Lactose-Free Butter Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, UK, Germany, Canada, India - Size and Forecast 2024-2028

Lactose-Free Butter Market Size 2024-2028

The lactose-free butter market size is forecast to increase by USD 121.4 million at a CAGR of 7.08% between 2023 and 2028. The market is experiencing significant growth, driven by the rising awareness of lactose intolerance and the increasing number of organized retailing outlets worldwide. With an estimated 65% of the global population having some degree of lactose intolerance, the demand for lactose-free alternatives to traditional dairy products, including butter, is on the rise.  Household use, commercial kitchens, specialty stores, convenience-stores, online retail, and food service establishments all offer lactose-free butter. The market expansion for lactose-free butter faces challenges due to limited consumer awareness and higher prices compared to dairy butter. However, advancements in technology and production methods are overcoming these hurdles, resulting in cost-effective, high-quality lactose-free alternatives. The market is expected to continue growing, fueled by increasing consumer demand and the expansion of retail channels offering lactose-free butter options. The market report forecast market size, historical data spanning from 2018 - 2022, and future projections, all presented in terms of value in USD million for each of the mentioned segments.

 Request Free Sample

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Application Outlook
  • Household
  • Commercial

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

By Application Insights

The household segment is estimated to witness significant growth during the forecast period. The market is witnessing significant growth due to the increasing demand for lactose-free dairy-food to cater to the nutritional needs of individuals with lactose intolerances and vegans. Household consumption is currently the largest segment of this market, driven by the rising preference for healthier alternatives to traditional dairy products. Lactose-free butter offers the same essential nutrients as regular butter, including calcium and vitamins, making it a popular choice for those who cannot consume lactose or choose not to consume dairy.

Get a glance at the market share of various regions Download the PDF Sample

The household segment accounted for USD 200.8 million in 2018. Lactose intolerance, a condition that causes symptoms such as gas, bloating, and abdominal pain upon consumption of lactose, affects a significant portion of the population, particularly in developed countries like the US. The processed food industry has responded to this trend by producing an array of lactose-free dairy foods, including butter, which are free from the symptoms associated with lactose intolerance. Food service operators and retailers are also increasing their offerings of lactose-free butter to cater to the growing demand. In addition to being lactose-free, these products may also be low-fat, sugar-free, gluten-free, or organic, depending on consumer preferences. The natural food and organic food industries have also embraced lactose-free butter as a healthier alternative to traditional butter.

Regional Analysis

For more insights on the market share of various regions Download PDF Sample now!

Europe is estimated to contribute 34% to the growth of the global market during the market forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

Lactose-free butter caters to the nutritional needs of individuals with lactose intolerance, vegans, and those following specific dietary restrictions. This type of butter is free from dairy, making it an alternative option for those who cannot consume traditional butter. The processed food industry has responded to this demand by producing lactose-free butter using a lactase enzyme to break down the lactose in the milk used. Lactose intolerance symptoms, such as gas, bloating, and abdominal pain, can be alleviated by consuming lactose-free butter. Food service operators and retailers have recognized the importance of catering to diverse dietary requirements, leading to an increase in the availability of lactose-free butter in various sectors. Flavors and low-fat options are also available to cater to various preferences. Lactose-free butter is not only beneficial for those with intolerances or allergies but also for individuals with diabetes, obesity, or weight management concerns, as it is often lower in saturated fats and calories compared to traditional butter. Additionally, the market for lactose-free butter extends to those seeking healthier, natural, organic, sugar-free, and gluten-free food options. Quality and nutritional food are increasingly prioritized, with consumers seeking chemical-free and natural alternatives to processed dairy foods.

Market Dynamics

Lactose-Free Butter, a dairy food alternative, is gaining popularity in the market due to the increasing number of people with lactose intolerances and those following vegan diets. Lactose intolerance is a common condition that causes symptoms such as gas, bloating, and abdominal pain when lactose, a sugar found in milk and dairy products, is not properly digested. The processed food industry is responding to this trend by offering Lactose-Free Butter as a healthier option. This type of butter is made using a lactase enzyme to break down the lactose in milk before the butter is churned. It is also available in low-fat versions and various flavors to cater to different nutritional needs and tastes. Food service operators and retailers are also recognizing the demand for Lactose-Free Butter. These options cater to the growing demand from individuals with lactose intolerance or those following dairy-free diets. Simultaneously, the meats and packaged foods industries continue to innovate, offering an array of lactose-free alternatives to cater to diverse consumer preferences. The aging population and the rise in diabetes are also contributing factors to the growth of this market. People with diabetes often have lactose intolerance, making Lactose-Free Butter an essential product for them. In conclusion, the Lactose-Free Butter market is expected to grow as more people seek healthier alternatives to traditional butter, particularly those with lactose intolerances and vegans. The market is driven by the increasing awareness of intolerances and allergies, the aging population, and the rise in diabetes. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The growing awareness of lactose-intolerant conditions is notably driving market growth. The market for lactose-free butter has gained significant traction due to the increasing health consciousness and consumer preference for natural and organic food options. With an aging population and rising disposable income, there is a growing demand for healthier alternatives to traditional dairy products. Lactose intolerance, a condition that affects the ability to digest lactose, is prevalent among various populations. To cater to this segment, companies are producing lactose-free butter using a lactase enzyme to break down the lactose. These products are also sugar-free, gluten-free, chemical-free, and offer better nutritional quality. Specialty stores and online retail platforms are making these lactose-free options easily accessible to consumers. The awareness campaigns and initiatives aimed at promoting lactose-free products have been effective in generating interest among health-conscious individuals seeking weight management and improved living standards. Overall, the lactose-free butter market is poised for growth as more consumers seek out chemical-free, nutritionally superior alternatives to traditional dairy products. Thus, such factors are driving the growth of the market during the forecast period.

Significant Market Trends

The increasing number of organized retailing outlets worldwide is the key trend in the market. The global market is witnessing significant growth due to increasing consumer preference for healthier options and the rising number of individuals with lactose intolerance. This trend is particularly noticeable among the aging population and those with weight management goals. To cater to this demand, vendors are producing lactose-free butter using a lactase enzyme to break down the lactose during the manufacturing process. These products are also being marketed as sugar-free, gluten-free, natural, organic, chemical-free, and of high nutritional quality. Consumers with disposable income and a focus on health consciousness and improved living standards are increasingly seeking out these specialty food items at specialty stores and online retail platforms. Organized retailers, such as Walmart and Meijer, Inc., play a crucial role in the distribution and marketing of lactose-free butter, making it easily accessible to a wider audience. Thus, such trends will shape the growth of the market during the forecast period.

Major Market Challenge

Limited awareness and high price is the major challenge that affects the growth of the market. Lactose-free butter caters to the health needs of individuals with lactose intolerance, a condition that affects the ability to digest lactose, a sugar found in milk and dairy products. With an aging population and rising health consciousness, the demand for healthier options in food products is on the rise. Lactose-free butter, which is made using lactase enzyme to break down lactose, is a popular choice among consumers seeking specialty food items. The preference for natural, organic, sugar-free, gluten-free, and chemical-free food is driving the growth of the lactose-free butter market. Consumers with disposable income and improved living standards are willing to pay a premium for these high-quality, nutritionally superior products. However, the high price of lactose-free butter, which is nearly 1.5-2 times the price of conventionally processed butter, remains a barrier to entry for many consumers, particularly in developing regions and among the middle-income population in developed countries. Despite the high price, the demand for lactose-free butter is expected to grow as health expenditure continues to increase and consumers become more health-conscious. The product is widely available in specialty stores and online retail platforms, making it accessible to a larger audience. As the market expands, competition among brands offering lactose-free butter is expected to intensify, leading to price competition and innovation in product offerings. Hence, the above factors will impede the growth of the market during the forecast period.

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Arla Foods amba - The company offers lactose free butter products such as Arla lactofree slightly salted butter 250g.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Arla Foods amba
• California Dairies Inc.
• Cargill Inc.
• Chr Hansen Holding AS
• Conagra Brands Inc.
• Corbion nv
• General Mills Inc.
• Ingredion Inc.
• International Flavors and Fragrances Inc.
• Johnson and Johnson Services Inc.
• Kellogg Co.
• Kerry Group Plc
• Miyokos Creamery
• Redwood Hill Farm and Creamery Inc.
• The Hain Celestial Group Inc.
• Uelzena eG
• Upfield B.V
• Valio Ltd
• Wm Morrison Supermarkets Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

Lactose-Free Butter, a dairy food alternative, is gaining popularity in the food industry due to the increasing number of people with lactose intolerances and vegans. Lactose intolerance is a condition that makes it difficult to digest lactose, a sugar found in milk and dairy products, leading to symptoms such as gas, bloating, and abdominal pain. The processed food industry has responded to this need by producing Lactose-Free Butter using a lactase enzyme to break down the lactose during production. This butter is also a suitable option for vegans, as it is free from animal products. The market for Lactose-Free Butter is expected to grow due to the rising nutritional needs of consumers with intolerances and allergies. The demand for healthier alternatives, including Low-fat butter and Sugar-free Carbonated Drinks, is also driving the market. Food service operators and retailers are recognizing the importance of catering to this growing consumer base. Lactose-Free Butter is available in various forms, including Natural and Organic, and can be found in Household, Commercial, Specialty stores, and Online retail outlets. The market for Lactose-Free Butter is not limited to household use but also includes Food service operators and the Processed food industry. The market is expected to grow further due to the increasing health consciousness, with consumers seeking Chemical-free, Nutritional, and Quality food options. Flavored Lactose-Free Butter is also gaining popularity, with various flavors available to cater to different taste preferences. The market for Lactose-Free Butter is expected to continue its growth trajectory in the coming years, as more consumers become aware of their nutritional needs and seek alternatives to traditional dairy foods.

Download PDF Sample

What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

We can help! Our analysts can customize this market research report to meet your requirements. Get in touch