Lactose Free Food Market Report 2026

The lactose free food market size has grown rapidly in recent years. It will grow from $18.53 billion in 2025 to $20.64 billion in 2026 at a compound annual growth rate (CAGR) of 11.4%. The growth in the historic period can be attributed to increasing prevalence of lactose intolerance, expansion of dairy processing capabilities, rising consumer awareness of digestive health, availability of lactase enzyme technologies, growth of packaged dairy consumption.

The lactose free food market size is expected to see rapid growth in the next few years. It will grow to $31.78 billion in 2030 at a compound annual growth rate (CAGR) of 11.4%. The growth in the forecast period can be attributed to increasing demand for functional dairy products, rising investments in dairy processing innovation, expansion of lactose-free offerings in emerging markets, growing preference for clean-label dairy, increasing penetration of online dairy retailing. Major trends in the forecast period include increasing demand for lactose-free dairy alternatives, rising adoption of enzyme-based processing technologies, expansion of lactose-free product portfolios, growing focus on digestive health products, enhanced investment in dairy innovation.

The rising prevalence of lactose intolerance is expected to drive the growth of the lactose-free food market in the coming years. Lactose intolerance is a digestive disorder in which the body is unable to effectively digest lactose, the natural sugar present in milk and dairy products. The number of individuals affected by lactose intolerance is increasing as global epidemiological research continues to demonstrate widespread lactase non-persistence among adults across various populations. The lactose-free food market addresses this demand by providing dairy alternatives that enable consumers to maintain adequate nutrition without experiencing digestive discomfort. For example, in June 2023, according to the National Dairy Council (NDC), a US-based non-profit organization, approximately 70% of the world’s adult population shows lactase non-persistence, or lactose malabsorption, a condition that frequently results in lactose intolerance. Therefore, the growing number of people with lactose intolerance is fueling the expansion of the lactose-free food market.

Major players in the lactose-free food market are focusing on product innovations to meet the rising demand for lactose-free options and diversify their product portfolios. A notable example is the development of lactose-free Greek yogurt, made with A2 milk from Indian cows and live Icelandic cultures. This lactose-free Greek yogurt is low in fat and sugar, preservative-free, and offers a healthy alternative for consumers. In August 2023, Skyrrup, an India-based lactose-free yogurt company, introduced this new and unique lactose-free Greek yogurt, providing a healthier option for consumers seeking lactose-free alternatives.

In March 2023, Next Gen Foods, a Singaporean food manufacturing entity, successfully completed the acquisition of Mwah Ltd. for an undisclosed sum. This strategic move is geared towards the augmentation of Next Gen Foods' repertoire in the plant-based sector, specifically within the expanding market for plant-based dairy alternatives. Mwah Ltd., a United Kingdom-based dairy enterprise, specializes in the innovation and production of plant-based substitutes for traditional dairy items, including milk, cream, and gelato. This acquisition is anticipated to fortify Next Gen Foods' market standing and enhance its offerings in the burgeoning plant-based dairy segment.

Major companies operating in the lactose free food market are Nestlé SA, Groupe Lactalis SA, Danone SA, Arla Foods amba, Fonterra Co-operative Group Limited, Valio Ltd., Emmi AG, TINE SA, Parmalat SpA, FrieslandCampina N.V., Müller Group, Saputo Inc., Yili Group, Mengniu Dairy, Meiji Co., Ltd., Morinaga Milk Industry Co., Ltd., Dean Foods Company, Land O’Lakes, Inc., Organic Valley, HP Hood LLC, Lactalis USA, Glanbia plc.

Asia-Pacific was the largest region in the lactose free food market in 2025. Western Europe was the second-largest region in the global lactose free food market. The regions covered in the lactose free food 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 food market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The lactose-free food market consists of sales of soya yogurts and cheeses, oat milk, rice milk, coconut-based yogurts and cheeses, carob bars, and food with “dairy-free” and “suitable for vegan” signs. 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 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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