing consumer demand for lactose-free products, many dairy processing manufacturers are focusing on introducing lactose-free dairy products with no added sugar claims. The lactose-free product market is driven by the trend of using less or no added sugar.
Among the nature segment, organic is expected to dominate the market, holding more than 23.7% share in 2023. It is expected to grow with a significant CAGR of around 6.7% over the forecast period.
The surge in demand for clean-label products is expected to be beverage and food products significant driver of the organic beverage and food industry's growth. Consumers are becoming more conscious of the food products they consume.
Customers are becoming aware of the ingredients used in food service, their origins, and government certifications to verify that all products are organic and sustainable. Demand for sustainable organic lactose-free food is increasing as customers become more health-conscious.
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The lactose-free products market has been fragmented for a long time due to the presence of various mid-sized and small competitors.
Mergers and acquisitions, product innovation, and production capacity expansion are all priorities for major players. In addition, the high competition in the lactose-free products market promotes high product innovation in terms of types, rapid testing kits, marketing, etc.
Recent Developments in the Lactose-free Products Market:
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD billion for Value and MT for Volume |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Oceania; and the Middle East & Africa |
| Key Countries Covered | USA, Canada, Brazil, Mexico, Chile, Peru, Argentina, Germany, Italy, France, United Kingdom, Spain, BENELUX, Nordic, Russia, Poland, China, Japan, South Korea, India, Thailand, Indonesia, Malaysia, Singapore, Australia, New Zealand, GCC Countries, Turkey, South Africa, North Africa, and Central Africa |
| Key Segments Covered | Source, Product Type, Application, Processing Method, and Region |
| Key Companies Profiled | Nestlé S.A; The Coca-Cola Company; Danone Company S.A.; Johnson & Johnson Services, Inc.; Lifeway Foods, Inc.; Dairy Farmers of America, Inc.; General Mills, Inc.; Gujarat Cooperative Milk Marketing Federation; Prairie Farms Dairy |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Drivers, Restraints, Opportunities and Threats Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
North America region generated maximum revenue of the global demand in 2023.
The United States is estimated to grow at 79.2% of share through 2033.
The no-added-sugar segment contributes a maximum share in the global market.
The organic segment holds a maximum revenue of the global market share.
From 2018 to 2022, the global market exhibited 5% CAGR.
| Estimated Industry Size (2025E) | USD 865.1 million |
|---|---|
| Projected Value (2035F) | USD 1,973.2 million |
| Value-based CAGR (2025 to 2035) | 8.6% |
| Estimated Market Value (2024E) | USD 42.1 billion |
|---|---|
| Projected Market Value (2034F) | USD 63 billion |
| Value-based CAGR (2024 to 2034) | 4.1% |
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