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North America has established itself as the dominant market for lactose free foods with 41.6% of the market share. The large size of the market in the U.S. can be attributed to the growing incidence of lactose intolerance among consumers, especially those of Hispanic, Asian, and African American descent. Studies show that about 68% of Hispanic Americans and 75% of African Americans lack the enzyme lactase needed to digest lactose after infancy. Additionally, consumers are becoming increasingly aware of various digestive issues caused by dairy consumption. This has led to high demand for dairy alternatives and foods made with non-dairy milk substitutes like almond milk, coconut milk and oat milk. Major food companies have had a strong presence in the North American market for many years due to the opportunity for high profits. They have established supply chains and distribution networks to ensure wide availability of lactose free products across both retail and foodservice channels. Manufacturers offer a diverse range of lactose free milk, yogurt, and cheese and baked goods to cater to consumer needs. Consumers also prefer to purchase lactose free foods from large supermarket chains as they offer better pricing and discounts when compared to small specialty shops or online retailers.
The Asia Pacific region has emerged as the fastest growing market for lactose free foods. Countries like India and China have very large populations that are either lactose intolerant due to genetic factors or choose to avoid dairy due to dietary preferences or restrictions. The growing health and wellness trend among the middle class has boosted demand for specialized food products. The growing number of retail chains and e-commerce penetration is allowing greater availability of imported foreign brands as well as domestically produced lactose-free options at competitive price points. Imports of popular European lactose free foods into the Asia Pacific region have increased drastically. Key importers like Australia have also reduced tariffs on several European lactose free dairy items to make them more affordable for consumers. The strong economic growth witnessed by many developing Asian nations is lending greater purchasing power to consumers who are willing to pay extra for specialized health-oriented food products. Expect to see continued growth and new product innovations tailored to the Asia Pacific market due to its favorable dynamics and demographics.
Lactose Free Food Market Report Snapshots
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