Lactose-free Butter Market Size To Reach $458.9 Million By 2030

Lactose-free Butter Market Growth & Trends

The global lactose-free butter market is expected to reach USD 458.9 million by 2030, according to a new report by Grand View Research, Inc. The market is anticipated to grow at a CAGR of 5.7% over the forecast period. The growing popularity of vegan diets and the prevalence of lactose intolerance are driving the demand for lactose-free butter, a trend expected to continue in the near future. However, the relatively high cost of lactose-free butter presents a challenge. Lower-priced alternatives such as fruit jam and margarine, which offer similar nutritional benefits, can influence consumer behavior and deter purchases of lactose-free butter.

Despite these challenges, the increased number of product launches in the market is a positive development. Many manufacturers are focusing on this sector, creating opportunities to meet consumer preferences for non-dairy or lactose-free options. These products are considered safer and healthier for those with lactose intolerance or allergies, as they contain lower amounts of saturated fat and help maintain lactase enzyme levels in the body. Lactase is essential for digesting lactose, and its deficiency can lead to symptoms like gas, bloating, and abdominal pain. Lactose-free products, including butter, help alleviate these symptoms by providing an alternative for those who struggle with lactose digestion. For instance, in June 2023, Danish vegan brand Naturli’ launched its award-winning plant-based butter in U.S. retail stores for the first time. The butter, which is palm oil-free, will be available in two formats: the European Style Plant Butter Block and Plant Butter Spread. Made with ingredients like cocoa butter, almond butter, canola oil, and carrot juice.

Lactose intolerance is a widespread and often distressing condition, affecting approximately 75% of people worldwide. This prevalence presents a significant growth opportunity for lactose-free butter in the global market. While some studies suggest that individuals with lactose intolerance can tolerate small amounts of regular butter, the availability of lactose-free butter allows them to enjoy butter in larger quantities without discomfort. 

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Lactose-free Butter Market Report Highlights

• Conventional lactose-free butter accounted for a share of 69.4% in 2023. Compared to organic alternatives, conventional lactose-free butter is generally more affordable, making it a more accessible option for a broader range of consumers. This affordability appeals to those looking for lactose-free options without a premium price tag.

• Salted lactose-free butter accounted for a market share of 72.1% in 2023. Many consumers prefer salted butter because it eliminates the need to add extra salt to recipes or at the table. Lactose-free salted butter offers this convenience to those who are lactose intolerant, driving its demand.

• Skimmed lactose-free butter is expected to grow at a CAGR of 6.2% from 2024 to 2030. The increasing awareness of lactose intolerance drives demand for various lactose-free products, including skimmed butter, catering to consumers who need to avoid lactose but prefer a lighter butter option.

• Single-serve packets for lactose-free butter are expected to grow at a CAGR of 5.9% from 2024 to 2030. These packets offer a convenient solution for consumers who need a portable option for their meals. This is particularly appealing for those who are frequently on the go, such as busy professionals or travelers, who can easily carry and use lactose-free butter without the need for additional utensils or storage.

• Off Trade stores is expected to grow at a CAGR of 6.1% from 2024 to 2030.  As awareness of lactose intolerance rises, more consumers are seeking lactose-free products. Off Trade stores offer convenient access to lactose-free butter, making it easier for individuals to find and purchase products that meet their dietary needs.

• Asia Pacific is expected to grow at a CAGR of 6.5% from 2024 to 2030. There is a rising trend towards health and wellness in the Asia-Pacific region. Consumers are becoming more health-conscious and seeking products that fit with their dietary needs and preferences, including lactose-free options.

Lactose-free Butter Market Segmentation

Grand View Research has segmented the global lactose-free butter market based on nature, type, source, packaging, distribution channel, and region:

Lactose-free Butter Nature Outlook (Revenue, USD Million, 2018 - 2030)

• Organic

• Conventional

Lactose-free Butter Type Outlook (Revenue, USD Million, 2018 - 2030)

• Salted

• Unsalted

Lactose-free Butter Source Outlook (Revenue, USD Million, 2018 - 2030)

• Cream

• Skimmed

• Whole

Lactose-free Butter Packaging Outlook (Revenue, USD Million, 2018 - 2030)

• Tub

• Stick

• Single-serve Packets

Lactose-free Butter Distribution Channel Outlook (Revenue, USD Million, 2018 - 2030)

• Foodservice

• Retail

  • Hypermarkets & Supermarkets

  • Convenience stores

  • Online

  • Others

Lactose-free Butter Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • UK

  • France

  • Germany

  • Spain

  • Italy

• Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia & New Zealand

• Central & South America

  • Brazil

• Middle East & Africa

  • UAE

List of Key Players in the Lactose-free Butter Market

• Land O'Lakes, Inc.

• Lactalis Group

• Arla Foods

• Ornua (Kerrygold)

• Organic Valley

• Bertolli (by Deoleo)

• Miyoko's Creamery

• Daiya Foods

• Upfield

• Challenge Dairy Products