Lactose Monohydrate Global Market Report 2025

The lactose monohydrate market size has grown strongly in recent years. It will grow from $1.24 billion in 2024 to $1.32 billion in 2025 at a compound annual growth rate (CAGR) of 7.1%. The growth during the historic period can be attributed to the increasing demand for infant formula, the expanded use of pharmaceutical excipients, the growth of the dairy processing industry, rising application of lactose in food products, and the low-cost availability of raw materials.

The lactose monohydrate market size is expected to see strong growth in the next few years. It will grow to $1.72 billion in 2029 at a compound annual growth rate (CAGR) of 6.8%. The growth in the forecast period can be attributed to the rising adoption of nutraceuticals, increasing demand for clean-label ingredients, growing innovations in lactose-free products, expansion of generic pharmaceutical manufacturing, and technological advancements in lactose processing. Key trends expected during this period include heightened demand for pharmaceutical-grade lactose, development of lactose with enhanced solubility, increased use in infant formula and nutritional products, progress in lactose purification technologies, and expanding applications in the food and beverage sectors.

The rise in pharmaceutical drug production is expected to drive the growth of the lactose monohydrate market in the coming years. Pharmaceutical drug production refers to the controlled manufacturing of medications to ensure their safety, efficacy, and quality for therapeutic use. This production is increasing due to the growing aging population, which is creating higher demand for advanced treatments to manage chronic conditions effectively. Lactose monohydrate is widely used in pharmaceuticals as a filler and binder, helping to ensure uniform distribution of active ingredients. Its excellent compressibility also facilitates efficient tablet formation and consistent drug performance. For example, in June 2023, the European Federation of Pharmaceutical Industries and Associations (EFPIA), a Belgium-based trade association representing the pharmaceutical sector in Europe, reported that pharmaceutical production in Europe reached $422.8 billion in 2023, up from $393.9 billion in 2022. Thus, the rise in pharmaceutical drug production is fueling the growth of the lactose monohydrate market.

Leading companies in the lactose monohydrate market are concentrating on developing advanced products such as pharmaceutical-grade lactose to enhance patient safety and comply with strict regulatory requirements. Pharmaceutical-grade lactose is a highly refined form specifically designed for use in drug formulations, functioning as an excipient to ensure safety, consistency, and compatibility with active pharmaceutical ingredients (APIs). For example, in October 2023, Lactalis Ingredients, a France-based dairy ingredient manufacturer, introduced Lactalpha - a range of milled and sieved lactose monohydrate products. This launch signifies the company’s entry into the pharmaceutical sector from the edible lactose market, offering controlled particle size, superior flowability, and high purity, making them well-suited as excipients in tablets, capsules, and sachets for pharmaceutical use.

In April 2025, LBB Specialties, a US-based specialty chemicals and ingredient distribution company, entered into a partnership with Kerry Group to expand access and enhance quality in pharmaceutical solutions. This collaboration aims to increase the availability of Kerry’s premium Sheffield brand pharmaceutical-grade lactose excipients throughout the U.S., supporting improved product consistency, supply chain efficiency, and innovation in life sciences formulations. Kerry Group is an Ireland-based manufacturer of pharmaceutical lactose monohydrate.

Major players in the lactose monohydrate market are Kerry Group, Sigma-Aldrich, Fagron Group, Spectrum Chemical Mfg. Corp., DFE Pharma, Wako Pure Chemical Industries Ltd., SimSon Pharma Limited, MEGGLE GmbH & Co. KG, Gangwal Healthcare Private Limited, VIVAN Life Science, Lactose India Limited, Aurora Industry Co. Ltd, Glentham Life Sciences Limited, Lactalis Ingredients, Colorchem Industries Ltd., Duchefa Biochemie, Fengchen Group Co. Ltd, Hexon Laboratories Private Limited, International Ingredients & Excipients Pvt. Ltd., and NR LIFE CARE.

North America was the largest region in the lactose monohydrate market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in lactose monohydrate report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

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

Lactose monohydrate is a crystalline form of lactose that includes one molecule of water for each molecule of lactose. It is a disaccharide sugar derived from milk, consisting of glucose and galactose. Frequently used as a filler or stabilizer in pharmaceutical tablets and food products, it is prized for its good compressibility and solubility. Its stability and ease of handling make it widely utilized across industries.

The primary product types of lactose monohydrate include crystalline lactose monohydrate and amorphous lactose monohydrate. Crystalline lactose monohydrate is a stable and structured form commonly used in pharmaceuticals and food due to its favorable flowability, compressibility, mild sweetness, and solubility. It is available in varying purities, such as food grade and pharmaceutical grade, and is distributed through various channels including online stores, supermarkets or hypermarkets, specialty stores, and others. It serves a range of applications, including pharmaceuticals, food and beverages, nutraceuticals, cosmetics and personal care, and animal feed.

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

The lactose monohydrate market consists of sales of milled lactose monohydrate, sieved lactose monohydrate, spray-dried lactose monohydrate, and crystalline lactose monohydrate. 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 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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