Technavio analysts forecast the global lactose-free food market to grow at a
CAGR of more than 11% during the forecast period, according to their latest
report.
The research study covers the present scenario and growth prospects of the
global lactose-free food market for 2017-2021. The market is segmented on
product (diary and baby food), and geography (the Americas, EMEA, and APAC).
Many consumers are now opting for lactose-free products due to the perceived
health benefits of these products. Most consumers feel that drinking cow's milk
can upset their digestive system and cause bloating. The growing demand for
lactose-free products, in turn, is encouraging many manufacturers to make
modifications to their processing techniques and dosages, and focus on
lactose-free product formulations. In the UK, the sales of lactose-free milk
surged by 50% between 2014 and 2015.
Technavio food and beverage research analysts highlight the following three
factors that are contributing to the growth of the global lactose-free food
market:
- Rising levels of lactose intolerance
- Increasing prevalence of health issues such as celiac disease
- Expansion in retail landscape
An inability of the body to digest a significant amount of lactose present in
milk and dairy products is known as lactose intolerance. Some ethnic groups are
more lactose intolerant than others. The demand for lactose-free food products
is driven by the increasing incidences of food allergies and lactose
intolerances.
Manjunath Reddy, a lead food research analyst at Technavio, says, "Lactose
intolerance can be seen in approximately 90% of the adults in the East Asian
population segment. In the US, occurrences of food allergies are estimated to
have increased by 18% in the last decade. The growing incidences of food
allergies such as lactose intolerance have spurred the demand for lactose-free
products."
Lactose-free products are mostly for people who have lactose intolerance and
related disorders such as celiac disease. According to the National Foundation
for Celiac Awareness (NFCA), approximately one in 133 people in the US has
celiac disease, which is approximately 1% of the total North American
population.
"Diagnosis of celiac disease and lactose intolerance has increased with
the awareness of these disorders by both consumers and healthcare professionals.
Previously, it used to take up to 8 years to diagnose celiac disease. Today,
with enhanced awareness and better diagnostic tools, the time needed for the
diagnosis is reducing," adds Manjunath.
The organized retail sector worldwide is expanding significantly with the
establishment of supermarkets, hypermarkets, and specialty stores. Large
organized retailers primarily sell lactose-free food products such as
lactose-free milk, lactose-free cheese, and lactose-free infant formula.
Convenience and value for money are important parameters for consumers, mostly
because of their hectic lifestyles and work schedules, and organized retailers
provide both by stocking a wide assortment of products under a single roof.
Thus, consumer shopping patterns have shifted toward supermarkets and
hypermarkets, further increasing the importance of organized retailers for
vendors.