Lactose Global Market Report 2024

Lactose, a sugar naturally occurring in milk, is present in various dairy products such as ice cream and yogurt. Comprising disaccharides of glucose and galactose units, lactose is found in milk in amounts ranging from 2–8%. It serves as an ingredient in a wide range of food products and holds significance in the pharmaceutical industry.

Lactose is available in different forms, primarily as powder and granules. Lactose powder is utilized as a sweetener or stabilizer in the food and pharmaceutical sectors. The powder form of lactose is dry, typically appearing white or pale yellow, with a slightly sweet taste and a milky aroma. Different purity types include crude lactose, edible lactose, and refined-edible grade lactose, each exhibiting varying shades from yellow to pale yellow and white. Lactose finds applications in diverse sectors, including food and beverages, confectionery, animal feed, pharmaceuticals, cosmetics, and other industries. Its versatile properties make it a valuable ingredient in various products beyond the realm of dairy consumption.

The lactose market research report is one of a series of new reports that provides lactose market statistics, including lactose industry global market size, regional shares, competitors with a lactose market share, detailed lactose market segments, market trends and opportunities, and any further data you may need to thrive in the lactose industry. This lactose market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The lactose market size has grown steadily in recent years. It will grow from $1.31 billion in 2023 to $1.36 billion in 2024 at a compound annual growth rate (CAGR) of 3.8%. The growth observed in the historical period can be attributed to factors such as increased worldwide consumption of dairy products, the growth of the global food and beverage industry, a demand for infant formula and nutritional supplements, the expansion of the pharmaceutical and pharmaceutical excipients industry, and an increase in health awareness and nutritional awareness.

The lactose market size is expected to see steady growth in the next few years. It will grow to $1.61 billion in 2028 at a compound annual growth rate (CAGR) of 4.3%. The projected growth in the forecast period can be linked to the increasing use of lactose in pet food formulations, the rising prevalence of lactose-free and dairy-free products, the demand for low-FODMAP and gut-friendly ingredients, the emergence of niche applications in cosmetics and personal care, and the expansion of the lactose market in emerging economies. Key trends expected in the forecast period involve the utilization of lactose in cosmetics and personal care products, the prominence of high purity and pharmaceutical-grade lactose, the incorporation of lactose in animal feed formulations, the use of instantized lactose for quick dissolution, and the development of customized lactose blends to meet specific industry needs.

The lactose market is expected to experience growth, propelled by the increasing dairy production. Dairy production involves the farming and processing of milk-related products, resulting in a higher availability of raw milk and an increased supply of lactose as a byproduct. This surge in dairy production contributes to greater affordability of lactose and stimulates its utilization across various industries, including both food and non-food sectors. According to Eurostat data from November 2022, raw milk production on European Union farms in 2021 witnessed year-on-year growth, reaching an estimated 161.0 million tons.

The lactose market is anticipated to benefit from the rise in the pharmaceutical industry. Lactose plays a crucial role in creating tablet and capsule formulations, supporting drug integrity. The global presence of the pharmaceutical industry, along with the production of generic drugs and diverse drug forms, contributes to the increasing demand for lactose. Its use in oral disintegrating tablets and inhalable medications aligns with the industry's pursuit of innovative formulations. Notably, the expenditure on prescription drugs in the United States increased by 7.8% in 2021, reaching a total of $378.0 billion, outpacing the 3.7% growth recorded in 2020.

A key trend in the lactose market is the emergence of strategic collaborations among major companies to expand their product portfolios. For example, Nestlé collaborated with Valio Ltd., a Finland-based dairy product manufacturer, in February 2022, aiming to enhance its premium dairy product portfolio. Additionally, Lactalis Corporation, a France-based multinational dairy products company, acquired Bel Group in October 2021, intending to expand its capacity in dairy, fruit, and plant-based products.

Innovation is another focus for major companies in the lactose market, with new products like Maxilact Next designed to provide a competitive edge. Maxilact Next, launched by DSM-Firmenich AG in May 2023, is a lactase enzyme solution intended to improve efficiency in lactose-free dairy production. This innovation addresses the growing demand for lactose-free dairy products, driven by the challenges faced by 70% of global consumers in digesting lactose.

In October 2021, Yili Group, a China-based dairy company, acquired a 34.33% stake in Ausnutria Dairy Corporation Ltd. This acquisition empowered Yili to expand into the infant formula and nutrition products market, leveraging Ausnutria's expertise in goat milk formula and nutrition products. Ausnutria Dairy Corporation Ltd., based in the Netherlands, specializes in the development, production, and distribution of high-quality infant and adult dairy nutrition products.

Major companies operating in the lactose market include Kerry Group, Saputo Inc., Lactalis Ingredients, Leprino Foods Company, Glanbia PLC., Lactose India Ltd., Davisco Foods International Inc., DMK Deutsches Milchkontor GmbH, Molkerei MEGGLE Wasserburg GmbH & Co. KG, Royal FrieslandCampina NV, FrieslandCampina, Armor Proteines, Bayerische Milchindustrie eG, Milei GmbH, Fonterra Co-operative Group, Agropur Cooperative, Nestle SA, Danone SA, Dairy Farmers of America Inc., Arla Foods amba, Gujarat Co-operative Milk Marketing Federation Ltd., Inner Mongolia Yili Industrial Group Co Ltd., Ba'emek Advanced Technologies Ltd., Hilmar Cheese Company, Avantor Inc., Danone North America Inc., Kraft Heinz Company, Glanbia PLC, Foremost Farms USA, Erie Foods International Inc.

North America was the largest region in the lactose market in 2023. The regions covered in the lactose analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

The countries covered in the lactose market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The lactose market consists of sales of lactose monohydrate, lactulose, galactose, lactitol, and other lactose derivatives. 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 lactose 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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