Reduced Lactose Whey Market Report 2026

The reduced lactose whey market size has grown rapidly in recent years. It will grow from $15.83 billion in 2025 to $17.52 billion in 2026 at a compound annual growth rate (CAGR) of 10.7%. The growth in the historic period can be attributed to growth in dairy processing capabilities, rising awareness of lactose intolerance, expansion of sports nutrition products, increasing use of whey in food formulations, improvements in whey extraction processes.

The reduced lactose whey market size is expected to see strong growth in the next few years. It will grow to $24.86 billion in 2030 at a compound annual growth rate (CAGR) of 9.1%. The growth in the forecast period can be attributed to growing demand for personalized nutrition, rising consumption of functional foods, expansion of nutraceutical applications, increasing focus on clean-label dairy ingredients, advancements in protein processing technologies. Major trends in the forecast period include increasing demand for low-lactose dairy ingredients, rising use of advanced filtration techniques, growing adoption of organic whey products, expansion of functional protein applications, enhanced focus on nutritional customization.

The growing popularity of plant-based diets is expected to propel the growth of the reduced-lactose whey market in the coming years. Plant-based diets emphasize foods derived primarily from plant sources such as fruits, vegetables, grains, nuts, seeds, and legumes, while limiting or avoiding animal-derived products. This dietary shift is being driven by increasing awareness of environmental sustainability, perceived health benefits, and ethical concerns related to animal welfare. Within this context, reduced-lactose whey has emerged as a complementary protein solution for flexitarians and plant-forward consumers who seek high-quality, complete protein while minimizing lactose intake. Reduced-lactose whey offers the nutritional advantages of dairy-based protein, including a rich amino acid profile and high bioavailability, while addressing lactose sensitivity concerns. For instance, in January 2025, according to The Good Food Institute, a US-based nonprofit organization, 53% of Americans reported having consumed plant-based meat at least once, and 40% had done so within the past year, reflecting the expanding adoption of plant-centric eating patterns. Therefore, the increasing popularity of plant-based diets is driving demand for reduced-lactose whey products.

Major companies operating in the reduced-lactose whey market are increasingly leveraging advanced ingredient-processing technologies, such as high-degree enzymatic hydrolysis, to develop low-lactose, highly digestible whey solutions. Enzymatic hydrolysis breaks whey proteins into smaller peptides, significantly lowering lactose content while improving digestibility, absorption, and suitability for lactose-sensitive and lactose-intolerant consumers. For example, in November 2024, Arla Foods Ingredients Group P/S, a Denmark-based global dairy ingredients supplier, launched Lacprodan DI-3092, a highly hydrolyzed whey protein ingredient developed for medical nutrition and specialized dietary applications. The product delivers high protein density (10 grams per 100 milliliters), minimal bitterness, and improved sensory performance, enhancing tolerability and nutritional value for consumers requiring low-lactose formulations.

In November 2024, Arla Foods Ingredients Group P/S acquired Volac’s Whey Nutrition business for an undisclosed amount. Through this acquisition, Arla Foods Ingredients aims to expand its global whey protein production capacity and strengthen its position in the sports nutrition and dairy ingredients markets. Volac International Ltd, a UK-based dairy nutrition company, specializes in converting whey into high-quality whey protein isolates and other whey-derived ingredients for food, sports, and animal nutrition applications. This acquisition further reinforces Arla’s ability to meet growing global demand for reduced-lactose and functional whey protein solutions.

Major companies operating in the reduced lactose whey market are Fonterra Inc., Land O'Lakes Inc., Dana Foods Inc., Agropur Inc., Glanbia plc, Leprino Foods Company, Organic Valley, Hilmar Cheese Company Inc., Carbery Group, Volac International Limited, Westland Co-operative Dairy Company Limited, Davisco Foods International Inc., Interfood Inc., Redwood Hill Farm, MCT Dairies Inc., Idaho Milk Products Inc., Wapsie Valley Creamery Inc., Erie Foods International Inc., Grande Cheese Company, AMCO Proteins Company, Wheyco GmbH, Agri Dairy Products Inc.

Europe was the largest region in the reduced lactose whey market in 2025. Asia Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the reduced lactose whey market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the reduced lactose whey market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The reduced lactose whey market consists of sales of ultrafiltrate whey, microfiltered whey, hydrolyzed whey, and lactose-free whey. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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