Lactose Market - Historic Data (2019-2024), Global Trends 2025, Growth Forecasts 2037
Lactose Market in 2025 is assessed at USD 2.45 billion. The global Market size surpassed USD 2.31 billion in 2024 and is projected to witness a CAGR of over 7.4%, crossing USD 5.84 billion revenue by 2037. North America is forecast to generate majority share by 2037, fueled by growing food and beverage industry and the increasing demand for confectionary items.
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.
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.
Lactose Sector: Growth Drivers and Challenges
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
- Surge in Lactose Intolerance Cases - The increasing number of lactose-intolerant persons affects the demand for lactose-based products as several people are unable to digest lactose-based products, which cause a variety of disorders such as diarrhea, bloating, and others. For instance, approximately 68% of people worldwide are lactose intolerant.
- High Cost of Refined Edible Grade Lactose
- Convenient Access to The Alternative Sources of Lactose
Lactose Market: Key Insights
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
7.4% |
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Base Year Market Size (2024) |
USD 2.31 billion |
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Forecast Year Market Size (2037) |
USD 5.84 billion |
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Regional Scope |
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Lactose Segmentation
End-user (Food & Beverages, Functional Foods, Confectionery, Animal Feed, Pharmaceutical, Cosmetics & Personal Care)
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.
Our in-depth analysis of the global 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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Customize this ReportLactose Industry - Regional Synopsis
North American Market Forecast
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 2037 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.
Companies Dominating the Lactose Landscape
- DuPont de Nemours, Inc.
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Fonterra Co-operative Group Limited
- Glanbia plc
- Merck KGaA
- Agropur cooperative
- Arla Foods amba
- Lactalis Group
- Kerry Group plc
- Lactose India Limited
- MILEI GmbH
In the News
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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.
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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.
Author Credits: Rajrani Baghel
- Report ID: 4424
- Published Date: May 08, 2025
- Report Format: PDF, PPT
