Dairy Companies Are Offering More Lactose-Free Products
As dairy companies continue to innovate to provide diverse products for American consumers, lactose-free products have been growing in popularity.
Consumer Trends And Market Share For Lactose-Free Products
Dairy Management Inc. (DMI) recently released statistics on consumer trends for lactose-free dairy products.
In the 52 weeks ending Aug. 11, 2024, 23% of U.S. households purchased lactose-free milk. This amounts to approximately $2.8 billion in consumer spending and 295 million gallons purchased at retail.
Lactose-free milk made up 16% of the share of milk dollar sales and 8.4% share of milk volume in the past year.
Additionally, lactose-free milk has seen 13.6% dollar growth compared to the previous 52 weeks (ending Aug. 11, 2023) and a 10.4% increase in volume growth.
Expanding Options For Lactose-Intolerant Consumers
Lactose-free products expand beyond just milk. Some traditional dairy products naturally feature less lactose, and may better suit lactose-intolerant consumers.
The National Milk Producers Federation (NMPF) notes butter has only trace amounts of lactose. Yogurt has much less lactose than milk, and many varieties of cheese including Cheddar, Colby, Monterey Jack, Mozzarella and Swiss are low-lactose. Kefir is lower-lactose than milk, and through the fermentation process includes probiotics to help with lactose digestion.
New Dairy-Free Innovations
According to DMI, Darigold introduced a line of lactose-free dairy creamers in late 2023, Organic Valley followed suit with a lactose-free dairy creamer in mid-2024, and Too Good introduced a zero sugar, no lactose yogurt in 2024 as well.
Prairie Farms Dairy introduced new lines of lactose-free cottage cheese, sour cream and family-sized gallons of milk this spring and summer.
Prairie Farms’ Response To Consumer Demand
The company began offering lactose-free milk in half-gallon cartons about six years ago, says Darin Copeland, public relations manager for Prairie Farms Dairy. After listening to customer requests and seeing the growing demand for lactose-free dairy products, Prairie Farms expanded its lineup to include items in addition to milk, he adds.
Hiland’s Lactose-Free Product Line Expansion
Hiland Dairy also recently released several lactose-free products, including sour cream, cottage cheese and fresh lactose-free milk.
“These products are crafted to retain the same great taste and texture as traditional dairy products while being easier to digest for those who are lactose intolerant,” says Sarah Carey, marketing manager for Hiland Dairy Foods Co.
Hiland originally introduced ultra-high-temperature (UHT) treated lactose-free milk several years ago, adding its sour cream and cottage cheese offerings this year in July followed by fresh lactose-free milk in August.
Hiland’s fresh lactose-free milk is produced daily and delivered to stores within 48 hours of production, in line with the company’s commitment to quality and freshness.
Retaining Nutrition In Lactose-Free Alternatives
“The lactose-free dairy products at Hiland Dairy are made by adding the lactase enzyme, which helps break down lactose into more digestible sugars. The process does not affect the nutritional profile of the products, which still provide all the essential nutrients found in traditional dairy products, such as calcium, protein and other vitamins,” Carey says.
Prairie Farms’ lactose-free milk, cottage cheese and sour cream likewise offer the same nutritional value as their regular dairy counterparts.
Addressing Lactose Sensitivity In The U.S. Population
Dairy is an important source of 13 essential nutrients, including three of the four identified as a public health concern among Americans in the 2020 Dietary Guidelines for Americans. However, it is reported that 89% of Americans under-consume dairy, due to intolerance or availability, the Dietary Guidelines committee report says.
“It is estimated that around 120 million people in the United States are lactose-sensitive, including 85% of the African-American population,” Copeland says.
The Need For Greater Awareness Of Lactose Alternatives
NMPF shares that lactose-free milk solves tolerance issues for most people. However, awareness of lactose-free options is low in certain populations, which shows a need for education.
“Introducing lactose-free options is part of our broader strategy to cater to diverse dietary needs, aligning with health trends and evolving nutritional habits,” Carey says.
Marketing Campaigns Promoting Dairy-Free Choices
Prairie Farms and Hiland have engaged in a variety of marketing campaigns to educate consumers on the benefits and availability of lactose-free dairy products.
Prairie Farms created a landing page (www.prairiefarms.com/lactosefree-products/) featuring lactose-free recipes, coupons and a promotional video.
“We are also promoting our new lactose-free products on Prairie Farms’ social media platforms, using social media influencers and digital advertising,” says Copeland.
Additionally, product promotional videos were distributed to the company’s sports marketing partners at football stadiums and basketball gyms around the Midwest.
Hiland Dairy promotes its offerings through various marketing campaigns, including partnerships with influencers who create recipes using the new products. Marketing includes social media channels, product coupons and recipes at www.HilandDairy.com.
Future Expansion Of Dairy-Free Product Lines
Prairie Farms Dairy also offers a lactose-free chocolate milk in half-gallon cartons.
“With regards to expansion plans for lactose-free products, we are always listening and responding to consumer preferences,” Copeland says.
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Source: Cheese Market News