Customized report – Free from lactose and free from dairy cheese in Germany and the United Kingdom

October 2018

In general, retail value sales of free from products, which include packaged food products that are free from lactose and free from dairy, among others, have seen considerable growth in 2017 in Germany and the United Kingdom (U.K.).

It is becoming more common to avoid dairy without having a specific food intolerance. Thus, growth will come from both those needing to avoid and wanting to avoid.

Retail sales and prices

The tables below show the historic numbers for free from lactose cheese sold on the German and British markets

Free from lactose dairy products, by type, in Germany
Historic retail sales (US$ millions) and growth (%)

Type	2013	2014	2015	2016	2017[e]	CAGR* 2013-2017[e]
Free from lactose cheese	16.1	16.8	17.7	18.4	19.3	5%
Free from lactose milk	149.8	158.2	168.6	178.1	187.7	6%
Free from lactose other dairy	43.1	47.9	53.5	58.4	61.8	9%
Free from lactose yoghurt	120.2	127.1	134.9	142.8	150.9	6%
Total free from lactose dairy	329.2	350.0	374.6	397.7	419.7	6%
Source: Euromonitor International, 2017 e: Estimate *CAGR: Compound annual growth rate

Free from lactose dairy products, by type, in the United Kingdom
Historic retail sales (US$ millions) and growth (%)

Type	2013	2014	2015	2016	2017[e]	CAGR* 2013-2017[e]
Free from lactose cheese	14.6	17.4	19.5	22.1	26.1	16%
Free from lactose milk	26.3	29.7	30.6	36.8	41.1	12%
Free from lactose other dairy	1.1	1.6	1.2	1.0	1.0	−2%
Free from lactose yoghurt	20.9	21.2	21.4	26.9	30.9	10%
Total free from lactose dairy	62.8	69.9	72.6	86.8	99.2	12%
Source: Euromonitor International, 2017 e: Estimate *CAGR: Compound annual growth rate

According to Euromonitor International (2017), there has been an overall decline in dairy retail sales in Western Europe, led by the U.K. and Italy. Even though retail sales for non-dairy cheese alternatives are not currently available, a general look at the growth of retail sales of the non-dairy product category show an increasing preference of consumers towards dairy-free products.

A growing number of consumers in Germany and the U.K. avoid dairy, believing themselves not only to be sensitive to milk sugar, but to dairy proteins as well. Some are simply seeking to reduce the animal-derived food component of their diets, be it for health, ethical or sustainability reasons.

In Germany, free from dairy saw a 4% growth from 2013 to 2017, probably as a reflection of the greater movement towards plant-based food. However, this trend was mainly seen in health food stores and was not yet in the mainstream.

In the U.K., the free from dairy category recorded an estimated growth of 13% from 2013 to 2017, with free from dairy other milk alternatives even more dynamic with an increase of 49% (including plant-based alternatives, such as nut and cereal milks).

Dairy-free products, by type, in Germany
Historic retail sales (US$ millions) and growth (%)

Type	2013	2014	2015	2016	2017[e]	CAGR* 2013-2017[e]
Free from dairy ice cream alternatives	0.2	0.2	0.3	0.3	0.4	19%
Free from dairy milk alternatives	139.9	149.7	154.1	158.2	161.4	4%
Free from dairy soy milk	123.7	130.6	132.3	133.9	134.4	2%
Free from dairy other milk alternatives	16.2	19.1	21.7	24.3	26.9	14%
Free from dairy soy chilled and shelf stable desserts	22.0	23.2	24.0	24.5	25.0	3%
Free from dairy soy yoghurt	56.6	59.9	62.8	66.0	68.5	5%
Total dairy-free	218.6	233.0	241.2	249.0	255.3	4%
Source: Euromonitor International, 2017 e: Estimate CAGR: Compound annual growth rate Note*: Data for cheese is not currently available

Dairy-free products, by type, in the United Kingdom
Historic retail sales (US$ millions) and growth (%)

Type	2013	2014	2015	2016	2017[e]	CAGR* 2013-2017[e]
Free from dairy ice cream alternatives	8.2	8.5	9.1	9.5	10.2	6%
Free from dairy milk alternatives	178.3	197.6	223.9	261.6	295.5	13%
Free from dairy soy milk	151.4	156.4	158.7	161.6	163.9	2%
Free from dairy other milk alternatives	26.9	41.2	65.2	100.0	131.6	49%
Free from dairy soy chilled and shelf stable desserts	2.8	2.9	3.1	3.2	3.3	4%
Free from dairy soy yoghurt	31.4	32.4	37.0	38.6	44.8	9%
Total dairy-free	220.6	241.4	273.1	312.9	353.7	13%
Source: Euromonitor International, 2017 e: Estimate CAGR: Compound annual growth rate Note*: Data for cheese is not currently available

Example of products

According to Mintel, between January and December 2017, a total of eighteen products were launched with a dairy-free claim – nine in Germany and nine in the U.K. All dairy-free products belong to the "processed cheese" sub-category and were also labelled with the claim low/no/reduced allergen. In many cases, products had also the claim no animal ingredients, vegan, gluten free or low/no/reduced lactose. Six of these eighteen products had an import status, and two out of the eighteen had a "spreadable" texture. Their price ranged between US$2.97 and US$4.27.

Note: The dairy-free claim is used when on-pack terms highlight that the product is dairy-free. Products that state to be free from milk or non-dairy may contain milk proteins or other milk derived ingredients. The dairy-Free claim would only be captured for 'free from milk' and 'non-dairy' products when they are actually free from dairy and dairy derivatives.

Below is a snapshot of the eighteen cheese alternatives launched in Germany and the U.K. in 2017 (data available until the beginning of December).