Lactose Free Food Market Report 2025

The lactose free food market size has grown rapidly in recent years. It will grow from $16.83 trillion in 2024 to $18.66 trillion in 2025 at a compound annual growth rate (CAGR) of 10.9%. The growth in the historic period can be attributed to rising lactose intolerance awareness, growing health consciousness, increasing prevalence of lactose intolerance, diverse product offerings, globalization of dietary preferences.

The lactose free food market size is expected to see rapid growth in the next few years. It will grow to $29.1 trillion in 2029 at a compound annual growth rate (CAGR) of 11.7%. The growth in the forecast period can be attributed to continued health and wellness trends, innovation in product formulations, rising demand for plant-based alternatives, e-commerce expansion, customized nutrition solutions, collaborations and partnerships. Major trends in the forecast period include development of diagnostic technologies, expanding product offerings in the snack and convenience sector, technological advancements in lactase production, innovation in dairy-free product formulations, health and wellness trends driving market growth.

The rising prevalence of lactose intolerance is expected to lead to an increased demand for lactose-free food products. Lactose intolerance is a digestive condition resulting from the inability to digest lactose, a carbohydrate present in dairy products. For example, in January 2022, the National Library of Medicine, a US-based biomedical library, reported that approximately 65% to 90% of adults are affected by lactose intolerance. Additionally, in Europe, the prevalence of lactose intolerance ranges from 5% to 15% of the population. Consequently, the growing number of individuals with lactose intolerance is projected to drive the demand for lactose-free food products in the coming years.

The lactose-free food market is expected to experience growth due to changing consumer lifestyles and an increasing focus on health-conscious choices. As consumers increasingly prioritize healthier dietary and lifestyle choices, there is a growing awareness of lactose-free foods that cater to specific dietary preferences, restrictions, and digestive health. Notably, Koninklijke DSM N.V., a Netherlands-based health and bioscience company, reported that in response to the global pandemic, 60% of consumers worldwide are more concerned about their health, emphasizing the importance of leading healthy lives to prevent health issues. Additionally, data from Food Insight, a US-based non-profit organization, indicated that in 2022, 52% of participants in the Food and Health Survey followed specific diets or eating patterns, with preferences including clean eating, mindful eating, and calorie counting. These shifts in health-conscious consumer behaviors are significant drivers for the growth of the lactose-free food market.

The market is witnessing expansion through the introduction of new lactose-free products. In June 2022, Provilac, a premium milk home delivery company based in India, launched lactose-free milk catering to individuals with sensitive digestive systems. The lactose-free milk is produced by adding the catalytic enzyme 'Lactase,' which breaks down lactose into glucose without compromising the integrity of the milk. Such product innovations are such as ly to contribute to the market's revenue growth in the forecast period.

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 include Cargill Inc., Nestlé SA, Groupe Lactalis SA, Danone SA, General Mills Inc., Land O Lakes Inc., Arla Foods Ltd., Fonterra Co-operative Group Limited, Kerry Group plc, Emmi AG, HP Hood LLC, Valio Ltd., TINE SA, Organic Valley Family of Farms., Amy's Kitchen Inc., Freedom Foods Group Limited, Daiya Foods Inc., Edlong Dairy Technologies, OMIRA Oberland-Milchverwertung GmbH, Galaxy Nutritional Foods Inc., Green Valley Organics Foods Ltd., McNeil Nutritionals LLC, Parmalat SpA, Alpro Products Ltd., Dean Foods Co.

Asia-Pacific was the largest region in the lactose free food market in 2024. 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, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the lactose free food market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Lactose is a sugar naturally present in milk and dairy-based foods, containing milk and whey as ingredients. Lactose-free food serves as an alternative for individuals seeking dairy-free options. Lactose-free dairy items contain lactase, an enzyme aiding in the breakdown of milk sugar, preventing digestive issues such as abdominal cramps, gas, diarrhea, and bloating in those with lactose intolerance.

Key types include lactose-free and lactose-reduced products, designed for people who struggle to digest lactose. Lactose-free food applications span milk, cheese, yogurt, ice cream, non-dairy alternatives, and more, available through supermarkets, hypermarkets, online stores, and other retail channels. Various sources of lactose-free food include rice, almond, soy, hemp milk, and coconut, utilizing technologies such as chromatographic separation, acid hydrolysis, and membrane reactors in their production.

The lactose-free food research report is one of a series of new reports that provides lactose-free food statistics, including lactose-free food industry global market size, regional shares, competitors with lactose-free food share, detailed lactose-free food segments, market trends and opportunities, and any further data you may need to thrive in the lactose-free food industry. This lactose-free food research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

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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