PUBLISHER: BIS Research | PRODUCT CODE: 1458433
PUBLISHER: BIS Research | PRODUCT CODE: 1458433
Global Lactose-Free Dairy Products Market Overview
The global lactose-free dairy products market has witnessed significant growth in recent years, driven by an increasing awareness of lactose intolerance and a growing demand for alternative dairy options. As more consumers seek lactose-free alternatives without compromising taste and nutritional value, the market has expanded to include a diverse range of products such as milk, yogurt, cheese, and -ice cream. Key players in the industry are investing in research and development to enhance the quality and variety of lactose-free offerings. Geographically, North America and Europe have emerged as prominent markets, with Asia-Pacific gaining momentum. The market is characterized by innovation, product differentiation, and strategic partnerships to cater to the evolving dietary preferences of a global consumer base.
Market Introduction
KEY MARKET STATISTICS | |
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Forecast Period | 2023 - 2033 |
2023 Evaluation | $14.65 Billion |
2033 Forecast | $29.15 Billion |
CAGR | 7.12% |
The lactose-free dairy products market, a subset of the allergen-free food market, caters to individuals who are lactose intolerant or prefer dairy items without lactose. These products are created by incorporating lactase, an enzyme that breaks down lactose, into regular dairy products or by utilizing alternative milk sources such as soy, almond, or coconut. The market is anticipated to exhibit a compound annual growth rate (CAGR) of 7.12% from 2023 to 2033, with a projected value of $29,158.8 million by 2033. Key growth drivers include the escalating prevalence of lactose intolerance, heightened demand for low-sugar and low-calorie options, expansion of distribution channels, and innovations in products by key industry players.
Industrial Impact
The global lactose-free dairy products market, catering to lactose-intolerant and health-conscious consumers, is set to grow at a CAGR of 7.12% from 2023 to 2033. Key drivers include increasing demand for healthier dairy alternatives, a rising lactose-intolerant population, growing consumer purchasing power, and innovative product offerings by industry leaders. Challenges involve consumer taste preferences, competition from substitutes such as nuts and cereals, and regulatory issues. Opportunities lie in expanding private label options, enhancing distribution channels, and raising awareness of lactose-free dairy benefits. The market features intense competition among both local and international players, with major companies such as Danone, Nestle, Valio, Arla Foods, and Lactalis employing diverse strategies such as product development, mergers, and partnerships to gain a competitive edge and expand market share.
Market Segmentation:
Segmentation 1: by Distribution
Retail Segment to Dominate the Global Lactose-Free Dairy Products Market (by Application)
The dominance of retail applications in the global lactose-free dairy products market can be attributed to several factors. Firstly, the increasing prevalence of lactose intolerance worldwide has driven consumer demand for alternative dairy products, leading retailers to expand their offerings to cater to this growing market. Additionally, the convenience of purchasing lactose-free dairy products in retail outlets, including supermarkets, hypermarkets, and specialty stores, enhances accessibility for consumers. The ability to compare and choose from a diverse range of lactose-free options in a single shopping location further boosts the retail segment. Furthermore, aggressive marketing strategies and product placement in retail settings contribute to heightened consumer awareness and preference for lactose-free alternatives, consolidating the retail sector's dominance in capturing the global market for lactose-free dairy products.
Segmentation 2: by Product
Milk Segment to Dominate the Global Lactose-Free Dairy Products Market (by Product)
The dominance of milk products in the global lactose-free dairy products market can be attributed to their widespread popularity and nutritional value. Milk products, such as yogurt, cheese, and milk itself, are staples in many diets worldwide, prompting a high demand for lactose-free alternatives. Additionally, advancements in technology have enabled the development of flavourful and comparable lactose-free options, retaining the familiar taste and texture of traditional dairy. Growing awareness of lactose intolerance and preference for lactose-free options among health-conscious consumers further contribute to the dominance of milk products in this market. Overall, the well-established appeal and adaptability of milk-based products play a key role in their prominence in the global lactose-free dairy market.
Segmentation 3: by Source
Animal Segment to Dominate the Global Lactose-Free Dairy Products Market (by Source)
The dominance of animal-based products in the global lactose-free dairy market can be attributed to their established popularity, taste familiarity, and widespread availability. Consumers often associate dairy with traditional flavors and textures, making it challenging for plant-based alternatives to fully replace animal-derived options. Additionally, the existing dairy industry infrastructure and supply chain contribute to the continued prevalence of animal-based lactose-free products in the market.
Segmentation 4: by Category
Conventional Segment to Dominate the Global Lactose-Free Dairy Products Market (by Category)
The dominance of conventional products in the global lactose-free dairy products market can be attributed to strategic acquisitions, partnerships, and mergers by key industry players. These collaborations allow companies to quickly expand their product portfolios, leverage established distribution networks, and capitalize on complementary strengths, ultimately gaining a competitive edge in the rapidly growing lactose-free dairy sector. The conventional growth approach facilitates quicker market penetration and enhances market share, contributing to the overall dominance of conventional products in this market.
Segmentation 5: by Region
Europe's dominance in the global lactose-free dairy products market can be attributed to the increasing prevalence of lactose intolerance, driving the demand for alternative dairy options. The region has witnessed a growing health-conscious consumer base, leading to a surge in the adoption of lactose-free products. Additionally, well-established dairy industries and robust distribution networks contribute to the availability and awareness of lactose-free options. Continuous innovation and product development by key market players in Europe further solidify its leadership position. The combination of these factors positions Europe as a key player in the expanding lactose-free dairy products market.
Recent Developments in the Global Lactose-Free Dairy Products Market
Demand - Drivers, Challenges, and Opportunities
Market Driver: Rising Lactose Intolerance
Market Challenge: High Cost of Lactose-Free Products
Market Opportunity: Rising Demand in Quick-Service Restaurants (QSRs)
The growth in the quick-service restaurant (QSR) segment is influenced by the increasing working population seeking convenient, packaged food and beverages to save time. However, this convenience exposes consumers to health risks such as gut inflammation, cancer, cardiovascular disease, and obesity. The global prevalence of obesity, with 39 million children under five reported as obese or overweight in 2020, has heightened awareness of healthier eating habits. Consequently, consumers are turning to lactose-free food options, driving the growth of the lactose-free dairy products market. This trend presents a growth opportunity for global lactose-free dairy product producers as they meet the demand for healthier alternatives in the market.
How can this report add value to an organization?
Product/Innovation Strategy: The product segment helps the reader understand the different applications of lactose-free dairy products in the market. The market is poised for significant expansion with ongoing technological advancements, increased investments, and growing awareness of the use of lactose-free dairy products. Therefore, lactose-free dairy products are a high-investment and high-revenue generating model.
Growth/Marketing Strategy: The global lactose-free dairy products market is growing at a rapid pace. The market offers enormous opportunities for existing and emerging market players. Some of the strategies covered in this segment are mergers and acquisitions, product launches, partnerships and collaborations, business expansions, and investments. The strategies preferred by companies to maintain and strengthen their market position primarily include partnerships and collaborations.
Competitive Strategy: The key players in the global lactose-free dairy products market analyzed and profiled in the study include manufacturers of lactose-free dairy products. Additionally, a comprehensive competitive landscape such as partnerships, agreements, and collaborations are expected to aid the reader in understanding the untapped revenue pockets in the market.
Research Methodology
Factors for Data Prediction and Modeling
Market Estimation and Forecast
This research study involves the usage of extensive secondary sources, such as certified publications, articles from recognized authors, white papers, annual reports of companies, directories, and major databases to collect useful and effective information for an extensive, technical, market-oriented, and commercial study of the global lactose-free dairy products market.
The process of market engineering involves the calculation of the market statistics, market size estimation, market forecast, market crackdown, and data triangulation (the methodology for such quantitative data processes is explained in further sections). The primary research study has been undertaken to gather information and validate the market numbers for segmentation types and industry trends of the key players in the market.
Primary Research
The primary sources involve industry experts from the global lactose-free dairy products market and various stakeholders in the ecosystem. Respondents such as CEOs, vice presidents, marketing directors, and technology and innovation directors have been interviewed to obtain and verify both qualitative and quantitative aspects of this research study.
The key data points taken from primary sources include:
Secondary Research
This research study involves the usage of extensive secondary research, directories, company websites, and annual reports. It also makes use of databases, such as Hoovers, Bloomberg, Businessweek, and Factiva, to collect useful and effective information for an extensive, technical, market-oriented, and commercial study of the global market. In addition to the aforementioned data sources, the study has been undertaken with the help of other data sources and websites, such as GFI and the Delft University of Technology.
Secondary research was done in order to obtain crucial information about the industry's value chain, revenue models, the market's monetary chain, the total pool of key players, and the current and potential use cases and applications.
The key data points taken from secondary research include:
Key Market Players and Competition Synopsis
The companies that are profiled have been selected based on inputs gathered from primary experts and analyzing company coverage, product portfolio, and market penetration.
Leading Companies in the Lactose-Free Dairy Products Market
Companies that are not a part of the aforementioned pool have been well represented across different sections of the report (wherever applicable).
Scope and Definition