Lactose-free Infant Formula Market to Grow with a CAGR of 6.72% through 2029

The global Lactose-free Infant Formula Market is expanding, driven by increasing prevalence of lactose intolerance among infants, rising consumer awareness about infant nutrition, and a growing demand for specialized dietary options. 

According to TechSci Research report, “Lactose-free Infant Formula Market – Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2029F”, the global Lactose-free Infant Formula Market stood at USD 20.15 billion in 2023 and is expected to grow USD 29.76 billion by 2029 with a CAGR of 6.72% during the forecast period. The global lactose-free infant formula market has experienced significant growth, driven by various factors. One of the primary reasons is the increasing prevalence of lactose intolerance among infants. Studies show that a considerable number of infants suffer from lactose intolerance, particularly in regions where dairy consumption is low, such as parts of Asia and Africa. As awareness of this condition rises, more parents are opting for lactose-free formulas as an alternative to regular dairy-based formulas. This growing awareness, coupled with the increasing demand for dietary products that cater to specific health concerns, has led to a shift in consumer preferences towards lactose-free options. As a result, manufacturers are expanding their portfolios to include lactose-free alternatives that are specially formulated to provide essential nutrients for infant growth and development without the digestive issues associated with lactose consumption.

Another major driver of the market is the rise in consumer preference for organic and clean-label products. Today’s parents are more conscious than ever about the ingredients in the products they purchase for their children. This has driven a surge in demand for organic, natural, and allergen-free baby formulas. Many consumers are concerned about the long-term health effects of consuming formula products containing artificial additives, preservatives, and hormones. As a result, companies are increasingly focusing on developing lactose-free infant formulas with clean labels, using natural ingredients and minimal processing. The emphasis on transparency, along with the preference for organic and minimally processed products, is fueling the market’s growth, as more parents are inclined to purchase formulas that align with their health-conscious values.

Technological advancements in the infant nutrition industry are also contributing to the rapid expansion of the lactose-free formula market. Manufacturers are investing heavily in research and development to create formulas that more closely resemble breast milk, with a focus on improving digestibility, nutritional balance, and bioavailability. Innovations such as the use of prebiotics, probiotics, and omega-3 fatty acids are being incorporated into lactose-free formulas to promote healthy gut flora and cognitive development. Additionally, the growing use of coconut and plant-based ingredients as an alternative to traditional dairy is gaining traction, providing a broader range of lactose-free options for parents. These advancements in infant nutrition technology are enhancing the appeal of lactose-free formulas, as they offer similar, if not superior, nutritional profiles compared to traditional dairy-based formulas​.

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The global Lactose-free Infant Formula Market is segmented into product type, sales channel, and region.

Based on sales channel, The increasing demand for lactose-free infant formula is significantly driven by the rise of online sales channels. E-commerce platforms provide greater convenience for consumers, offering a wide range of lactose-free products with easy access to information, reviews, and competitive pricing. Online shopping enables parents to purchase from the comfort of their homes, avoiding the hassle of in-store shopping. Moreover, the increasing trust in online retail platforms, coupled with doorstep delivery, has accelerated the growth of the lactose-free formula market globally.

Based on the region, the increasing demand for lactose-free infant formula in North America is largely driven by rising awareness of lactose intolerance among infants and growing consumer preference for specialized dietary products. North American parents are increasingly opting for lactose-free formulas due to health concerns, with many choosing these products to avoid digestive discomfort associated with lactose consumption. The region also sees a growing trend toward clean-label, organic, and allergen-free baby food options, contributing to the rise in lactose-free formula sales. Additionally, the convenience of online shopping, along with wider product availability in retail outlets, has further boosted demand in the region.

Major companies operating in the global Lactose-free Infant Formula Market are:

• Nestlé S.A.
• Ausnutria Dairy Corporation Ltd.
• Valio Ltd
• Abbott Laboratories
• Bubs Australia Limited
• Danone S.A.
• Reckitt Benckiser Group PLC
• Perrigo Company plc
• Dana Dairy Group LTD
• Hero AG

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“The growing prevalence of lactose intolerance among infants, rising consumer awareness about infant nutrition, and the demand for allergen-free and plant-based products are key drivers of the lactose-free infant formula market. Trends like the increasing popularity of clean-label, organic, and coconut-based alternatives are shaping product offerings. Additionally, advancements in formula technology, along with the convenience of online shopping, are driving innovations and expanding market reach.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

“Lactose-free Infant Formula Market – Global Industry Size, Share, Trends, Opportunity and Forecast, By Product Type (Organic, Conventional), By Sales Channel (Supermarket/Hypermarket, Convenience Stores, Online, Others), By Region & Competition, 2019-2029F”, has evaluated the future growth potential of global Lactose-free Infant Formula Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the global Lactose-free Infant Formula Market.

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