Lactose-free milk gains momentum in India

India is the world’s largest producer and consumer of milk. According to the USDA Dairy and Products Annual India 2025 report, India’s fluid milk production is forecasted at 221.4 million metric ton (MMT) for the calendar year 2026, up by over 2 per cent from 216.5 MMT in 2025. Even as the country’s milk production caters to almost all of its local demand, a silent but significant shift can be seen in India’s dairy landscape.

As an increasing number of Indians are becoming more aware of their health and well-being and with a high prevalence of lactose intolerance which is estimated to affect a substantial portion of the population, the market for lactose-free milk is surging. What was once a niche offering in metro cities is rapidly moving into the mainstream and witnessing double digit growth. This surge is fuelled by convenience, variety and the promise of traditional dairy goodness that comes without the digestive discomfort of milk that some would face.

The growth trajectory for specialised dairy is robust, with the overall dairy alternatives market projected to reach up to USD 3.1 billion by 2033, a large part of which is driven by both plant-based and traditional lactose-free milk options. Consumers are actively seeking products that support digestive health, leading to a surge in demand in this segment.

Health and Awareness as Key Drivers

The main propellant behind this trend is the growing recognition and diagnosis of lactose intolerance. For decades, symptoms like bloating and discomfort after consuming milk were often dismissed. Now, as health awareness rises, more consumers are linking these issues to lactose malabsorption and seeking remedies.

To make lactose free milk, lactase enzyme is added in milk before its final packing. There is nothing artificial in this process. The enzyme occurs naturally in the human gut. This enzyme breaks down complex sugar or lactose into simpler sugars like glucose and galactose before it even gets consumed. This makes it naturally sweeter and easier to digest.

The fundamental shift lies in consumer education. A large segment of urban and semi-urban consumers are actively seeking dairy solutions that align with their wellness goals without compromising on the nutritional value of milk. The segment’s appeal lies in its ability to offer a direct substitute for regular milk, making it easy for consumers to prepare traditional Indian foods like chai, kheer or even pedas without altering their recipes or compromising the taste.

“We pioneered lactose free milk, and today we have a big range of lactose free products. We are creating a portfolio of products... and that would help at least gain consumer traction for those who are not able to digest the milk with regular lactose because of the absence of lactose enzyme,” said Jayen Mehta, MD of Amul (GCMMF), a pioneer in the lactose-free space. Amul’s range of lactose-free products extends beyond just milk to include lactose-free ice cream, lactose-free high protein dahi, single-country coffee variants, whey protein concentrate and even lactose-free peda.

The Role of Aseptic Packaging and Shelf Life

A critical enabler of the lactose-free milk story in India is the innovation in packaging, specifically the use of Tetra Pak carton containers, that has democratised access to this product category.

“On the supply chain side, most lactose-free products in India today are still small-batch and cold-chain based. The critical thing to watch out for in this category is process-pack alignment. In lactose-free dairy, there’s zero room for error - every step from enzyme dosing to UHT treatment to aseptic packaging has to sync perfectly. That’s what ensures both product safety and consumer trust,” said Thapasya Vijayaraghavan, Founder of Zumi, a start-up that recently launched a range of lactose-free milkshakes.

Producing lactose-free milk requires an Ultra-High Temperature (UHT) treatment process, where the milk is rapidly heated to sterilise it, followed by aseptic packaging. The aseptic carton packaging offered by companies like Tetra Pak is important for several reasons.

Firstly, UHT-treated milk, when packaged aseptically, can remain safe and nutritious for several months without refrigeration until opened. This solves major logistical challenges in India’s vast and temperature-variable supply chain, allowing brands to reach Tier 2 and Tier 3 cities effectively.

Secondly, contrary to popular misconception, the multi-layered carton protects the milk from light, air, and microorganisms, ensuring the product's safety and nutritional value are maintained throughout its long shelf life without the need for preservatives.

Additionally, for premium products like lactose-free milk & milkshakes, which require a high-tech manufacturing process, the long shelf life makes large-scale national distribution feasible and economically viable.

Large players like Amul have been able to expand the reach of their lactose-free milk with this. Mehta said that Indian consumers can buy Amul lactose-free milk across the length and breadth of the country. “You can get lactose-free milk in Srinagar. You can get it in Madurai,” Mehta said.

The Way Forward

While plant-based alternatives like almond and oat milk are also becoming popular, lactose-free milk holds a strong position as it retains the familiar taste, texture and high protein-calcium profile of dairy.

“Lactose-free dairy offers the best of both worlds – the nutrition and taste of real milk, without the digestive discomfort many people experience. For today’s health-conscious consumer, the first advantage is that it is lighter on the gut, making milk easier to digest and reducing bloating. The second, often overlooked benefit, is that it is naturally a little sweeter, which means you need less added sugar in everyday favourites like coffee, cereal, or milkshakes,” Vijayaraghavan explained.

As awareness deepens, the lactose-free milk market is set for sustained growth. It will transition from being a specialty product to a common household essential, offering a digestive-friendly option for millions of Indians who refuse to give up their daily glass of milk.