Lactose-Free Infant Formula Market Size, Share & Trends Analysis Report By Product (Organic, Conventional), By Distribution Channel, By Region, And Segment Forecasts, 2019 - 2025

Report Overview

The global lactose-free infant formula market size was valued at USD 11.9 billion in 2018 and is expected to expand at a CAGR of 10.6% from 2019 to 2025. The market growth is attributed to growing population of lactose intolerant newborns, coupled with an increasing number of working women at the global level. It has been observed that newborns with an inability to digest sugar level are increasing. Growing need for a substitute product to meet nutrition demand of the population is compelling companies to enter this market.

As per the report of the World Health Organization (WHO), breastfeeding provides maximum nutritional benefits to the infant. However, lack of time among working women, coupled with lactose intolerance among the infants, is driving manufacturers to increase their research and development expenditure and focus on enhancing the nutritional content of lactose free infant formula.

For instance, Valio Oy introduced more than 100 lactose free products in 50 countries. In 2016, the company invested around USD 28 million on new product development to provide high quality assurance to the customers. As per the U.S. National Library of Medicine, around 65.0% of human population is lactose intolerant. This condition is most common in Finland, wherein its affects an estimated 1 in 60,000 newborns and the number is increasing at a significant pace.

The institute also reported that this condition is the lowest in individuals that have a long history of dependence on unfermented milk products as an important food source. For instance, approximately only 5% of North European Descent suffer through this condition. Moreover, this condition cannot be cured. Therefore, there has been an increase in demand for lactose free infant formula, which is expected to drive the market.

Product Insights

The organic formula dominated the market and accounted for 60.4% share of the global revenue in 2018. It has been observed that consumers prefer purchasing premium products for infant nutrition at the global level. However, organic products are certified by the government, which compels the customers to purchase these products. Growing consumer awareness about the adverse effects of chemically synthesized infant formula is fueling the segment growth.

Demand for conventional products is majorly observed in price sensitive countries of Asia Pacific and Middle East and Africa. Conventional infant formula is price sensitive and effective to stop diarrhea related problems among infants. Cost of these products is comparatively lower than organic products. Companies are expanding their product line with innovative products to meet the consumer demand. For instance, Abbott offers soy-based lactose infant formula with high nutritional benefits.

Distribution Channel Insights

The supermarkets and hypermarkets category dominated the lactose-free infant formula market in 2018, accounting for 45.0% share of the global revenue. Consumers prefer this category to purchase their products due to availability of a wide range of options as well as the facility of scanning the product details before any purchase. The layout of the supermarket and promotional campaigns by leading brands has also increased the sales volume in the supermarkets and hypermarkets segment. Growth of the organized retail sectors has been driving the market by providing ample space and visibility for the existing as well as local brands to offer their products.

The online category is anticipated to expand at the fastest CAGR of 11.3% from 2019 to 2025. Consumers are more inclined toward purchasing their required items from online stores due to the doorstep delivery system. Another factor driving the segment is the ease of product comparison in less time. Customers can compare different brands of the product and understand their ingredient and health benefits at less time under this distribution channel, which is fueling the growth of this category.

Regional Insights

As of 2018, Europe dominated the market, accounting for 37.5% share of the total revenue. Presence of a large lactose intolerant population is a key factor driving the regional market. Europe is the largest manufacturer of lactose free dairy products. In 2018, the region produced more than 60 million metric tons of lactose free dairy product. Europe has the largest lactose intolerant population, which drives the manufacturers to expand their product line. Some of the key companies operating in the Europe market are GIMME THE GOOD STUFF and Abbott.

Central and South America is expected to be the fastest growing regional market with a CAGR of 11.5% from 2019 to 2025. Increasing disposable income, especially in developing countries, and growing population of lactose intolerant newborns are fueling the market growth in the region.

Key Companies & Market Share Insights

Key players of the market include Nestlé; Nutricia; Valio Oy; Abbott; GIMME THE GOOD STUFF; Silverson; Apta Advice; Danone; Nurture, Inc. Manufacturers are concentrating on increasing their penetration in the market by providing highly efficient products. For instance, Abbott offers lactose free soy based infant formula in the market.

Lactose Free Infant Formula Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global lactose-free infant formula market report on the basis of product, distribution channel, and region:

• Product Outlook (Revenue, USD Billion, 2015 - 2025)

  • Organic

  • Conventional

• Distribution Channel Outlook (Revenue, USD Billion, 2015 - 2025)

  • Supermarkets & Hypermarkets

  • Convenience Stores

  • Online

• Regional Outlook (Revenue, USD Billion, 2015 - 2025)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • The U.K.

  • Asia Pacific

    • China

  • Central & South America

    • Brazil

  • Middle East & Africa