Lactose-Free Dairy Opportunities

BATH, EnglandLactose-free dairy products remain a niche category, but such foods are rapidly approaching mainstream popularity. After its comprehensive 33-country study of the lactose-free dairy market, Zenith International is reporting that much potential exists in meeting the nutritional demands and desires of the significant number of lactose-intolerant individuals around the worldcomprising an estimated 70% to 75% of the population. Its findings have been compiled into its July 2012 report, Opportunity for Lactose Free Dairy. Over the course of its research, Zenith found that the most highly developed markets for lactose-free dairy products include the United States, Scandinavia, Germany and Spain.

Although dairy-free products, such as plant- and nut-based beverages, present a competitive alternative, these products do not naturally provide necessary nutrients found in dairy, such as vitamin D and calcium.

Of late, processors have been increasing lactose-free diary product manufacturing to meet demand. In fact, Innova Market Insights recently reported that global launches of lactose-free dairy products have more than tripled over the last five years.

Zenith reports that the most-significant opportunities exist in markets that have a prevalence of lactose intolerance and where dairy consumption is rising, such as in Asia and Latin America. The consultancy suggests that manufacturers are in a strong position to drive milk and dairy consumption through lactose-free offerings as long as they meet the challenge of affordability for lower-than-average incomes.

Another vital challenge for manufacturers looking to enter underdeveloped markets is education, said Laura Knight, senior analyst, 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 also reports that opportunities in more-developed lactose-free dairy markets, such as the aforementioned United States, Scandinavia, Germany and Spain, exist in broadening the range of available lactose-free dairy products, and to drive consumption in non-retail channels, such as foodservice.

Targeting the lactose-free dairy market can prove lucrativeeven in the midst of challenging market conditionssince lactose-free dairy products often command a premium price.

For more on implementing best strategies to target the lactose-free dairy product market, review Targeting Lactose-Intolerant Consumers with Dairy to Help Grow Your Bottom Line, a free, on-demand Webinar from Dairy Management Inc.