Lactose-intolerant consumers pay more for lactose-free ice cream in study
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.
A recent study led by researchers at Penn State and the University of Wisconsin explored consumer willingness to pay for lactose-free ice cream. The research highlights the potential for a market opportunity, as an estimated 36% of people in the United States have some degree of lactose intolerance. In an experimental auction featuring regular, lactose-reduced, and lactose-free ice cream, lactose-intolerant consumers showed a willingness to pay a premium for lactose-free options.
Study co-author Grace Lewis notes that lactose-free products incur higher production costs due to the use of lactase and longer processing times. The study found that frequent ice cream consumers were more willing to pay, while Asian ethnicity was associated with lower willingness to pay. The average bid for a half gallon of lactose-free ice cream was $5.43, with those reporting very limited tolerance willing to pay an extra $2.17, compared to $0.82 and $0.55 for those with limited and moderate tolerance, respectively.
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