Lactose intolerance and digestive wellness: what food manufacturers need to know

As digestive health becomes a focal point of consumer interest, lactose intolerance is one of the most common – and underacknowledged – factors shaping global dietary choices. Up to 70% of the world’s population is estimated to experience lactose maldigestion, yet many remain unaware of the link between lactose and their digestive discomfort. For food and beverage manufacturers, this presents both a challenge and an opportunity: how to make dairy accessible and enjoyable to all, while contributing to the broader trend of digestive wellness.

Understanding lactose intolerance

Lactose is the natural sugar in milk. To digest it, the body requires the enzyme lactase. When lactase levels are insufficient, which is a common condition in many populations, lactose passes through the digestive system unabsorbed, potentially causing bloating, abdominal discomfort, and other symptoms. This condition is what we know as lactose intolerance.

There are different forms:

Though most babies can digest lactose, the ability to do so often declines over time, especially in regions with historically low dairy consumption. Lactose intolerance is particularly common in Asia, the Middle East, and Africa, where over 80% of adults may be affected.

From dietary restriction to product innovation

Lactose free products were once positioned as alternatives for a niche group. Today, they are part of a broader shift toward products that support digestive wellness, where consumers increasingly seek options that feel good to eat and align with their personal dietary needs.

Valio’s insights show that many people choosing lactose free dairy do so not due to a diagnosis, but because they find it easier on the stomach and more suitable for daily consumption. In Valio’s home base in Finland, where lactose intolerance affects only around 17% of the population, lactose free dairy is nevertheless a preferred choice across many households.

A growing business opportunity

The global lactose free dairy market is expected to grow by 25%, from €13 billion in 2023 to €17 billion by 2028. The fastest growth is forecast in Asia-Pacific, the Middle East, and Africa – regions where both dairy consumption and awareness of digestive health are increasing.

Technical and sensory quality matter

Successful lactose free product development requires more than removing lactose; it requires maintaining the sensory and nutritional qualities consumers expect from dairy. Taste, texture, and appearance remain key drivers for repeat purchase.

Valio Eila® lactose free powders are formulated to ensure that:

Valio Eila® lactose free powders are available for a range of applications and nutritional goals:

• Skimmed and whole milk powders for versatile formulation needs
• Naturally sweeter options to support sugar reduction without additives
• High-protein variants tailored for sports, senior, or functional nutrition

All Valio Eila® powders are produced from fresh Finnish milk in a transparent and sustainable value chain. Our milk is antibiotic-free and non-GMO.

These ingredients can be used in a wide range of dairy and dairy-based applications, from yoghurt and milk drinks to bakery fillings, and dairy-based desserts.

Supporting manufacturers through expertise

Valio offers more than ingredients: we provide technical and market expertise to support manufacturers in entering or expanding within the lactose free category.

Our Fast Track™ solution allows partners to launch lactose free milk quickly, without major capital investment, and is now extended to yoghurt production as well.

Towards broader digestive wellness

As consumer interest in gut-friendly, inclusive food options continues to rise, lactose free dairy plays an increasingly central role. Its appeal extends beyond dietary restriction, offering a way to make real dairy enjoyable and accessible to more people. For manufacturers, it’s a strategic way to meet wellness-oriented expectations while delivering familiar taste and nutrition.

Explore the opportunity

Valio works with food and beverage manufacturers globally to develop lactose free products that align with local needs, nutritional goals, and operational capabilities.