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Lactose-Free Products Market Transforming Consumer Choices for Digestive Health

Lactose-free Products Market

Lactose-free Products Market

The global lactose-free products market is valued at USD 13.5 billion in 2023 and is projected to grow to USD 23.9 billion by 2033, driven by a CAGR of 5% during this period.

Several factors are driving the growth of the lactose-free products market. The market is expected to expand steadily in the coming years due to increasing awareness of lactose intolerance, a growing demand for convenient and healthy food options, and a wider availability of lactose-free products.

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The supply of lactose-free products has surged significantly due to evolving consumer preferences. The industry's growth is further supported by rising disposable incomes in developing countries and increasing health awareness in industrialized nations. However, challenges remain, including the high cost of lactose-free products, limited awareness in certain regions, and competition from traditional dairy products.

There are several opportunities available, such as entering new markets, developing innovative lactose-free products, and enhancing marketing efforts. Industry players must adapt to evolving consumer preferences and remain resilient amid potential economic downturns.

Key Takeaways

The market for lactose-free goods is dominated by the United States, which holds a sizeable 32.5% of the market. This demonstrates how popular lactose-free solutions are with American customers.

With a considerable proportion of 7.0%, Germany is a country with a sizable market for lactose-free goods. The popularity of dairy substitutes and the rising awareness of lactose sensitivity are both evident in the German market.

With respective market shares of 2.3% and 1.4%, Japan and Australia have lesser market shares. As consumers become more health-conscious and look for alternatives to conventional dairy products, these statistics point to significant growth opportunities for lactose-free products in these areas.

China is a sizable rising lactose-free product market with a 4.9% market share. The demand for lactose-free options among Chinese consumers is rising as disposable incomes and health awareness rise.

Market shares of 6.1% and 6.8%, respectively, for India and the United Kingdom, show the substantial market potential for lactose-free goods. These numbers point to a rise in the demand for dairy substitutes and a trend in both nations toward healthier dietary options.
Competitive Landscape

The lactose-free products market has long been fragmented, with numerous mid-sized and small competitors operating within it.

Major players prioritize mergers and acquisitions, product innovation, and expanding production capacities. The intense competition in the market drives significant innovation across various aspects, including product types, rapid testing kits, and marketing strategies.

Recent Developments in the Lactose-free Products Market:

In February 2022, Nestlé Health Science has agreed to purchase a majority stake in Orgain, a leader in plant-based nutrition, from founder Dr. Andrew Abraham and Butterfly Equity, who will continue to be minority shareowners.

To fulfill customers' rapidly changing expectations for lactose-free products, the Coca-Cola Company purchased the remaining ownership in Fairlife LLC from its joint venture partner Select Milk Producers in January 2020.
Valio and Palmer Holland (USA) formed a joint venture in April 2020 to offer lactose-free powders in the USA market.

Danone released a lactose-free product line in Spain under Activia in May 2017, with different flavors to enter the country's lactose-free market.
Danone purchased WhiteWave in April 2017. (USA). This acquisition aided Danone in expanding its product line with names such as Horizon Organic Milk, which is WhiteWave's best-selling product category and provides lactose-free milk.

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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

Market Segmentation

By Type:
Milk
Flavored Milk
Regular
Condensed
Cheese
Hard
Cheddar
Cottage
Others
Ice-cream
Fats
Confectionary Products
Desserts
Yogurt
Drinkable
Spoonable

By Form:
Lactose-free
No Added Sugar
Reduced Lactose

By Nature:
Organic
Conventional

By Sales Channel:
Food Service
HoReCa
Quick Service Restaurants (Sandwiches, fast casual, Coffee Shops)
Retail
Specialty Stores
Hypermarket/Supermarket
Convenience Stores
Departmental Stores
Grocery Retailers
Online Retailers

By Region:
North America
Latin America
Europe
East Asia
South Asia
Oceania
Middle East and Africa

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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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