The global lactose-free infant formula market size is expected to reach USD 24.0 billion by 2025, according to a new report by Grand View Research, Inc., expanding at a CAGR of 10.6% over the forecast period. Growing population of lactose intolerant newborns at the global level is a key factor driving the market.
Increasing working women population is also significantly affecting the market growth. Companies are investing on research and development to increase their focus on lactose-Free Infant Formula product offerings. For instance, Valio Oy has introduced more than 100 lactose free products in 50 countries. In 2016, the company invested around USD 28.0 million on new product development in order to provide high quality assurance to the customers.
The organic category held the largest market share in 2018. It is expected to emerge as the fastest growing product segment with a CAGR of 10.7% from 2019 to 2025. The segment growth is attributed to rising demand for premium products in the market. Increasing awareness about the side effects of chemically synthesized products is also driving the consumers to purchase organic products. The conventional category is anticipated to witness significant growth due to its cost effectiveness and availability of the product in the market. The product witnesses majority of its demand from the regions including Asia Pacific and Central and South America.
The supermarkets and hypermarkets category was the largest distribution channel segment in 2018, accounting for 45.0% of the global revenue. Availability of a wide product line is a major factor driving the consumers to purchase their products from this channel. The online category is anticipated to emerge as the fastest growing category. Consumers are shifting their preference toward online purchase due to the convenience of doorstep delivery services.
Europe is the largest consumer of lactose-Free Infant Formula. In 2018, the region accounted for 37.5% share of the global revenue. Europeans prefer purchasing these products as they help in preventing diseases like diarrhea among newborns. In Finland, one out of 60,000 newborns are lactose intolerant, which, in turn, is driving the market. Some of the key players operating in the Europe market are GIMME THE GOOD STUFF and Abbott.
The lactose-Free Infant Formula market is competitive in nature due to the presence of many small and large players. Some of the major companies operating in this market are Nestlé; Nutricia; Valio Oy; Abbott; GIMME THE GOOD STUFF; Silverson; Apta Advice; Danone; and Nurture, Inc.
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Further key findings from the report suggest:
- By product, the organic category is projected to be the fastest growing segment with a CAGR of 10.7% over the forecast period
- On the basis of distribution channel, the supermarkets and hypermarkets segment dominated the global market, accounting for 45.0% share of the overall revenue in 2018
- Europe dominated the lactose-Free Infant Formula market in 2018, accounting for 37.5% share of the overall revenue. This trend is projected to continue in the coming years due to growing lactose intolerant population and awareness about the benefits of lactose-Free Infant Formula
- Various manufacturers are concentrating on lactose free high nutritional infant formulas to meet the existing and future demand of the market.