The Australia lactose free infant formula market size was valued at USD 86.38 Million in 2025. The market is further projected to grow at a CAGR of 3.20% between 2026 and 2035, reaching a value of USD 118.36 Million by 2035.
Base Year
Historical Period
Forecast Period
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.
Compound Annual Growth Rate
3.2%
Value in USD Million
2026-2035
*this image is indicative*
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.
"Australia Lactose Free Infant Formula Market Report and Forecast 2026-2035" offers a detailed analysis of the market based on the following segments:
Market Breakup by Type
Market Breakup by Distribution Channel
Market Breakup by Region
Market players are focused on product innovation and diversification to offer a wide range of lactose-free options, including flavoured varieties and fortified formulas.
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In 2025, the market reached an approximate value of USD 86.38 Million.
The market is expected to grow at a CAGR of 3.20% between 2026 and 2035.
The lactose free infant formula market in Australia is estimated to witness a healthy growth in the forecast period of 2026-2035 to reach USD 118.36 Million by 2035.
The market is being driven due to 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.
Key trends aiding the market expansion include the growing consumer awareness about lactose intolerance and its symptoms, launch of innovative lactose-free formulas with additional nutritional benefits like probiotics, and the advancements in formulation technology and research in the field.
Regions considered in the market are New South Wales, Victoria, Queensland, Western Australia, and Australian Capital Territory, among others.
Based on distribution channel, the market segmentations include supermarkets and hypermarkets, convenience stores, online stores, among others.
Conventional and organic variants are considered in the report.
Key players in this market include Nestlé Australia Ltd, Woolworths Group Limited, Sanulac Nutritionals Australia Pty Ltd, and Nutricia Australia Pty Limited, among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Type |
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| Breakup by Distribution Channel |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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