SIX HOT TRENDS TO WATCH

FOR LACTOSE-FREE DAIRY

1. Lactose- 2. Product
free + + FIBER
+ PROTEIN
diversity
health + VIT. D to fuel
innovation
Lactose-free dairy with added health benefits Lactose-free dairy extends to all
such as fiber is the option of the future dairy products

3. Healthy 4. ‘Free from’

partnerships on the move
to drive SCHOOL Coffee Shop

awareness
CANTEEN BURGERS
R E S TAU R A N T
HOT DOGS
OPEN

Coffee
OPEN
OPEN OPEN
Global Insights Report

Healthcare professionals to play a greater Lactose-free dairy options for cafés, restaurants
role in awareness of lactose-free dairy and fast food outlets will take center stage

5. Social media 6. A lactose-

and mobile free
apps–making seal of
connections approval MI
LK

Harnessing the power of social media A universal symbol for use on packaging
and health apps will raise awareness to reassure product is lactose-free
 1
LACTOSE-FREE +
HEALTH
+ PROTEIN

+ FIBER
+ VIT. D

Consumers around the world are demanding healthy options. For many, this goes
beyond wanting lower sugar, lower fat options, and sees them seeking out foods and
drinks that offer added health benefits: more protein, more vitamins or more superfood
ingredients. Lactose-free dairy is already a healthy choice for what it doesn’t contain.
In the future, adding health-enhancing ingredients to lactose-free products will create
lactose-free+ options desirable to health-conscious consumers for what they do contain.

DSM’s research into lactose-free dairy preferences in China, Colombia and Finland
revealed that 56% of Chinese consumers were willing to pay 10-50% extra for
lactose-free dairy, compared with 36% in Colombia and 10% in Finland.

Research carried out in Nielsen in 2015 suggested that most people are willing to
pay more for food with health attributes: 94% of those surveyed in Latin America,
93% in Asia Pacific, 80% in North America and 79% in Europe would pay more.i
When it comes to ingredients added to foods to increase health benefits, fiber,
protein and wholegrains are the additions people were most willing to pay for.

The benefits of fiber are widely known and adding fiber to lactose-free dairy could
represent a rich area of opportunity by appealing to those seeking to include
more fiber into their diets. In 2014 a study from the USDA’s Economic Research
Service showed that American adults are eating more fiber as they improve
the quality of their diets.ii
 2
PRODUCT
DIVERSITY
TO FUEL
INNOVATION

In Finland, constant innovation has fuelled demand for lactose-free options which is not
limited to milk, but also includes yogurt, cheese, butter, spreads, cream and chocolate.
One of the hottest areas for innovation across food and beverages today is ‘snackability’
and it won’t be long until lactose-free joins the snacking revolution. Whether it’s yogurt
on the go or cheese nibbles for afternoon snacks, our busy lives, changing diets and the
trend for more meals eaten outside the home mean snackable foods are in high demand.
Innovations that make a variety of lactose-free foods snack-ready – through portion size,
packaging, and tailoring the format for eating on the move – will win market share.

DSM research into consumers’ perceptions of yogurt in six countries around the
world revealed that yogurt was a go-to snack food for many. Women were more
likely than men to snack on yogurt: 67% of women compared to 57% of men. There
are opportunities for lactose-free dairy manufacturers to harness this snacking
trend, not just through snack-friendly portion sizes and packaging for yogurt, but
by exploring the snacking potential of other dairy foods including cheese and
flavored milk.

Recent research from the Hartman Group found that, in the US, snacking represents
50% of all food and beverage occasions.iii
 3
HEALTHY
PARTNERSHIPS
TO DRIVE AWARENESS

In Colombia, where DSM’s Global Insight Series revealed that health is a key driver
for people to choose lactose-free dairy, medical professionals – doctors, nurses and
nutritionists – were more likely to play a role in triggering use of lactose-free dairy
than in either China or Finland. And in Colombia many of the dairy producers have
campaigned hand-in-hand with medical advisors to recommend lactose-free milk. This
has helped to educate the consumers to choose healthier products. In the future we
predict healthcare professionals could play a greater role in making people aware of
lactose intolerance and the potential benefits of choosing lactose-free dairy options.

In DSM’s survey, 42% of Colombian lactose-free dairy consumers said they had
turned to lactose-free options after speaking to a healthcare professional.

In the US, grocery stores are deploying Registered Dietitians to help customers
make healthy choices. Around 11,000 grocery stores are already covered by a
dietitian to offer on-the-spot advice.iv
 4
‘FREE FROM’
ON THE MOVE
SCHOOL Coffee Shop
CANTEEN BURGERS
R E S TAU R A N T
HOT DOGS
OPEN

Coffee
OPEN
OPEN OPEN
Global Insights Report

With the rise of coffee shops around the world, more people than ever are picking up a
coffee latte on the move or taking time out of their day to enjoy a cappuccino. In Finland,
a lactose-free ‘Barista’ milk designed especially for use in coffee is already available. We
predict that lactose-free dairy options for use in cafés, restaurants, fast food outlets and
canteens will take center stage in the future, ensuring that lactose-avoiding consumers
can enjoy food and drink outside the home.

As consumers’ desire for healthy options and information about the ingredients
that go into foods and drinks has grown, even fast food restaurants are providing
nutritional information on their menus. We expect to see ‘lactose-free’ labels
appearing more and more across cafés, restaurants and school and office
canteens. The desire for more lactose-free dairy products was also confirmed by
our research as 89% of the Chinese and 82% of the Colombians surveyed are
looking for more lactose-free options in cafés and restaurants.

With coffee consumption expected to rise in the next five yearsv – particularly in
China, where Starbucks alone plans to increase its store count by 1,400 by the end
of 2019vi – we expect demand to rise for lactose-free milk for people grabbing a hot
drink on the move.
 5
SOCIAL MEDIA AND
MOBILE APPS –
MAKING CONNECTIONS

When it comes to food and healthy eating, social media and mobile apps are rich
sources of information and advice. From instagramming healthy breakfasts to posting
recipes to blogs and tweeting about a newly discovered gluten-free bakery, people
love to share their food and diet experiences and connect with others who have similar
interests and concerns. Harnessing the power of social media and the huge popularity
of mobile health apps will help manufacturers to raise awareness of lactose intolerance
and the need for lactose-free dairy. Let’s get #lactosefree trending!

51% of the Chinese respondents in our research became aware of lactose-free dairy
via social media or online food blogs.

A 2015 report from PricewaterhouseCoopers (PwC) revealed that 32% of US

consumers had downloaded at least one health or fitness app, double the
percentage who had done so just two years earlier.vii This reflects just how much
the mobile industry is focused on our well-being — and how much we’re buying
into it.
 6
A LACTOSE-FREE
SEAL OF APPROVAL

MI
LK

Packaging can play a huge role in consumers’ purchasing decisions and we predict
that lactose-free dairy packaging will evolve to be both more eye-catching and more
informative. At the moment there is no universal symbol for use on packaging to
reassure consumers that a product is lactose-free, but this could be set to change. The
Lactose Intolerance Global Network is advocating for the introduction of a NO LACTOSE
stamp which manufacturers can use to highlight their lactose-free foods and drinks.viii

Expert opinion leaders in China state that consumer education is of utmost

importance to grow the market and a lactose-free logo would help.

The International Fairtrade symbol is today used in 50 countries and is instantly

recognizable by consumers keen to know that the products they are buying have
been produced to comply with international standards for fair trade. Could a seal of
approval for lactose-free products become as widespread?
MAPPING THE FUTURE OF LACTOSE-FREE DAIRY
The latest report from DSM’s Global Insight Series took a deep dive into the
attitudes and behaviors of lactose-free dairy consumers and revealed that health
benefits are the main driver of purchasing lactose-free dairy. Along with major
global trends in food and drink and insights from experts in the ‘free-from’ dairy
industry, the report sheds light on the trends we might expect to shape the
lactose-free dairy market in the next few years. These six predictions show how
trends will impact the lactose-free dairy market and highlight how dairy producers
can capitalize on these.

Visit: www.dsm.com/food/whatsnew to download the full report

SOURCES
Nielsen 2015. We Are What We Eat. Available from:
i

https://www.nielsen.com/content/dam/nielsenglobal/eu/nielseninsights/pdfs/Nielsen%20Global%20
Health%20and%20Wellness%20Report%20-%20January%202015.pdf Last accessed: September 2016.

ii
http://www.usda.gov/wps/portal/usda/usdahome?contentidonly=true&contentid=2014/01/0008.xml

iii 
Hartman Group 2016. As Snackification in Food Culture Becomes More Routine, Traditional Mealtimes Get
Redefined. Available from:
http://www.hartman-group.com/hartbeat/638/as-snackification-in-food-culture-becomes-more-rou-
tine-traditional-mealtimes-get-redefined Last accessed: September 2016.

iv 
http://www.chicagotribune.com/business/ct-grocery-store-dietitians-0501-biz-20160429-story.html

v
Global Coffee Consumption Projected to Soar Over Next Five Years. Available from:
http://time.com/3711436/global-coffee-increase/ Last accessed: September 2016.

vi 
Starbucks doubles down on China growth hopes. Available from:
http://www.seattletimes.com/business/starbucks/starbucks-profit-up-18-percent-but-sales-fall-short-
of-forecasts/ Last accessed: September 2016.

vii 
Mobile will be a top health industry trend in 2016. Available from:
https://www.mobilestrategies360.com/2015/12/11/mobile-will-be-top-health-industry-trend-2016 Last
accessed: September 2016.

viii 
The logo is a registered trademark in the European Union and China by Adilac, lactose intolerance
Spanish organisation: www.nolactose.org