According to the MRFR reports, the global lactose-free butter market is likely to cross the size of over USD 445.5 million by 2028 while recording a healthy CAGR of over 7.4% during the review timeframe from 2021 to 2028. 

Lactose-free products like lactose-free butter help offer mandatory nutrients present in dairy products to lactose-intolerant consumers. It is derived from butter cultures, concentrated butter, and skimmed milk recombined into butter. The lactose-free butter market has witnessed massive growth over recent years owing to the factors such as the rise in awareness about lactose intolerance among users, growth in the vegan population, rising demand for healthier substitutes, and rise in prevalence of lactose intolerance. However, the market's growth is likely to be hampered by the high prices associated with this butter. Nevertheless, the growth in demand for organic products and the growing popularity of non-store-based distribution channels across the globe are likely to offer lucrative opportunities over the coming years.

Segment Analysis

The global lactose-free butter market is divided into several segments based on type, category, distribution channel, and region.

The lactose-free butter market is divided into unsalted butter and salted butter based on type.

By category, the global market is split into organic and conventional.

The lactose-free butter market is divided into non-store-based and store-based channels based on the distribution channel.

Regional Analysis

The global lactose-free butter market is studied across four major regions: North America, Europe, Asia-pacific, and the Rest of the World.

The European regional market for lactose-free butter recorded a maximum market share of over 34.2% in 2020. The region is one of the largest producers of milk. The players across the region are launching budget-friendly lactose-free dairy products to meet the demands of the health-conscious population of the region that has caused the growth of the regional market. Furthermore, a significant consumer shift towards organic food and beverages due to the rising consumer awareness has been seen in the region over recent times, propelling the demand for lactose-free butter across the region.

The North American region secured the second position in the lactose-free butter market globally in 2020. The regional market is projected to exhibit substantial growth over the review timeframe.

The Asia-Pacific regional lactose-free butter market will record the fastest growth rate over the projected era. The growing awareness is primarily driving the regional market's growth among consumers regarding lactose intolerance across the region. Furthermore, the increasing westernization of consumer diets, rising demand for healthy food & beverage products, and speedy urbanization are also likely to accelerate the regional market's growth over the review timeframe.

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Competitive Analysis

The global lactose-free butter market has an intensely competitive landscape. The players in the market are focusing more on investing in research & development and are adopting several strategic growth initiatives, such as product developments, mergers, acquisitions, partnerships, etc., strengthening their global market footprint. The list of leading players in the lactose-free butter market includes players such as Prosperity Organic Foods, Inc. (US), OMIRA GmbH (Germany), Johnson & Johnson Services, Inc. (the US), Valio Ltd (Finland), Green Valley Creamery (US), Arla Foods amba (Denmark), Lactalis Canada (Canada), Upfield (Netherlands), California Dairies, Inc. (the US), and Conagra Brands, Inc. (the US).

Recent Developments

  • December 2021- a brand of Dublin, Calif.-based Challenge Dairy Products Inc., Challenge, announced the launch of spreadable butter containing avocado oil. This latest addition to its line of spreadable butter adds a clean flavor and added benefits of avocado oil to the delicious flavor of freshly churned Challenge butter.

As per the company statement, the latest offering is derived from simple, high-quality ingredients: sea salt, pure avocado oil, and fresh butter. The new product is silky, smooth to spread, and easy to add beneficial omega fats to meals and snacks.

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