No- and Low-Lactose Food and Beverages in the U.S.

SUMMARY

Lactose intolerance, real or perceived, is perhaps the best-known food sensitivity in the United States. It is estimated that a whopping 70% of the world's population has a genetically controlled limited ability to digest lactose. Should these people avoid dairy foods? No. Should they eliminate lactose consumption? Probably not. Total elimination of dairy foods is unnecessary, and for nutritional purposes, not a good idea. Therefore, it is important for food manufacturers to help dairy maldigesters keep dairy foods in their diet. There's a growing trend towards formulating foods that are free of lactose, and those dairy marketers that have ventured into the business have smiles of success on their face. Learn who the players are, and the products they are offering. Marketing messages are important, as is product support, distribution, and variety. Make the product, and the lactose intolerant consumer will buy it. Consumers who are avoiding lactose are craving great-tasting dairy foods that are free of this primary milk carbohydrate. Jump on the bandwagon, and give consumers what they want. No- and Low-Lactose Foods and Beverages in the U.S., a new report from Packaged Facts, includes an in-depth analysis of leading, as well as up-and-coming marketers of lactose-free foods, including an overview of their offerings and their position in the marketplace. Insight is provided to what retailers are currently offering and what they want to offer. If you are a product developer, a marketer, or a retailer, this report is a must-have-tool in order to effectively compete in the growing, and very profitable lactose-free market.

What You'll Get in this Report

No- and Low-Lactose Foods and Beverages in the U.S makes important predictions and recommendations regarding the future of this market, and pinpoints ways current and prospective marketers can capitalize on current trends and spearhead new ones. No other market research report provides both the comprehensive analysis and extensive data that No- and Low-Lactose Foods and Beverages in the U.S. offers.

The report addresses the following segments:

• The Market(including market size and composition, and projected market growth)
• The Marketers (including discussions of specific marketer brand and market shares)
• Competitive Profiles (of the mainstream marketers, specialists and up-and-coming niche players, and analyses of the products they market)
• The Consumer (who's buying what, and where)
• The Products
• Trends and Opportunities

Plus, you'll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.

How You Will Benefit from this Report

If your company is already competing in the food industry, or is considering making the leap, you will find this report invaluable, as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current market for low- and no-lactose foods, as well as projected sales and trends through 2010. Contributing to that understanding will be a complete analysis of sales data, and a detailed discussion of the consumer for gluten-free products.

This report will help:

• Marketing Managers identify market opportunities and develop targeted promotion plans for lactose-free foods and beverages.
• Research and development professionals stay on top of competitor initiatives and explore demand for lactose-free foods and beverages.
• Advertising agencies working with clients in the food industry understand the product buyer to develop messages and images that compel consumers to purchase these products.
• Business development executives understand the dynamics of the market and identify possible partnerships.
• Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.

TABLE OF CONTENTS

Chapter 1 Executive Summary

• An Introduction to Lactose Maldigestion
• Regardless of the Term . . .
• Dairy Can Stay, Just Lactose Needs to Go
• Market Definitions
• No- and Low-Lactose Dairy Surpasses $500 Million in 2006
• Overview of Marketers
• Retail Distribution Methods
• Debuting New Products
• The Lactose-Free Marketplace
• The Consumer of No- and Low-Lactose Dairy Foods
• Consumers Want Value-Added Dairy Foods
• Make Americans Lactose-Free Dairy Foods; They Will Buy Them
• New Products and Trends
• Technology Enables Lactose-Free Dairy Innovations

Chapter 2 Lactose Intolerance

• Key Points
• An Introduction to Lactose Maldigestion
• Regardless of the Term . . .
• How Does One Become Sensitive to Lactose?
• Who Cannot Handle Lactose?
• Real or Perceived . . . What's the Count?
• Types of Lactase Deficiency
• Keeping Dairy in the Diet
• Formulating Lactose Free
• Avoiding Lactose, Not Dairy
• Who Needs to Avoid Dairy?
• Lactose Intolerance Is Not a Milk Allergy
• The Food Allergen Labeling and Consumer Protection Act
• What is Hidden Lactose?
• The Physiology of Lactose Digestion

Chapter 3 The Market

• Key Points
• Market Definitions
• No- and Low-Lactose Dairy Surpasses $500 Million in 2006
• Table 3-1 U.S. Retail Sales of No- and Low-Lactose Dairy Products, 2001-2006 (in millions of dollars)
• Figure 3-1 U.S. Retail Sales of No- and Low-Lactose Dairy Products, 2001-2006 (in millions of dollars)
• Why the Growth in No- and Low-Lactose Dairy Products?
• Figure 3-2 U.S. Retail Share of Sales of No- and Low-Lactose Dairy Products, by Product Type, 2006
• Innovation Using Milk as a Carrier
• Market Size and Growth of Dairy-Alternative Products
• Dairy-Alternative Products Top Out at Almost $1.4 Billion in 2006
• Table 3-2 U.S. Retail Sales of Dairy-Alternative Products, 2001-2006 (in millions of dollars)
• Figure 3-3 U.S. Retail Sales of Dairy-Alternative Products, 2001-2006 (in millions of dollars)
• Milk Alternatives Are the Segment Leader
• Figure 3-4 U.S. Retail Share of Sales of Dairy Alternative Products, by Product Type, 2006

Factors to Market Growth

• Real or Perceived, Awareness and Diagnosis Is Increasing
• Danger of Self Diagnosis
• Many Lactose Intolerant Understand They Can Have Dairy
• The Government's Message on Calcium and Dairy
• Dairy-Alternatives Believed by Some to Be a Healthful Option
• Innovation Key to Growth of No- and Low-Lactose Dairy

Projected Market Growth

• Sales Are Projected to Reach $1.7 Billion by 2010
• Table 3-3 Projected U.S. Retail Sales of No- and Low-Lactose Products, 2006-2010 (in millions of dollars)
• Figure 3-5 Projected U.S. Retail Sales of No- and Low-Lactose Products, 2006-2010 (in millions of dollars)
• Dairy Alternative Sales Start to Slow
• Table 3-4 Projected U.S. Retail Sales of Dairy Alternative Products, 2006-2010 (in millions of dollars)
• Figure 3-6 Projected U.S. Retail Sales of Dairy Alternative Products, 2006-2010 (in millions of dollars)

Chapter 4 The Marketers

• Key Points
• Overview of Marketers
• The Leading Brand in the Marketplace: Lactaid
• Sales of Lactaid Milk Are More Than a Half Billion
• Table 4-1 Sales Data for U.S. Sales of Lactaid Brand 100% Lactose Free Milk, All Varieties, 2001-2005 (in millions of dollars)
• Table 4-2 Sales Data for U.S. Sales of Lactaid Brand Cottage Cheese, 2001-2005 (in thousands of dollars)
• Lactaid Product Line Is Growing
• Figure 4-1 Lactaid Milk Products
• Figure 4-2 Lactaid Cottage Cheese
• Figure 4-3 Lactaid Scoopfuls Ice Cream Products
• A Bit on HP Hood
• HP Hood LLC Forms in 2004
• No Other Lactose-Free Dairy Product Sales Are Trackable
• Speaking of Breyers Ice Cream
• Figure 4-4 Breyers All Natural Lactose Free Ice Cream
• Aggressive Innovators of Ice Cream for Health-Conscious Consumers
• The Light Shines in the Freezer Case
• On the Fluid Side of the Business
• 2004 Acquisition of Horizon Builds Organic Cultured Business
• A Bit About Horizon
• Speaking of Added-Value Milk Products
• The Slammers Brand and Beyond
• Welcome Back Farmland Dairies
• Lactose-Free Is Where Farmland Sees Growth
• Cheese Promoted as Lactose Free
• Other Dairies Promoting Their Cheeses as Being Lactose Free

Chapter 5 The Marketplace

• Key Points
• Retail Distribution Methods
• Direct Delivery Advantages
• The Cost of Face-To-Face Business
• Advantages of Warehouse Delivery
• Smaller Marketers Work Through Brokers
• Introducing New Special Dietary Needs Products to the Market
• Where Consumers Are Shopping These Days
  • Shopping Options Are Plentiful
  • So Where Are Consumers Shopping?
  • Different Types of Retail Outlets
  • Mainstream Supermarkets Account for 60% of Sales
  • Figure 5-1 U.S. Retail Sales of No- and Low-Lactose Products by Outlet, 2006
  • Different Formats Attract Consumers for Their Varied Needs
  • Channel Blurring Continues to Grow
  • Traditional Supermarkets Down in Number
  • Just How Much Can a Store Carry?
  • Who Are the Leading Retailers?
  • Table 5-1 Top-Five U.S. Discount-Style Food Store Chains, by Dollar Sales and Store Count, 2005
  • Never Under Price
  • And Don't Let Retailers Over Price Your Products
  • Table 5-3 Retail Price of Select No- and Low-Lactose Dairy Products, 2006
  • Warehouse Clubs
  • Special Dietary Needs Products Are Not Big at Club Stores

Chapter 6 The Consumer

• Key Points
• When It Comes to Consumers Who Avoid Lactose . . .
• Why Should Those Avoiding Lactose Keep Dairy in the Diet?
• Who Is the Target Consumer of No- and Low-Lactose Dairy?
• What Do Consumers Want From Milk?
• Overall Consumer Outlook Jumps Around
• Should the New Generation of No- and Low-Lactose Dairy Foods Be Organic, Too?
• Who Is the Organic Consumer?
• Organic Foods Perceived as Healthier
• Table 6-1 Reason Cited for Buying Organic Foods
• 54% of Shoppers Feel Organic Foods Are Healthier
• As Market Grows, Consumer Profile Changes
• Demographics of Organic Users and Non-Users
• Table 6-2 Percent of Adult Consumers Who Use or Do Use Organic Foods and Beverages
• Bringing All That Organic Data Back to Lactose and Dairy

Consumer Use and Demographics

• Simmons Consumer Survey
• More Consumers Are Watching for Lactose
• Table 6-3 Percent of U.S. Ethnic/Racial Groups Who Watch Their Diet Because of Lactose Intolerance
• Table 6-4 Percent of U.S. Ethnic/Racial Groups Who Use Lactose-Free Milk
• Non-Dairy Ice Cream - Yuck(?)
• Table 6-5 Percent of U.S. Ethnic/Racial Groups Who Use Non-Dairy Ice Cream
• Asians Are Using Less Soymilk
• Table 6-6 Percent of U.S. Ethnic/Racial Groups Who Use Soymilk
• Dairy Is a Popular Food for All Americans
• Table 6-7 Percent of All U.S. Consumers Who Use Select Dairy Products