The new ingredient has less than 2% lactose and allows consumer milk powder manufacturers to capitalize on demand for low-lactose foods.
Fonterra consumer powders category director NZMP marketing, Andrew Maude, said the company’s analysis showed low-lactose dairy offerings can command a 32% premium above standard offers, with consumer milk powder manufacturers able to make up to a 17% margin on low-lactose instant whole milk products.
Tolerant to ingredient
Consumer awareness and popularity of low lactose products has been steadily increasing – with 13% year-on-year growth in on-pack claims in the Middle East and Africa and 54% year-on-year growth in on-pack claims in South East Asia.
Standard Instant Whole Milk Powder contains 40% lactose, while NZMP Low Lactose IWMP contains less than 2% lactose.
Nearly three out of four people in Asia are deficient in the enzyme lactase and up to 40% of people in the Middle East and Africa are lactase deficient.
As a result, NZMP said, most people will be able to tolerate the lactose in the new ingredient without the symptoms associated with lactose intolerance.
According to Euromonitor International reports, the total powdered milk market is worth $14bn globally and the health and wellness powered milk market is currently valued at $7bn.