Lactose-free Butter Market Forecasts to 2028 – Global Analysis By Product (Spreadable Non-spreadable and Other Products), Type (Salted butter, Unsalted butter and Other Types), Category (Organic, Inorganic and Other Categories), Distribution Channel (Supermarkets & Hypermarkets, Convenience Stores and Other Distribution Channels), Source, Application and Geography
According to Stratistics MRC, the Global Lactose-Free Butter Market is accounted for $720.0 million in 2022 and is expected to reach $1317.84 million by 2028 growing at a CAGR of 10.6% during the forecast period. Consuming lactose-free dairy products and butter is becoming more and more important due to concerns about intolerances and allergies, in addition to meeting nutritional needs. While some customers choose these items because they are healthier for them than standard options, others use them to avoid allergies or other health-related problems. Butter made without lactose helps to keep the body's supply of lactase enzymes stable. In order to digest lactose, the body produces the enzyme lactase. Lactose intolerance is the inability to digest lactose found in milk and other dairy products. When ingested in any form, this intolerance causes bloating, gas, and pain in the abdomen. Lactose-free milk is an simple substitute, which helps eliminate numerous unpleasant symptoms connected to lactose intolerance.
According to the National Center for Biotechnology Information (NCBI), nearly 65% of the global population is prone to lactose intolerance. According to the US National Library of Medicine, lactose intolerance is prevalent in adults, and 30 million adults in the US have symptoms of lactose intolerance by the age of 20 years.
Market Dynamics:
Driver:
Rising prevalence of lactose intolerance
The prevalence of lactose intolerance has increased all across the world. The enzyme lactase, which converts lactose into simpler sugars, is absent in the small intestines of those who are lactose intolerant. An allergy to dairy products, a disaccharide deficiency, and a lactase deficiency are all symptoms of lactose intolerance. Undigested or just partially digested lactose causes stomach pain, diarrhoea, fatigue, disturbed sleep, vomiting, and other health issues. People are now obliged to choose alternatives to lactose-containing items due to the prevalence of lactose intolerance around the world. As a result, lactose-free butter sales have grown recently.
Restraint:
High price of lactose-free products
For the purpose of producing lactose-free milk, the natural milk is pasteurised using the ultra-high temperature (UHT) procedure. Additionally, it aids in extending its shelf life and enhancing milk's consistency. Lactase enzymes are used to convert regular milk into lactose-free milk. The complex lactose disaccharide is broken down by lactase enzymes into glucose and galactose, two simple sugars. When compared to natural packaged dairy products, the process of turning natural milk into lactose-free milk raises the cost of lactose-free goods. Because of this, lactose-free products are seen as premium goods that are sold to a narrower market base because the general public cannot buy them. This serves as a significant barrier to the growth of the
Opportunity:
Rising demand for organic products
Organic cream is used to create organic lactose-free butter. The cream used to make organic cream comes from cows grown in an organic environment without the use of synthetic ingredients and fed exclusively on organic pastures. A good source of vitamin A and the antioxidant beta carotene is organic lactose-free butter. Additionally, it contains more CLA and healthful, unsaturated fats than conventional butter. Consumer awareness of food safety has increased as a result of the rising incidence of allergies and disorders brought on by the hazardous chemicals used as additives.
The market for lactose-free butter is also expanding as customers become more aware of the health advantages of organic food and beverage products. Additionally, the rising per capita disposable income of consumers in emerging economies is a major factor in the demand for and sales of upscale goods like organic lactose-free butter. Therefore, it is anticipated that during the projection period, organic lactose-free butter would provide market participants with a sizable chance for growth.
Threat:
Stiff competition from plant-based alternatives
Due to their awareness of the allergies or gastrointestinal conditions that lactose consumption in their bodies might create, lactose intolerant customers around the world are now concerned about their health. Plant-based alternatives pose the biggest problems for lactose-free products because consumer demand for and market availability of plant-based products is growing faster than that of lactose-free products. For instance, there are more and more plant-based milk options available on the market, including soy milk, rice milk, almond milk, coconut-based milk, cashew milk, and oat milk. As a result, the community of lactose intolerant people concentrates on choosing plant-based goods as a substitute for lactose-free products.
Additionally, foods made from plants are highly nutritious. For instance, soy milk, the first plant-based milk, contains 100 calories, 7 grams of protein, and 8 grams of carbs per 8 ounce serving. It is also a favourite substitute for people following a diet low in fats because it has only 4 grams of fat, only 5 grams of which are saturated, and it is also low in sugar. However, as more individuals are adopting vegan these days, consumers' preferences are shifting from dairy products to plant-based goods. Additionally, many medical professionals advise plant-based diets for those with cardiac issues, such as high blood pressure, diabetes, and other medical diseases. Hence, the above factors are hindering the market growth.
Covid-19 Impact
The influence of COVID-19 has had a direct impact on the sales and distribution of many items across industries. To stop the virus's spread, many nations went into lockdown and sealed their borders. Because of COVID-19's effects on logistics, the flow of raw materials has been hindered, which has further decreased production capacity and led to product shortages. In the short term, it is anticipated that these variables will increase the cost of lactose-free butter. Additionally, those who are lactose intolerant typically buy lactose-free butter to benefit from the nutritional advantages of milk. Consumers are encouraged to take items with strong nutritional benefits as a result of the present pandemic situation. The supply and demand curve for lactose-free butter is being directly impacted by these variables.
However, the majority of the consumer spending was shifted to necessities, and non-essential industries witnessed a significant decline. During the first part of the pandemic, non-essential companies were instructed to stay closed as more cities fell into lockdown. Due to the price of lactose-free butter, its demand was significantly impacted.
The spreadable segment is expected to be the largest during the forecast period
The spreadable segment is estimated to have a lucrative growth, during the forecast period. This butter has a considerable advantage over non-spreadable butter in that it maintains its softness even at cold temperatures and spreads well. Globally, manufacturers are integrating new technology into their products due to the rising demand for them. Vegetable oil and mixtures of butter are used. Another factor contributing to the segment's rise over the projection period is the popularity of this butter among consumers due to its availability in a variety of varieties and tastes.
The online retail stores segment is expected to have the highest CAGR during the forecast period
The online retail stores segment is anticipated to witness the fastest CAGR growth during the forecast period, due to online stores offer lactose-free butter for a reasonable price. These channels can offer a variety of extra benefits, such free shipping and coupon advantages. In addition to the abundance of lactose-free butter products available online, the segment is anticipated to expand in popularity over the projected period due to the rising prevalence of delivery services and app-based merchants.
Region with highest share:
Asia Pacific is projected to hold the largest market share during the forecast period. The market is expanding as a result of several key causes, including the enormous expansion of the economies of the countries, fast urbanisation, an increase in demand for pricey and healthy food and beverage goods, and the westernisation of consumer diets. The demand for lactose-free butter is rising in the region as consumer awareness of lactose sensitivity grows. Additionally, the region's increasing consumption of healthy food and drink items, fast urbanisation, and westernisation of consumer diets are some of the factors promoting the development of lactose-free butter.
Region with highest CAGR:
Europe is projected to have the highest CAGR over the forecast period, owing to a lot of milk is produced in Europe. To meet the demands of the area's health-conscious population, manufacturers in this region are working to introduce affordable lactose-free dairy products, which have led to a growth in the regional market. Furthermore, over the past few years, a significant consumer trend toward organic food and drink has been noted in the food and beverage business in the European region. This change has mostly been brought about by rising consumer knowledge of the health advantages offered by organic food and beverage goods.
Key players in the market
Some of the key players profiled in the Lactose-Free Butter Market include Green Valley Creamery, Agropur Dairy Cooperative, The Kraft Heinz Company, Upfield, Challenge Dairy Products, Inc., Ingredion Incorporated, Kellogg Company, Conagra Brands, General Mills, Inc., LACTAID (McNeil Nutritionals, LLC), Parmalat S.p.A, Butterfields Butter LLC, Miyoko’s Creamery, Cargill Inc., Kerry Group PLC and Dupont.
Key Developments:
In January 2020, The Coca-Cola Company acquired the entire remaining stake in Fairlife LLC from its joint venture partner Select Milk Producers to meet the fast-changing demands of consumers for lactose-free products.
In April 2020, Valio and Palmer Holland (US) entered into a joint venture to offer lactose-free powders in the US market.
In May 2017, Danone launched a lactose-free product line, under its brand Activia, in Spain with several flavors for tapping the lactose-free market in the country.
In April 2017, Danone acquired WhiteWave (US). This acquisition helped Danone in improving the company’s product line with brands, including Horizon Organic milk, which is WhiteWave’s top-selling product category, providing lactose-free milk.
Products Covered:
• Spreadable
• Non-spreadable
• Other Products
Types Covered:
• Salted butter
• Unsalted butter
• Other Types
Categories Covered:
• Organic
• Inorganic
• Other Categories
Distribution Channels Covered:
• Supermarkets & Hypermarkets
• Convenience Stores
• Specialty Stores
• Online Retail Stores
• Non-Store-Based
• Other Distribution Channels
Sources Covered:
• Cream
• Milk
• Skimmed
• Whole
• Other Sources
Applications Covered:
• Household
• Commercial
• Bakery and Confectionery
• Food Industry
• Infant Formula
• Meat products
• Desserts
• Other Applications
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
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