Fonterra’s ingredients brand, NZMP, has launched a low-lactose instant whole milk powder that will allow manufacturers to capitalise on ‘increasing demand’ for low-lactose foods.
The new ingredient has less than 2% lactose, whereas standard instant whole milk powders usually contain 40% lactose. The reformulation means a cut of 95% in lactose, so a 25g serving of NZMP’s Low Lactose IWMP contains less than 0.5g of lactose, which is then diluted in water when consumed.
Fonterra said that the innovation would allow consumers previously intolerant to lactose to enjoy instant whole milk powder.
NZMP consumer powders category director of marketing Andrew Maude said: “We developed our low-lactose ingredient so customers can provide a premium dairy nutrition solution to consumers who avoid milk because of lactose.
“Our analysis shows 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.”
Consumer awareness and popularity of low lactose products has been steadily increasing, Fonterra said, with 13% year-on-year growth in on-pack claims in the Middle East and Africa and 54% growth in in Southeast Asia.
The total powdered milk market is worth $14 billion globally and the health and wellness powered milk market is currently valued at $7 billion.
“Demand for low-lactose products has increased, and there is an enormous opportunity for profitable growth with low-lactose dairy powders,” Maude continued.
“NZMP Low Lactose IWMP will give our customers access to new consumer and market segments, as well as increase consumption frequency and volume per occasion with existing customers.”
Expansion to Puerto Rico
In other news, Fonterra has expanded its Anchor and Mainland brands to Puerto Rico.
The island nation has the highest dairy consumption per capita in the Caribbean, with demand currently sitting at approximately 443,000 metric tons and continuing to grow. This demand is due to an increased focus from consumers on the benefits of high-quality dairy nutrition.
Fonterra’s director of global consumer exports, Alexander Turnbull, said: “Both the Anchor and Mainland brands are already successful in more than 20 countries across the Caribbean, and it’s exciting that we are able to continue rolling out our Fonterra branded dairy products into more countries.
“Our research has shown that demand in the country for high-quality butter, cream and cheese has grown by more than 10% over the past five years. This coupled with the strong reputation of our brands across the Caribbean means the time is now right to enter the market.”
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