Lactose Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2025-2034)

The global lactose market attained a value of USD 1.83 Billion in 2024. The market is further expected to grow in the forecast period of 2025-2034 at a CAGR of 3.60%, to reach USD 2.61 Billion by 2034.

Lactose Market Growth

Lactose, composed of glucose and galactose, is a by-product of cheese. When cheese is manufactured, the liquid whey gets separated, which is further evaporated and processed to obtain crystalline lactose. Several dairy products like cheese, butter, milk, and cream contain lactose. However, human breast milk has the highest concentrations of lactose. Commercially, lactose is produced in various purity ranges and colours, with each variant having specific characteristic properties.

The growing pharmaceutical sector in developing countries, particularly in Asia, is a significant factor fuelling lactose market expansion. Additionally, the increasing demand for lactose in food processing and infant formula manufacturing, particularly in major dairy-producing countries, is contributing to the market growth. Furthermore, the rising demand for food and infant-grade lactose from these countries is also boosting the growth of the market.

Key Trends and Developments

Increasing demand for refined-edible grade lactose, rising demand for infant formula, and increasing consumption for dairy products are factors shaping the lactose market outlook

March 2023

FrieslandCampina opened a new facility in the Netherlands that produces 80 metric tonnes of lactoferrin per year, an antiviral ingredient and critical component of infant formula.

November 2022

MEGGLE GmbH & Co. KG extended its InhaLac product family with a new milled lactose grade, InhaLac 180. This new excipient was designed for dry powder inhalation (DPI) applications and offers a highly uniform particle size distribution (PSD) and better flow and surface characteristics.

March 2022

Arla Foods Ingredients Group P/S launched two new products in its organic sector: Lacprodan IF-7390 Organic and Premium Lactose Organic. These products were designed to cater to the growing demand for organic infant nutrition in the Chinese market.

Rising demand for refined-edible grade lactose

The rising demand for refined-edible grade lactose is expected to aid the market growth in the forecast period due to the stringent guidelines regarding purity level of lactose in industries like pharmaceuticals. New innovations like dry-blend infant-grade lactose are also expected to contribute to segment’s growth.

Growing demand for infant formula

The lactose market growth is also driven by the growing demand for infant formula among parents and declining rates of breastfeeding. Companies like Abbott and Mead Johnson are expanding their infant formula offerings to cater to the growing demand for lactose-based infant formula.

Expansion of lactose applications in pharmaceutical industry

The pharmaceutical industry is driving the demand for lactose as an excipient in the production of antibiotics and painkillers. Approximately 60%-70% of pharmaceutical dosage forms contain lactose, making it one of the most widely used pharmaceutical excipients.

Lactose Market Trends

The market’s expansion is being driven by the growing demand for infant formula across the globe. The declining breast-feeding rates and the increasing awareness regarding the importance of infant nutrition are driving the demand for infant formula.

Moreover, the increasing R&D activities and the new product launches by the leading players are expected to further boost the lactose market development. Lactalis Ingredients, a major player, entered the pharmaceutical industry in October 2023 by launching its sieved and milled lactose monohydrate range Lactalpha. This expanded the company's offerings for clinical, infant, and food applications.

Lactose intolerance, a common digestive condition, affects individuals who have difficulty digesting lactose, the sugar found in milk and dairy products. This intolerance drives demand for lactose-free alternatives in the global lactose market. Further, the increasing disposable incomes and the rising standards of living in developing nations are significantly contributing to the industry growth. Additionally, the growing pharmaceutical industry, coupled with the increasing demand for baked goods, confectionery, and dairy products is also boosting the industry growth.

Lactose Market Segmentation

The report titled “Lactose Industry Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Derivative

• Lactulose
• Galactose
• Lactitol
• Lactosucrose
• Others

Market Breakup by Form

• Powder
• Granule

Market Breakup by End Use

• Food and Beverages
• Confectionery
• Animal Feed
• Pharmaceutical
• Cosmetics
• Others

Market Breakup by Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Lactose Market Share

Lactulose is the dominant derivative, driven by its widespread use in various applications

The lactulose segment dominates the market and is expected to continue its dominance due to its increasing use in various applications, particularly in the food and beverages industry where it is used as a sweetener and in the pharmaceutical industry where it is used as a laxative. Galactose is another significant derivative in the global lactose market, driven by its increasing use in various applications such as pharmaceuticals and cosmetics. In the cosmetics industry, it is used as a moisturiser.

Food and beverages segment holds a significant market share due to rising consumption of dairy products

The food segment is anticipated to grow at the fastest pace during the projected timeframe. This is due to the growing demand for dairy product standardisation by the food industry. The food industry has further accelerated lactose market development because demand for lactose has increased, driven by consumption of products like yoghurt, milk, cheese, butter, etc. The feed segment also has a substantial market share as lactose is used as an ingredient in pig feed and other animal feed products. The pharmaceutical industry also uses lactose as an excipient in the formulation of tablets and capsules.

Lactose Market Analysis by Region

North America leads the market due to its robust food, dairy, and pharmaceutical sectors

Geographically, North America is a significant region in the global market for lactose. The growth can be attributed to the increasing penetration of leading players, thriving food and beverages industry, and stringent food and safety regulations in the region. Moreover, the growing pharmaceutical industry is significantly contributing to the demand for refined-edible grade lactose, thus, further increasing the lactose market share in North America.

Meanwhile, the Asia-Pacific is expected to witness a robust growth in the forecast period owing to the rapidly increasing demand for infant formula in countries like China and India. This can be attributed to the presence of a large population, rising awareness, and improving standards of living. Additionally, the increasing feed production in the region is also aiding the industry growth as lactose has applications in feed industry, especially as an ingredient for pig feed.

Leading Companies in the Lactose Market

Market players are investing in research and development to enhance product quality and variety, as well as strategic partnerships to gain a competitive edge in the market

Fonterra Co-Operative Group Limited

Fonterra Co-Operative Group Limited was founded in 2001 and its headquarters are in Auckland, New Zealand. Fonterra operates a fast-moving consumer goods business for dairy products and has several subsidiaries and joint-venture companies operating in markets around the world. The company's product portfolio includes milk, butter, cheese, and yoghurt.

Lactalis Group

Lactalis Group was founded in 1933 and is based in Mayenne, France. It is a dairy company known for its significant presence in the global dairy market. Lactalis has a range of brands, including Président, Galbani, and President, which are well-known for their cheese, milk, and other dairy products.

Kerry Group plc

Kerry Group plc is an Irish food company that was founded in 1972. Its headquarters are in Tralee, Ireland. The company provides food ingredients, taste and nutrition solutions, and consumer foods to the food and beverage industry.

Agropur Cooperative

Agropur Cooperative was founded in 1938 and is headquartered in Quebec, Canada. The company operates through various brands and subsidiaries, focusing on quality and innovation in the dairy industry. Its product portfolio includes dairy products such as cheese, milk, and yoghurt.

Other key players in the lactose market report include Royal FrieslandCampina and Arla Foods Amba, among others.

Lactose Market Report Snapshots

Lactose Companies