Revolutionizing Dairy Alternatives The Surging Demand for Lactose-Free Probiotic Yogurt in Health-Conscious Consumers

Lactose-Free Probiotic Yogurt Market
Lactose-Free Probiotic Yogurt Market

The Lactose-Free Probiotic Yogurt Market has expanded significantly in the past several years to satisfy the growing demand from consumers looking for lactose-free dairy alternatives. This specific brand of yoghurt offers the health advantages of probiotics without making lactose intolerant people uncomfortable. Consumers who value their health are becoming more and more drawn to gut-friendly products that promote regular digestion and overall wellness.

The market for lactose-free probiotic yoghurt is expected to grow at a compound annual growth rate (CAGR) of 6.3% over the course of the forecast period, from US$ 13.6 billion in 2022 to US$ 25.05 billion by 2032.

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The Lactose-Free Probiotic Yogurt Market has witnessed substantial growth, catering to the increasing demand from consumers seeking lactose-free dairy alternatives. This specialized yogurt variant provides the health benefits of probiotics without causing discomfort for those with lactose intolerance. As health-conscious consumers increasingly turn to gut-friendly products promoting regular digestion and overall wellness, the market for lactose-free probiotic yogurt is projected to experience a robust compound annual growth rate (CAGR) of 6.3%, surging from US$ 13.6 billion in 2022 to an estimated US$ 25.05 billion by 2032.

Key Market Dynamics:

  • Diverse Dairy Alternatives: Cheese, yogurt, ice cream, and confections are now available without dairy, contributing to the market’s growth. Lactose-free probiotic yogurt, in particular, excludes lactose sugar found in milk, making it a healthier alternative.
  • Market Players: Major players in the lactose-free probiotic yogurt market include Dean Foods, Nestle, Arla Foods, The Danone Company Inc., Green Valley Organics, Kerry Group, and more. Notable developments include Danone North America’s new facility to boost production of plant-based food products.
  • Popularity of Coconut Milk Yogurt: Coconut milk yogurt has gained popularity as a dairy-free and lactose-free source of probiotics. It has become a preferred choice for those with lactose intolerance due to its health benefits and unique taste.

Challenges and Opportunities:

  • Rising Demand: The increasing prevalence of lactose intolerance, affecting approximately 65% of the global population, is a significant driver for lactose-free probiotic yogurt. Manufacturers are focusing on plant-based sources like peanuts, hazelnuts, rice, and coconuts to meet this demand.
  • High Cost and Taste Challenges: The high cost of lactose-free probiotic yogurt, attributed to complex resources and manufacturing processes, poses a challenge. Additionally, dairy-free products often have a different taste than regular dairy products, influencing consumer preferences.

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Market Segmentation:

  • Distribution Channels: The market is segmented into hypermarket/supermarket, convenience stores, specialty stores, and e-retailers.
  • Nature: Segmentation includes conventional and organic lactose-free probiotic yogurt.

Key Takeaways from the Market Study:

  1. Projected Growth: The lactose-free probiotic yogurt market is anticipated to witness a CAGR of 6.3% from 2022 to 2032.
  2. Distribution Channels: Hypermarkets/supermarkets, convenience stores, and specialty stores play a crucial role in the market’s expansion.
  3. Rising Popularity of Coconut Milk Yogurt: Coconut milk-based yogurt is gaining traction as a preferred dairy-free source of probiotics.
  4. Challenges: High costs and taste differences compared to regular dairy products are challenges in the lactose-free probiotic yogurt market.
  5. Market Players: Major industry players include Dean Foods, Nestle, Arla Foods, The Danone Company Inc., and others.

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Report Highlights:

  • A detailed overview of the parent market.
  • Changing market dynamics, including trends and developments.
  • In-depth market segmentation based on distribution channels and nature.
  • Historical, current, and projected market size in terms of volume and value.
  • Competitive landscape analysis and strategies for key players.
  • Potential and niche segments showing promising growth.
  • Neutral perspective on market performance.

Cheese, yoghurt, ice cream, and confections are available without dairy. The lactose sugar present in milk is not used in the production of lactose-free probiotic yoghurt. These goods are healthier, and as more people use them, the market for lactose-free probiotic yoghurt is probably going to grow.

Lactose Free Probiotic Yogurt Market- Notable Highlights

Some of the leading players in the lactose free probiotic yogurt market are Dean Foods, Nestle, Arla Foods, The Danone Company Inc., Green Valley Organics, Kerry Group, Crowley Foods, Shamrock Foods Company, McNeil Nutritionals, Doves Farm Foods, Galaxy Nutritional Foods, Cargill, Daiya Foods, and Edlong Dairy Technologies.

  • Danone North America has opened new facility to increase production of its plant-based food products. The facility is likely to produce Vega yogurt alternatives and nutritional powder, along with Silk yogurt alternatives.
  • Nongfu Spring has launched vegan yogurt product in China. This product is the first mainstream plant-based yogurt in the country.
  • Oatly, a Swedish vegan brand has introduced a drinkable yogurt made using fermented oats. The new product known as Oatgurt will be provided in four flavors including strawberry, vanilla, lemon elderflower, and natural.

Lactose Free Probiotic Yogurt Market Dynamics

Rising Levels of Lactose Intolerance Driving Lactose Free Probiotic Yogurt Market

Some ethnic groups across countries are more lactose intolerant than others. According to the National Institutes of Health, around 65% of the global population is lactose intolerance. This is driving the demand for lactose free food products including lactose free probiotic yogurt. In response to growing demand for lactose free yogurt and other dairy products, food producers are focusing on using vegan milks made from peanuts, hazelnuts, rice, coconuts to produce lactose free probiotic yogurt.

Manufacturers in lactose free probiotic yogurt market are using lactases, neutral lactases is mostly used for production of lactose-free dairy products. Moreover, starter culture of live bacteria is also added in lactose free yogurt to enhance the probiotic content. Although yogurt naturally contain various types of probiotics, some manufacturers are adding additional probiotics which may include Lactobacillus acidophilus as it helps in reducing lactose, making it easy to consume probiotic yogurt for people with lactose intolerance.

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Coconut Milk Yogurt Gaining Popularity in Lactose Free Probiotic Yogurt Market

Coconut milk yogurt has emerged as one of the top dairy free and lactose free source of probiotics. While Greek yogurt contains less lactose as compared to traditional milk yogurt, majority of the people with lactose intolerance are avoiding these yogurt products while switching to vegan style and lactose free probiotic yogurt such as coconut milk based yogurt. The probiotics in coconut milk yogurt offers probiotics that help to regulate digestive health by providing healthy gut bacteria. Manufacturers in lactose free probiotic yogurt market are combining coconut milk with flavorings, fruits, and active cultures in order to produce vegan yogurt with nutritional benefits. Consumers are also making their own coconut milk yogurt using canned coconut milk and powdered probiotics.

Soy, almond, and coconut are popular dairy-free yogurt bases. A few years back soy used to be popular base for dairy-free yogurt, however, food producers are providing consumers with new option, this has increased the popularity of coconut milk used as a base for yogurt.

High Cost and Poor Taste to Challenge Growth in the Lactose Free Probiotic Yogurt Market

Driven by consumer perception of dairy-free products as healthier alternatives to dairy products along with the rise in vegan population, dairy-free products made using plant-based sources are gaining popularity. However, low on taste and high cost of dairy-free products including lactose free probiotic yogurt are emerging as the challenges.

Specialty products such as non-dairy cheese and lactose free probiotic yogurt are expansive as compared to lactose containing products. Owing to the complex resources and manufacturing process, the cost of lactose-free probiotic yogurt is high. Moreover, high price of alternate milk sources also adds to the cost of lactose-free probiotic yogurt. In terms of taste, dairy-free products such as lactose free probiotic yogurt often taste different than regular dairy products. However, food producers are focusing on the ingredients in these products in order to enhance the taste and texture of lactose-free dairy products.

The report on the lactose free probiotic yogurt market is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain of the global lactose free probiotic yogurt market. The report provides an in-depth analysis of parent market trends, macroeconomic indicators and governing factors along with lactose free probiotic yogurt market attractiveness as per segments. The report also maps the qualitative impact of various factors on lactose free probiotic yogurt market segments and geographies.

Lactose Free Probiotic Yogurt Market Segmentation

Based on the distribution channel, the lactose free probiotic yogurt market is segmented into

  • Hypermarket/supermarket
  • Convenience stores
  • Specialty stores
  • E-retailers

Based on the nature, the lactose free probiotic yogurt market is segmented into 

  • Conventional
  • Organic

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Report Highlights:

  • A detailed overview of parent market
  • Changing lactose free probiotic yogurt market dynamics in the industry
  • In-depth lactose free probiotic yogurt market segmentation
  • Historical, current, and projected lactose free probiotic yogurt market size regarding volume and value
  • Recent industry trends and developments in lactose free probiotic yogurt market
  • Competitive landscape of the lactose free probiotic yogurt market
  • Strategies for key players and products offered in the lactose free probiotic yogurt market
  • Potential and niche segments, geographical regions exhibiting promising growth in lactose free probiotic yogurt market
  • A neutral perspective on lactose free probiotic yogurt market performance
  • Must-have information for lactose free probiotic yogurt market players to sustain and enhance their market footprint

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About the Author

Ronak Shah

Associate Vice President at Future Market Insights is deeply committed to uncovering actionable insights for consumer and food and beverage players. She brings a unique blend of analysis, industry trends, and consumer behavior to put data into perspective.

What she makes out of data becomes a delight to read. She has authored many opinions, including for publications like Process Industry Informer and Spinal Surgery News, as she understands the market pulse and consumers' shifting preferences.

She likes to bring experts to a roundtable to weigh the impact of a trend on an industry. Catch up with her discussion on the impact of AI in packaging.

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