The growing success of lactose-free brands, particularly in Europe, illustrates the power of serving a niche in the right way. Only 5%-10% of Europeans are lactose-intolerant, but lactose-free dairy brands enjoy loyal customers who are willing to pay premium prices – usually a 100% premium to regular products. This 32-page report sets out the seven steps to creating a lactose-free dairy brand, explores opportunities in Europe, the US and Asia (where up to 95% of consumers are lactose-intolerant), and covers the leading lactose-free brands in three detailed case studies.
Most adults in the world are lactose intolerant, although the prevalence varies widely from low levels of lactose intolerance in Europe (around 10%) to as many as 95% of Chinese people.
Yet surprisingly, over the past five years it is Europe that has been the fastest-growing market for lactose-free dairy.
Growth rates and forecasts: This report estimates the size of the current market and forecasts growth out to 2016. It is Europe that is likely to remain the fastest-growing market for the next five years. The report explores why the Asian market – though growing fast – still lags Europe and may continue to do so.
Strategy and case studies: Using detailed Case Studies of Valio’s Zero Lactose, Arla’s Lactofree and McNeil’s Lactaid, the report sets out the seven steps to creating a lactose-free dairy brand.
Lactose-free dairy enjoys a profitable niche: The growing success of lactose-free brands including Valio’s Zero Lactose and Arla’s Lactofree illustrates the power of serving a niche in the right way. Niches of consumers can be loyal, premium-priced and very profitable.
The service opportunity: The medical statistics on lactose intolerance in fact underestimate the size of the opportunity. Beyond the medically-diagnosed lactose intolerant, there is a much larger group of self-diagnosers – possibly twice as many as the medically diagnosed – who become loyal to brands that provide services alongside the brand that help them with their health concerns.