Lactose-free Infant Formula Market Size, Share & Trends Analysis Report By Product (Organic, Conventional), By Distribution Channel (Supermarkets & Hypermarkets, Convenience Stores, Online), By Region, And Segment Forecasts, 2025 - 2030

Lactose-free Infant Formula Market Trends

The global lactose-free infant formula market size was valued at USD 22.18 billion in 2024 and is projected to grow at a CAGR of 6.6% from 2025 to 2030. The market growth is attributed to the growing population of lactose-intolerant newborns, coupled with an increasing number of working women at the global level. It has been observed that newborns unable to digest sugar levels are increasing. The growing need for a substitute product to meet the nutrition demand of the population is compelling companies to enter this market.

Often, inadequate small intestinal lactase activity or a large amount of ingested lactose leads to lactose intolerance among children. Lactose is the primary carbohydrate introduced to infants through breast milk or other mammalian milk, such as cow's milk, in the later stages of life. When infants cannot digest the ingested lactose quantities, the undigested lactose is fermented inside the body with the help of intestinal microbes. This leads to the generation of large amounts of gas and intestinal lumen drawing water, which further causes diarrhea, flatulence, and abdominal pain.

Changes in lifestyle, an increasing number of parents engaged in work life, growing demand for convenient infant formula, shifts in the brand of infant formulas owing to formula tolerance, and collaborations among key companies to enhance portfolios and strengthen distribution networks are adding to the growth of this market in multiple regional markets.

Implementation of personalized marketing strategies by major market participants, collaborations with healthcare providers or expert professionals, large-scale distribution backed with convenient packaging, affordable prices, and lucrative offers provided through e-commerce or quick commerce platforms also contribute to the growth of this market.

Product Insights

Based on products, organic products dominated the global market with a revenue share of 61.9% in 2024. The growing awareness regarding the significance of ingredients used in the formulation, the intensity of their influence on infants' health, the increasing inclination towards adopting organic or natural products, and the effective marketing strategies adopted by the major market participants drive this segment. Organic lactose-free infant formula products often have ingredients such as maltodextrin, edible vegetable oils, vitamins, minerals, acidity regulators, antioxidants, and more.

The conventional products segment is anticipated to experience the fastest CAGR of 7.2% from 2025 to 2030. This is attributed to ease of availability, many existing buyers, increasing accessibility through e-commerce platforms, and effective distribution of the products accomplished by the major market participants, impacting marketing strategies and affordability.

Distribution Channel Insights

Supermarkets & hypermarkets segment held the largest revenue share of the global lactose-free infant formula industry in 2024. The growth of this segment is primarily influenced by the growing presence of multiple retail brands with chains of supermarkets & hypermarkets in various countries worldwide, preference by major companies in the infant formula market owing to enhanced brand visibility offered by the supermarkets, ease of availability and accessibility, effective distribution by the key players and focus of retail chains to accommodate large varieties of products under one roof. In October 2024, Lidl Great Britain Limited, commonly referred to as Lidl, a major player in the retail industry with more than 950 stores in England, Scotland, and Wales, announced its plan to continue with expansion by opening ten new stores before December.

The online distribution segment is projected to experience the fastest CAGR during the forecast period. This segment is mainly driven by increasing inclination among parents toward online shopping experience, the growing number of working parents, the presence of multiple platforms by companies and e-commerce businesses, increasing penetration of the e-commerce industry, and more. In addition, services such as doorstep delivery, return and refund, safety and security, careful product handling, enhanced customer support, and others are adding to the growth opportunities of this market.

Regional Insights

North America lactose-free infant formula industry is expected to experience significant growth during the forecast period. This market is primarily driven by the higher participation of mothers in the workforce, robust food and retail businesses, product portfolio expansions by the major market participants, a growing number of working parents seeking organic lactose-free infant formula products, and effective distribution by the key companies.

U.S. Lactose-free Infant Formula Market Trends

The U.S. lactose free infant formula industry held 82.4% revenue share of the regional market in 2024. Many existing customers influence this market, emphasizing mothers' freedom to choose between feeding alternatives. The availability of multiple products distributed across numerous supermarkets and online shopping portals across the country and the entry of various global brands in this market also contribute to the growth.

Europe Lactose-free Infant Formula Market Trends

Europe's lactose-free infant formula industry dominated the global market with a revenue share of 35.0% in 2024. A large number of lactose-intolerant newborns in the region, the presence of multiple key companies in the industry, rising health awareness, an increasing number of working parents in the region, and availability through major supermarket chains, online platforms, and convenience stores are some of the key growth driving factors for this market.

The UK lactose-free infant formula market held the largest revenue share of the regional industry in 2024. This is attributed to the growing lactose intolerance in newborns, increasing health awareness among parents and a large number of parents seeking convenient feeding options.

Latin America Lactose-free Infant Formula Market Trends

Latin America lactose-free infant formula industry is projected to experience the fastest CAGR of 7.9% from 2025 to 2030. This is attributed to the increasing penetration of global brands through offline retail distribution and online shopping platforms. In addition, the growing participation of parents in the workforce, effective marketing strategies embraced by the major market participants, and significant growth in availability and accessibility are likely to fuel the growth of this market over the forecast period.

Key Lactose-free Infant Formula Company Insights

Some of the key companies operating in the global lactose-free infant formula industry are Nestlé, Nutricia, Valio Oy, Abbott, and others. The growing competition and demand from various markets have stimulated major market participants to embrace strategies such as convenient packaging, innovation, adding alternatives to the portfolio, enhanced formulations, and more.

• Nestlé, a prominent organization in the food and beverage market, offers a wide variety of products associated with multiple categories. The company's infant nutrition portfolio includes NESTLE Baby Milk Formula, NESTLÉ NAN OPTIPRO, NIDO Growing Up, KLIM, NESTLÉ LACTOGEN, NESTLÉ NAN Lactose-Free Infant Milk, NESTLÉ NAN EXPERT pro lactose-free infant milk, and more.

Recent Developments

• In September 2024, Perrigo Company, one of the key companies in consumer self-care products, announced a newly established partnership between brands Dr. Browns and Good Start. Both have joined forces to introduce an infant formula portfolio consisting of Soothe Pro, Gentle Pro, and lactose-free alternatives such as Soy-ease Pro.

Lactose-free Infant Formula Market Report Scope

Global Lactose-free Infant Formula Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global lactose-free infant formula market report based on product, distribution channel and region.

• Product Outlook (Revenue, USD Billion, 2018 - 2030)

  • Organic

  • Conventional

• Distribution Channel Outlook (Revenue, USD Billion, 2018 - 2030)

  • Supermarkets & Hypermarkets

  • Convenience Stores

  • Online

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia & New Zealand

  • Latin America

    • Brazil

  • MEA

    • South Africa