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Lactose Free Food Market

ID: MRFR/FnB/1071-HCR
110 Pages
Harshita Gorade
October 2025

Lactose Free Foods Market Research Report Information by Type (Milk, Bread, Fats, Soups and Sauces, Desserts, And Others), Source (Soy, Rice, Coconut, Almond, And Hemp Milk), By Region – Forecast Till 2035

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Lactose Free Food Market Summary

As per MRFR analysis, the Lactose Free Food Market. Size was estimated at 15.34 USD Billion in 2024. The Lactose Free Food industry is projected to grow from 17.22 USD Billion in 2025 to 49.26 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 11.15 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Lactose Free Food Market is experiencing robust growth driven by health consciousness and evolving consumer preferences.

  • The North American region remains the largest market for lactose free foods, reflecting a strong consumer base and established distribution channels.
  • In the Asia-Pacific region, the lactose free food market is the fastest-growing, driven by increasing awareness of lactose intolerance and dietary changes.
  • Dairy products continue to dominate the market, while bakery products are emerging as the fastest-growing segment due to rising demand for gluten-free and lactose free options.
  • Key market drivers include increasing lactose intolerance awareness and the expansion of product offerings, which cater to health-conscious consumers.

Market Size & Forecast

2024 Market Size 15.34 (USD Billion)
2035 Market Size 49.26 (USD Billion)
CAGR (2025 - 2035) 11.15%

Major Players

Lactalis (FR), Danone (FR), Nestle (CH), General Mills (US), Unilever (GB), Kraft Heinz (US), Arla Foods (DK), Schreiber Foods (US), Dairy Farmers of America (US)

Lactose Free Food Market Trends

The Lactose Free Food Market is currently experiencing notable growth, driven by an increasing awareness of lactose intolerance among consumers. This condition, which affects a significant portion of the global population, has led to a rising demand for products that cater to dietary restrictions. As a result, manufacturers are innovating and expanding their offerings to include a variety of lactose-free options, ranging from dairy products to baked goods. The market appears to be evolving, with a focus on enhancing taste and texture, which may attract a broader audience beyond those with lactose intolerance. Furthermore, the trend towards healthier eating habits and clean label products is influencing consumer preferences, prompting brands to emphasize natural ingredients and transparency in their formulations. In addition to the growing awareness of lactose intolerance, the Lactose Free Food Market is also benefiting from the increasing popularity of plant-based diets. Many consumers are seeking alternatives to traditional dairy products, leading to a surge in the availability of lactose-free plant-based options. This shift suggests that the market is not only catering to those with dietary restrictions but also appealing to health-conscious individuals who prioritize plant-based nutrition. As the market continues to expand, it is likely that innovation will play a crucial role in meeting diverse consumer needs, ultimately shaping the future landscape of lactose-free food offerings.

Rising Demand for Dairy Alternatives

The Lactose Free Food Market is witnessing a surge in the demand for dairy alternatives, as consumers increasingly seek options that align with their dietary preferences. This trend is characterized by the introduction of innovative products made from nuts, soy, and oats, which provide lactose-free alternatives to traditional dairy items. Manufacturers are responding to this shift by diversifying their product lines, thereby appealing to a wider audience.

Focus on Health and Wellness

There is a growing emphasis on health and wellness within the Lactose Free Food Market, as consumers become more conscious of their dietary choices. This trend is reflected in the increasing popularity of lactose-free products that are fortified with vitamins and minerals, catering to health-oriented individuals. Brands are likely to highlight the nutritional benefits of their offerings, which may enhance consumer trust and loyalty.

Sustainability and Ethical Sourcing

Sustainability is emerging as a key consideration in the Lactose Free Food Market, with consumers showing a preference for products that are ethically sourced and environmentally friendly. This trend indicates a shift towards responsible consumption, prompting brands to adopt sustainable practices in their production processes. As awareness of environmental issues grows, the market may see an increase in demand for lactose-free products that align with eco-conscious values.

Lactose Free Food Market Drivers

Market Growth Projections

The Global Lactose Free Food Industry is poised for substantial growth, with projections indicating a market value of 18.7 USD Billion by 2035. This growth trajectory is supported by a compound annual growth rate (CAGR) of 8.88% from 2025 to 2035. The increasing prevalence of lactose intolerance, coupled with rising health consciousness and innovative product development, contributes to this positive outlook. As consumers continue to seek lactose-free options, the market is expected to expand significantly, reflecting broader dietary trends and changing consumer preferences.

Innovative Product Development

Innovation in product development plays a crucial role in shaping the Global Lactose Free Food Industry. Manufacturers are increasingly investing in research and development to create a diverse range of lactose-free products that cater to various consumer preferences. This includes lactose-free cheeses, yogurts, and ice creams that maintain taste and texture comparable to their traditional counterparts. The introduction of fortified lactose-free options, enriched with vitamins and minerals, further enhances their appeal. Such innovations not only attract lactose-intolerant consumers but also health-conscious individuals, thereby expanding the market's reach and contributing to its projected CAGR of 8.88% from 2025 to 2035.

Health Conscious Consumer Trends

The trend towards health consciousness among consumers significantly influences the Global Lactose Free Food Industry. Individuals are increasingly prioritizing their dietary choices, leading to a surge in demand for healthier food options. Lactose-free products are perceived as healthier alternatives, appealing to those seeking to avoid digestive discomfort. This shift is evident in the growing availability of lactose-free dairy products, snacks, and beverages. As a result, the market is expected to grow substantially, with projections indicating a value of 18.7 USD Billion by 2035. This growth reflects a broader trend towards wellness and nutrition-focused consumption.

Growing Vegan and Plant-Based Diets

The rise of veganism and plant-based diets significantly impacts the Global Lactose Free Food Industry. As more consumers adopt these dietary preferences, the demand for lactose-free and dairy alternatives has surged. Plant-based milk, yogurt, and cheese products are increasingly popular, catering to both lactose-intolerant individuals and those seeking to reduce animal product consumption. This trend is reflected in the expanding range of lactose-free options available in supermarkets and specialty stores. The market's growth trajectory is expected to continue, driven by the increasing acceptance of plant-based diets and the projected market value of 18.7 USD Billion by 2035.

Rising Lactose Intolerance Prevalence

The increasing prevalence of lactose intolerance globally drives the Global Lactose Free Food Industry. It is estimated that approximately 68% of the world's population experiences some form of lactose malabsorption. This condition is particularly common in regions such as Asia and Africa, where the majority of adults exhibit reduced lactase enzyme activity. As awareness of lactose intolerance grows, consumers are actively seeking lactose-free alternatives, contributing to the market's expansion. The Global Lactose Free Food Market is projected to reach 7.35 USD Billion in 2024, reflecting the rising demand for products that cater to lactose-sensitive individuals.

Increased Availability of Lactose-Free Products

The increased availability of lactose-free products in retail and online channels significantly influences the Global Lactose Free Food Industry. Retailers are expanding their offerings to include a wider variety of lactose-free options, making it easier for consumers to access these products. This trend is supported by the growing number of specialty stores and online platforms dedicated to health and wellness foods. As consumers become more aware of lactose-free alternatives, the market is likely to see continued growth. The projected market value of 7.35 USD Billion in 2024 underscores the importance of accessibility in driving consumer adoption of lactose-free foods.

Market Segment Insights

By Application: Dairy Products (Largest) vs. Bakery Products (Fastest-Growing)

In the lactose-free food market, the application segment is primarily led by dairy products, which hold a significant share of the total market. This dominance can be attributed to the increasing consumer preference for lactose-free options in traditional dairy items such as milk, cheese, and yogurt. Following dairy products, bakery products are gaining traction as more consumers seek suitable alternatives that align with their dietary needs, making this segment essential for overall market dynamics. The growth trends in the application of lactose-free products are largely driven by changing consumer lifestyles and the rising prevalence of lactose intolerance. As awareness around dietary restrictions grows, bakery products are emerging as the fastest-growing segment, reflecting innovation in product formulation that uses lactose-free ingredients. This trend indicates a shift towards healthier snacking alternatives, promoting dairy-free bakery items that appeal to a broader audience.

Dairy Products: Dominant vs. Bakery Products: Emerging

Dairy products are a dominant force in the lactose-free food market, encompassing a variety of essential items like milk, cheese, and yogurts. These products have established themselves not only by catering to lactose-intolerant consumers but also by attracting those who seek healthier lifestyle choices. Innovations in dairy processing and product availability have solidified their position as a staple for many households. In contrast, bakery products are carving out their niche as an emerging segment, growing rapidly as consumers seek flavorful and convenient alternatives. Options such as lactose-free bread, muffins, and pastries are being introduced, expanding the market significantly. The combination of health trends and diverse offerings in the bakery category makes it a key area to watch for growth.

By End Use: Household (Largest) vs. Online (Fastest-Growing)

The lactose-free food market showcases a diverse distribution across its end-use segments, with the household segment emerging as the largest contributor. This segment capitalizes on the growing demand for lactose-free products among consumers seeking healthier dietary options. In contrast, the online segment is rapidly gaining traction, fueled by a shift toward digital purchasing, especially in the wake of recent market trends that emphasize convenience and a wider selection of lactose-free products.

Household (Dominant) vs. Online (Emerging)

The household end-use segment dominates the lactose-free food market, driven by increasing health-conscious consumers opting for lactose-free alternatives in their daily diets. This segment benefits from various marketing strategies aimed at promoting lactose intolerance awareness. Meanwhile, the online segment emerges as a fast-growing player, reshaping the market landscape by offering convenience and a broader product range. As more consumers demonstrate a preference for online shopping, companies are adapting by enhancing their e-commerce platforms, making lactose-free offerings accessible, and optimizing delivery services to cater to this rising demand. Together, these segments embody the evolving dynamics within the lactose-free food sector.

By Product Type: Lactose Free Milk (Largest) vs. Lactose Free Yogurt (Fastest-Growing)

Among the various product types in the Lactose Free Food Market, Lactose Free Milk holds the largest market share, appealing to the growing number of consumers seeking dairy alternatives. The popularity of this product is attributed to its familiarity in taste and versatility in culinary applications, making it a staple for lactose-intolerant individuals. Conversely, Lactose Free Yogurt is recognized as the fastest-growing segment. This rise can be linked to the increasing health-consciousness among consumers and the rising demand for probiotic-rich foods, which have made yogurt a desirable option in this category. In terms of growth trends, the Lactose Free Food Market is witnessing a shift towards innovative product offerings and fortified alternatives. The introduction of flavored lactose-free yogurts and lactose-free ice creams has captured consumer interest significantly, propelling further expansion. Additionally, the overall wellness trend, alongside increasing lactose intolerance awareness, is driving the growth of lactose-free products. As brands innovate and diversify their product lines, the potential for sustained growth in this segment remains robust.

Lactose Free Milk (Dominant) vs. Lactose Free Cheese (Emerging)

Lactose Free Milk continues to dominate the Lactose Free Food Market due to its wide acceptance and established consumer base, making it a preferred choice for those seeking a familiar dairy alternative. It caters to a diverse demographic, from children to adults, who enjoy traditional milk benefits without the lactose. On the other hand, Lactose Free Cheese is an emerging segment that presents significant growth potential. Consumers are increasingly looking for cheese products that align with their dietary restrictions while offering similar flavors and textures to regular cheese. The innovation in lactose-free cheese varieties—like the introduction of artisanal lines and flavored options—further enhances its market position, appealing to both lactose-intolerant consumers and cheese enthusiasts.

Get more detailed insights about Lactose Free Food Market

Regional Insights

North America : Market Leader in Lactose-Free

North America continues to lead the lactose-free food market, holding a significant share of 7.67 billion. The growth is driven by increasing consumer awareness regarding lactose intolerance and a rising demand for healthier food options. Regulatory support for lactose-free products, including labeling guidelines, has further catalyzed market expansion. The trend towards plant-based alternatives is also gaining traction, contributing to the overall market growth. The competitive landscape in North America is robust, featuring key players such as Lactalis, General Mills, and Kraft Heinz. The U.S. remains the largest market, driven by a high prevalence of lactose intolerance among the population. Companies are increasingly focusing on product innovation and diversification to capture a larger market share. The presence of established brands and a growing retail network further enhance market accessibility and consumer choice.

Europe : Emerging Market with Growth Potential

Europe's lactose-free food market is valued at €4.6 billion, reflecting a growing consumer preference for lactose-free options. The rise in lactose intolerance awareness and health-conscious eating habits are key drivers of this market. Regulatory frameworks in the EU support the labeling and marketing of lactose-free products, which has encouraged manufacturers to innovate and expand their offerings. The market is expected to grow as more consumers seek dietary alternatives that align with their health needs. Leading countries in this region include Germany, France, and the UK, where lactose-free products are increasingly available in mainstream retail channels. Major players like Danone and Arla Foods are investing in product development to meet the rising demand. The competitive landscape is characterized by a mix of established brands and emerging startups, all vying for market share in this evolving sector.

Asia-Pacific : Rapidly Growing Market Segment

The Asia-Pacific lactose-free food market is valued at $2.8 billion, driven by increasing awareness of lactose intolerance and a shift towards healthier dietary choices. Countries like Australia and Japan are leading the charge, with rising disposable incomes and changing consumer preferences fueling demand. Regulatory initiatives aimed at improving food safety and labeling standards are also contributing to market growth, making lactose-free options more accessible to consumers. In this region, the competitive landscape is evolving, with both local and international players entering the market. Companies like Nestle and Unilever are expanding their product lines to cater to the growing demand for lactose-free foods. The presence of diverse dietary habits across countries presents both challenges and opportunities for market players, as they adapt their offerings to meet local tastes and preferences.

Middle East and Africa : Niche Market with Growth Opportunities

The Middle East and Africa lactose-free food market is currently valued at $0.27 billion, representing a niche yet growing segment. The rise in lactose intolerance awareness and a shift towards healthier eating habits are driving demand for lactose-free products. Regulatory bodies are beginning to recognize the importance of labeling and safety standards, which is expected to enhance market growth in the coming years. The increasing availability of lactose-free options in retail outlets is also contributing to this trend. Leading countries in this region include South Africa and the UAE, where consumer interest in lactose-free products is gradually increasing. The competitive landscape is characterized by a mix of local and international brands, with companies like Schreiber Foods making inroads into the market. As awareness grows, there is significant potential for expansion, particularly in urban areas where health trends are gaining traction.

Key Players and Competitive Insights

The Lactose Free Food Market is currently characterized by a dynamic competitive landscape, driven by increasing consumer awareness regarding lactose intolerance and a growing preference for healthier dietary options. Major players such as Lactalis (FR), Danone (FR), and Nestle (CH) are strategically positioned to leverage these trends through innovation and product diversification. Lactalis (FR) focuses on expanding its lactose-free dairy offerings, while Danone (FR) emphasizes sustainability in its production processes. Nestle (CH) is actively investing in research and development to enhance its lactose-free product range, indicating a collective shift towards health-conscious consumer demands.

In terms of business tactics, companies are increasingly localizing manufacturing to reduce supply chain complexities and enhance responsiveness to regional market needs. The competitive structure of the market appears moderately fragmented, with key players exerting substantial influence over pricing and product availability. This fragmentation allows for niche players to emerge, yet the dominance of established brands like Kraft Heinz (US) and Unilever (GB) remains significant, shaping overall market dynamics.

In November 2025, Kraft Heinz (US) announced a strategic partnership with a leading plant-based ingredient supplier to develop a new line of lactose-free products aimed at health-conscious consumers. This move is likely to enhance Kraft Heinz's market share by tapping into the growing demand for plant-based alternatives, thereby aligning with current consumer trends towards healthier eating habits. The partnership underscores the importance of innovation in product development within the lactose-free segment.

In October 2025, Unilever (GB) launched a new marketing campaign focused on its lactose-free ice cream line, highlighting its commitment to sustainability and ethical sourcing. This initiative not only aims to attract environmentally conscious consumers but also positions Unilever as a leader in the lactose-free dessert category. The campaign's success could potentially drive significant sales growth, reflecting the increasing consumer preference for sustainable products.

In September 2025, Danone (FR) expanded its lactose-free yogurt range by introducing a new flavor profile that caters to emerging taste preferences among younger consumers. This strategic move is indicative of Danone's focus on innovation and responsiveness to market trends, which may enhance brand loyalty and attract new customers. The introduction of diverse flavors could also stimulate competition among key players, pushing them to innovate further.

As of December 2025, the Lactose Free Food Market is witnessing trends such as digitalization, sustainability, and the integration of AI in product development and supply chain management. Strategic alliances are increasingly shaping the competitive landscape, allowing companies to pool resources and expertise. The shift from price-based competition to a focus on innovation, technology, and supply chain reliability is becoming evident. Companies that prioritize these aspects are likely to differentiate themselves in a crowded market, ensuring long-term success.

Key Companies in the Lactose Free Food Market market include

Industry Developments

Jersy Dairy Milk, in February 2020, intended to take steps in launching a new lactose-free milk, which is suitable for lactose intolerants. The product does contain lactase enzyme which is responsible for the breaking down of the lactose found in the milk. However, all the natural vitamins and nutrients of the milk are intact. The regular milk will also be labeled with a 2.5% fat content and will also be available for purchase in purple cartoon packs, in order to distinguish them from the regular milk packs.

In order to meet the needs of one in four Australians who experience self-diagnosed or clinically diagnosed intolerance to milk, the a2 milk Company decided to provide a lactose-free product in Australia in August 2022. In December 2020, Organic Valley initiated its campaign of launching a kid-friendly product, low-lactose chocolate milk, which is lactose free and low in fat content. The product also contains pasture-raised nutrients along with the nutritional value provided by regular milk and is devoid of any artificial sweeteners.

MilkLife, in August 2020, launched its campaign of introducing lactose-free milk -the first of its kind in Indonesia and did so under its brand of Global Dairy Alami -pasteurized milk in its portfolio. The tag of this milk is ‘now enjoy dairy with lack of free milk. In July 2024, US brand Challenge Butter commenced distribution of a new lactose-free butter, which the company claims is a suitable substitute for butter for lactose-intolerant individuals who wish to consume it.

The company further claims that this new product will remain competitive in terms of taste due to the high-quality ingredients that will be used during manufacturing. The Brooklyn Creamery, which consistently puts a premium on healthy alternatives, addressed the needs of dairy consumers with its latest invention, which was launched in May 2023, a new line of specialty milk aimed at improving your everyday milk experience and also healthy. These innovative products are designed for the health and diet-driven market which is always on the lookout for healthier alternatives.

Report Outlook

The Lactose-Free Food market trends report is a plan of direct information, commitments from industry-trained professionals, abstract and quantitative examination by industry inspectors and industry individuals across the value chain. 

Lactose-Free Food Market outlook gives an all-around assessment of parent market designs, full-scale financial pointers, and directing elements alongside the market connecting with on top-notch as per a few areas. 

The report also assesses the abstract impact of various market factors on market parts and geographies. The report gives the components trustworthy to affect the future status of the market throughout the determining forecasting period. A reasonable evaluation of huge worth chain examination, business execution, and stock organization assessment across nearby business areas has been addressed in the report. 

Future Outlook

Lactose Free Food Market Future Outlook

The Lactose Free Food Market is projected to grow at 11.15% CAGR from 2024 to 2035, driven by rising health awareness, increasing lactose intolerance, and innovative product offerings.

New opportunities lie in:

  • Expansion of lactose-free dairy alternatives in emerging markets.
  • Development of lactose-free meal kits targeting busy professionals.
  • Investment in online platforms for direct-to-consumer sales of lactose-free products.

By 2035, the Lactose Free Food Market is expected to achieve substantial growth and diversification.

Market Segmentation

Lactose Free Food Market End Use Outlook

  • Household
  • Food Service
  • Retail
  • Institutional
  • Online

Lactose Free Food Market Application Outlook

  • Dairy Products
  • Bakery Products
  • Snacks
  • Beverages
  • Confectionery

Lactose Free Food Market Product Type Outlook

  • Lactose Free Milk
  • Lactose Free Cheese
  • Lactose Free Yogurt
  • Lactose Free Ice Cream
  • Lactose Free Cream

Report Scope

MARKET SIZE 202415.34(USD Billion)
MARKET SIZE 202517.22(USD Billion)
MARKET SIZE 203549.26(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)11.15% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledLactalis (FR), Danone (FR), Nestle (CH), General Mills (US), Unilever (GB), Kraft Heinz (US), Arla Foods (DK), Schreiber Foods (US), Dairy Farmers of America (US)
Segments CoveredApplication, End Use, Product Type
Key Market OpportunitiesGrowing consumer demand for lactose-free options drives innovation in the Lactose Free Food Market.
Key Market DynamicsRising consumer demand for lactose-free products drives innovation and competition among food manufacturers.
Countries CoveredNorth America, Europe, APAC, South America, MEA

Market Highlights

Author
Harshita Gorade
Research Analyst

Harshita Post graduate MBA in Business Administration from Welingkar Institute, Mumbai and 5 years of experience in the field of product market research. As a Research Analyst, I have cross-domain experience in packaging, and industrial Automation & Equipment. I am currently looking after the research process of packaging, logistics & transportation, and industrial automation & equipment at Market Research Future Reports. My responsibilities at the organization involve handling syndicate and custom reports as well as responding to client inquiries, and organize, co-ordinate with a group of 5 to 6 persons to manage all workflows.

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FAQs

Which region will have the largest share in the Market for Lactose Free Foods?

Europe will have the largest share in the lactose free foods market.

What are the key factors driving the Market for Lactose Free Foods growth?

Rising prevalence of lactose intolerance and evolving dietary pattern are the key factors driving the lactose free foods market growth.

Which factors may limit the lactose free foods market growth?

Availability of alternative dairy products may limit the lactose free foods market growth.

Which type segment will lead the Market for Lactose Free Foods?

Milk segment will lead the lactose free foods market.

Name the leading players profiled in the lactose free foods market.

Leading players profiled in the lactose free foods market report include Fonterra Co-operative Group Limited (New Zealand), Dean Foods (U.S.), Daiya Foods (Canada), Amy's Kitchen (U.S.), Barry Callebaut (Switzerland), WhiteWave Foods (U.S.), Land O'Lakes, Inc. (U.S.), Galaxy Nutritional Foods Inc. (India), Arla Foods (Denmark), and General Mills Inc. (U.S.).

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