Lactose-Free Butter Market Size to grow by USD 121.4 million between 2024-2028

Technavio, a leading provider of market research reports, has released its latest study on Lactose-Free Butter Market. This report offers a comprehensive analysis of the current market trends, emerging opportunities, and key challenges. In the global market for lactose-free butter, organized retailing outlets play a pivotal role in distribution and marketing. Convenience stores, supermarkets, hypermarkets, and specialty stores are the primary channels for selling fresh and ready-to-consume packaged lactose-free butter. Vendors heavily rely on these retailers for efficient distribution and increased market visibility. Notable organized retailing chains, such as Walmart and Meijer, Inc., offer lactose-free butter worldwide, providing new entrants with valuable distribution opportunities. Organized retailing has facilitated the growth of the lactose-free butter market by expanding its reach and accessibility.

Key Highlights

Growth Projections

The global lactose-free butter market  size is estimated to grow by USD 121.4 mn from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  7.08% during the forecast period. Growing awareness of lactose-intolerant conditions is driving market growth, with a trend towards increasing number of organized retailing outlets worldwide  However, limited awareness and high price  poses a challenge.Key market players include Arla Foods amba, California Dairies Inc., Cargill Inc., Chr Hansen Holding AS, Conagra Brands Inc., Corbion nv, General Mills Inc., Ingredion Inc., International Flavors and Fragrances Inc., Johnson and Johnson Services Inc., Kellogg Co., Kerry Group Plc, Miyokos Creamery, Redwood Hill Farm and Creamery Inc., The Hain Celestial Group Inc., Uelzena eG, Upfield B.V, Valio Ltd, and Wm Morrison Supermarkets Ltd..

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Major Findings

• The Lactose-Free Butter market is experiencing significant growth due to the increasing prevalence of lactose intolerance among the global population. This condition, which impairs the ability to digest lactose, a sugar found in milk and milk products, affects an estimated 65% of the world's population. As awareness of this condition grows, the demand for lactose-free alternatives to traditional dairy products, including butter, is on the rise. Manufacturers are responding by producing lactose-free butter using ingredients such as vegetable oils, rice bran oil, and coconut oil. These alternatives offer consumers with lactose intolerance the opportunity to enjoy the taste and texture of butter without the discomfort associated with consuming dairy products.


• The Lactose-Free Butter market is experiencing significant growth due to the increasing health consciousness among consumers. With an increasing number of people intolerant to lactose or choosing dairy-free diets, the demand for lactose-free butter alternatives is on the rise. These alternatives cater to various dietary needs and preferences, including vegan and lactose-intolerant individuals. Manufacturers are innovating to provide a wide range of options, ensuring consumers can enjoy the taste and functionality of traditional butter without the lactose content.


• The Lactose-Free Butter market faces challenges due to limited consumer awareness and high prices. Despite the growing demand for lactose-free dairy products, many consumers remain uninformed about the benefits of lactose-free butter. Additionally, the production costs of lactose-free butter are higher than regular butter, leading to a premium price point that may deter some buyers. To expand market reach, industry players must invest in education and marketing efforts to increase consumer awareness and consider cost-effective production methods.


• The Lactose-Free Butter market witnesses an increasing demand due to the availability of substitute dairy products for individuals with lactose intolerance. These alternatives include plant-based butters, such as soy butter and coconut butter, as well as lactose-free versions of traditional butter made from milk treated with lactase enzymes. These options cater to the dietary needs of a significant consumer base, expanding the market scope.

Market Research Overview

The global packaged foods and meats market encompasses vendors engaged in the production and processing of foods and meats to ensure food safety and extend shelf life. According to Technavio, the market's size is determined by the consolidated revenue of the participating industry players. This market segment excludes manufacturers of food processing machinery and producers of packaged beverages, including alcoholic and non-alcoholic varieties. Key growth drivers for the global packaged foods and meats market include the health benefits associated with consuming minimally processed foods, such as vegetables, which are rich in essential nutrients like potassium, dietary fiber, folate (folic acid), vitamin A, and vitamin C.

The Lactose-Free Butter Market is experiencing significant growth, fueled by the Growing awareness of lactose-intolerant conditions. Businesses are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

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Regional Insights

The Lactose-Free Butter market represents a significant business opportunity for dairy companies, as the lactose intolerant population continues to grow. This segment is poised for robust expansion due to increasing consumer awareness and demand for lactose-free alternatives. Market trends indicate a shift towards dairy-free and lactose-free products, making it imperative for businesses to invest in this sector. The Lactose-Free Butter market is projected to witness substantial growth, driven by rising health consciousness, expanding consumer base, and technological advancements in production processes.

Research Analysis Overview

Title: Lactose-Free Butter: A Healthier Option for Diabetes, Aging Population, and Those with Lactose Intolerance in the Processed Food Industry The processed food industry is continually evolving to meet the nutritional needs of various consumer groups. One such segment is the lactose-free butter market, which caters to individuals with lactose intolerance, diabetes, and older adults. Lactose intolerance, a condition where the body lacks the lactase enzyme to digest lactose, can cause symptoms like abdominal pain, bloating, and gas. Diabetes and aging populations are other significant markets for lactose-free butter. Diabetes patients must monitor their carbohydrate intake, making dairy foods like butter a challenge. However, lactose-free butter offers a solution, as it contains little to no lactose. Similarly, the aging population often experiences digestive issues, making lactose-free butter a healthier option. Food service operators and retailers are increasingly offering lactose-free butter for various uses, including cooking, baking, and spreading. The market also includes flavored and low-fat options, catering to diverse consumer preferences. Additionally, the rise of veganism and dairy product alternatives has led to the development of lactose-free vegan butter. Overall, the lactose-free butter market is an essential segment in the processed food industry, addressing the needs of various consumer groups.

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