Kerry drives innovation to meet demand for lactose-free products

With rising lactose intolerance affecting an estimated 30–60% of the population in Australia and New Zealand, Kerry is meeting the demand for lactose-free dairy options in the region through its portfolio of lactase solutions.

Lactose intolerance remains a prevalent issue globally, with only a third of adults worldwide able to digest lactose effectively. By 2028, the Australia and New Zealand market for lactose-free dairy products and alternatives is projected to reach approximately AU$1.5 billion.

This shift is not solely driven by lactose intolerance but also by a broadening interest in lactose-free options due to perceived health benefits. This has contributed to impressive growth rates — in 2024, the lactose-free market in Australia is valued at AU$602 million, with a 31% CAGR between 2019 and 2023. In New Zealand, growth is significant with 52% CAGR from 2019–2023 and current market value of NZ$63 million.

Lactose-free solutions for dairy products

Lactases are naturally occurring enzymes that break down lactose, the sugar found in milk, into simpler sugars — glucose and galactose, which are easily digestible. This enzymatic intervention is critical for those who lack sufficient natural lactase enzymes in their digestive system, a common scenario among the lactose-intolerant population. By adding lactase to dairy products, the lactose is pre-digested, making these foods accessible and enjoyable without the usual adverse reactions.

The dairy industry has seen a revitalisation in its appeal, much of it thanks to innovations such as lactase enrichment. Traditional dairy products previously thought to cause discomfort are back on the menu, changing the dietary landscapes for many. With these innovative changes, lactose-free is now one of the fastest-growing dairy categories, while low-sugar options are increasingly top of mind for consumers.

Kerry’s newly expanded portfolio of lactase solutions includes the NOLA Fit and Ha-Lactase, alongside LactoSens, a rapid residual lactose test, designed to enhance production accuracy and efficiency. Kerry’s expertise, strengthened by its recent acquisition of lactase technologies and C-lecta’s enzyme research capabilities, allows the company to deliver lactases that support lactose removal and sweetness optimisation without additional sugars. This clean-label approach meets the demand for better nutrition while ensuring that lactose-free products satisfy consumer taste and texture expectations.

Building on its 50-year legacy in dairy innovation, Kerry’s solutions for lactose-free and sugar-reduced products are backed by proprietary consumer insights, taste modulations and natural flavour technologies.

Christine Giuliano, General Manager of Kerry Australia and New Zealand, said: “Kerry’s lactose-free solutions are designed to meet growing regional demand for convenience and nutrition. As busy consumers increasingly rely on yoghurt pots, flavoured milk and other dairy products for quick snacks and meals, Kerry’s lactase technology supports the development of products that are both indulgent and health conscious.

“We want to provide dairy producers with solutions that not only overcome lactose intolerance but also meet consumers’ desire for products that taste authentic and delicious. By optimising sweetness naturally, these solutions maintain the quality and nutritional value of dairy with significantly less added sugars, ensuring better, delicious dairy products everyone can enjoy.”