India’s dairy reset: The growth of lactose-free milk in India

India holds the position of the world’s largest milk producer by deeply integrating dairy into its cultural and nutritional fabric. But beneath this status quo, a quiet revolution is taking place. Increasing health awareness and disposable incomes have led to increased demand for healthcare services. lactose-free products. This shift is due to the fact that an estimated 67 percent of India’s population suffers from some degree of lactose malabsorption, according to the National Library of Medicine. This underserved consumer base is fueling high double-digit growth in the category where Amul is the market leader with over 90 per cent share.

In an exclusive interview with Live MintJayen Mehta, MD Amul (GCMMF) talked about what makes lactose-free milk different, Amul’s future outlook for this category and the strategic pillars of this growth, taking lactose-free dairy products from a niche niche to a daily staple for consumers across the country.

The science of lactose-free nutrition

For consumers who experience digestive upset with regular milk, switching to a lactose-free alternative offers a way to preserve the nutritional benefits of dairy products. The difference lies in an important enzyme treatment performed on the milk before packaging.

“In lactose-free milk, lactase enzyme is added to the milk before its final packaging. Thanks to this lactase enzyme, lactose (milk-sugar) is broken down into glucose and galactose before consumption. Thus, any person with lactose intolerance can easily consume and digest milk and dairy products,” he said.

The essential protein and calcium content remains intact in the milk, allowing consumers to get the full nutritional value without digestive issues. The change is entirely focused on the sugar component. “There are no nutritional changes or compromises in milk. All nutritional benefits in the form of calcium, protein, etc. remain intact, just like regular milk,” he said.

Creating a comprehensive portfolio

The expansion of the lactose-free market directly depends on the variety of products offered. Amul has moved beyond plain milk to create a complete portfolio of lactose-free products to meet diverse consumption needs. This further fuels the high growth rate seen in this category.

“We pioneered lactose-free milk and today we have a wide range of lactose-free products,” Mehta said. This wide range includes lactose-free ice cream, lactose-free high protein geniussingle country coffee varieties, whey protein concentrate and even lactose-free Peda.

This range is a strategic effort to encourage consumer adoption. “We are creating a portfolio of products… and this will help attract consumer interest, at least for those who cannot digest milk with regular lactose due to lactose enzyme deficiency,” he said.

Expanding the reach of lactose-free products

Addressing the popular perception that lactose-free products are expensive, Amul has focused on pricing to ensure accessibility for a wide consumer base. Mehta said about the company’s pricing philosophy for this category: “We actually don’t plan to charge any premium for lactose-free products. Also, for us, both customers are the same. And through that, we have been able to grow this market significantly.” A 250ml carton of Tetra Pak lactose-free milk costs only ₹25. Single country coffee (lactose-free type) and high protein curd are also reasonably priced.

The brand’s purpose is clear: “As a brand, we want to offer what consumers are looking for.” Zero lactose, zero sugar, etc. Focusing on offerings, Amul is making specialty dairy products a practical option for a larger section of society.

Tetra Pak’s advantage in packaging and distribution

One of the key factors in the availability of the product across India is the use of Ultra High Temperature (UHT) Tetra Pak packs. This is advanced packaging technology eliminates the need for an expensive and continuous cold chain, which is a major obstacle in the distribution of highly perishable milk and dairy products. When asked if this packaging technology helps democratize the product, he said: “Absolutely yes, because it is a long-lasting format.” As a result of the UHT process, a product that does not require refrigeration until opened and does not contain any preservatives has a shelf life of six months.

This allows for widespread distribution. Amul operates a wide network across the country. “Amul has a distribution network of 90 branches and 20,000 distributors across India. Amul products are available at more than 2 million outlets,” he said. This network, supported by the UHT format, provides wider access to products. “Lactose-free milk is available all over the country. You can get it from Srinagar. You can get it from Madurai,” he added.

Additionally, Amul packages lactose-free milk in smaller Tetra Pak packs suitable for individual single-time consumption. In other words, if 1-2 people in a large family consume lactose-free milk while the others consume normal milk, there is no need to open the entire one-litre package.

Market dynamics of dairy products and alternatives

The dairy alternatives market is seeing a huge influx of plant-based milks such as oat, almond, soy milk. When asked if Amul sees this as competition with Lactose-free milk, Mehta said they are a separate category and there is no direct competition with lactose-free dairy products and pointed out the technical and nutritional distinction.

“Technically, in India, anything which is not of bovine origin cannot be called milk,” he said, adding that bovine milk, whether regular or lactose-free, “is a super food that is not processed or manufactured in a plant, unlike the processed non-dairy alternatives”. For a brand like Amul, which is well-known in India, competition is limited because “both are different products serving different needs”.

The lactose-free segment is witnessing high double-digit growth in India and Amul is one of the most prominent brands. “We are seeing high double-digit growth and Amul is the clear leader in this segment with more than 90 per cent market share,” he said.

Mehta attributed this growth to strong leadership and market strategy. “It’s growing. It’s a function of two things: distribution and the product line we’re creating around that,” he said.

Convergence of technology, consumer trend and packaging innovation are the catalysts for lactose-free milk to grow from a niche product to an everyday staple in the average Indian household.

Note to Readers: This interview was produced by LiveMint as part of the Tetra Pak partnership.