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Lactose Free Infant Formula Market
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Lactose Free Infant Formula Market

Author: Debadatta Patel - Senior Consultant, Report ID - DS1901049, Published - January 2025

Segmented in Product Type (Powder, Ready-to-Use, Liquid Concentrate), Distribution Channel (Offline Retail, Online Retail), Age Group, Functionality and Regions - Global Industry Analysis, Size, Share, Trends, and Forecast 2024 – 2034

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Global Lactose Free Infant Formula
Market Outlook

In the changing world of nutritional options on a global scale​lactose free baby formula has become a real game changer​ Providing an answer for babies who are lactose intolerant​ this specific market area is showing promising growth prospects​ establishing itself as a major contender, in the infant nutrition sector​


The lactose free baby formula is a dietary product designed for infants who have trouble digesting lactose as they grow up. The market, for Lactose free infant formula was estimated at $23.2 billion in 2024. It is anticipated to increase to $35.3 billion by 2030 with projections indicating a growth to around $49.9 billion by 2035. This expansion represents a compound annual growth rate (CAGR) of 7.2% over the forecast period. It contains all the nutrients to meet their dietary needs while also being gentle on their digestion system. There has been a surge in new options like organic and fortified formulas on the market as more consumers prioritize nutritional safety and cater, to the specific dietary requirements of babies.


Market Size Forecast & Key Insights

2019
$23.2B2024
2029
$46.6B2034

Absolute Growth Opportunity = $23.3B

The Lactose Free Infant Formula market is projected to grow from $23.2 billion in 2024 to $46.6 billion in 2034. This represents a CAGR of 7.2%, reflecting rising demand across Managing Lactose Intolerance, Infant Colic Management and Nutritional Supplement for Preterm Infants.

The Lactose Free Infant Formula market is set to add $23.3 billion between 2024 and 2034, with manufacturer targeting Online Retail & undefined Distribution Channel projected to gain a larger market share.

With Increasing lactose intolerance among infants, and Rise in health-conscious consumers, Lactose Free Infant Formula market to expand 100% between 2024 and 2034.

Opportunities in the Lactose Free Infant Formula Market

Introduction of Organic and Clean-Label Products

The increasing interest in natural and organic infant food options is changing how the market looks today.There'sa growing preference, for products that dont contain additives or harmful chemicals and are free of genetically modified ingredients.

Expansion into Emerging Markets and Leveraging Online Sales Channels

The way people shop and what they like is always changing in developing regions like Asia Pacific and South America. These places have a lot of room for growth because more people are moving to cities earning money and learning more about lactose intolerance in babies. If businesses come up with unique products tailored to these markets they could attract new customers and make the market, for lactose free baby formula grow.

The current trend of consumers moving towards shopping platforms opens up an exciting chance for businesses to expand their reach and provide customers with convenient shopping and delivery options while also creating a digital platform for sharing information, on lactose intolerance and products without lactose.

Growth Opportunities in North America and Europe

Europe Outlook

In Europe lactose free infant formulas have seen an increase in popularity due to the growing emphasis on the health and nutrition of infants. The market is competitive with a mix of local brands vying for attention. Additionally the introduction of products such as organic lactose free options presents an attractive prospect for manufacturers. Regulations and laws in both regions play a role, in shaping market trends.

North America Outlook

In North America and especially in the United States more and more people are becoming intolerant. Because of this trend the demand for lactose baby formulas is on the rise. Big players like Nestle, Abbott and Mead Johnson Nutrition are, in competition as they control a major share of the market. While market saturation poses a challenge innovative product promotion and marketing strategies offer prospects in this well established industry.

North America Outlook

In North America and especially in the United States more and more people are becoming intolerant. Because of this trend the demand for lactose baby formulas is on the rise. Big players like Nestle, Abbott and Mead Johnson Nutrition are, in competition as they control a major share of the market. While market saturation poses a challenge innovative product promotion and marketing strategies offer prospects in this well established industry.

Europe Outlook

In Europe lactose free infant formulas have seen an increase in popularity due to the growing emphasis on the health and nutrition of infants. The market is competitive with a mix of local brands vying for attention. Additionally the introduction of products such as organic lactose free options presents an attractive prospect for manufacturers. Regulations and laws in both regions play a role, in shaping market trends.

Growth Opportunities in North America and Europe

Established and Emerging Market's Growth Trend 2025–2034

1

Major Markets : United States, China, Germany, United Kingdom, Australia are expected to grow at 4.7% to 6.9% CAGR

2

Emerging Markets : Vietnam, Indonesia, Saudi Arabia are expected to grow at 8.3% to 9.9% CAGR

Market Analysis Chart

The market for lactose infant formula is experiencing significant growth as various factors are contributing to this trend more than the challenges it faces in the market. The main factor driving this market growth is the increasing incidence of intolerance and allergies in infants. Studies show that around two to three% of infants are unable to digest lactose. This notable statistic along with heightened awareness among parents has led to an increase in the demand, for lactose free infant formulas.

Recent Developments and Technological Advancement

December 2024

Abbott Laboratories has introduced a cutting edge infant formula called Similac Sensitivethat'slactose free and designed to enhance the digestive well being of newborn babies.

October 2024

The NAN Comfort line, from Nestlé unveiled an infant formula that is lactose free and enriched with Probiotic Lactobacillus reuter. It aims to boost the system of babies.

August 2024

Danone Nutricia introduced a high quality product called Aptamil Lactose Free. This infant formula is enriched with vitamins and minerals to aid in the development of babies who are lactose intolerant.

The market for lactose infant formula has experienced notable growth in recent times due to advancements in product offerings and market expansion efforts. The rise in intolerance among infants and a heightened consumer focus on the health advantages of lactose free items are key drivers behind this positive trajectory. A significant market trend is the increasing desire, for non genetically modified organism lactose free infant formulas.

Impact of Industry Transitions on the Lactose Free Infant Formula Market

As a core segment of the Food & Beverage industry, the Lactose Free Infant Formula market develops in line with broader industry shifts. Over recent years, transitions such as Rise in Lactose Intolerance Awareness and Development of Organic Lactose-Free Products have redefined priorities across the Food & Beverage sector, influencing how the Lactose Free Infant Formula market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.

1

Rise in Lactose Intolerance Awareness:

The market for lactose infant formula is greatly impacted by the increasing awareness of lactose intolerance among babies. A condition that can cause various health problems due, to the bodys inability to digest lactose properly. Consequently numerous parents are choosing lactose infant formula to avoid discomfort and ensure their childs well being. This increased awareness has encouraged leading manufacturers to develop and offer lactose free products thereby fueling market expansion.

2

Development of Organic Lactose-Free Products:

The trend in the industry is moving towards natural food items and this change is also reflecting in the market, for lactose free infant formula products.

Global Events Shaping Future Growth

The chart below highlights how external events including emerging market developments, regulatory changes, and technological disruptions, have added another layer of complexity to the Food & Beverage industry. These events have disrupted supply networks, changed consumption behavior, and reshaped growth patterns. Together with structural industry transitions, they demonstrate how changes within the Food & Beverage industry cascade into the Lactose Free Infant Formula market, setting the stage for its future growth trajectory.

Market Dynamics and Supply Chain

Driver: Increasing Lactose Intolerance Among Infants, and Technological Advancements in Formula Production

The rising prevalence of intolerance among babies has also created a greater need for infant formula that is also free of lactose. This specialized formula makes it simpler, for infants whore lactose intolerant to process their food resulting in reduced digestive problems and discomfort.
The integration of state of the art technologies in manufacturing operations has also enhanced the efficiency of producing lactose free infant formulae. With faster production cycles and enhanced product uniformity achieved through these advancements manufacturers are also now better equipped to meet the rising worldwide demand for such products. This factor plays a role, in driving the market growth trajectory forward.
Parents nowadays are also becoming more health conscious. Are also showing a growing interest in lactose free infant formula products that contain natural and beneficial ingredients instead of lactose based ones due, to concerns raised by certain studies regarding its potential health implications.

Restraint: High Product Costs

The main issue faced by the lactose free infant formula market is the price of these products due to the use of specialized ingredients and intricate manufacturing processes that drive up production costs and retail prices significantly; thereby making it challenging for consumers, with moderate incomes to purchase these items regularly.

Challenge: Lack of Awareness and Misinformation

In the expansion of the market for lactose baby formula faces a significant challenge due to the limited knowledge among consumers in emerging nations concerning lactose intolerance, in babies and its consequences.

Supply Chain Landscape

Raw Material Suppliers

Fonterra Co-operative Group

Arla Foods Ingredients Group

Ingredient Production

Mead Johnson Nutrition

Nestle S.A

Formulation & Packaging
Abbott Laboratories / Danone S.A
Retail & Distribution
Walmart Inc. / Amazon Inc
Raw Material Suppliers

Fonterra Co-operative Group

Arla Foods Ingredients Group

Ingredient Production

Mead Johnson Nutrition

Nestle S.A

Formulation & Packaging

Abbott Laboratories

Danone S.A

Retail & Distribution

Walmart Inc.

Amazon Inc

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Leading Providers and Their Strategies

Application AreaIndustryLeading ProvidersProvider Strategies
Lactose Intolerance Management
Healthcare, Infant Nutrition
Enfamil, Similac
Focusing on nutritional science, offering formulas with balanced nutrition to mimic breast milk while being gentle on baby's tummy
Premature Infant Nutrition
Healthcare, Infant Nutrition
Neocate, Nutricia
Producing highly hypoallergenic, amino acid-based formulas suitable for premature infants and babies with medical conditions
Sports Nutrition Products
Food & Beverages, Sports Nutrition
MusclePharm, Myprotein
Including lactose-free infant formula as a primary ingredient in their protein powders and other sports nutrition products, providing a complete amino acid profile while being easy to digest for people with lactose intolerance
Alternative to Cow Milk-Based Formula
Food & Beverages, Infant Nutrition
HiPP, Holle
Offering organic lactose-free infant formulas that serve as a nutritious alternative to cow milk-based formulas, focusing on all-natural ingredients and absence of synthetic nutrients and artificial additives

Elevate your strategic vision with in-depth analysis of key applications, leading market players, and their strategies. The report analyzes industry leaders' views and statements on the Lactose Free Infant Formula market's present and future growth.

Our research is created following strict editorial standards. See our Editorial Policy

Applications of Lactose Free Infant Formula in Infant Colic Management, Managing Lactose Intolerance and Nutritional Supplement for Preterm Infants

Infant Colic Management

Research indicates that lactose intolerance could play a role, in infant colic issues according to some studies. Lactose free baby formula can assist in addressing this concern by lowering lactose intake and alleviating symptoms effectively. Nutrilon and HiPP are well known for creating these formulas that aid infants experiencing excessive crying and discomfort linked to colic episodes.

Managing Lactose Intolerance

Infant formula without lactose is a choice for babies who cant digest lactose properly due to intolerance issues they face with it in their diet requirement needing special attention for adequate nutrition intake. Brands such as Enfamil and Similac are choices in this category, with their lactose free formulas tailored to meet these dietary needs effectively for such infants.

Nutritional Supplement for Preterm Infants

Preterm babies frequently experience challenges with their digestive systems being processing lactose efficiently can be a struggle for them to manage well enough to support growth and development adequately as per their peers in terms of weight and height; hence special lactose free infant formulas like those offered by Gerber and Nutricia serve as essential nutritional aids, for these infants.

Lactose Free Infant Formula vs. Substitutes:
Performance and Positioning Analysis

Infant formula without lactose provides relief for babies whore lactose intolerant and sets itself apart from options such as soy based formulas by focusing on special dietary requirements which could lead to growth opportunities due to the rising awareness of dietary needs, among consumers.

Lactose Free Infant Formula
  • Soy based Infant Formula /
  • Hypoallergenic Infant Formula
    Ideal for lactose intolerant babies, reduces colic and bloating
    More expensive than regular formula, limited options available
    Natural composition, easy digestibility
    Can be expensive, might lack essential nutrients

Lactose Free Infant Formula vs. Substitutes:
Performance and Positioning Analysis

Lactose Free Infant Formula

  • Ideal for lactose intolerant babies, reduces colic and bloating
  • More expensive than regular formula, limited options available

Soy based Infant Formula / Hypoallergenic Infant Formula / Rice Hydrolysate Infant Formula

  • Natural composition, easy digestibility
  • Can be expensive, might lack essential nutrients

Infant formula without lactose provides relief for babies whore lactose intolerant and sets itself apart from options such as soy based formulas by focusing on special dietary requirements which could lead to growth opportunities due to the rising awareness of dietary needs, among consumers.

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Research Methodology

This market research methodology defines the Lactose Free Infant Formula market scope, gathers reliable data, and validates findings using integrated primary and secondary research. Our systematic framework ensures precise market sizing, growth trend analysis, and competitive benchmarking.


Secondary Research Approach


We begin secondary research by defining the targeted market at macro and micro levels. As part of the Food & Beverage ecosystem, we analyze Lactose Free Infant Formula across Powder, Ready-to-Use, and Liquid Concentrate Applications. Our team gathers data systematically from country level ministerial sources, industry associations & federations, trade databases, company annual & quarterly reports and other credential sources, enabling us to map global and regional market size, pricing trends, regulatory standards, and technology advancements.



Key Sources Referenced:

Food and Agriculture Organization (FAO)

Food Substances - FDA

Prodcom / Census US / Statcan / e-stat Japan / ABS Australia / KOSIS Korea

USA Trade Census

DEFRA UK / Ifastat

Climate.gov

Annual Reports / Industry Magazines / Country Level Ministerial Sources

We benchmark competitors such as Nestle S.A, Danone, and Abbott Laboratories by reviewing company financial statements, and regulatory filings. Our secondary insights identify key market drivers and constraints, forming the analytical foundation for primary research.


Primary Research Methods


We conduct structured interviews and surveys with industry stakeholders, including Raw Material Suppliers, Ingredient Production, and Formulation & Packaging. Our geographic coverage spans Americas (40%), Europe (30%), Asia-Pacific (25%) and Middle East & Africa (5%). Our online surveys generally achieve a response rate of above 65%, and telephone interviews yield 60%, resulting in above 92% confidence level with a ±7% margin of error.


Through targeted questionnaires and in-depth interviews, we capture purchase intent, adoption barriers, brand perception across Segment Type. We use interview guides to ensure consistency and anonymous survey options to mitigate response bias. These primary insights validate secondary findings and align market sizing with real-world conditions.


Market Engineering & Data Analysis Framework


Our data analysis framework integrates Top-Down, Bottom-Up, and Company Market Share approaches to estimate and project market size with precision.


Top-down & Bottom-Up Process


In Top-down approach, we disaggregate global Food & Beverage revenues to estimate the Lactose Free Infant Formula segment, using historical growth patterns to set baseline trends. Simultaneously, in Bottom-up approach, we aggregate Country-Level Demand Data to derive regional and global forecasts, which provide granular consumption insights. By reconciling both approaches, we ensure statistical precision and cross-validation accuracy.


We evaluate the supply chain, spanning Raw Material Suppliers (Fonterra Co-operative Group, Arla Foods Ingredients Group), Ingredient Production (Mead Johnson Nutrition, Nestle S.A), and Formulation & Packaging. Our parallel substitute analysis examines Soy based Infant Formula, Hypoallergenic Infant Formula, and Rice Hydrolysate Infant Formula, highlighting diversification opportunities and competitive risks.


Company Market Share & Benchmarking


We benchmark leading companies such as Nestle S.A, Danone, and Abbott Laboratories, analyzing their capabilities in pricing, product features, technology adoption, and distribution reach. By assessing company-level revenues and product portfolios, we derive market share comparisons, clarifying competitive positioning and growth trajectories across the ecosystem.


Our integration of data triangulation, supply chain evaluation, and company benchmarking, supported by our proprietary Directional Superposition methodology enables us to deliver precise forecasts and actionable strategic insights into the Lactose Free Infant Formula market.


Quality Assurance and Compliance


We cross-reference secondary data with primary inputs and external expert reviews to confirm consistency. Further, we use stratified sampling, anonymous surveys, third-party interviews, and time-based sampling to reduce bias and strengthen our results.


Our methodology is developed in alignment with ISO 20252 standards and ICC/ESOMAR guidelines for research ethics. The study methodology follows globally recognized frameworks such as ISO 20252 and ICC codes of practice.

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Lactose Free Infant Formula Market Data: Size, Segmentation & Growth Forecast

Report AttributeDetails
Market Value in 2025USD 24.9 billion
Revenue Forecast in 2034USD 46.6 billion
Growth RateCAGR of 7.2% from 2025 to 2034
Base Year for Estimation2024
Industry Revenue 202423.2 billion
Growth OpportunityUSD 23.3 billion
Historical Data2019 - 2023
Growth Projection / Forecast Period2025 - 2034
Market Size UnitsMarket Revenue in USD billion and Industry Statistics
Market Size 202423.2 billion USD
Market Size 202728.6 billion USD
Market Size 202932.9 billion USD
Market Size 203035.3 billion USD
Market Size 203446.6 billion USD
Market Size 203549.9 billion USD
Report CoverageMarket revenue for past 5 years and forecast for future 10 years, Competitive Analysis & Company Market Share, Strategic Insights & trends
Segments CoveredProduct Type, Distribution Channel, Age Group, Functionality
Regional scopeNorth America, Europe, Asia Pacific, Latin America and Middle East & Africa
Country scopeU.S., Canada, Mexico, UK, Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Mexico, Argentina, Saudi Arabia, UAE and South Africa
Companies ProfiledNestle S.A, Danone, Abbott Laboratories, Mead Johnson Nutrition Company, Baby's Only Organic, Gerber Products Company, Similac, HiPP GmbH & Co. Vertrieb KG, Kabrita, Nanny Care, Nutricia and Enfamil
CustomizationFree customization at segment, region or country scope and direct contact with report analyst team for 10 to 20 working hours for any additional niche requirement which is almost equivalent to 10% of report value

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Table of Contents

Industry Insights Report - Table Of Contents

Chapter 1

Executive Summary

Major Markets & Their Performance - Statistical Snapshots

Chapter 2

Research Methodology

2.1Axioms & Postulates
2.2Market Introduction & Research MethodologyEstimation & Forecast Parameters / Major Databases & Sources
Chapter 3

Market Dynamics

3.1Market OverviewDrivers / Restraints / Opportunities / M4 Factors
3.2Market Trends
3.2.1Introduction & Narratives
3.2.2Market Trends - Impact Analysis(Short, Medium & Long Term Impacts)
3.3Supply Chain Analysis
3.4Porter's Five ForcesSuppliers & Buyers' Bargaining Power, Threat of Substitution & New Market Entrants, Competitive Rivalry
Chapter 4

Lactose Free Infant Formula Market Size, Opportunities & Strategic Insights, by Product Type

4.1Powder
4.2Ready-to-Use
4.3Liquid Concentrate
Chapter 5

Lactose Free Infant Formula Market Size, Opportunities & Strategic Insights, by Distribution Channel

5.1Offline Retail
5.2Online Retail
Chapter 6

Lactose Free Infant Formula Market Size, Opportunities & Strategic Insights, by Age Group

6.10 - 6 months
6.27 - 12 months
6.313 - 36 months
Chapter 7

Lactose Free Infant Formula Market Size, Opportunities & Strategic Insights, by Functionality

7.1Preventive Nutrition
7.2Therapeutic Nutrition
Chapter 8

Lactose Free Infant Formula Market, by Region

8.1North America Lactose Free Infant Formula Market Size, Opportunities, Key Trends & Strategic Insights
8.1.1U.S.
8.1.2Canada
8.2Europe Lactose Free Infant Formula Market Size, Opportunities, Key Trends & Strategic Insights
8.2.1Germany
8.2.2France
8.2.3UK
8.2.4Italy
8.2.5The Netherlands
8.2.6Rest of EU
8.3Asia Pacific Lactose Free Infant Formula Market Size, Opportunities, Key Trends & Strategic Insights
8.3.1China
8.3.2Japan
8.3.3South Korea
8.3.4India
8.3.5Australia
8.3.6Thailand
8.3.7Rest of APAC
8.4Middle East & Africa Lactose Free Infant Formula Market Size, Opportunities, Key Trends & Strategic Insights
8.4.1Saudi Arabia
8.4.2United Arab Emirates
8.4.3South Africa
8.4.4Rest of MEA
8.5Latin America Lactose Free Infant Formula Market Size, Opportunities, Key Trends & Strategic Insights
8.5.1Brazil
8.5.2Mexico
8.5.3Rest of LA
8.6CIS Lactose Free Infant Formula Market Size, Opportunities, Key Trends & Strategic Insights
8.6.1Russia
8.6.2Rest of CIS
Chapter 9

Competitive Landscape

9.1Competitive Dashboard & Market Share Analysis
9.2Company Profiles (Overview, Financials, Developments, SWOT)
9.2.1Nestle S.A
9.2.2Danone
9.2.3Abbott Laboratories
9.2.4Mead Johnson Nutrition Company
9.2.5Baby's Only Organic
9.2.6Gerber Products Company
9.2.7Similac
9.2.8HiPP GmbH & Co. Vertrieb KG
9.2.9Kabrita
9.2.10Nanny Care
9.2.11Nutricia
9.2.12Enfamil