This article has been reviewed according to Science X's editorial process and policies. Editors have highlighted the following attributes while ensuring the content's credibility: With an estimated 36% of people in the United States having some degree of lactose intolerance, there may be an expanded market for lactose-free or reduced-lactose ice cream—especially if those with lactose intolerance are willing to pay more for such products, according to a study led by researchers at Penn State and the University of Wisconsin. In an experimental auction of regular, lactose-reduced and lactose-free ice cream, the team found that lactose-intolerant consumers appeared more willing to pay a premium for lactose-free ice cream.
They published their findings in the Journal of Dairy Science. The findings suggest a potential market opportunity if that premium is large enough to offset the additional production time and costs of lactose-free ice cream. "As companies continue to find their way into this space, whether they're completely new companies or companies expanding their current product offerings, I think these results will benefit them," said study co-author Grace Lewis, assistant professor in Penn State's Department of Food Science and dairy foods manufacturing specialist for Penn State Extension.
"Companies need to know if consumers actually will pay more for the lactose-free or lactose-reduced ice cream because it costs more to make those products." Lactose-free dairy products are typically manufactured by adding lactase, the enzyme naturally produced in the small intestine of lactose-tolerant individuals, to break down the milk sugar lactose into simpler sugars. Adding lactase, along with longer processing times and other manufacturing adjustments, increases production costs compared with traditional dairy production. In the study, 135 people bid in person on actual products: regular, lactose-reduced and lactose-free ice cream.
The team then gave participants additional nutritional and ingredient information about the varieties and conducted a second round of bidding. At the conclusion of the session, auction winners received ice cream depending on their bid values. The team used an established incentive-based approach designed to encourage participants to state what the products were worth to them.
The researchers used a statistical model to determine which factors—including preferred ice cream type, lactose intolerance, severity of the intolerance, age, gender, education, ethnicity and how often participants ate ice cream—were associated with higher or lower bids. They found that buying ice cream more frequently was associated with higher bids, while Asian ethnicity was associated with lower bids. The average bid across the study was $5.43 per half gallon (1.9 liters) of ice cream.
Those reporting very limited lactose tolerance were willing to pay an extra $2.17 per half gallon of lactose-free ice cream. Those who reported limited lactose tolerance were willing to pay an extra $0.82, and those with moderate tolerance said they would pay an extra $0.55. So, Lewis explained, someone with very limited lactose tolerance valued the lactose-free ice cream at $7.60 per half gallon.
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