SPECIAL REPORT: Lactose Free Requirements Driving Innovation within the Dairy Category

Just last week, it was announced that Danone, he world’s biggest yogurt maker is to buy WhiteWave Foods, the US organic food maker, in a $12.5 billion deal. The acquisition of WhiteWave marks Danone’s biggest deal in the last ten years. The deal will substantially boost Danone's offering in the US by adding premium grocery brands such as Silk almond milk and Earthbound Farm Organic salad to its portfolio and nearly double Danone's footprint in the US.

 

FoodIngredientsFirst takes a look into the main drivers for dairy avoidance and some of the lactose free innovations taking the industry by storm.

 

Lactose intolerance
Lactose intolerance is thought to be one of the key drivers in alternative dairy produce. For the estimated 40 million Americans alone struggling with the distressing symptoms of lactose intolerance, there are many different alternatives on the market, which is good news. There has been increased interest in other dairy alternatives that do not contain, or contain very little lactose, suitable for people with an intolerance to lactose. 

 

Lactose intolerance is not an allergy but an inability to digest lactose because the body produces low levels of lactase, the enzyme responsible for digesting lactose. It can affect both children and adults, with the common symptoms ranging from diarrhea, bloating and severe discomfort. Lactose is present in cow’s milk and sheep’s milk at similar quantities, it is also present in goat’s milk but at a slightly lower level.
 
Lactose free dairy products filter cows’ milk to remove roughly half of the lactose, the lactase enzyme is then added which breaks down the remaining lactose into simpler sugars that the body is able to absorb. Lactose free products contain all the nutritional benefits and calcium levels of real dairy and have the same cooking properties as ordinary dairy products.

 

The use of lactose free claims has been rising, if more steadily, in recent years, according to research undertaken by Innova Market Insights. The claim features on 6.7% of global dairy introductions, rising to nearly 11% in the US and 8% in the EU. Interest in dairy alternatives, improved labeling, growing awareness of the problems associated with lactose intolerance and technical developments are allowing for the production of better-tasting products, have combined to boost availability and popularity in recent years, and the sector is now trying to emerge from its specialist niche positioning to increase its appeal to a wider audience in the mass market.

 

The highest share of lactose free products tends to be in sectors where there are already established dairy alternatives, particularly drinks, where the share of products marketed as lactose free was over 40%. Creamers, many of which also have non-dairy ingredients, such as vegetable fats, can also relatively easily be formulated as lactose free. This type of product accounted for over 10% of introductions in the creams and creamers sub-sector. In more traditional dairy markets, such as milk drinks, the penetration of lactose free launches was 5.5%, while in cheese it was just over 4% and in yogurts 3.7%.

 

Lactose free product launches
NOLA Fit, which has been launched globally by Chr. Hansen is a unique new lactase enzyme which opens the door to lactose-free or sugar reduced yogurts, without compromising on taste.

 

Apart from the benefits in yogurt, NOLA Fit is suitable for various dairy-based products including premium lactose free milks and fermented milks. It is a highly efficient, cost-attractive innovative enzyme solution that allows dairy producers to reduce or remove.

 

In an interview with FoodIngredientsFirst, Lars Bredmose explained that Chr. Hansen are catering to the increased health awareness trend in dairy as well as to higher demands for great tasting products. He said: “We do expect consumers who don’t suffer with lactose intolerances to enjoy NOLA Fit, absolutely. It works to increase the sweetness of a yogurt, without effecting taste and there is a significant sugar reduction, which is something most consumers are looking for today.”

 

However, he also noted that more and more consumers are becoming aware that some of their digestive issues and discomfort may be due to the lactose in dairy products. He said: “With the many new developments we see in the dairy market, most consumers do not want to miss out just because they are sensitive to lactose. That’s why the NOLA Fit is a bit of an ‘unlock’ since it works well in fermented milk products like yogurt. It simply gives lactose sensitive people more options because it allows producers to easily produce lactose-free yogurts.”

 

“Lactose-free as a trend goes beyond just diagnosed lactose intolerance,” explains Bredmose, “While many consumers are in doubt of whether or not they suffer from lactose intolerance, a great deal of them choose to buy lactose-free dairy products, to see if it makes a difference to digestive problems or just to be on the safe side.”

 

Dean Foods Company have recently introduced their new DairyPure brand Lactose Free milk to its line of dairy products. Made with real, fresh white milk, DairyPure Lactose Free milk delivers real dairy nutrition and delicious taste that everyone can enjoy. Plus, it's 100% lactose free, making it easy to digest for those with lactose sensitivities.

 

Like regular DairyPure milk, new Lactose Free milk provides the same eight essential nutrients – calcium, protein, vitamins A, D and B12, riboflavin, phosphorus and potassium.

 

“DairyPure Lactose Free milk is an excellent way for those with lactose sensitivities to get the key nutrients found in milk they would otherwise miss out on,” says Rebecca Scritchfield, who is a Registered Dietician Nutritionist. “Around 42 percent of Americans don't get the calcium they need and more than 80 percent of Americans lack adequate Vitamin D. Having a wholesome and trustworthy milk option like DairyPure Lactose Free milk for those with lactose intolerance can help fill this gap.”

 

“New DairyPure Lactose Free milk means that we're now able to deliver our high quality DairyPure milk to all consumers, both with intolerances to lactose and without,” claims Greg Schwarz, Vice President of Marketing at Dean Foods. “Whether it's a lifestyle choice or the result of lactose sensitivities, everyone can enjoy Lactose Free milk knowing that it's backed by our Five-Point Purity Promise.”

 

The shift in health appeal of lactose-free products
DSM’s latest Global Insight Series report revealed an overwhelming number of consumers of lactose-free dairy in emerging markets such as Colombia and China, say that their main purchase driver is the health appeal of lactose-free products, not merely lactose-intolerance.

 

Based on an international consumer survey, comparing results in the mainstream low-lactose market in Finland to upcoming markets in Colombia and China, the report reveals that lactose-intolerance is not the main driver for consumers to choose lactose-free dairy over regular dairy in Colombia and China, despite these countries having much higher lactose-intolerant levels than in Finland. Instead, they prefer lactose-free dairy for its health benefits.
 
As reported by DSM, in China and Colombia, 82% and 73%, respectively, of the consumers agree that lactose-free dairy is healthier than regular dairy. They also indicated that they would increase their consumption if lactose-free dairy was reduced in fat and sugar. Thus, understanding the specific health benefits of lactose-free dairy over regular dairy in upcoming markets can further drive product innovation and consumer interest.
 
“This report gives valuable insights into how lactose-free dairy products can be further developed and positioned, making the most of the wide array of positively perceived health benefits by consumers,” explains Marten Paasman, global business line manager of dairy enzymes, DSM. “As a leading supplier of enzymes for low lactose and lactose-free products, we have been working with customers all around the world to successfully innovate this category beyond lactose-intolerance. An opportunity that is particularly attractive to health-conscious consumers in emerging markets where the dairy market is evolving rapidly.”

 

A video on the report can be found here.
 
As the industry responds to the ever changing demands within the dairy sector, one thing remains the same, lactose intolerance and health are both drivers in product innovation.