Lactose-Free Infant Formula Global Market Report 2025

The lactose-free infant formula market size has grown rapidly in recent years. It will grow from $18.53 billion in 2024 to $20.54 billion in 2025 at a compound annual growth rate (CAGR) of 10.9%. The growth in the historic period can be attributed to medical recommendations and prescriptions, rise in cases of cow's milk protein allergy (cmpa), increased incidence of lactose intolerance in infants, parental concerns for digestive health, improved formulations and taste, demand for alternative dietary solutions.

The lactose-free infant formula market size is expected to see rapid growth in the next few years. It will grow to " $31.01 billion in 2029 at a compound annual growth rate (CAGR) of 10.8%. The growth in the forecast period can be attributed to growing global awareness of lactose intolerance, market expansion in emerging economies, rising adoption of specialty formulas, research advancements in infant nutrition, increasing healthcare accessibility. Major trends in the forecast period include development of hydrolyzed protein formulas, integration of probiotics for gut health, formulation of plant-based and non-dairy options, emphasis on organic and clean label formulas, supplementation with dha and ara for development.

The forecast of 10.8% growth over the next five years reflects a slight reduction of 0.1% from the previous estimate for this market.This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US by increasing expenses for hypoallergenic formula ingredients imported from the Netherlands and Switzerland.The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The lactose-free infant formula market is poised for growth, driven by the increasing incidences of lactose intolerance among infants. Lactose intolerance poses challenges for individuals who struggle to fully digest lactose, leading to health issues like bloating, gas, and diarrhea. Infants diagnosed with lactose intolerance often rely on lactose-free infant formula to meet their nutritional needs. Reports from Encyclopædia Britannica Inc. in July 2022 revealed that approximately 65% of the adult human population experienced lactose intolerance, emphasizing the significance of lactose-free options, particularly for infants.

The increasing population of newborns is anticipated to drive the growth of the lactose-free infant formula market in the future. Newborns are defined as infants who have recently been born and are usually within their first 28 days of life, often referred to as neonates. Lactose-free infant formula is utilized for newborns under certain circumstances, particularly when they are diagnosed with lactose intolerance or sensitivity. For example, in January 2023, a report from the Centers for Disease Control and Prevention (CDC), a US-based national public health organization, indicated that the United States experienced a 1% rise in registered births, amounting to 3,664,292, compared to the previous year. Therefore, the growing population of newborns is propelling the growth of the lactose-free infant formula market.

Major companies in the lactose-free infant formula market are adopting innovative strategies, such as introducing plant-based infant formula, aligning with parents' preferences for more plant-based options for their babies. Plant-based infant formula, derived from non-animal sources like plants, grains, and seeds, provides a nutritionally complete and easily digestible alternative. In July 2022, Danone S.A. launched Dairy & Plants Blend, offering a mix of dairy and plant-based ingredients, providing parents with a plant-based option that meets their nutritional standards.

Lactose-free infant formula is a specially formulated milk-based or soy-based product that is free from lactose, the sugar typically found in regular milk. This type of formula is designed for infants who are lactose intolerant or have trouble digesting lactose, ensuring they obtain essential nutrients without experiencing discomfort. It serves as an alternative for parents aiming to meet their baby's nutritional needs while preventing lactose-related problems.

The primary types of lactose-free infant formula include milk infant formula and non-milk infant formula. Milk infant formula, resembling breast milk, is made from cows' milk. The indications segment includes starting formula, specialized formula, and follow-on formula, tailored to the age of the baby. Applications encompass premature infants, babies with galactosemia, infants with cow’s milk protein allergies, and other specific needs. Distribution channels for lactose-free infant formula include supermarkets or hypermarkets, specialty stores, online retail stores, and various other distribution channels.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid implementation of U.S. tariffs and the resulting trade tensions in spring 2025 are having a notable impact on the food and beverage sector. Rising costs for imported ingredients such as olive oil, cheese, and tropical fruits are pressuring food manufacturers to either reformulate their products or absorb reduced profit margins. Beverage producers are similarly affected, with tariffs on aluminum cans driving up packaging costs. Meanwhile, retaliatory tariffs on U.S. agricultural exports like soybeans and pork are disrupting farm-to-processor supply chains. In response, companies are adjusting recipes, increasing local sourcing, and using commodity hedging strategies to manage price volatility.

The lactose-free infant formula market research report is one of a series of new reports that provides lactose-free infant formula market statistics, including lactose-free infant formula industry global market size, regional shares, competitors with a lactose-free infant formula market share, detailed lactose-free infant formula market segments, market trends and opportunities, and any further data you may need to thrive in the lactose-free infant formula industry. This lactose-free infant formula market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Major players in the lactose-free infant formula market are incorporating human milk oligosaccharides (HMOs) into their product solutions. HMOs are complex carbohydrates naturally present in human breast milk, benefiting newborns allergic to cow's milk protein and supporting their immune systems. Nestle (China) Ltd. introduced three infant formulas containing HMOs in May 2022, catering to infants with cow's milk protein allergies while enhancing immune system health.

In July 2023, Bobbie, a US-based infant formula manufacturer, acquired Nature’s One for an undisclosed sum. This acquisition is intended to expand its product range and bolster its position in the organic infant formula market by adding manufacturing facilities. Nature's One is a US-based company specializing in food and beverage services, particularly infant formulas.

Major companies operating in the lactose-free infant formula market include Nestle S.A, Valio Ltd., Danone S.A, Abbott Laboratories, Silverson Machines Holdings Ltd., Gimme the Good Stuff, Mead Johnson & Company LLC, Gerber Product Co., HiPP International, Perrigo Company plc, Earth's Best Inc., Nutricia Ltd., Dana Dairy Group, Nurture Inc., Kraft Heinz Company, Hain Celestial Group Inc., Honest Company Inc., Nature's One Inc., Ausnutria Dairy Corporation Ltd., Synutra International Inc., Beingmate Baby & Child Food Co. Ltd., Yili Industrial Group Company Limited, Feihe International Inc., Biostime International Holdings Limited, Wissun International Group Co. Ltd., Otsuka Holdings Co. Ltd., Morinaga Milk Industry Co. Ltd., FrieslandCampina NV.

Western Europe was the largest region in the lactose-free infant formula market in 2024. The regions covered in the lactose-free infant formula market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the lactose-free infant formula market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.

The lactose-free infant formula market consists of sales of skimmed milk, plant-based soy protein. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this lactose-free infant formula market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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