Lactose-free dairy market set to take off, Zenith predicts

Dairy manufacturers should focus on the lactose-free market, food and drink consultancy Zenith International advises. Global milk, yoghurt and cheese consumption was more than 200 million tonnes in 2011 and, with up to 75% of the population suspected of being lactose intolerant, the lactose-free dairy market represents a substantial opportunity for dairy manufacturers, Zenith said.

Acknowledging that lactose-free dairy products currently occupy a niche segment, Zenith said they have potential into the future. Regions such as Asia and Latin America where dairy consumption is rising but lactose intolerance is prevalent represent the most significant opportunities, Zenith said.

“Another vital challenge for manufacturers looking to enter underdeveloped markets is education,” said Laura Knight, Senior Analyst at Zenith.

“Consumers need to be educated about what lactose intolerance is, how lactose-free dairy products can help them manage their condition and to overcome the misconception that lactose-free milk is not real milk. Education of health professionals is also important, so they are encouraged to advise those who are lactose intolerant to avoid cutting dairy products from their diets and use lactose-free products as a way of continuing to consume dairy without experiencing discomfort.”

Zenith says that while plant- and nut-based dairy alternatives are a competitive threat to the lactose-free dairy sector, they do not always provide the nutrients available from dairy. Because of this, families are an important target market for lactose-free dairy as parents may seek the nutrients dairy provides for their children even if they are lactose intolerant.

Zenith also predicts opportunities to broaden the range of lactose-free dairy products in developed markets and to drive consumption in non-retail channels.

See the full Opportunity for Lactose Free Dairy report here.