As one of the largest food and beverage industries, the dairy industry has used five main approaches to decrease or remove sugar from dairy foods. These include direct reduction; substitution with a lower-calorie sweetener; substitution with a non-nutritive, high-intensity sweetener; utilization of processing technologies; and leveraging food science and sensory principles to enhance sweetness without sugar.

It should be noted that, for the purposes of this article, “sugar” refers to added full-caloric nutritive sweeteners, specifically sucrose, fructose, glucose, and other sweeteners that deliver approximately 4kcal/g. There are other forms of sugar that range in caloric value from approximately 0.4kcals/g to 3.1kcals/g.

Naturally Sweet

The base ingredient of all dairy products, milk, naturally contains the sugar lactose, a disaccharide composed of the two monosaccharides glucose and galactose. Though the original lactose-free milk (Lactaid™) was not created for the reduced-sugar or reduced-calorie market, and does not contain less sugar than regular milk, lactose-free options are an important part of this discussion because of the technology used to produce them.

Lactose-free milk is made exclusively with the use of the enzyme lactase (beta-galactosidase) and contains the same amount of total sugar as natural milk (12g/240 mL serving). That is, while it is lactose-free, it is not sugar-free. This is because the lactose is simply split into its two monosaccharide parts. Individually, galactose and glucose are about five times sweeter than lactose, which is why traditional lactose-free milk tastes sweeter than natural milk.

In contrast, ultrafiltered milk, such as fairlife, LLC’s fa¡rlife brand milk, contains 50% less total sugar than standard dairy milk because the ultra-fine filter removes 50% of the lactose while retaining the calcium-rich protein fraction of milk. The residual lactose is treated with lactase. Since the remaining glucose and galactose (6g total sugar/serving) provide a level of sweetness similar to that of standard dairy milk, ultra-filtered milk tastes like regular milk. 

Lose the Sugar, Keep the Sweetness

Flavored milks offer similar nutritional benefits to plain, unflavored milk, and studies show that children consume more milk in school (and waste less) when chocolate milk is available. Added sugars play essential sensory and functional roles in chocolate milk that include contributing to sweetness, flavor enhancement, bitterness suppression, and improved mouthfeel.

However, added sugar content in school chocolate milk (previously more than 10g/serving, in addition to the native lactose in milk) has drawn scrutiny. To address this concern, Dairy Management, Inc. (DMI), spearheaded research initiatives to reduce added sugars in school chocolate milk.


According to a new, comprehensive report from The Insight Partners, the global market for ice cream—the pinnacle of sweet dairy foods and currently valued at nearly US$100 billion—is projected to hit nearly US$140 billion by 2031.


There are multiple approaches to reducing added sugar in chocolate milk, including lactose hydrolysis (lactase treatment), the use of flavors with modifying properties (FMPs), and the addition of non-nutritive and low-calorie sweeteners. Lactose hydrolysis can decrease the added sugar content in chocolate milk by approximately 30% and reduce the need of any sweetener type by about 25-30%. DMI-funded research has demonstrated that lactose-hydrolyzed milk works synergistically with various nutritive sweeteners in reducing added sugars and calories.

Additionally, lactose-hydrolyzed milk reduces the use of non-nutritive sweeteners, optimizing sweetness profiles and improving overall consumer acceptance. Today, added sugars in school chocolate milk have successfully been reduced to an average of 7.4 g/serving.

Less Is More…Sweet

Although consumers are actively seeking foods with less added sugar, they have demonstrated they will choose a “naturally sweetened” declaration on the label over “artificially sweetened.” Either way, repeat purchases will not occur if sensory expectations are not met.

The natural high-intensity sweeteners commonly used in dairy products are predominantly stevia and monkfruit. Common synthesized “non-nutritive” sweeteners used by the industry include sucralose and aspartame. According to Innova Market Insights, monkfruit had an impressive 42% increase in use in new dairy product launches in 2023 over 2022. But there are other promising nature-derived non-nutritive, low-calorie, and nutritive sweeteners gaining in the market as well.

Of recent interest are the nature-derived sugars allulose and tagatose. Allulose is a rare sugar, meaning that it is found in trace levels in certain foods, including dried fruits and jackfruit. Since extraction from these sources is not economically feasible, most commercial allulose is enzymatically converted from fructose derived from tapioca, corn, wheat, or sugar beets. Allulose has a flavor profile similar to that of fructose (of which it is an epi-isomer) and a sweetness that, while slightly lower than that of sucrose, can slightly enhance fruit flavors, chocolate, vanilla, and coffee. It also provides only 0.2–0.4kcals/g.

Tagatose is commercially produced via hydrolysis of lactose (typically from whey) into its glucose and galactose monosaccharides, followed by enzymatic isomerization of the galactose into tagatose. It has about a third the calories of sucrose, nearly identical sweetness, and a very clean flavor profile. New technology has made it possible to upcycle Greek yogurt acid whey into high-purity tagatose. (DMI played a key role in supporting this technology through initial research funding.)

Naturally Low and Sweet

While many of the common high-intensity sweeteners have associated off flavors and/or lingering aftertastes, allulose and tagatose are closer to sucrose in sweetness intensity and have similar mouthfeel and flavor temporality (onset and aftertaste) as fructose and sucrose. The bonus is that they deliver fewer calories.

Allulose and tagatose both provide bulking, and both will undergo Maillard browning. However, allulose is more hygroscopic than sucrose; tagatose is less hygroscopic. Still, there are many formulations for which each can be a one-to-one drop-in. Allulose and tagatose are keto- and diabetic-friendly because of their low impact on blood sugar and insulin response. They also are anti-cariogenic (do not cause tooth decay).

DMI-funded research demonstrated that vanilla yogurts with allulose performed similarly to those with sucrose in consumer liking, and were superior to stevia and sucralose, with fewer off flavors. After being informed that “the sample that you have just tasted contains 0g of added sugar and gets its sweetness from allulose, an upcycled natural sweetener that is produced in a sustainable way,” purchase intent ratings of the allulose-sweetened yogurt were significantly higher than ratings for the other formulations.

Today, allulose can be found in numerous commercial dairy products. Tagatose, being newer to the market, has been used in more limited applications in dairy, but it is well-suited for reduced-sugar frozen desserts, caramels, and high dairy-protein bars. Although still caloric, tagatose recently received approval as a prebiotic and, in fact, is the first sweetener to receive such certification.

Sugar Alcohols in Place

Many reduced-sugar and high-protein dairy products today take advantage of sugar alcohols, a.k.a. polyols. Erythritol, maltitol, and sorbitol—derived from natural sugars—are popular in keto-friendly products. Erythritol tends to be the most preferred of these low-calorie sweeteners because it is swiftly metabolized and effectively calorie-free at only around 0.2-3kcals/g. It’s listed as about 70% as sweet as sucrose and often is paired with high-intensity sweeteners such as stevia and monkfruit to provide sucrose-like bulk along with its sweetness. More importantly, erythritol is less likely to cause gastrointestinal discomfort than other sugar alcohols and does not impact blood sugar levels.

Maltitol is closer in sweetness and texture to sucrose, and with a low glycemic index and around 2.1kcals/g, it does elicit a moderate blood-sugar response. Because of this, maltitol might require fewer additional sweeteners in the ingredient system than other sugar alcohols. It does, however, metabolize slowly and can cause gastrointestinal issues in large amounts (40g/day for adults, 15g/day for children).

In addition to its sweetening capability, sorbitol binds moisture, so it is sometimes selected as a stabilizing agent to improve body and texture in cream-based confections and frozen desserts. Additionally, high dairy-protein bar products commonly contain sorbitol or other sugar alcohols. Sorbitol does have around two-thirds the calories of sucrose at 2.5-3.0kcals/g and is another polyol known to cause g.i. distress in some people.

Sweet and Fruity

Date sugar and date syrup are also becoming popular as sweeteners in “natural” products because of their nutritional composition and minimal processing. Because of their high cost, date sugar or syrup can be found in some organic and/or artisan products, but the number of dairy product launches with dates has been limited to date.

Two relatively new natural options for dairy product developers are coconut syrup, also available in granulated form as coconut sugar, and carob sweetener. Carob sweetener (Ceratonia siliqua L.) is available as a syrup in colors ranging from dark brown to light gold. It contains around 3kcals/g but is also high in fiber and rich in healthful polyphenolic and flavonoid compounds. So far, its use in Western foods and beverages has just begun emerging, but it can be a good fit for certain dairy products, especially flavored milks and frozen novelties.

Although palm syrup and sugar and coconut syrup and sugar are different, they often are confused and even marketed interchangeably. Coconut syrup is extracted from coconut palm trees (Cocos nucifera), while palm syrup is extracted from other palm tree species, including the sugar palm (Arenga pinnata) and date palm (Phoenix dactylifera). Both sugars have lower relative sweetness than sucrose, but also have a lower glycemic index.

To date, because of their high price-points, coconut syrup and coconut sugar almost exclusively are used in artisan and organic dairy beverages. Palm sugar is a little less costly, making it more feasible for a broader range of dairy products. Both these natural sweeteners contain some minerals and antioxidants, and their caloric value equals sucrose. However, they add a deeper flavor profile that can allow for using lower amounts than one would of sucrose in some formulations. Fruit purées, often used in yogurts and frozen desserts, also provide sweetness without contributing to the “added sugars” line.

With the multitude of sweeteners, functional ingredients and sugar-reduction techniques available today, combatting the health consequences of high sugar consumption can be tackled more effectively than ever before. For success, it is essential that food product developers focus on reducing sweetener-related flavor defects when designing reduced-sugar and no-sugar-added dairy products.

Using today’s tools, food technologists who conduct rigorous testing to ensure the appropriateness of sweeteners in complex food systems are in a great position to replicate the delightful sweetness and mouthfeel consumers expect in dairy foods, even those with less sugar.


Rethinking Dairy Sweetness

With its healthy halo, yogurt continues to be a playground for experimentation with all types of sweetening agents. A range of sweeteners is being used effectively to provide consumers with a myriad of ready-to-drink and ready-to-mix protein beverages and frozen dessert options. Lactose hydrolysis and ultra-filtration are also utilized for these applications.

Research has demonstrated that lactose hydrolysis of milk can enable up to a 25% reduction in sugar content of these products. But lactose reduction is not always a goal. Product developers should not overlook the functional properties, such as emulsification and browning, offered by lactose-rich dairy ingredients.

As with other natural sugars that have lower sweetness than sucrose, lactose and lactose-rich ingredients—for example, whey permeate or dairy solids—can be combined with natural low-calorie, high-intensity sweeteners. Not considered added sugars, lactose-rich dairy ingredients are good for clean labels.