Australia Lactose Free Infant Formula Market Report and Forecast 2025-2034

Australia Lactose Free Infant Formula Market Outlook

The Australia lactose free infant formula market size was valued at USD 83.7 million in 2024. The market is further projected to grow at a CAGR of 3.2% between 2025 and 2034, reaching a value of USD 111.9 million by 2034.

Key Takeaways

• Approximately 75% of the global population is intolerant to lactose. However, in Australia, the prevalence of lactose intolerance is 15%.

• Cow Milk’s Allergy (CMA) is one of the most common allergies seen in infants in Australia, with a prevalence of more than 2% (1 in 50 infants).

• As per industry reports, key lactose free infant formula manufacturers are Nestlé Australia Ltd, Sanulac Nutritionals Australia Pty Ltd, and Nutricia Australia Pty Limited.

Some of the factors aiding the expansion of the lactose-free infant formula market include the increasing prevalence of lactose intolerance among infants, the growing consumer awareness about lactose intolerance and its symptoms, the growing preference for premium and high-quality products certified by the government for better infant nutrition, and the advancements in formulation technology and research in the field. Additionally, the market is witnessing a surge in the launch of innovative lactose-free formulas with additional nutritional benefits like probiotics and prebiotics.

The Australia lactose free infant formula market growth is also benefiting from the increasing number of lactose-intolerant newborns, the rising adoption of infant formula as a substitute for breastfeeding, and the growing demand for natural and sustainable ingredients in infant formula products.

Conventional lactose-free infant formula products, known for their affordability and effectiveness in addressing lactose intolerance issues in infants, hold a significant market share in Australia. These formulas are favoured by price-conscious consumers seeking a cost-effective solution and are widely available in supermarkets, hypermarkets, and convenience stores. Examples of conventional variants include popular brands like S-26 Gold Alula Lactose Free Infant Formula and Karicare Goat Milk Infant Formula, known for their standard ingredients and ability to alleviate symptoms of lactose intolerance effectively

On the other hand, the organic segment is experiencing rapid growth in Australia lactose free infant formula market share, driven by increasing consumer awareness of the benefits of natural and organic products for infant nutrition. Organic lactose-free infant formula products are often found in specialty stores and online retail platforms. Examples of organic variants include brands like Bellamy's Organic Infant Formula and Holle Organic Infant Formula, known for their clean-label formulations free from synthetic additives, GMOs, and pesticides, appealing to health-conscious parents seeking wholesome options for their infants.

Market Segmentation

Australia Lactose Free Infant Formula Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Conventional

• Organic

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets

• Convenience Stores

• Online Stores

• Others

Market Breakup by Region

• New South Wales

• Victoria

• Queensland

• Australian Capital Territory

• Western Australia

• Others

Competitive Landscape

Market players are focused on product innovation and diversification to offer a wide range of lactose-free options, including flavoured varieties and fortified formulas.

• Nestlé Australia Ltd

• Woolworths Group Limited

• Sanulac Nutritionals Australia Pty Ltd.

• Nutricia Australia Pty Limited

• Others

Key Highlights of the Report