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European Lactose-Free Market Report 2017/2018 Report

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<strong>Lactose</strong> <strong>Free</strong><br />

<strong>European</strong> <strong>Market</strong><br />

<strong>Report</strong><br />

<strong>2017</strong>/<br />

<strong>2018</strong>


THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

LACTOSE-FREE<br />

THE EUROPEAN LACTOSE-FREE MARKET<br />

REPORT<br />

<strong>2017</strong>/<strong>2018</strong><br />

HRA FOOD & DRINK CONSULTANTS<br />

All rights reserved, ©Teepee Ltd, t/a HRA Food & Drink: <strong>2017</strong> 1


CONTENTS<br />

THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

Executive Summary 3<br />

1. <strong>Lactose</strong> Intolerance and health 4<br />

1.1 Causes of lactose intolerance 4<br />

1.1.1 Primary lactase deficiency 4<br />

1.1.2 Secondary lactase deficiency 5<br />

1.1.3 Congenital lactase deficiency 5<br />

1.2 Milk allergies and lactose intolerance 5<br />

1.3 Managing lactose intolerance 6<br />

1.3.1 <strong>Lactose</strong> content of different dairy products 6<br />

1.3.2 <strong>Lactose</strong> intolerance of mammalian milk 7<br />

1.3.3 Milk alternatives for lactose intolerant consumers 8<br />

2. Global distribution of lactose intolerance 9<br />

2.1 Demographic change and the lactose-free market 11<br />

2.1.1 Increasing global wealth 11<br />

2.1.2 Migration and the lactose-free market 12<br />

3. A history of the lactose-free sector 13<br />

4. <strong>Lactose</strong>-free and EU regulations 15<br />

5. <strong>Lactose</strong>-free product categories 17<br />

5.1 <strong>Lactose</strong>-free cows’ milk 18<br />

5.1.1 <strong>Lactose</strong>-free cows’ milk: Arla Lactofree 18<br />

5.1.2 <strong>Lactose</strong>-free cows’ milk: Valio Eila 19<br />

5.1.3 <strong>Lactose</strong>-free dairy products in the mainstream 20<br />

5.2 Plant-based dairy alternatives 21<br />

5.2.1 Brief history of plant-based milks 22<br />

5.2.2 Current trends in plant-based milk products 23<br />

5.2.3 Plant-based milk and health 24<br />

5.2.4 Plant-based dairy alternative: Alpro 26<br />

5.2.5 Plant-based milk products: supermarket own-brand 27<br />

5.3 A2 Milk 29<br />

5.3.1 A2 Milk and human health 30<br />

6. <strong>Lactose</strong>-free: views from the UK food industry 31<br />

7. Future trends in the lactose-free sector 32<br />

7.1 Consumer trends 32<br />

7.2 Product development 33<br />

7.3 Retailer innovation 33<br />

8. Conclusions 34<br />

9. References 36<br />

Page<br />

All rights reserved, ©Teepee Ltd, t/a HRA Food & Drink: <strong>2017</strong> 2


EXECUTIVE SUMMARY<br />

THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

The lactose-free market is experiencing double<br />

digit growth within Europe, largely fuelled by an<br />

increasingly health conscious consumer-base and<br />

the trend towards Western diets in Asian<br />

countries.<br />

The sector has seen pronounced innovation over the last decade. Technological<br />

advances in filtration and enzymatic processes allow consumers to enjoy cows’ milk<br />

products minus the lactose, with brands such as Arla’s ‘Lacto-free’ leading the show.<br />

Plant-based milk alternatives such as soya, almond, oat and hazelnut milk are also<br />

experiencing growth in Europe, especially with regards to the sales of luxury soya<br />

yoghurts and desserts.<br />

Despite this growing market, there is little regulation governing lactose-free claims.<br />

The <strong>European</strong> Food Safety Authority announced in 2011 that as people have different<br />

tolerances to lactose, one single ‘safe’ level of lactose cannot be prescribed in lactosefree<br />

foods. This has caused a level of apprehension by some food manufacturers, who<br />

would prefer a set of clear guidelines to adhere to.<br />

There are several key trends emerging in the <strong>European</strong> lactose-free market.<br />

Increasing wealth in areas of high prevalence of lactose intolerance may increase<br />

export markets, whilst migration may boost domestic markets. Innovative flavour<br />

development and technical advances in product manufacturing have boosted the<br />

profile of lactose-free products and helped increase sales. Major retailers have started<br />

catching on to the lactose-free trend, with some UK supermarkets developing their<br />

own dairy free and even lactose-free products.<br />

Through innovation and increased consumer awareness, the <strong>European</strong> lactose-free<br />

sector is looking extremely positive, and we at HRA predict that the industry can<br />

overcome potential barriers to grow from strength to strength in the future.<br />

All rights reserved, ©Teepee Ltd, t/a HRA Food & Drink: <strong>2017</strong> 3


1. LACTOSE INTOLERANCE AND HEALTH<br />

THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

<strong>Lactose</strong> intolerance is a digestive condition that occurs when the gut fails to break<br />

down lactose, a carbohydrate found in dairy products. Up to 20% of people in the UK<br />

suffer from lactose intolerance, although this differs by ethnic group. 1<br />

Normally, the enzyme lactase breaks down the carbohydrate lactose into glucose and<br />

galactose, which are then easily absorbed into the bloodstream. People suffering from<br />

lactose intolerance do not produce enough lactase, meaning the carbohydrate is<br />

broken down by bacteria. This creates excess gas and fatty acids in the gut, leading<br />

to a range of symptoms - see below.<br />

Symptoms of lactose intolerance include:<br />

Ø Flatulence<br />

Ø Diarrhoea<br />

Ø Nausea<br />

Ø Cramps and stomach pains<br />

Ø Bloating<br />

To view, please download FULL <strong>Report</strong><br />

www.nhs.uk/Conditions/lactose-intolerance<br />

The severity of lactose-intolerance varies from person to person, and sufferers of<br />

lactose-intolerance can tolerate different levels of lactose in their diet. Some may be<br />

able to consume small amounts of dairy, whilst others may have to avoid it completely.<br />

1.1 CAUSES OF LACTOSE INTOLERANCE<br />

<strong>Lactose</strong> intolerance is caused by a shortage of the enzyme lactase in the digestive<br />

system. This can occur for several reasons:<br />

1.1.1 PRIMARY LACTASE DEFICIENCY<br />

§ This is the most common form of lactase deficiency, and is genetic.<br />

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THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

§ <strong>Lactose</strong> intolerance here usually occurs in late childhood, when an infant becomes<br />

less dependent on milk products. This intolerance may not emerge until early<br />

adulthood.<br />

§ This form of lactose intolerance tends to be permanent.<br />

1.1.2 SECONDARY LACTASE DEFICIENCY<br />

§ <strong>Lactose</strong> intolerance can also be caused by damage to the gut, which decreases<br />

the production of lactase.<br />

§ This can be caused by surgery, a medical condition or certain medications.<br />

Lactase production often decreases with age, so lactose intolerance sometimes<br />

occurs later in life.<br />

§ This form of lactose intolerance can be temporary until the gut heals, but can be<br />

long-term if cause by an ongoing condition.<br />

1.1.3 CONGENITAL LACTASE DEFICIENCY<br />

§ This is an uncommon genetic condition which means newborn infants cannot<br />

digest lactose. <strong>Lactose</strong>-free infant formulas are available in these circumstances.<br />

1.2 MILK ALLERGIES AND LACTOSE INTOLERANCE<br />

<strong>Lactose</strong> intolerance is sometimes confused with a cows’ milk allergy. A milk allergy<br />

occurs when the immune system reacts negatively to proteins found in cows’ milk,<br />

creating antibodies. This can be a serious condition, with symptoms ranging from<br />

digestive issues much like lactose intolerance, to anaphylactic shock.<br />

People suffering from a cow’s milk allergy are advised to avoid all foods containing<br />

dairy. However, those suffering from lactose-intolerance can still consume dairy as<br />

long as it is lactose-free, or contains very low levels of lactose.<br />

All rights reserved, ©Teepee Ltd, t/a HRA Food & Drink: <strong>2017</strong> 5


1.3 MANAGING LACTOSE INTOLERANCE<br />

THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

The recommended way to manage lactose intolerance is to avoid lactose containing<br />

foods. <strong>Lactose</strong> is the main carbohydrate in milk derived from mammals including cows,<br />

sheep & goats (see below). Human breast-milk also contains lactose.<br />

Foods containing lactose:<br />

Ø Milk<br />

Ø Yoghurt<br />

Ø Cheeses<br />

Ø Butter<br />

Ø Cream<br />

Ø Ice cream<br />

Other products may contain whey or curds<br />

derived from dairy, including biscuits,<br />

bread, sauces and meats.<br />

To view, please download FULL <strong>Report</strong><br />

1.3.1 LACTOSE CONTENT OF DIFFERENT DAIRY PRODUCTS<br />

Grams lactose per<br />

100g<br />

5<br />

4<br />

3<br />

2<br />

1<br />

0<br />

4.5<br />

2.5 2.3 0.7<br />

Whole milk Yoghurt Soft cheese Hard cheese<br />

Dairy product<br />

Figure 1.1: <strong>Lactose</strong> content in different dairy products 3<br />

§ Different dairy products contain varying levels of lactose. Whole milk contains the<br />

highest concentrations of lactose, whilst hard cheeses contain the least.<br />

§ Cheeses such as parmesan, contain virtually no lactose, so can be eaten by some<br />

people with from lactose intolerance. This is because the enzymes used in the<br />

production of such cheeses convert lactose into lactic acid prior to human<br />

consumption.<br />

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THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

1.3.2 LACTOSE CONTENT OF MAMMALIAN MILKS<br />

Cows’ milk<br />

4.7%<br />

Sheeps’ milk<br />

4.9%<br />

To view, please download FULL <strong>Report</strong><br />

Human milk<br />

6.9%<br />

Goat’s<br />

milk<br />

4.1%<br />

Figure 1.2: The percentage of lactose found in different mammalian milks 4<br />

§ There is sometimes a perception that lactose is found predominantly in cows’ milk,<br />

although the carbohydrate is found in all mammalian milk (see figure 1.2). Sheep<br />

and goats’ milk contain very similar lactose concentrations to cows’ milk, whilst<br />

human breastmilk contains over 2% more lactose than cows’ milk.<br />

§ There is anecdotal evidence that lactose from the milk of smaller mammals is<br />

easier to digest, decreasing the likelihood of lactose intolerance symptoms. Other<br />

theories suggest that many people who claim to be lactose intolerant actually have<br />

an allergy to the alpha S1 casein protein, which is much less prevalent in goats’<br />

milk.<br />

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THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

1.3.3 MILK ALTERNATIVES FOR LACTOSE INTOLERANT CONSUMERS<br />

<strong>Lactose</strong> intolerance<br />

<strong>Lactose</strong>-free<br />

dairy<br />

Plant based<br />

alternatives<br />

Lactase drops<br />

& pills<br />

To view, please download FULL <strong>Report</strong><br />

How?:<br />

Cows’ milk is<br />

filtered and<br />

subjected to the<br />

enzyme lactase.<br />

Top brands: Arla<br />

Lactofree; Valio<br />

How?:<br />

Milk substitutes<br />

are created using<br />

plants including<br />

soy, oats & nuts.<br />

Top brands:<br />

Alpro; Blue<br />

Diamond<br />

How?:<br />

Lactase drops<br />

added to milk or<br />

taken as a tablet<br />

before eating, to<br />

facilitate lactose<br />

break down.<br />

Figure 1.3: Alternative dairy options for lactose intolerance sufferers.<br />

§ Dairy is a good dietary source of calcium - vital for bone, muscle and heart health.<br />

It is recommended for those with lactase deficiency to replace dairy with other<br />

sources of calcium.<br />

§ There are several dairy-based products on the market, which have been processed using<br />

filtration and enzymes to remove lactose. Enzyme drops are available to treat milk at<br />

home. Both methods allow lactose-intolerance sufferers to consume dairy without adverse<br />

side effects, whilst still benefitting from the milk’s calcium & vitamins.<br />

§ Plant-based milk alternatives are also available, some of which are fortified with<br />

calcium and vitamins.<br />

All rights reserved, ©Teepee Ltd, t/a HRA Food & Drink: <strong>2017</strong> 8


THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

2. GLOBAL DISTRIBUTION OF LACTOSE INTOLERANCE<br />

The prevalence of lactose intolerance varies vastly across people of different geographical<br />

origin.<br />

§ Estimates differ, but it is thought only 10-15% of people from <strong>European</strong> and<br />

Russian descent are lactose intolerant. In contrast, up to 90% of people from South<br />

East Asian descent, and between 50-80% of people from African and Latin<br />

American descent suffer from the condition (see figure 1.2).<br />

Prevalence of lactose intolerance in people of different<br />

geographical origin<br />

% of population<br />

86<br />

77<br />

73<br />

68<br />

To view, please download FULL <strong>Report</strong><br />

14<br />

Ethnicity<br />

Figure 2.1: Prevalence of lactose intolerance in people of different geographical origin. 5<br />

§ Around 70-75% of the worlds’ adult population is lactose intolerant. It is normal in<br />

most mammals for production of the lactase enzyme to stop after infancy.<br />

Naturally, most adult mammals are unable to digest lactose. However, gene<br />

mutations have allowed some humans to produce lactase much later in life.<br />

§ It is thought that this genetic mutation gave a selective advantage in places like<br />

Northern Europe, whose climate meant dairy cattle could be raised successfully.<br />

The lactase-present gene then persisted down the generations.<br />

§ Latin America and Europe are leading the way in lactose-free sales growth, whilst<br />

China is a relatively untapped market.<br />

All rights reserved, ©Teepee Ltd, t/a HRA Food & Drink: <strong>2017</strong> 9


THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

North America:<br />

<strong>Lactose</strong> intolerance<br />

low in people of<br />

<strong>European</strong> descent,<br />

but high in native<br />

populations and<br />

people of African<br />

descent.<br />

Northern Europe<br />

has a relatively low<br />

prevalence of<br />

lactose intolerance<br />

but represents a<br />

large proportion of<br />

the global market.<br />

Russia has a low<br />

incidence of lactose<br />

intolerance, whilst<br />

prevalence in China<br />

and Mongolia<br />

reaches almost<br />

100%.<br />

To view, please download FULL <strong>Report</strong><br />

Latin American<br />

countries such as<br />

Brazil & Argentina<br />

have high<br />

incidences of<br />

lactose intolerance.<br />

Central America &<br />

the Caribbean<br />

experience a<br />

medium<br />

prevalence.<br />

North African<br />

countries have a<br />

medium prevalence<br />

of lactose<br />

intolerance, whilst<br />

countries in the<br />

south have very<br />

high incidences.<br />

South East Asian<br />

countries have very<br />

high prevalences of<br />

lactose intolerance,<br />

whilst Australasia<br />

has a very low<br />

prevalence.<br />

Figure 2.2: Global prevalence of lactose intolerance<br />

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THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

2.1 DEMOGRAPHIC CHANGE AND THE LACTOSE-FREE MARKET<br />

The global demographic is undergoing many changes. Disposable income is<br />

increasing for the first time in many places, especially in Asian countries such as<br />

China. Additionally, migration is increasing with an increasingly multicultural society<br />

found in Europe.<br />

2.1.1 INCREASING GLOBAL WEALTH<br />

§ In the last 15 years, several middle income countries in Asia, Africa and Latin<br />

America has seen a large upturn in GDP per capita (see figure 2.3).<br />

- China’s annual GDP per capita has increased 728% since 2000, reaching<br />

US$7910 in 2015. 6<br />

- South Africa has seen an 109% increase in GDP per capita ($) since 2000. 6<br />

- Peru’s GDP per capita ($) has increased by 211% since 2000. 6<br />

§ The prevalence of lactose intolerance ranges from 70-90% in these countries (see figure<br />

2.4). These emerging economies could represent new export markets for manufacturers<br />

of lactose-free products. China especially is experiencing growth in all dairy sectors and<br />

has huge consumer potential if awareness of lactose-intolerance can be raised<br />

within the general population.<br />

GDP per capita (US$)<br />

9000<br />

8000<br />

7000<br />

6000<br />

5000<br />

4000<br />

3000<br />

2000<br />

1000<br />

GDP per capita ($) of China, South Africa & Peru<br />

To view, please download FULL <strong>Report</strong><br />

0<br />

1980 1985 1990 1995 2000 2005 2010 2015<br />

China South Africa Peru<br />

Figure 2.3: Growth in economies in China, South Africa and Peru (shown in annual US$ per<br />

capita) 6<br />

All rights reserved, ©Teepee Ltd, t/a HRA Food & Drink: <strong>2017</strong> 11


THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

100<br />

Prevalance of lactose intolerance in Peru, South Africa &<br />

China<br />

% of population<br />

80<br />

91<br />

84<br />

60<br />

70<br />

To view, please download FULL <strong>Report</strong><br />

40<br />

20<br />

0<br />

Country<br />

Peru South Africa China<br />

Figure 2.4: Prevalence of lactose intolerance in Peru, South Africa & China, % of<br />

population 7<br />

§ There is a trend in many countries towards a more Western diet, which includes<br />

more dairy, even in areas with high prevalence of lactose intolerance. In China,<br />

annual consumption of liquid milk has increased from 8.8 litres per capita in 2009<br />

to 17.8 litres in 2014. South African cheese consumption has increase from 1kg to<br />

2kg per capita between 2009 and 2014. This again represents a significant<br />

opportunity for the export of lactose-free products to these countries. 8<br />

2.1.2 MIGRATION AND THE EU LACTOSE-FREE MARKET<br />

In 2015 around 277,000 non-EU citizens settled in the UK.<br />

- There are 1.2million non-EU nationals working in the UK. The visa point<br />

system means that non-EU economic migrants must earn over £35,000, so<br />

tend to have a higher disposable income.<br />

- 112,000 non- EU nationals enter the UK every year on student visas. This<br />

includes a large proportion of students from China, which has a very high<br />

prevalence of lactose intolerance. 9<br />

- The UK accepted nearly 10,000 asylum seekers, mostly from Middle Eastern<br />

countries which have a high prevalence of lactose intolerance. 10<br />

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THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

2015 net immigration in the UK was 333,000, roughly split between EU and non-EU<br />

nationals 9 . If 70% of the world suffers from lactose-intolerance, we can predict that<br />

around 230,000 potential consumers of lactose-free products enter the UK every year.<br />

This is a significant chunk of the market which could be captured by lactose-free<br />

manufacturers.<br />

If Turkey ever did join the EU, 75 million consumers would join the free market. 71%<br />

of the Turkish population is thought to be lactose intolerant, representing a large and<br />

easily accessible consumer base for the lactose-free industry.<br />

Migration statistics in the UK of course depend on post Brexit policies, so it will remain<br />

to be seen how the British demographic may change in the years to come.<br />

3. A HISTORY OF THE LACTOSE-FREE SECTOR<br />

1970’s<br />

Lactaid<br />

launched<br />

lactose-free<br />

milk in the US<br />

2003<br />

A2 milk launched<br />

in New Zealand &<br />

Australia<br />

2006<br />

Arla launched<br />

Lactofree range<br />

2011<br />

A2 milk<br />

launched in the<br />

UK<br />

To view, please download FULL <strong>Report</strong><br />

1980<br />

Alpro launches<br />

non-dairy milks<br />

2005<br />

EC: Products must<br />

declare ingredients that<br />

could be harmful to<br />

health<br />

2011<br />

EFSA declare that<br />

thresholds for<br />

lactose-free cannot<br />

be prescribed<br />

Figure 3.1: Key events in the evolution of the lactose-free sector.<br />

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THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

§ 1970’s: The US firm Lactaid was one of the first to create<br />

a lactose-free milk product. This was followed by Lactaid<br />

enzyme tablets which, when taken, allow lactose intolerant<br />

people to consume dairy products without adverse effects.<br />

§ 1980: Alpro formed as a subsidiary of the Belgium firm<br />

Vandemoortele Group, creating milk substitutes from soya.<br />

The company opened a soya milk plant in the UK in 2000,<br />

and now produce a variety of nut milks & soya desserts.<br />

§ 2003: Scientists from New Zealand launched the a2 Milk<br />

Company, which claim their product contains proteins<br />

which are easier to digest than regular cows’ milk. a2 Milk<br />

was launched in the UK in 2011.<br />

To view, please download FULL<br />

<strong>Report</strong><br />

§ 2005: The <strong>European</strong> Commission announced that<br />

products must declare all potentially harmful ingredients,<br />

including milk, on food packaging. These must be<br />

highlighted in the ingredients’ lists.<br />

§ 2006: <strong>European</strong> dairy cooperative Arla Foods launched its<br />

Lactofree range of white milk and other dairy products. Arla<br />

uses filtration and enzyme technology to create their range.<br />

§ 2011: The <strong>European</strong> Food Safety Authority ruled that a<br />

‘safe’ level for lactose-free food cannot be prescribed, as<br />

those who suffer from lactose-intolerance can tolerate a<br />

varied range of lactose levels, depending on the severity of<br />

their condition.<br />

All rights reserved, ©Teepee Ltd, t/a HRA Food & Drink: <strong>2017</strong> 14


THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

4. LACTOSE-FREE AND EU REGULATIONS<br />

UK Food<br />

Standards<br />

Agency<br />

There are no EU wide rules relating to reduced lactose<br />

foods. Manufacturers are allowed their own thresholds. 11<br />

<strong>European</strong> Food<br />

Safety<br />

Authority<br />

No single threshold can be prescribed to lactose-free<br />

food due to variation in individual tolerances to lactose. 12<br />

<strong>European</strong><br />

Commission<br />

Milk must be labelled as an allergen. ‘Reduced in’ foods<br />

must have a 30% reduction in named nutrient. 13<br />

To view, please download FULL <strong>Report</strong><br />

EU authorized<br />

health claims<br />

Lactase enzymes improve lactose digestion in lactose<br />

intolerant people. 14<br />

<strong>Lactose</strong>-free products are not covered by specific rules,<br />

but are regulated by a patchwork of EU legislation.<br />

Figure 4.1: Overview of EU regulations covering the development, production and sale of<br />

lactose-free food products.<br />

§ Unlike other free-from products such as gluten-free foods, lactose-free products are not<br />

governed by any particular <strong>European</strong> legislation. There are no regulations stipulating a<br />

‘safe’ level of lactose in lactose-free foods.<br />

§ The amount of lactose that tolerated by lactose intolerance suffers vary from person to<br />

person. Some people may be able to digest a small amount of milk or cheese, whilst<br />

others have to abstain from dairy products completely.<br />

§ Due to this variation in tolerance the <strong>European</strong> Food Safety Authority announced<br />

in 2011 that no lactose threshold can be prescribed to food products claiming to<br />

be lactose-free 12 . Therefore, it is up to manufacturers to set their own thresholds.<br />

All rights reserved, ©Teepee Ltd, t/a HRA Food & Drink: <strong>2017</strong> 15


THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

Product<br />

<strong>Lactose</strong> level<br />

Arla Lactofree milk<br />

Less than 0.03% lactose<br />

Mars lactose-free flavoured milk<br />

Less than 0.1% lactose<br />

To view, please download FULL <strong>Report</strong><br />

Valio Elia lactose-free milk<br />

Less than 0.01% lactose<br />

Philadelphia lactose-free cream cheese Less than 0.01% lactose<br />

Emmi Caffe Latte<br />

Candia Just Milk Semi-Skimmed <strong>Lactose</strong> <strong>Free</strong><br />

Less than 0.01% lactose<br />

Less than 0.01% lactose<br />

Figure 4.2: Differing lactose thresholds claimed by lactose-free brands.<br />

§ Dairy ingredients are controlled by a number of EU regulations. EC Regulation<br />

178/2002 requires that milk must be highlighted as an allergen in the ingredients<br />

list of packaged food. Restaurants must advise consumers of milk as a possible<br />

allergen if asked 13 .<br />

§ EC Regulation 1924/2006 also states that foods that claim to be ‘reduced in…’<br />

must have at least a 30% reduction in the said ingredient. However, no such<br />

overarching rule applies to foods claiming to be ‘free from’ 15 .<br />

§ Health claims surrounding the use of lactase enzymes to improve digestibility of<br />

lactose are authorised by the <strong>European</strong> Union. However, this only applies to<br />

lactase supplements, which are taken with meals to improve lactose digestion.<br />

Information must be given that tolerance to lactose in variable and recommends<br />

seeking professional advice before commencing supplementation 14 .<br />

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5. LACTOSE-FREE PRODUCT CATEGORIES<br />

THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

Plant-based<br />

milk<br />

alternatives<br />

To view, please download FULL <strong>Report</strong><br />

<strong>Lactose</strong>-free<br />

milk products<br />

A2 milk<br />

products<br />

<strong>Lactose</strong>free<br />

products<br />

There are 3 main categories within the lactose-free food sector, which will be<br />

discussed in greater depth in this chapter.<br />

<strong>Lactose</strong>-free milk based products are made from cows’ milk which has been<br />

processed using filtration and enzyme technology. Products in this category include<br />

white milk, flavoured milk, cheeses, butter and yoghurts. These products still contain<br />

trace amounts of lactose.<br />

Plant-based milk alternatives are made out of a wide range of plants including soya,<br />

rice, oats and nuts, which often mimic traditional dairy products. Offerings include<br />

white and flavoured milks, creams, yoghurts, desserts, cheeses and ice-creams.<br />

These items naturally contain no lactose.<br />

a2 milk is a relatively new concept. It is thought that the symptoms of lactose<br />

intolerance are caused by a reaction to the A1 casein protein in cows’ milk. This white<br />

milk product contains only A2 proteins, which are claimed to improve digestibility.<br />

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THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

5.1 LACTOSE-FREE COWS’ MILK<br />

• <strong>Lactose</strong>-free cows’ milk is produced by filtering white milk through a membrane,<br />

before using enzymatic hydrolysis to eliminate most traces of lactose.<br />

• Consumers still reap the nutritional benefits of traditional cows’ milk including<br />

calcium, vitamins B2 and B12. Some lactose-free milks are lower in sugar and<br />

higher in protein than normal milk, as processing filters out the lactose<br />

carbohydrates.<br />

• In a bid to decrease sugar content, Swiss milk processor Emmi inadvertently made<br />

all of their Good Day range lactose-free. As consumers become more and more<br />

aware of the need to cut down on sugar, lactose-free dairy products may find<br />

themselves a natural by-product of this trend.<br />

5.1.1 LACTOSE-FREE COWS’ MILK: ARLA LACTOFREE<br />

Launched: 2006<br />

<strong>Lactose</strong> levels: Below 0.03%<br />

Technology: Filtration and enzyme<br />

Products: Milk, spreads, yoghurt, cream and cheese<br />

Countries: UK and continental EU<br />

Sales: 23% growth in 2015 16<br />

To view, please download FULL <strong>Report</strong><br />

§ Arla Foods, Europe’s largest milk processing cooperative, launched its Lactofree<br />

range in 2006. Arla claims to be the only brand retailing lactose-free cows’ milk in<br />

UK supermarkets 17 , although Marks and Spencer now sell their own-brand milk.<br />

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THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

§ Arla uses filtration technology to remove half the lactose, and then add enzymes<br />

to break down the remaining carbohydrate into glucose and galactose. Arla started<br />

selling this processing technology to other companies in 2010.<br />

§ Arla have reported good growth in the Lactofree range, with value growth<br />

increasing by 23% in 2015. 16<br />

§ Arla plans to sustain this success with product launches that offer lactose-free<br />

alternatives to all major dairy products. They recently launched a lactose-free natural<br />

yoghurt in the UK in June 2016.<br />

5.1.2 LACTOSE-FREE COWS’ MILK: VALIO EILA<br />

Launched: 2001<br />

<strong>Lactose</strong> levels: Below 0.01%<br />

Technology: Filtration and enzyme<br />

Products: Milk, cream, powdered milk, cheese,<br />

yoghurt and butter<br />

Countries: Finland, Estonia, Sweden, Latvia,<br />

Lithuania, Russia & licensees<br />

Sales: Net of €150 million in 2012 18<br />

To view, please download FULL <strong>Report</strong><br />

§ The Finnish dairy company Valio are another key player in the <strong>European</strong> lactosefree<br />

market, with their Eila range of products.<br />

§ Valio first produced their lactose-free range in 2001, using patented filtration and<br />

enzymatic hydrolysis technology. Since 2003 they have sold this technology to licensees<br />

in Spain, United Arab Emirates, Switzerland, Norway, Korea, the Netherlands and<br />

Germany.<br />

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THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

§ Sales of Valio’s lactose-free products were initially promising. In 2001 one million<br />

litres of lactose-free milk were sold within the first two months of operation. Seventy<br />

million litres being sold in 2010. In 2012 net sales for the lactose-free range<br />

amounted to €150million 18 .<br />

§ More recently growth has slowed, the global over-supply of milk has led to poor<br />

export conditions, and imports have swamped the domestic Finnish market. 19<br />

§ Valio’s strength lies in R & D and innovative product launches. They have<br />

developed technology to remove lactose without leaving the sweet taste of glucose,<br />

appealing to those who desire fresh, white milk. Product launches include lactosefree<br />

latte flavoured milks, lactose-free milk powder and barista milk.<br />

5.1.3 LACTOSE-FREE DAIRY PRODUCTS IN THE MAINSTREAM<br />

Mars <strong>Lactose</strong>-free flavoured milk<br />

In 2015, Mars brought out a lactose-free<br />

version of its popular ready-to-drink<br />

confectionery flavoured milk. Available<br />

from some major supermarket retailers, this<br />

product has been well received by lactosefree<br />

bloggers.<br />

To view, please download FULL <strong>Report</strong><br />

“This is a delicious, lactose free, caramel and chocolate milkshake.”<br />

“How does it taste? It’s quite simply Mars milk. Forgive me for the lack of<br />

poetic description but as a lactose-intolerant, the fact that this merely<br />

exists is pure poetry in itself.”<br />

https://lactosefreelovelies.wordpress.com; http://glutenfreecuppatea.co.uk/<br />

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THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

Philadelphia <strong>Lactose</strong>-free cream cheese<br />

After success in <strong>European</strong> markets, Philadelphia<br />

launched a lactose-free version of their cream<br />

cheese in 2014. It is now available in major<br />

supermarkets.<br />

To view, please download FULL <strong>Report</strong><br />

“This product is perfect!! Preserves the taste and texture of cream cheese<br />

but without the lactose. This is great if you're lactose intolerant”<br />

https://hometesterclub.com<br />

<strong>Lactose</strong>-free offerings are starting to be seen in more mainstream brands, including<br />

Mars lactose-free flavoured milk, and Philadelphia lactose-free cream cheese. This<br />

reflects a wider consumer awareness of lactose-intolerance and the response by<br />

manufacturers to meet this growing demand. These products may encourage other<br />

mainstream brands to formulate lactose-free versions of their own products.<br />

5.2 PLANT-BASED DAIRY ALTERNATIVES<br />

The plant-based dairy alternative sector is going from strength to strength, with double<br />

digit sales growth being experienced in Europe. Traditionally the remit of health food<br />

shops, major supermarkets are now stocking a wide variety of these products, as well<br />

as expanding in own-brand lines of soya-based dairy substitutes.<br />

Plant-based milks have a consumer base wider than lactose-intolerant consumer,<br />

comprising of vegans, people suffering from a cows’ milk allergy and those who<br />

perceive the products to be healthier than traditional dairy.<br />

Plant-based milks are naturally lactose-free, and have historically been the go-to product for<br />

lactose-intolerant consumers, as until recently, lactose-free dairy products were rare in the UK.<br />

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THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

Plant-based dairy alternatives are made from a variety of ingredients. These<br />

include:<br />

§ Soya<br />

§ Oats<br />

§ Rice<br />

§ Almond<br />

§ Coconut<br />

§ Hazelnut<br />

To view, please download FULL <strong>Report</strong><br />

§ Cashew<br />

§ Hemp<br />

§ Pumpkin seed<br />

5.2.1 BRIEF HISTORY OF PLANT-BASED MILKS<br />

2 AD<br />

Soya milk first<br />

made in ancient<br />

China<br />

1950s<br />

Hong Kong based<br />

company Vitasoy<br />

sees commercial<br />

success.<br />

1980s<br />

Soya milk becomes<br />

popular in Europe,<br />

with the launch of<br />

Alpro.<br />

To view, please download FULL <strong>Report</strong><br />

20 th century<br />

Scientific interest in<br />

soya milk for people<br />

for milk allergy.<br />

1970s<br />

New technology<br />

improves taste<br />

of soya milk.<br />

Present<br />

Product innovation and<br />

the use of new<br />

ingredients, including<br />

nuts, seeds & grains.<br />

Figure 5.1: Historical global development of plant-based milks<br />

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THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

§ Plant-based ‘milks’ have been consumed by different cultures for centuries. Soya<br />

milk is thought to originate from China as far back as the 3rd century 20 .<br />

§ It wasn’t until the 20 th century that soya milk really gained recognition, both in China<br />

and Europe, after commercial success from Vitasoy in Hong Kong and increased<br />

scientific interest in its use for infants with cows’ milk allergy.<br />

§ In the 1970’s, new techniques in producing soya milk greatly improved the taste of<br />

the product, making it more appealing outside of China. The invention of Tetrapak<br />

packaging allowed a long-life product which could be exported overseas.<br />

§ In Europe, real commercial interest in plant-based milk alternatives really emerged in<br />

the 1980’s with the rise of veganism and health conscious consumers.<br />

5.2.2 CURRENT TRENDS IN PLANT-BASED MILK PRODUCTS<br />

There is a wide variety of products in the plant-based dairy alternative category, with<br />

companies focusing on luxury products and innovative flavours. Inventive ingredients<br />

such as almond, hemp and oats are now being used as the health effects of soya are<br />

being questioned.<br />

The <strong>European</strong> plant-based milk<br />

sector is currently seeing a period<br />

of growth - in 2014/15 the market<br />

grew by 19% in the UK,<br />

Netherlands, Belgium, Italy and<br />

Germany.<br />

Alpro, a key player in the <strong>European</strong><br />

plant-based milk market, has<br />

reported even higher growth in<br />

2015, with sales growing by 41% in<br />

Germany and 18% in the UK. 21<br />

% growth in sales 2015<br />

50<br />

40<br />

30<br />

10<br />

0<br />

Growth of Alpro’s plant-based<br />

dairy alternative sales in Europe<br />

To<br />

20view, please download<br />

FULL <strong>Report</strong><br />

Figure 5.2: Growth of plant-based milk sales by<br />

the company Alpro 21<br />

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5.2.3 PLANT-BASED MILKS AND HEALTH<br />

THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

§ Some consumers believe that plant-based dairy alternatives are the healthier<br />

option when compared with traditional white cows’ milk. Naturally low in saturated<br />

fats and high in fibre, these dairy alternatives may be attractive to people watching<br />

their weight or cholesterol.<br />

§ Plant-based milks are naturally dairy & lactose-free, making them a good<br />

alternative for people suffering from milk allergies or lactose-intolerance. These<br />

milks are also free of animal products, making them a suitable dairy alternative for<br />

vegans.<br />

§ Plant-based milks lack the calcium and vitamin B12 naturally found in cows’ milk.<br />

However, plant-based milks are often fortified with these compounds to optimise<br />

consumer health.<br />

§ Plant-based milks often lack the protein found in dairy products, which could affect<br />

muscle production in the body. Protein also adds to the ‘full-up’ feeling, so<br />

consumers of non-dairy milks may have to consume more to feel satiated.<br />

§ Some plant-based milks contain potentially harmful compounds if consumed in<br />

large quantities - soya milk contains phytoestrogen which can harm both male and<br />

female fertility, whilst rice milk contains very low-levels of arsenic.<br />

§ Some plant-based milks contain added sugar, so consumers need to check the<br />

packaging for nutritional content.<br />

§ Nutritional values of plant-based milks differ by ingredients and product. Soya milk<br />

has a fat and protein content close to cows’ milk, whilst oat milk is low in fat and<br />

high in dietary fibre (see figure 5.3).<br />

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THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

Organic soya<br />

milk 1<br />

Oat<br />

milk 2<br />

Almond<br />

milk 3<br />

Semi-skimmed<br />

cows’ milk 4<br />

Nutrient/ 100ml<br />

Energy 160 kJ 150 kJ 55kJ 209kJ<br />

Fat 1.7g 0.5g 1.3g 1.8g<br />

Saturated 0.3g 0.1g 0.1g 1.1g<br />

To view, please download FULL <strong>Report</strong><br />

Mono-unsaturated 0.4g - 0.9g -<br />

Polyunsaturated 1.0g - 0.3g -<br />

Carbohydrates 2.4g 6.5g 0.1g 4.8g<br />

Sugars 2.4g 4g 0.1g 4.8g<br />

Fiber 0.5g 1.2g 0.2g 0g<br />

Protein 3g 1g 0.5g 3.6g<br />

Calcium 0mg 0mg 0mg 124mg<br />

Figure 5.3: Nutritional composition of soya, oat and cows’ milk<br />

(1. Alpro organic soya, no added fortification; 2. Oatly organic oat drink, no added fortification; 3. Alpro<br />

almond unroasted unsweetened; 4. Tesco semi-skimmed milk)<br />

Health benefits of<br />

plant-based milks<br />

Health benefits of<br />

cows’ milk<br />

Much lower levels of saturated fats. May<br />

be appealing for those wishing to lose<br />

weight.<br />

Contains calcium. 16% of RDI in 100ml<br />

of semi-skimmed milk- vital for tooth<br />

and bone health.<br />

To view, please download FULL <strong>Report</strong><br />

Naturally lactose-free so suitable for<br />

those suffering lactose intolerance.<br />

More fibre than cows’ milk. Maintains a<br />

healthy digestive system.<br />

Higher in protein- the body’s building<br />

blocks- than plant-based alternatives.<br />

Includes vitamin B12, which is lacking<br />

in plant-based milks.<br />

Figure 5.4: Comparing health benefits of plant-based milks and cows’ milk<br />

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THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

Launched: 1980’s<br />

<strong>Lactose</strong> levels: 0%<br />

Products: Soya milks, yoghurts, creams<br />

& desserts; nut milks<br />

Countries: 54 countries across the world<br />

Sales: Turnover of €410m in 2014, experienced<br />

27% growth in 2014. 21<br />

To view, please download FULL <strong>Report</strong><br />

5.2.4 PLANT-BASED DAIRY ALTERNATIVE : ALPRO<br />

§ Alpro was launched in Belgium in 1980, and now has factories in Belgium, the UK<br />

and France. They directly employ over 1000 employees, and sell their produce in<br />

54 countries worldwide.<br />

§ Alpro claim a 70% net growth in sales between 2012 and 2015, with a turnover of<br />

€410m in 2014. 22<br />

§ In 2012 Alpro expanded its product range away from purely soya based products<br />

to encompass other plant-based milks including almond, hazelnut and coconut. The<br />

company also launched a luxury soya-based yoghurt and dessert range including<br />

flavours such as ‘Blackcurrant, elderberry & pomegranate’; ‘ Strawberry & rhubarb;<br />

and ‘Lemon & lime’.<br />

§ Alpro experienced 27% growth in 2014. Although sales of their traditional soya milks did<br />

increase, the largest areas of growth were nut-based milks, and innovative flavoured<br />

products. Soya yoghurts did particularly well, experiencing 18% growth in 2014/15. 21<br />

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THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

5.2.5 PLANT-BASED MILK PRODUCTS: SUPERMARKET OWN-BRANDS<br />

Morrisons<br />

Morrisons long-life soya drink<br />

M savers UHT soya drink unsweetened/ sweetened<br />

Morrisons fresh soya drink unsweetened<br />

M organic long-life soya drink unsweetened<br />

Sainsbury’s<br />

Sainsbury’s soya milk alternative unsweetened/ sweetened<br />

Sainsbury’s fresh soya milk unsweetened/ sweetened<br />

Sainsbury’s deliciously free-from strawberry iced dessert<br />

Sainsbury’s deliciously free-from coconut vanilla iced dessert<br />

ASDA<br />

ASDA organic long-life soya milk unsweetened/ sweetened<br />

ASDA fresh soya milk unsweetened/ sweetened<br />

ASDA long-life soya milk sweetened<br />

ASDA sweetened almond milk<br />

£0.84p/l<br />

£0.59p/l<br />

£1.11/l<br />

£1/l<br />

£0.85/l<br />

£1.15/l<br />

£0.63/100ml<br />

£0.63/100ml<br />

£1/l<br />

£1.10/l<br />

£0.85/l<br />

£1.25/l<br />

Waitrose<br />

Essential Waitrose long-life soya drink unsweetened/ sweetened<br />

£0.85/l<br />

Waitrose almond milk unsweetened/ sweetened<br />

£1.49/l<br />

To view, please download FULL <strong>Report</strong><br />

Tesco<br />

Tesco long-life everyday value soya milk unsweetened/ sweetened<br />

Tesco long-life soya milk unsweetened/ sweetened<br />

Tesco organic long-life soya milk unsweetened/ sweetened<br />

Tesco free-from fresh soya milk unsweetened/ sweetened<br />

Tesco almond milk unsweetened/ sweetened<br />

Tesco free-from fresh almond milk unsweetened/ sweetened<br />

Tesco free-from rice drink<br />

Tesco free-from mango yoghurt<br />

Tesco free-from raspberry passionfruit yoghurt<br />

Tesco free-from blueberry yoghurt<br />

Tesco free-from peach yoghurt<br />

Tesco free-from natural yoghurt<br />

Tesco free-from chocolate dessert<br />

Tesco free-from crème caramel dessert<br />

Tesco free-from Italian coffee dessert<br />

Tesco free-from banana soya fromage frais<br />

Tesco free-from chocolate mousse<br />

Tesco free-from rice pudding<br />

Tesco free-from mango coconut pudding<br />

Tesco free-from tapioca pudding<br />

Tesco free-from strawberry & vanilla cones<br />

Tesco free-from toffee & vanilla cones<br />

Figure 5.5: Own-brand plant-based dairy alternatives in major UK supermarkets<br />

£0.59/l<br />

£0.75/l<br />

£1/l<br />

£1.10/l<br />

£1.40/l<br />

£1.50/l<br />

£1/l<br />

£0.31/100g<br />

£0.31/100g<br />

£0.31/100g<br />

£0.31/100g<br />

£0.25/100g<br />

£0.31/100g<br />

£0.31/100g<br />

£0.89/100g<br />

£0.49/100g<br />

£0.89/100g<br />

£1.12/100g<br />

£1.12/100g<br />

£1.12/100g<br />

£0.31/100ml<br />

£0.46/100ml<br />

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THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

Supermarket retailers are beginning to respond to growth in the dairy-free<br />

sector by developing their own ranges in plant-based dairy alternatives.<br />

§ Tesco is leading the trend with a large range of dairy-free milks, yoghurts, desserts<br />

and soya ‘cheeses’. Tesco launched their own-brand, free-from chilled food range<br />

in early 2012, with a variety of innovative formulations and flavours.<br />

To view, please download FULL <strong>Report</strong><br />

§ Other retailers are starting to expand their dairy-free markets. Sainsbury’s offers<br />

dairy-free coconut based iced desserts, whilst both ASDA and Waitrose sell an<br />

own brand almond milk (see figure 5.5).<br />

To view, please download FULL <strong>Report</strong><br />

Whilst these products are suitable for lactose intolerant consumers, their consumer<br />

base stretches beyond this to vegans, those attempting to lose weight, and those<br />

suffering from allergies such as that to milk protein.<br />

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THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

5.3 A2 MILK<br />

§ The a2 Milk company was launched in 2000 by New Zealand scientist Dr Corran<br />

McLachlan. He suggested that cows produce two types of β-casein protein- A1 & A2.<br />

§ It is claimed that the A1 variant of the protein is harder to digest than A2 protein,<br />

causing lactose-intolerance like symptoms. The a2 Milk company go far to as say that<br />

lactose-intolerance could be a myth, with symptoms caused instead by the A1 protein 23 .<br />

§ Some cows naturally only produce A2 proteins.<br />

The a2 Milk company use DNA testing to<br />

create dairy herds which produce milk with<br />

consisting of the supposedly healthier A2<br />

proteins 23 .<br />

§ The company launched in New Zealand in<br />

2000, Australia in 2007 and the UK in 2012.<br />

From July 2015 and June 2016 the company<br />

experienced outstanding growth, with net profit<br />

rising from - NZ$2.1million (-£1.16m) to<br />

NZ$352.8 million (£195.45m) over the year 24 .<br />

§ This growth was mainly driven by sales of a2 baby formula in Australia, New<br />

Zealand and China, and white milk sales in Australia.<br />

§ a2 Milk is available in many UK supermarket chains, with over 20 farms supplying<br />

the operation. The company report improved growth here, and are trying to<br />

reposition themselves as a specialist milk brand. A launch is also being planned<br />

for the US market 24 .<br />

All rights reserved, ©Teepee Ltd, t/a HRA Food & Drink: <strong>2017</strong> 29


5.3.1 A2 PROTEINS AND HUMAN HEALTH<br />

THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

There is some controversy over whether A2 proteins have an adverse effect on human<br />

digestion (see figure 5.6). Since the 1980’s, theories have emerged hypothesising<br />

that the b-casein protein slows gut transit time, permeates the gut wall into the blood<br />

stream, and increases digestive complaints. 23<br />

However, several reviews of the evidence, including one from the <strong>European</strong> Food<br />

Safety Authority (EFSA), have not found any conclusive associations between A2<br />

proteins and adverse health effects. The EFSA review did however admit that A1 and<br />

A2 proteins are digested differently by the human body. 28<br />

In the EU, this lack of scientific consensus creates challenges for businesses such as<br />

the a2 Milk Company, as it is against the law to make health claims that have not been<br />

substantiated by the <strong>European</strong> Commission. This causes barriers in marketing<br />

produce to consumers.<br />

Evidence for<br />

Evidence against<br />

“Consumption of milk containing A1<br />

β-casein was associated with<br />

increased gastrointestinal<br />

inflammation.”<br />

Sun et al (2016) 25<br />

“This review concludes that there is<br />

no convincing or even probable<br />

evidence that the A1 beta-casein of<br />

cow milk has any adverse effect in<br />

humans.”<br />

Truswell (2005) 26<br />

To view, please download FULL <strong>Report</strong><br />

“Results suggest differences in<br />

gastrointestinal responses in some<br />

adult humans consuming milk<br />

containing beta-casein of either the<br />

A1 or the A2 beta-casein type.”<br />

Ho et al (2014) 27<br />

“A cause-effect relationship<br />

between the intake of [A1 proteins]<br />

and non-communicable disease<br />

cannot be established.”<br />

EFSA (2009) 28<br />

Figure 5.6: Evidence for and against the claim that A1 protein has adverse health<br />

effects.<br />

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THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

6. LACTOSE-FREE: VIEWS FROM THE UK FOOD INDUSTRY<br />

The lactose-free<br />

category is felt to be<br />

undefined as there are<br />

no clear standards<br />

or regulations to<br />

work with.<br />

Manufacturers<br />

are unsure which<br />

health claims can be legally<br />

made when it comes to<br />

lactose-free<br />

products.<br />

To view, please download FULL <strong>Report</strong><br />

The variety<br />

of tolerances to lactose<br />

make specific health<br />

claims hard to make.<br />

Lack of a<br />

central organisation<br />

representing lactoseintolerant<br />

consumers means<br />

limited feedback to<br />

industry.<br />

Figure 6.1: Barriers facing manufacturers and retailers entering the lactose-free market. 11<br />

In 2010, the UK Food Standard Agency released a report into dairy-free and lactosefree<br />

foods. Through interviews and consultation with businesses and organisations<br />

within the UK food industry, several interesting points were raised:<br />

§ The food industry perceived ‘gluten-free’ products easier to work with than<br />

‘lactose-free’, as there are clear guidelines on permissible levels of gluten in<br />

gluten-free food, whilst no such thresholds exist within lactose-free legislation.<br />

§ Some manufacturers felt that there is not enough consumer demand to enter the<br />

lactose-free sector, preferring to cater for the mainstream. There were concerns<br />

around the difficulty of producing lactose-free foods at a price suitable for<br />

supermarkets.<br />

§ Manufacturers were equally concerned about the lack of clear regulations to<br />

conform to. It was unclear about what foods can be legally called dairy or lactosefree,<br />

and what health claims could be made within the law. Many manufacturers<br />

claimed to avoid any health claims in case of negative repercussions.<br />

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THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

§ Many businesses stated that the lack of a representing organisation for lactoseintolerance<br />

sufferers meant that little feedback was returning to the food industry.<br />

The gluten-free industry is informed by Coeliac UK, an organisation representing<br />

people with a gluten allergy, providing a vital means of communication between<br />

businesses and consumers, but no such organization exists for lactose-free.<br />

7. FUTURE TRENDS IN THE LACTOSE-FREE SECTOR<br />

There are several key trends which should be considered when thinking about the<br />

future of the lactose-free sector.<br />

CONSUMERS<br />

PRODUCT<br />

DEVELOPMENT<br />

RETAILERS<br />

To view, please download FULL <strong>Report</strong><br />

§ Non- EU<br />

Migration<br />

§ Overseas<br />

markets<br />

§ Technological<br />

advances<br />

§ Reduced<br />

sugar<br />

§ Luxury<br />

products<br />

§ Development<br />

of own-brand<br />

dairy free<br />

ranges<br />

Figure 7.1: future trends in the lactose-free market<br />

7.1 CONSUMER TRENDS<br />

Non- EU<br />

Migration<br />

Current trends in migration from areas of high prevalence<br />

of lactose intolerance, such as North Africa and the Middle<br />

To view, please download FULL <strong>Report</strong><br />

East, could expand the EU lactose-free market in the<br />

future.<br />

All rights reserved, ©Teepee Ltd, t/a HRA Food & Drink: <strong>2017</strong> 32


7.2 PRODUCT DEVELOPMENT<br />

THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

Technical<br />

advances<br />

Science and technology are driving the development of<br />

lactose-free products. New discoveries such as a2 milk<br />

and enhanced filtration methods could shape the future of<br />

the sector.<br />

Reduced<br />

sugar<br />

Reduced sugar can be achieved by removing lactose<br />

from products. <strong>Lactose</strong>-free formulations could become a<br />

To view, please download FULL <strong>Report</strong><br />

natural side effect of the food industry’s attempts to<br />

reduce sugar in food.<br />

Luxury<br />

products<br />

High-end products such as luxury yoghurts and deserts<br />

represent the biggest market growth in plant-based dairy<br />

alternatives and this shows little sign of abating.<br />

Innovative flavours are being developed across all<br />

lactose-free sectors.<br />

7.3 RETAILER INNOVATION<br />

Own-brand<br />

development<br />

Some major retailers have started to expand their ownbrand<br />

plant-based milk alternative ranges, bringing<br />

down the price of these types of lactose-free products.<br />

To view, please download FULL <strong>Report</strong><br />

This development indicates a greater consumer interest<br />

in dairy-free products, for a variety of health and ethical<br />

reasons. Marks and Spencer is the first retailer yet to<br />

sell their own-branded lactose-free dairy milk.<br />

All rights reserved, ©Teepee Ltd, t/a HRA Food & Drink: <strong>2017</strong> 33


8. CONCLUSIONS<br />

THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

§ <strong>Lactose</strong>-intolerance is a non-allergenic condition, where the consumption of<br />

lactose containing foods induces a range of digestive issues. This is caused by the<br />

inability to produce the lactase enzyme in the gut.<br />

§ The main treatment for lactose-intolerance is abstinence from dairy foods that<br />

contain high levels of lactose. Not all dairy products contain the same lactose<br />

concentrations. White milk contains high levels of lactose, whilst hard cheeses<br />

contain almost none. Goat, cow and sheep milk all contain similar levels of lactose.<br />

§ The prevalence of lactose intolerance differs across the world. Only 10% of people<br />

from Northern <strong>European</strong> descent are lactose-intolerant, whilst populations<br />

originally from South East Asia can have up to a 90% prevalence. This variation<br />

has implications for the lactose-free market, especially when considering current<br />

migration trends and export opportunities.<br />

To view, please download FULL <strong>Report</strong><br />

§ <strong>Lactose</strong>-free products are not governed by specific regulations as, say, the glutenfree<br />

sector, but are covered by a patchwork of legislation. In 2011, the <strong>European</strong><br />

Food Safety Authority (EFSA) concluded that individual tolerances to lactose differ<br />

largely, so a ‘safe’ threshold for lactose content in lactose-free food cannot be<br />

prescribed. It is up to manufacturers to decide what constitutes lactose-free, with<br />

lactose levels typically ranging from 0.1% to 0.01%.<br />

§ <strong>Lactose</strong>-free cow’s milk is produced by removing lactose through filtration and<br />

enzymatic technology. This is the same process used in sugar reduction<br />

technology. Arla, a key player in the <strong>European</strong> lactose-free market, has<br />

experienced good growth with their Lactofree range.<br />

§ Plant-based milk alternatives, such as soya, almond and hazelnut milk, are<br />

becoming more and more popular in Europe. These drinks are naturally lactosefree,<br />

but are aimed at a wide range of consumers, including vegans, consumers<br />

with milk allergies and intolerances, and people who perceive milk as being bad<br />

for health or weight. Alpro, an important company in the sector, is experiencing<br />

growth, especially in its range of luxury flavoured yoghurts.<br />

All rights reserved, ©Teepee Ltd, t/a HRA Food & Drink: <strong>2017</strong> 34


THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

§ An innovative but slightly controversial product has emerged from New Zealand.<br />

The a2 Milk Company claims that lactose intolerance symptoms are in fact caused<br />

by the indigestible A1 protein and have developed dairy herds which produce only<br />

A2 milk. Although growth was experienced in Australia and New Zealand, such<br />

progression was not seen in the UK.<br />

To view, please download FULL <strong>Report</strong><br />

§ Many manufacturers feel apprehensive about entering the lactose-free market due<br />

to lack of clear guidelines on suitable lactose thresholds and permitted health<br />

claims. There are also worries that the lactose-free consumer segment is not large<br />

enough to create a profitable business.<br />

All rights reserved, ©Teepee Ltd, t/a HRA Food & Drink: <strong>2017</strong> 35


REFERENCES<br />

THE EUROPEAN LACTOSE-FREE MARKET <strong>2017</strong>/<strong>2018</strong><br />

1) Allergy UK (2012), Dairy intolerance & lactose intolerance [online], available at:<br />

https://www.allergyuk.org/common-food-intolerances/dairy-intolerance accessed 19/08/16<br />

2) NHS (2016), <strong>Lactose</strong> Intolerance [online], available at www.nhs.uk/Conditions/lactose-intolerance accessed 01/08/16<br />

3) Alm, L (1982), Effect of fermentation on lactose, glucose & galactose content in milk and suitability of fermented milk<br />

products for lactose intolerant individuals, Journal of Dairy Science, 65: 446- 352<br />

4) Yangilar, F (2013), As a Potentially Functional Food: Goats’ Milk and Products. Journal of Food and Nutrition Research,<br />

1(4), 68-81.<br />

5) University College London (2013), Global Lactase Persistence Association Database [online], http://www.ucl.ac.uk/macelab/resources/glad<br />

accessed 22/08/2016<br />

6) World Bank (2016), GDP per capita (current US$), World Bank national accounts data, and OECD National Accounts<br />

data files [online] available at: http://data.worldbank.org/indicator/NY.GDP.PCAP.CD?end=2015&locations=CN-PE-<br />

ZA&start=1976 accessed 21/07/16<br />

7) Genetic Disorders (2016), Race and inheritance [online], available at:<br />

http://www.geneticdisorders.info/article/4795184343/race-inheritance-and-iq/<br />

8) Canadian Dairy Information Centre (2015), Global Consumption of Dairy Products [online], available at<br />

http://www.dairyinfo.gc.ca/index_e.php?s1=dff-fcil&s2=cons&s3=consglo, accessed 20/07/16<br />

9) Office for National Statistics (2016), Migration Statistics Quarterly <strong>Report</strong>: May 2016 [online] available at:<br />

http://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/internationalmigration/bulletins/migrations<br />

tatisticsquarterlyreport/may2016, accessed 21/07/16<br />

10) Refugee Council (2016), Statistics on refugees and asylum seekers [online], available at<br />

http://www.refugeecouncil.org.uk/stats accessed 27/07/16<br />

11) Food Standards Agency (2015), Understanding of labelling terms '<strong>Lactose</strong> free', 'Milk free' or 'Dairy free' [online],<br />

available at www.food.gov.uk/sites/default/files/multimedia/pdfs/publication/understandfoodlabelling.pdf accessed<br />

20/08/16<br />

12) <strong>European</strong> Food Safety Authority (2011), Scientific opinion on the substantiation of health claims related to foods with<br />

reduced lactose content, EFSA Journal, 9(6):2236<br />

13) Regulation (EC) No 178/2002 of the <strong>European</strong> Parliament and of the Council of 28 January 2002 laying down the general<br />

principles and requirements of food law, establishing the <strong>European</strong> Food Safety Authority and laying down procedures in<br />

matters of food safety, Official Journal, 31: 1- 24<br />

14) <strong>European</strong> Commission (2016), EU Register of nutrition and health claims made on foods [online], available at<br />

http://ec.europa.eu/nuhclaims/, accessed 21/07/16<br />

15) Regulation (EC) No 1924/2006 of the <strong>European</strong> Parliament and of the Council of 20 December 2006 on nutrition and<br />

health claims made on foods, Official Journal,<br />

16) Arla Foods (2016), Arla Foods UK business group delivers strong 2015 as full year results are announced [online],<br />

available at: http://www.arlafoods.co.uk/overview/news--press/2016/pressrelease/arla-foods-uk-business-group-deliversstrong-2015-as-full-year-results-are-announced-1319128<br />

accessed 14/07/2016<br />

17) Arla Foods (2016b), Arla Foods expands Lactofree range with natural yogurt [online], available at:<br />

http://www.arlafoods.co.uk/overview/news--press/2016/pressrelease/arla-foods-expands-lactofree-range-with-naturalyogurt-1456128/<br />

accessed 25/07/16<br />

18) Valio (2013), Valio Eila® lactose free success for ten years [online] available at: http://www.valio.com/articles/valio-eilalactose-free-success-for-ten-years<br />

accessed 14/07/2016<br />

19) Valio (2016), From the 2015 recession to developing growth in 2016 [online] available at: http://www.valio.com/from-the-<br />

2015-recession-to-developing-growth-in2016, accessed 16/07/16<br />

20) Soy Info Centre (2004), History of Soymilk and Dairy-like Soymilk Products [online] available at:<br />

http://www.soyinfocenter.com/HSS/soymilk1.php, accessed 10/08/16<br />

21) Alpro (2015), Press release: Alpro invests 80 million Euro in 2015 [online] available at:<br />

https://www.alpro.com/corporate/upload/press/misc/20150306-persbericht-alpro-investeert-en-groeit-en.pdf accessed<br />

07/07/16<br />

22) Alpro (2016), Corporate [online] available at https://www.alpro.com/corporate/uk/about accessed 07/07/16<br />

23) The a2 Milk Company (2016), About a2 Milk [online], available at: https://www.a2milk.co.uk/about-a2-milk/ accessed<br />

10/07/16<br />

24) The a2 Milk Company (2016b), Exceptional growth in revenue and earnings in 2016: Increasing focus on nutritional<br />

products [online], available at https://thea2milkcompany.com/newsroom/market-announcements/exceptional-fy16-<br />

company-results/ accessed 24/08/16<br />

25) Sun, J (2016), Effects of milk containing only A2 beta casein versus milk containing both A1 and A2 beta casein proteins<br />

on gastrointestinal physiology, symptoms of discomfort, and cognitive behavior of people with self-reported intolerance to<br />

traditional cows’ milk, Nutrition Journal, 15: 35<br />

26) Truswell, A. S (2005), A2 milk: a critical review, <strong>European</strong> Journal of Clinical Nutrition, 59(5):623-31<br />

27) Ho, S (2014), Comparative effects of A1 versus A2 beta-casein on gastrointestinal measures: a blinded randomised<br />

cross-over pilot study, <strong>European</strong> Journal of Clinical Nutrition, 68(9):994-1000<br />

28) <strong>European</strong> Food Safety Authority (2009), Review of the potential health impact of β-casomorphins and related peptides,<br />

EFSA Scientific <strong>Report</strong>, 231: 1-107<br />

All rights reserved, ©Teepee Ltd, t/a HRA Food & Drink: <strong>2017</strong> 36


Rockwood House,<br />

Parkhill Road<br />

Torquay, Devon<br />

TQ1 2DU<br />

Telephone: 01803 203387<br />

Registered as a Limited Company<br />

number 7654941 in England &<br />

Wales.<br />

VAT registration number<br />

GB 113 8468 16<br />

<strong>Market</strong><br />

Research<br />

Commercial<br />

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