Parmalat's lactose-free milk launch is timely, says GlobalData

Although dairy has many nutritional benefits, those who are intolerant or sensitive to lactose are driving the lactose-free milk market.

According to data and analytics company GlobalData, the Australian lactose-free flavoured milk category accounted for a 4.7% share of H&W flavoured milk in 2016. This, combined with the Australian Bureau of Statistics’ estimation that about 4.5% of the population is lactose intolerant, means that expansion is expected in this area.

GlobalData predicts that the lactose-free milk category will have a compound annual growth rate (CAGR) of 4.1% for the period 2016–2021, and will be worth US$2.1 million by 2021. As a result, it labels dairy producer Parmalat’s launch of its ‘lactose-free’ milk product as very timely.

Parmalat’s Paul’s Zymil product, which comes in chocolate and strawberry flavours, will appeal to consumers with specific dietary preferences and those looking for healthier beverage alternatives.

A survey of Australians aged 25–34 years suggested there were various reasons for people to choose lactose-free products. Only 17% of respondents were motivated by lactose intolerance, while 24% claimed they were attracted to these products as they believe they are healthy milk alternatives.

“Personalised products designed to deliver specific consumer benefits have emerged as a major trend in the food and drinks industry in recent years, and Parmalat’s latest product launch will continue this trend,” said Meenakshi Haran, consumer markets analyst at GlobalData.

Although consumers are often motivated by healthier foods and drinks that are better for them, they are also looking for new and exciting flavours and products. Since 52% of respondents claimed they ‘often’ or ‘sometimes’ try new varieties of milk and 54% of respondents consume a dairy product at breakfast, milk’s place in the Australian diet is only going to strengthen.

Parmalat has recognised the growth potential of this market, with Haran suggesting, “There is certainly plenty of opportunities for dairy manufacturers to capitalise on this growing demand for healthier, unique taste and flavour experiences.”