Lactose Free Food Market Set to Double to $36.68 Billion by 2031
Source: The DairyNews
The global lactose free food market is projected to grow from USD 18.73 billion in 2024 to an estimated USD 36.68 billion by 2031, exhibiting a robust compound annual growth rate (CAGR) of 10.1%, as per a recent study by Coherent Market Insights, Inc.
This significant growth is primarily fueled by heightened consumer awareness regarding digestive health and lactose intolerance.
An increase in global lactose intolerance, as reported by the National Institute of Diabetes and Digestive and Kidney Diseases, suggests that around 68% of people worldwide have a reduced ability to digest lactose post-infancy. This growing awareness is driving the demand for lactose free alternatives, spanning from milk to yogurt, and ice cream to cheese. Moreover, the trend towards vegan and gluten-free lifestyles further boosts the market expansion.
Despite the promising outlook, the market faces challenges such as the higher cost of lactose free products compared to their conventional counterparts. However, the burgeoning demand for organic lactose free products is expected to counterbalance these obstacles. Strict regulations ensuring the quality of organic ingredients and processing methods are enhancing consumer confidence in these products. To meet this demand, dairy manufacturers are increasingly launching organic lactose free product lines.
The shift towards plant-based dairy alternatives like oat milk, almond milk, coconut milk, and cashew milk is reshaping the market landscape. These products are gaining popularity among lactose intolerant consumers as nutritious and tasty substitutes. Continuous innovation in product varieties, flavors, and formulations is likely to stimulate further growth.
Market Opportunities:
Milk Segment Dominance: The milk segment currently holds over 25% of the market share, driven by the widespread prevalence of lactose intolerance. Lactose free milk, which maintains the nutritional profile of regular milk while removing lactose, is seeing increased demand.
Rising Bread Segment: The lactose free bread segment is rapidly growing due to innovative launches in lactose free bakery products. As bread is a staple in diets worldwide, the demand for lactose free breads, including specialty items like buns and baguettes, is expanding. This is prompting key players to diversify their offerings to capture this growing market segment.
An increase in global lactose intolerance, as reported by the National Institute of Diabetes and Digestive and Kidney Diseases, suggests that around 68% of people worldwide have a reduced ability to digest lactose post-infancy. This growing awareness is driving the demand for lactose free alternatives, spanning from milk to yogurt, and ice cream to cheese. Moreover, the trend towards vegan and gluten-free lifestyles further boosts the market expansion.
Despite the promising outlook, the market faces challenges such as the higher cost of lactose free products compared to their conventional counterparts. However, the burgeoning demand for organic lactose free products is expected to counterbalance these obstacles. Strict regulations ensuring the quality of organic ingredients and processing methods are enhancing consumer confidence in these products. To meet this demand, dairy manufacturers are increasingly launching organic lactose free product lines.
The shift towards plant-based dairy alternatives like oat milk, almond milk, coconut milk, and cashew milk is reshaping the market landscape. These products are gaining popularity among lactose intolerant consumers as nutritious and tasty substitutes. Continuous innovation in product varieties, flavors, and formulations is likely to stimulate further growth.
Market Opportunities:
Milk Segment Dominance: The milk segment currently holds over 25% of the market share, driven by the widespread prevalence of lactose intolerance. Lactose free milk, which maintains the nutritional profile of regular milk while removing lactose, is seeing increased demand.
Rising Bread Segment: The lactose free bread segment is rapidly growing due to innovative launches in lactose free bakery products. As bread is a staple in diets worldwide, the demand for lactose free breads, including specialty items like buns and baguettes, is expanding. This is prompting key players to diversify their offerings to capture this growing market segment.
