Food allergies and intolerances continue to be a concern for a significant portion of American consumers. When it comes to the dairy product category, there’s an estimated 120 million Americans, or 36% of the U.S. population, who cannot enjoy traditional dairy products due to the milk sugar known as lactose. That’s why it’s paramount for dairy processors to develop innovative products that can help overcome those obstacles. Fortunately, dairy is beginning to deliver.

In 2024 alone, we’ve seen numerous announcements introducing new lactose-free products such as butter, cottage cheese, and sour cream. Additionally, fluid milk and ice cream are well established products in the lactose-free space, with more options becoming available each year. What’s more, individuals who have a lactose intolerance can also enjoy many cheeses and yogurts because they already contain reduced levels of milk sugar.

School is in session

According to Michael Dykes, president and CEO of the International Dairy Foods Association (IDFA), only 0.6% of lactose-free milk sales went to schools in 2023. With 30 million students eating at least one meal at school every day, there is a deficit in reaching young Americans who are seeking lactose-free options with their school meal.

A success story from Cincinnati, Ohio, illustrates the opportunity for lactose-free dairy in schools. The introductory trial of lactose-free chocolate milk in some Cincinnati public schools boosted milk consumption by 16% and school meal consumption by 7%. As a result of the success of that pilot program, lactose-free milk has been placed in all 15 Cincinnati public high schools.

One way to help eliminate the stigma around lactose intolerance and lactose-free products is to ensure consumers understand lactose-free dairy products maintain the integrity and high standard of traditional dairy with only the lactose removed. During the manufacturing process, the milk sugar can be easily broken down using filtration and a natural enzyme. That means lactose-free milk provides the same 13 essential nutrients needed by the human body without causing gastrointestinal discomfort for those with an intolerance. Highlighting a nutrient-dense product that can be enjoyed by all is critical, especially at a young age.

Demand and demographics are shifting

The millennial and Gen Z populations are heavily influencing the demand shift when purchasing items in the grocery store. These demographic groups are most interested in “clean” labels and have clearly expressed their concerns around heavily processed foods. This is one reason the plant-based category, which has previously been seen as a solution for those with lactose intolerance, has started on the downhill sales slope. A nutritious product with a simple label is the winning formula for this audience, and plant-based beverages are often falling short due to concerns around the lengthy ingredient list.

According to Harvard Health data, people of Eastern Asian, Indigenous American, African, and Hispanic descent have the highest rates of lactose intolerance. Some of these ethnicities are also growing populations in the U.S., altering the types of food products desired and displayed in the grocery store. To feed America means to feed the wide-ranging and highly diverse populations that inhabit our land, and dairy can accomplish that more effectively by offering a full complement of traditional and lactose-free dairy products.


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(c) Hoard's Dairyman Intel 2024
September 5, 2024
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