2025 Lactose-Free Infant Formula Industry Trends Report: Long-Term Outlook Through 2034

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How Large Will the Lactose-Free Infant Formula Market Size By 2025?
The market size of lactose-free infant formula has seen swift expansion in the past few years. It is projected to increase from $18.53 billion in 2024 to $20.54 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 10.9%. This substantial growth in the historical timeframe is credited to numerous factors such as medical endorsements and prescriptions, escalation in the occurrence of cow's milk protein allergy (cmpa), rising episodes of lactose intolerance in infants, parental apprehension about digestive wellness, enhancements in formulations and flavors, along with a growing demand for alternate dietary options.

How Big Is the Lactose-Free Infant Formula Market Size Expected to Grow by 2029?
In the coming years, the lactose-free infant formula market is projected to experience rapid expansion. The market is forecasted to grow to $31.01 billion by 2029 with a compound annual growth rate (CAGR) of 10.8%. The anticipated increase over the forecast period can be credited to a heightened worldwide recognition of lactose intolerance, expansion of the market in developing economies, increased usage of specialty formulas, advancements in research relating to infant nutrition and enhanced healthcare accessibility. Key trends to watch during the forecast period encompass the development of hydrolyzed protein formulas, incorporation of probiotics for optimal gut health, the formulation of plant-based and non-dairy alternatives, a focus on organic and clean label formulas, and supplementary use of dha and ara for development.

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Which Key Market Drivers Powering Lactose-Free Infant Formula Market Expansion and Growth?
The escalating cases of lactose intolerance are believed to be a major catalyst for the expansion of the lactose-free infant formula market. When individuals are unable to completely breakdown the lactose found in milk, lactose intolerance occurs, causing several health issues such as bloating, gas, and diarrhea. It becomes necessary for lactose intolerant infants to consume lactose-free infant formula as a means to meet their nutritional needs. For instance, in July 2022, Encyclopædia Britannica Inc., a UK-based publishing company, stated in a report that around 65% of the adult populace was suffering from lactose intolerance in 2022. Consequently, the increasing prevalence of lactose intolerance in infants is fuelling the demand in the lactose-free infant formula market.

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Which Fast-Growing Trends Are Poised to Disrupt the Lactose-Free Infant Formula Market?
Leading companies in the lactose-free infant formula market are concentrating on creating novel products, like plant-based infant formula, to cater to parents' growing preference for plant-derived foods for their infants. Plant-based infant formula is a distinctive type of baby formula made from non-animal constituents like plants, grains, and seeds. For example, in July 2022, Danone S.A., a food corporation based in France introduced a new baby formula known as Dairy & Plants Blend, which combines dairy and plant-based ingredients. This product not only provides a plant-based alternative that's fully nutritious and easy to digest but also expands the feeding choices for parents. The formula stands out because it's easy to digest, comprises 60% plant protein and 40% dairy protein and is accessible in two stages.

What Are the Emerging Segments in the Lactose-Free Infant Formula Market?
The lactose-free infant formulamarket covered in this report is segmented -

1) By Type: Milk Infant Formula, Non-Milk Infant Formula
2) By Indications: Starting Formula, Specialized Formula, Follow-On Formula
3) By Application: Premature, Babies With galactosemia, Infants With Cows Milk Protein Allergies, Other Applications
4) By Distribution Channel: Supermarkets/Hypermarkets, Specialist Stores, Online Retail Stores, Other Distribution Channels

Subsegments:
1) By Milk Infant Formula: Lactose-Free Cow's Milk Formula, Lactose-Free Goat's Milk Formula
2) By Non-Milk Infant Formula: Soy-Based Infant Formula, Hydrolyzed Protein Formula, Amino Acid-Based Formula

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Who Are the Global Leaders in the Lactose-Free Infant Formula Market?
Major companies operating in the lactose-free infant formula market include Nestle S.A, Valio Ltd., Danone S.A, Abbott Laboratories, Silverson Machines Holdings Ltd., Gimme the Good Stuff, Mead Johnson & Company LLC, Gerber Product Co., HiPP International, Perrigo Company plc, Earth's Best Inc., Nutricia Ltd., Dana Dairy Group, Nurture Inc., Kraft Heinz Company, Hain Celestial Group Inc., Honest Company Inc., Nature's One Inc., Ausnutria Dairy Corporation Ltd., Synutra International Inc., Beingmate Baby & Child Food Co. Ltd., Yili Industrial Group Company Limited, Feihe International Inc., Biostime International Holdings Limited, Wissun International Group Co. Ltd., Otsuka Holdings Co. Ltd., Morinaga Milk Industry Co. Ltd., FrieslandCampina NV

Which are the Top Profitable Regional Markets for the Lactose-Free Infant Formula Industry?
Western Europe was the largest region in the lactose-free infant formula market in 2024. The regions covered in the lactose-free infant formula market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

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