Lactose-Free Products Market Witness the Growth of $18.4 billion by 2025
by Mit K. SEOThe global lactose-free
products market size is estimated to be valued at USD 12.1 billion in
2020 and is projected to reach USD 18.4 billion by 2025, recording a CAGR of
8.7% during the forecast period. The demand for lactose-free products is
increasing significantly due to the rise in lactose intolerant population
across the globe. Moreover, the rise in the consumption of clean label food
products is one of the major factors encouraging the growth of the lactose-free
organic products market globally.
Key players in this market include The Coca-Cola Company
(US), GCMMF (India), Nestle (Switzerland), Danone Company S.A (France), Valio
Ltd. (Finland), General Mills (US), Johnson & Johnson Services, Inc. (US),
Lifeway Foods Inc. (US), LALA U.S (US), Dean Foods (US), Organic Valley (US),
Dairy Farmers of America (US), Shamrock Foods (US), Saputo Inc. (Canada),
Prairie Farms Dairy (US), Agri-Mark, Inc. (US), Smith Foods, Inc. (US), Meggle
Group GMBH (Germany), Drums Food International Pvt Ltd. (India), and Granlatta
Societa Cooperative Agricola ARL (Italy).
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Market Dynamics
Drivers: Growing
lactose intolerant population, awareness and self-diagnosis
According to the National Center for Biotechnology
Information (NCBI), nearly 65% of the global population is prone to lactose
intolerance. Thus, this has led to an increase in the production of
lactose-free products. It has also been observed that lactose intolerance is
witnessed in nearly 90% of adults in East Asia. In addition, the increase in
health awareness and wellness concerns among consumers is a key factor that is
projected to drive the growth and demand for lactose-free products. Moreover,
according to the US National Library of Medicine, lactose intolerance is
prevalent in adults, and 30 million adults in the US have symptoms of lactose
intolerance by the age of 20 years. However, in African Americans, the problem
of lactose intolerance can occur early at the age of 2 years.
The sales of lactose-free products have increased
significantly in Europe and the US in recent years due to the increase in
self-diagnosed cases of lactose intolerance among consumers. However,
lactose-free products are gaining traction in the Asia Pacific region, as
consumers are becoming more concerned about their health and investing in
self-diagnosis in the region, which is projected to support the growth of the
lactose-free market during the forecast period.
Restraints: High
price of lactose-free products
For the production of lactose-free milk, the milk has to be
treated with ultra-high temperature (UHT) method of the pasteurization process
for increasing its shelf-life and improving the consistency of milk while
turning it into lactose-free milk. For turning the normal milk to lactose-free
milk, the milk is treated with lactase enzymes for breaking the complex lactose
disaccharide into two simple sugars, namely, glucose and (monosaccharides)
galactose. This process of converting the milk into lactose-free milk increases
the price of lactose-free dairy products as compared to normal packaged dairy
products. Due to these factors, lactose-free milk is offered under the premium
product category, which caters to a smaller consumer population, wherein
ordinary milk is a commodity offered at cost-effective prices, due to which it
is consumed by a large-scale population.
Opportunities:
Availability of lactose-free products with added health benefits
The increase in innovations in lactose-free dairy products
has led to a rise in health benefits offered by lactose-free dairy products,
which represents key growth opportunities for the lactose-free dairy market.
The claims in lactose-free dairy products, such as gluten-free and
low/no/reduced sugar, help in expanding the consumer base. The innovations are
being witnessed around digestive health, such as lactose-free milk products
with probiotics. For instance, Activia is a probiotic yogurt introduced by
Danone Company S.A. (France), which contains probiotics that improve digestive
health. Probiotics are bacteria that have been scientifically studied and
proved that if they are consumed in sufficient amounts, they help in providing
health benefits beyond basic nutrition. In addition, The Coca-Cola Company (US)
under its brand Fairlife LLC provided lactose-free milk with Omega-3, which
helps in improving brain health. These innovations are projected to drive the
growth of the market.
Dairy manufacturers are capitalizing on this trend to expand
their consumer base by promoting easy digestion, lower fat, and sugar content,
developing a variety of products by mixing lactose-free ingredients with
healthy ingredients, such as vitamins, proteins, and fibers, for providing a
wide range of choice to consumers. The inclination of consumers toward healthy
choices of food & beverages is increasing globally. The willingness of
consumers to pay extra for food & beverages with health features is
growing. This creates growth opportunities for lactose-free products in the dairy
industry during the forecast period.
Challenges: Stiff
competition from plant-based alternatives
Lactose intolerant consumers across the world have become
conscious about their health, as they are aware of allergies or
gastrointestinal diseases caused by the intake of lactose in their bodies. The
major challenges for lactose-free products are plant-based alternatives as the
demand for plant-based products is increasing and their availability in the
market is rising as compared to that of lactose-free products. For instance,
plant-based milk, such as soy milk, rice milk, almond milk, coconut-based milk,
cashew milk, and oat milk, are increasingly present in the market. Therefore,
lactose intolerant population focuses on opting for plant-based products as an
alternative for lactose-free products. Furthermore, plant-based products have
high nutritional value. For instance, soy milk is original plant-based milk,
which constitutes 8 grams of carbohydrates, 7 grams of protein, and 100
calories in an 8-ounce pour. It is also a preferred alternative for those
adhering to a diet lower in fats as it contains only 4 grams of fat with only 5
grams of saturated fat and is also low in sugar. Almond milk is one of the most
widely consumed plant-based milk in North America, the EU, and Australia. In
addition, doctors suggest that almond milk is an effective alternative for
children and adults who suffer from allergies or intolerances to milk. However,
people are shifting their interest from dairy products to plant-based products,
as they are turning vegan these days. In addition, various health experts
recommend plant-based diets to people who have heart problems, such as high
blood pressure, diabetes, and other health conditions.
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The North America
region dominated the lactose-free products market with the largest share in
2019, whereas Asia-Pacific is expected to witness the highest growth rate.
The lactose-free products market in North America is
dominant due to the growing demand for different types of lactose-free products
such as drinkable yogurt, flavored ice-cream, and flavored milk. Also, the
North American population has awareness and self-diagnosis for lactose
intolerance. In addition, the increase
in no sugar or reduced sugar trends are factors that are projected to drive the
growth of the lactose-free products market in the region.
The fastest growing market is Asia-Pacific for lactose-free
products market. The increase in disposable income among consumers and the
demand for health and wellness products have encouraged the consumption of
lactose-free products. The increase in urbanization in the region has led to a
high demand for food security and premium quality food products. Consumers are
willing to pay extra for health-enriching food & beverage products. These
factors are projected to encourage the growth of the lactose-free products
market in the region.
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Created on Nov 20th 2020 06:04. Viewed 275 times.