Lactose-Free Infant Formula Market Report 2026

The lactose-free infant formula market size has grown rapidly in recent years. It will grow from $20.54 billion in 2025 to $22.77 billion in 2026 at a compound annual growth rate (CAGR) of 10.9%. The growth in the historic period can be attributed to rising diagnosis of lactose intolerance in infants, increasing awareness of milk protein allergies, expansion of pediatric healthcare access, availability of alternative protein sources, growth of specialty infant nutrition brands.

The lactose-free infant formula market size is expected to see rapid growth in the next few years. It will grow to $34.37 billion in 2030 at a compound annual growth rate (CAGR) of 10.8%. The growth in the forecast period can be attributed to increasing demand for personalized infant nutrition, expansion of specialized pediatric diets, rising investment in clinical nutrition research, growing online distribution of infant formula, increasing regulatory support for medical nutrition. Major trends in the forecast period include increasing demand for hypoallergenic infant nutrition, expansion of soy and amino acid-based formulas, rising focus on digestive health solutions, increasing availability of specialized infant nutrition products, enhanced emphasis on clinical validation.

The growing population of newborns is expected to propel the growth of the lactose-free infant formula market going forward. Newborns, also referred to as neonates, are infants in the first 28 days of life and often require specialized nutrition to support healthy growth and development. Lactose-free infant formula is particularly important for newborns diagnosed with lactose intolerance or lactose sensitivity, as it helps prevent digestive discomfort while ensuring adequate nutrient intake. As the number of births increases, the demand for specialized infant nutrition products, including lactose-free formulas, continues to rise. For instance, in January 2023, according to the Centers for Disease Control and Prevention (CDC), a US-based national public health organization, the United States recorded a 1% increase in registered births, reaching 3,664,292 compared to the previous year. Therefore, the growing population of newborns is driving the growth of the lactose-free infant formula market.

The rapid rise of e-commerce is expected to further propel the growth of the lactose-free infant formula market. E-commerce involves the buying and selling of goods through online platforms, offering enhanced convenience, wider product availability, and easy price comparison. The expansion of e-commerce is largely driven by increasing consumer preference for home delivery, subscription-based purchasing, and digital access to product information. Lactose-free infant formula particularly benefits from this trend, as parents can conveniently access specialized formulas, compare brands, read reviews, and make informed purchasing decisions without visiting physical stores. For instance, in February 2025, according to the US Census Bureau, total e-commerce sales in 2024 were estimated at $1.19 trillion, representing an 8.1% increase compared to 2023. Therefore, the rise of e-commerce is significantly contributing to the growth of the lactose-free infant formula market.

In July 2023, Bobbie, a US-based infant formula manufacturer, acquired Nature’s One for an undisclosed sum. This acquisition is intended to expand its product range and bolster its position in the organic infant formula market by adding manufacturing facilities. Nature's One is a US-based company specializing in food and beverage services, particularly infant formulas.

Major companies operating in the lactose-free infant formula market are Nestle S.A., Valio Ltd., Danone S.A., Abbott Laboratories, Mead Johnson & Company LLC, Gerber Product Co., HiPP International, Perrigo Company plc, Earth's Best Inc., Nutricia Ltd., Nurture 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.

Western Europe was the largest region in the lactose-free infant formula market in 2025. The regions covered in the lactose-free infant formula market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the lactose-free infant formula market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The lactose-free infant formula market consists of sales of skimmed milk, plant-based soy protein. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this lactose-free infant formula market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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