Australia Lactose Free Milk Market Report and Forecast 2024-2032

Australia Lactose Free Milk Market Outlook

The Australia lactose free milk market size was valued at USD 63.62 million in 2023. The market is further projected to grow at a CAGR of 8.50% between 2024 and 2032, reaching a value of USD 133.18 million by 2032.

Key Takeaways

• According to the Australian Bureau of Statistics (ABS), the per capita consumption of dairy and meat substitutes was 20 grams per day in 2020-21. This represents a 29% increase from 15 grams per day in 2018-19.

• Approximately 17 grams of this daily consumption comes from dairy milk substitutes like soy milk or almond milk, equivalent to about half a metric cup per week.

• Globally, about 65% of the adult human population experiences some level of lactose intolerance.

The increasing prevalence of lactose intolerance in Australia is a significant factor propelling the Australia lactose free milk market growth. For instance, lactose intolerance is most common in Asian countries, where about 70-100% of people show lactose intolerance. Consumers with lactose intolerance or allergies to cow milk are opting for lactose-free alternatives, contributing to the market expansion. The rise in plant-based milk consumption in Australia, influenced by the growing vegan population, is driving the demand for lactose-free milk alternatives like almond, soy, and rice milk.

The emphasis on health claims and functional benefits associated with lactose-free milk, such as improved digestion, gut health, and nutritional fortification, is another key factor driving consumer interest and market growth. Moreover, there is emphasis on sustainability and environmental awareness in the lactose-free milk market, with a focus on eco-friendly packaging, ethical sourcing practices, and reducing carbon footprints throughout the production and distribution processes. For instance, Culina offers plant-based, dairy-free yogurts in reusable cups that can be repurposed as pots for growing flowers and plants, promoting a circular approach to packaging.

The lactose free milk market encompasses a variety of dairy products, including yogurt, milk powder, butter, ice cream, cheese, and other dairy items tailored to lactose-intolerant consumers. Milk and milk-based beverages hold a significant Australia lactose-free milk market share, providing lactose-intolerant individuals with a nutritious and flavorful alternative to conventional dairy milk.

The lactose free milk market in Australia also includes lactose-free infant formula, specially formulated to meet the nutritional needs of infants with lactose intolerance or sensitivity. This segment offers a safe and reliable alternative for parents seeking lactose-free feeding options for their infants, ensuring optimal nutrition and digestive comfort for lactose-intolerant babies.

Market Segmentation  

Australia Lactose Free Milk Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Flavoured Milk

• Regular Milk

Market Breakup by Fat Content

• Fat-Free Milk

• Reduced Fat Milk

• Whole Milk

Market Breakup by Form 

• Liquid

• Powder

Market Breakup by Packaging Type

• Glass Bottles

• Tetra Packs

• Plastic Bottles and Pouches

• Cans

Market Breakup by Processing

• Fresh/Pasteurised Milk

• Ultra-high Temperature Milk

Market Breakup by Application 

• Dairy Product
  • Yoghurt
  • Milk Powder
  • Butter
  • Ice Cream
  • Cheese
  • Others

• Milk and Milk-based Beverages

• Infant Formula

• Bakery and Confectionery

• Others

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets

• Convenience Stores

• Speciality Stores

• Online Retail Stores

• Others

Market Breakup by Region

• New South Wales

• Victoria

• Queensland

• Australian Capital Territory

• Western Australia

• Others

Competitive Landscape

Market players are focusing on product innovation and diversification to offer a wide range of lactose-free options, including flavoured varieties, fortified milk, and specialty products to cater to diverse consumer preferences.

• The Little Big Dairy Co.

• Saputo Dairy Australia Pty Ltd

• Norco Co-operative Limited

• Brownes Foods Operations Pty Ltd

• Fleurieu Milk Company

• Others

Key Highlights of the Report