Lactose Market Analysis by Form (Powder, and Granule); by Derivative (Galactose, Lactose Monohydrate, Lactulose, Lactitol, and Others); by Purity (Edible, Crude, and Refined Edible); and by End-User (Food & Beverages, Functional Foods, Confectionery, Animal Feed, Pharmaceutical, Cosmetics & Personal Care, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033
Buy Now Report ID: 4424 | Published Date: Feb 13, 2023
The global lactose market is estimated to garner a revenue of ~USD 7 billion by the end of 2033 by growing at a CAGR of ~7% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of ~USD 2 billion in the year 2022. The growth of the market is primarily attributed to the significantly rising demand of lactose on a worldwide level in various industries. For instance, as of 2022, lactose demand has increased significantly over the last decade, and the lactose industry has developed accordingly, particularly in the United States and Europe. The global production is estimated to be around 510 000 tons, with an upward trend continuing. Besides this, the significant growth in pharmaceutical industry is another major factor which id driving the growth of the lactose market over the projected time frame.
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Lactose is one of the significant ingredients in the production of infant formula. Thus, the rising demand for infant formula around the world is a significant driver of the growth of lactose market over the forecast period. For instance, in the United States, nearly 8.30 million individual used liquid or powdered infant formula in 2020. Furthermore, the increase in R&D efforts and new product releases by the major competitors, as well as the growth in health awareness among consumers, are projected to provide new opportunities for the lactose market throughout the forecast period.
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~7% |
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Base Year Market Size (2022) |
~ USD 2 Billion |
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Forecast Year Market Size (2033) |
~ USD 7 Billion |
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Regional Scope |
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Growth Drivers
Rising Awareness About the Benefits of Consuming Lactose - Lactose is a sugar present in milk that provides energy as well as a number of other health benefits. Now people are getting more aware regarding the benefits of lactose and adding the required amount of lactose in their food or dietary supplements. For instance, lactose has a number of nutritional advantages that other sugar sources do not have. It provides a sustained energy supply in the body owing to slow hydrolysis, increases mineral absorption such as calcium, magnesium, and zinc, and adds value to a healthy intestinal flora by stimulating the growth of beneficial intestinal bacteria such as bifidobacteria and lactobacilli.
Growing Consumption of Dietary supplements – As per a survey, in mainland China, approximately 58% of people consumed dietary supplements as of March 2022.
Escalating Growth in Pharmaceutical Industry – For instance, the valuation of pharmaceutical industry in the United States was reached around USD 2.5 trillion as of November 2021, whereas the value in China was around USD 842 billion.
Growing Skincare Industry - Globally, the skincare industry has reached nearly USD 163 billion by the first half of 2022.
Rising Expenditure in Research and Development – As per the World Bank, globally, the research and development expenditure increased significantly between 2018 and 2020, rising from 2.2% of GDP in 2018 to 2.63% of GDP in 2020.
Challenges
The global lactose market is segmented and analyzed for demand and supply by end-user into food & beverages, functional foods, confectionery, animal feed, pharmaceutical, cosmetics & personal care, and others. Out of these, the food & beverage segment is anticipated to hold the largest share over the forecast period on the back of the significant growth of food & beverage industry, and growing implementation of lactose in production of numerous food items and beverages such as edible creams, and calcium-fortified beverages. It was observed that the food and beverage industry in the United States was garnered around USD 997 billion in 2020. Moreover, escalating consumption of processed foods is another significant factor which is boosting the growth of the lactose market over the forecast period.
The North America lactose market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033 backed by the presence of significant key manufacturers, along with the growing food and beverage industry, and the increasing demand for confectionary items such as chocolates, candies, and other products in the region. For instance, around more than 4.8 billion units of chocolate candy were sold in the United states in 2021.
Our in-depth analysis of the global lactose market includes the following segments:
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By Form |
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By Derivative |
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By Purity |
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By End-User |
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DuPont de Nemours, Inc.
Kerry Group plc has entered an agreement with Kraft Heinz to acquire its B2B powdered cheese business and related assets for USD 107.5 million. As a result of this acquisition, Kerry is expected to increase its scale, manufacturing capability, and customer base in the snacking category.
Fonterra Co-operative Group Limited has welcomed the Milk-E, New Zealand's first ever electric milk tanker. Fonterra's Milk-E program is one of a number of programs supporting the Co-op's efforts toward being a leader in sustainability through fleet decarbonization.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Smruti Ranjan, Rajrani Baghel
Ans: Rising awareness about the benefits of consuming lactose, growing consumption of dietary supplements, and escalating growth in pharmaceutical industry are some major factors driving the growth of the market.
Ans: The market is anticipated to attain a CAGR of ~7% over the forecast period, i.e., 2023 – 2033.
Ans: Lack of awareness about lactose, high cost of refined edible grade lactose, and convenient access to the alternative sources of lactose are estimated to hamper the market growth.
Ans: The market in North America is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are DuPont de Nemours, Inc., Fonterra Co-operative Group Limited, Glanbia plc, Merck KGaA, Agropur cooperative, Arla Foods amba, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by form, derivative, purity, end-user, and by region.
Ans: The food & beverages segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
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