Lactose Market Report 2026

The lactose market size has grown steadily in recent years. It will grow from $1.4 billion in 2025 to $1.46 billion in 2026 at a compound annual growth rate (CAGR) of 4.2%. The growth in the historic period can be attributed to expansion of dairy processing industries, increasing pharmaceutical manufacturing activities, rising consumption of processed foods, availability of whey as a byproduct, established applications in excipient formulations.

The lactose market size is expected to see steady growth in the next few years. It will grow to $1.74 billion in 2030 at a compound annual growth rate (CAGR) of 4.6%. The growth in the forecast period can be attributed to increasing demand from drug formulation manufacturers, expansion of nutraceutical applications, rising focus on high-purity excipients, growth in specialty food ingredients, increasing utilization in infant and clinical nutrition. Major trends in the forecast period include increasing demand for pharmaceutical-grade lactose, increasing use of lactose in processed foods, expansion of refined edible lactose production, growing adoption in animal nutrition applications, enhanced focus on purity and consistency.

The rising dairy production is expected to propel the growth of the lactose market going forward. Dairy production involves the farming and processing of milk and milk-based products from animals such as cows, goats, and sheep. An increase in dairy output leads to higher availability of raw milk, which in turn results in greater lactose extraction as a key byproduct. Moreover, expanded dairy production generates larger volumes of lactose byproducts, improving cost efficiency and encouraging wider adoption of lactose across food and non-food industries, including pharmaceuticals, confectionery, and infant nutrition. For instance, in August 2023, according to the European Commission (EC), the Belgium-based executive body of the European Union, raw milk production in the EU increased by 0.8% during the first six months of 2023. Therefore, the rising dairy production is driving the growth of the lactose market.

Major companies operating in the lactose market are focusing on product innovations such as advanced lactase enzyme solutions to strengthen their competitive position. These innovations are designed to enhance processing efficiency and support the growing demand for lactose-free dairy products. For example, in May 2023, DSM-Firmenich AG, a Switzerland-based health and nutrition company, launched Maxilact Next, a next-generation lactase enzyme solution developed to improve lactose-free dairy production. Maxilact Next enables dairy producers to increase production capacity, optimize raw material usage, and improve overall processing efficiency, addressing the needs of nearly 70% of the global population that experiences some level of lactose intolerance.

In January 2023, Latteria Soresina, an Italian dairy cooperative renowned for producing high-quality dairy products, acquired Oioli Dairy for an undisclosed sum. This acquisition is intended to enhance its production capacity and diversify its product range. It also bolsters Soresina's presence in the premium dairy market and improves its capability to meet the increasing consumer demand for high-quality dairy products. Oioli Dairy is an Italian company that specializes in lactose-based products.

Major companies operating in the lactose market are 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, Nestlé 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., Hilmar Cheese Company, Foremost Farms USA, Erie Foods International Inc.

North America was the largest region in the lactose market in 2025. The regions covered in the lactose 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 lactose market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

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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