Kerry drives dairy innovation in Australia and New Zealand with advanced lactase solutions to meet rising consumer demand for lactose-free products

With rising lactose intolerance affecting an estimated 30-60% of the population in Australia and New Zealand¹, Kerry is meeting a surging demand for lactose-free dairy options in the region through its portfolio of advanced lactase solutions.

Lactose intolerance remains a prevalent issue globally, with only a third of adults worldwide able to digest lactose effectively. By 2028, the Australia and New Zealand market for lactose-free dairy products and alternatives is projected to reach EUR938 million.²

This shift is not solely driven by lactose intolerance but also by a broadening interest in lactose-free options due to perceived health benefits. This has contributed to impressive growth rates — in 2024, the lactose-free market in Australia is valued at AUD602 million, with a projected 31% CAGR between 2019-2023. In New Zealand, growth is significant with 52% CAGR from 2019-2023 and current market value of NZD63 million.³

Lactose-Free Solutions for Better Dairy

Lactases are naturally occurring enzymes that break down lactose, the sugar found in milk, into simpler sugars — glucose and galactose, which are easily digestible. This enzymatic intervention is critical for those who lack sufficient natural lactase enzymes in their digestive system, a common scenario among the lactose intolerant population. By adding lactase to dairy products, the lactose is pre-digested, making these foods accessible and enjoyable without the usual adverse reactions.

The dairy industry has seen a revitalization in its appeal, much of it thanks to innovations such as lactase enrichment. Traditional dairy products previously thought to cause discomfort are back on the menu, changing the dietary landscapes for many. With these innovative changes, lactose-free is now the fastest-growing dairy category, while low-sugar options are increasingly top of mind for consumers.

Kerry’s newly expanded portfolio of lactase solutions includes the high-performing NOLA Fit and Ha-Lactase, alongside LactoSens, a unique rapid residual lactose test, enhancing production accuracy and efficiency. Kerry’s expertise, strengthened by its recent acquisition of lactase technologies and C-lecta’s enzyme research capabilities, allows the company to deliver lactases that support lactose removal and sweetness optimization without additional sugars. This clean-label approach meets the demand for better nutrition while ensuring that lactose-free products satisfy consumer taste and texture expectations.

Innovative Lactose-Free Solutions that Deliver on Taste, Texture, and Nutrition

Building on its 50-year legacy in dairy innovation, Kerry’s solutions for lactose-free and sugar-reduced products are backed by proprietary consumer insights, taste modulations, and natural flavor technologies. These advancements help brands and manufacturers innovate with confidence, improve product recipes, optimize costs, responding to consumer demands for healthier alternatives without sacrificing taste or nutrition.

Christine Giuliano, general manager, Kerry Australia and New Zealand, said, “Kerry’s lactose-free solutions are designed to meet growing regional demand for convenience and nutrition. As busy consumers increasingly rely on yogurt pots, flavored milk, and other dairy products for quick snacks and meals, Kerry’s lactase technology supports the development of products that are both indulgent and health-conscious."

"We want to provide dairy producers with solutions that not only overcome lactose intolerance but also meet consumers’ desire for products that taste authentic and delicious. By optimizing sweetness naturally, these solutions maintain the quality and nutritional value of dairy with significantly less added sugars, ensuring better, delicious dairy products everyone can enjoy.”

¹ Newtrale.es

^{2, 3} Euromonitor