Lactose-free Infant Formula Market

Lactose-free Infant Formula Market Overview

The global lactose-free infant formula market is estimated to exceed US$ 36 Bn by the end of 2032. The sales of lactose-free infant formulas are expected to reach US$ 15 Bn by 2022, projecting growth at a CAGR of around 7% to 8% during the forecast period 2022-2032. Increasing incorporation of advanced techniques by market players to improve the nutritional values of their products for providing required nutrition to infants is anticipated to bolster the growth in the lactose-free infant formula market.

Lactose-free infant formulas are dietary supplements particularly manufactured for infants who are unable to naturally produce an enzyme called β-Galactosidase, commonly known as lactase, responsible for breaking down and digesting lactose sugars - galactose and glucose found in milk.

Breast milk, which has high lactose content, is difficult to digest and leads to diarrhea, abdominal bloating, cramps, bloating, nausea, and others in lactose-intolerant infants. Thus, the demand for lactose-free infant formula that specially caters to the needs of these infants is favoring the growth in the global market.

Need for proper nutrition is of great importance to infants for their growth and development. As lactose intolerant infants are unable to digest and absorb nutrition from breast milk, numerous organization and market players are increasingly investing in research and development activities for the development of novel lactose-free and easy to digest infant formulas. This is projected to augment the growth in the global market.

Which are Some Prominent Drivers Spearheading Lactose-free Infant Formula Market Growth?

The growth in the lactose-free infant formula market is largely driven by the increasing number of working mothers. Over the past few years, a significant rise in the working women population is being witnessed, especially across countries such as the U.S., the U.K, Germany, India, and China among others.

For instance, according to the Office for National Statistics, nearly 72.2% of the female population between the ages of 16 and 64, or more than 20 million adult females were reported to be employed in 2021. Since mothers are taking efforts to manage work along with following a busy out-of-home life schedule, it is becoming difficult for them to take time for breastfeeding babies. This has bolstered the demand for infant formula, as it can be prepared in lesser time and comprise all the essential nutrients necessary for the baby's growth.

Lactose-free infant formulas are blends of essential nutrients such as vitamin D and iron for babies who are not being breastfed, which are also inclusive of essential amino acids such as arachidonic acid (ARA), docosahexaenoic acid (DHA), and other vitamins. Thus, with rising burden of lactose intolerance among infants, these infant formulas are increasing being adoption by the working mothers. This is anticipated to accelerate the sales of lactose-free infant formulas in the market.

What are the Challenges Faced by the Lactose-free Infant Formula Market?

Babies that are not breastfed have a greater risk of incurring various diseases and illnesses than the ones that are breastfed. According to a study published by the National Library of Medicine, a high rate of incidences of allergies, obesity, gastroenteritis, leukemia, diabetes, sudden infant death syndrome (SIDS), and others are reported amongst the infants that are not breastfed.

Attributed to this, parents are increasingly adopting treatments for lactose intolerance such as lactase enzyme supplements or drops that can be added to the milk before consumption to safeguard their babies from aforementioned risks. This is projected to hinder the sales of lactose-free infant formulas in the global market.

How is North America Contributing to the Growth of the Lactose-free Infant Formula Market?

As per FMI, North America is estimated to continue dominating the global lactose-free infant formula market during the forecast period 2022-2032.

With rising awareness regarding the benefits of lactose-free infant formulas amongst parents, growing inclination towards plant-based baby supplement, and surging application of lactose-free infant formula, demand for advanced infant formulas is rising at a rapid pace.

Hence, leading players in the market are aiming at introducing novel breast milk alternatives to capitalize on the existing opportunity. For instance, in 2020, Else Nutrition, a U.S.-based manufacturer of infant nutrition, announced introducing the first plant-based breast milk alternative, Else SKU, which is made up of buckwheat, almonds, and tapioca. A multiplicity of such new product launches are projected to augment the sales in the North America market.

Nandini Roy Choudhury

Principal Consultant

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How is Europe Contributing to the Growth of the Lactose-free Infant Formula Market?

Future Market Insights states that Europe is expected to emerge as a highly lucrative market for lactose-free infant formula between 2022 and 2032.

The prevalence of lactose intolerance in infants is increasing at a rapid pace, especially across European countries such as Finland, the U.K., France, Italy, and others, creating strong demand for lactose-free infant formula in Europe.

For instance, according to report by the National Library of Medicine, around 1 infant in 60,000 newborns across Finland is estimated to be affected by lactose intolerance in infancy. Hence, key companies in the market are aiming at expanding their production capacity to address the surging demand. This is anticipated to bolster the growth in the Europe market.

Market Competition

Some of the leading players in the lactose-free infant formula market are SMA LF, Isomil, Nestlé S.A., The Danone Company Inc., Abbott International, and others.

Prominent players in the global lactose-free infant formula market are aiming at launching novel products and capacity expansion to gain edge in the highly competitive market.

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Report Scope

Key Segments Profiled in the Lactose-Free Infant Formula Market Survey

By Nature:

• Organic
• Conventional

By Indication:

• Starting Formula
• Follow-on Formula
• Specialized Formula

By Sales Channel:

• Direct (B2B)
• Indirect (B2C)
• Modern trade
• Convenience Stores
• Specialty Stores
• Online Retail
• Traditional Grocery

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia
• Oceania
• Middle East and Africa