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Lactose-Free Butter Industry Expected to Reach $501.18 Million by 2032, Growing at a CAGR of 5.99%

04-03-2025 07:49 AM CET | Food & Beverage

Press release from: Polaris Market Research & Consulting

Lactose-Free Butter Industry Expected to Reach $501.18 Million

Lactose Free Butter Market
The global lactose free butter market size and share were valued at USD 289.11 million in 2022. The market is projected to grow from USD 296.85 billion in 2023 to USD 501.18 million by 2032, exhibiting a CAGR of 5.99% between 2023 and 2032.

Market Overview
Lactose butter refers to a specialized type of butter that is treated and processed in a certain way using the enzyme lactase, which acts on a complex sugar known as lactose. This disaccharide, when treated with this particular enzyme, breaks down into simpler sugars such as glucose and galactose. Breaking it down to simpler sugars renders the lactose inactive, thereby eradicating the symptom of lactose intolerance from the butter. The butter is then churned and, on continued churning, the fat is separated from the milk, further reducing the amount of lactose in the final product.

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Recent Developments
• June 2023: Lurpak announced the launch of its latest vegan and dairy-free butter across the United Kingdom. The company is focusing on expanding its product portfolio to meet the growing global demand for dairy-free alternatives, driven by increasing concerns over environmental and health impacts.

• August 2021: WhiteCub introduced "00WhiteCub Vegan Butter," a completely dairy-free product formulated with plant-based vitamins B12 and D.

Competitive Landscape
The lactose free butter market is fragmented and is projected to witness competition due to several players' presence. Major players in the market include:
• Agropur Dairy
• CAPSA Foods
• Cargill
• Corbion
• Challenge Dairy Company
• Butterfields Butter
• DuPont
• General Mills
• Hain Celestial
• Ingredion
• Kellogg Company
• Kerry Group
• Kraft Heinz
• Valio Ltd.
• Miyoko's Creamery
• Molkerei Biedermann
• Parmalat
• Uelzena Ingredients

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Lactose-Free Butter Market Report Highlights
• Household Segment Dominance (2022): The household segment accounted for a significant share of the global market in 2022, driven by the increasing prevalence of lactose intolerance and rising demand in developing economies.

• Retail Sector Leadership: The retail/household sector led the industry with a substantial revenue share in 2022, primarily due to the growing adoption of lactose-free butter as an effective alternative to traditional butter.

• Growth in Online Retail: The online retail segment is expected to witness a healthy CAGR over the forecast period, fueled by the rising number of companies strengthening their online presence.

• North America's Market Share: North America held the largest market share, supported by a well-developed distribution and retail network, particularly in countries like the U.S. and Canada.
Market Dynamics

• Rising awareness and emphasis among consumers globally on health and wellness and an increasing number of individuals becoming conscious of their dietary choices and actively seeking healthier options are some of the major factors driving this market. The rising demand for allergen-free products, including lactose-free butter, and its prevalence as a healthier alternative to traditional butter, mainly for people with lactose intolerance, are among the major factors driving the demand and growth of the market.

• Several large manufacturers across the globe have been investing in research and development of lactose-free butter to improve the taste, texture, and quality and are bringing innovations in manufacturing processes and ingredient formulations, resulting in improvements in product and are likely to influence the growth of the market in the right direction.

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Segmental Analysis
• The lactose free butter market is primarily segmented based on application, end-use, distribution channel, and region.

• Based on the application, the segment is bifurcated into household and commercial. The household segment accounted for global market share in 2022, driven by the growing incidences of lactose intolerance among the general population

• By distribution channel, the market is categorized into supermarkets & hypermarkets, specialty stores, online retail stores, and others. The online retail stores segment is projected to witness the highest growth rate during the anticipated period, which is mainly attributable to the increasing number of online shoppers globally.

Lactose Free Butter Market, Distribution Channel Outlook (Revenue - USD Million, 2019-2032)
• Supermarkets & Hypermarkets
• Specialty Stores
• Online Retail Stores
• Others

Lactose Free Butter Market, Application Outlook (Revenue - USD Million, 2019-2032)
• Household
• Commercial

Lactose Free Butter Market, End-Use Outlook (Revenue - USD Million, 2019-2032)
• Retail or Household Sector
• Food Industry
• Meat Products Industry
• Infant Formula Industry
• Bakery & Confectionery Industry
• Others

Regional Insights
• North America
• U.S.
• Canada
• Europe
• Germany
• UK
• France
• Italy
• Spain
• Russia
• Netherlands

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About Polaris Market Research & Consulting, Inc:
Polaris Market Research is a global market research and consulting company. The company specializes in providing exceptional market intelligence and in-depth business research services for PMR's clientele spread across different enterprises. We at Polaris are obliged to serve PMR's diverse customer base present across the industries of healthcare, technology, semiconductors, and chemicals among various other industries present around the world. We strive to provide PMR's customers with updated information on innovative technologies, high-growth markets, emerging business environments, and the latest business-centric applications, thereby helping them always to make informed decisions and leverage new opportunities. Adept with a highly competent, experienced, and extremely qualified team of experts comprising SMEs, analysts, and consultants, we at Polaris endeavor to deliver value-added business solutions to PMR's customers.

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