Lactose Market Size

Lactose Market size was valued at USD 2.3 Billion in 2023 and is poised to grow from USD 2.39 Billion in 2024 to USD 3.34 Billion by 2032, growing at a CAGR of 3.8% during the forecast period (2025-2032).

The market is fragmented in nature. The prominent players operating in the lactose market are constantly adopting various growth strategies in order to stay afloat in the market. Product launches, innovations, mergers, and acquisitions, collaborations and partnerships, and intensive R&D are some of the growth strategies that are adopted by these key players to thrive in the competitive market. The key market players are also constantly focused on R&D in order to supply industries with the most efficient and cost-effective solutions. 'Chr. Hansen Holdings A/S  ', 'Kerry Group plc  ', 'Koninklijke DSM N.V.  ', 'Novozymes A/S  ', 'Merck KGaA  ', 'International Flavors & Fragrances Inc. (IFF)  ', 'Amano Enzyme Inc.  ', 'Advanced Enzyme Technologies  ', 'Novact Corporation  ', 'Antozyme Biotech Pvt. Ltd.  ', 'Nature Bioscience Pvt. Ltd.  ', 'Aumgene Biosciences  ', 'Creative Enzymes  ', 'Biolaxi Enzymes Pvt. Ltd.  ', 'Enzyme Bioscience Pvt. Ltd.  ', 'Infinita Biotech Pvt. Ltd.  ', 'Mitushi Biopharma  ', 'Oenon Holdings Inc.  ', 'Ultreze Enzymes  ', 'Senson'

Increasing demand for food and infant-grade lactose, as well as a growing pharmaceutical industry in developing countries, contributed to lactose market expansion. Demand for infant formula has increased significantly, particularly in industrialized countries such as the United States and major European countries. China, which has historically been one of the greatest single consumers of infant formula, has long relied on imports. Because of the melamine controversy in 2008, there was a greater desire for imported baby formula brands. However, China has changed its focus to homegrown brands, promoting the country's major domestic producers. China Feihe and Inner Mongolia Yili Industrial Group Co. are two market leaders in the Chinese infant formula business. Due to increased demand for its infant formula brands in China, China Feihe had a 38% growth in sales from 2019 to 2020.

The expansion of the lactose market was aided by the decreasing breastfeeding rates globally. The rise in the working population and the availability of breast milk substitutes are mostly to blame for the global decline in breastfeeding rates. One of the important elements driving up demand for infant formula in emerging nations such as China is the decreased breastfeeding rate in both developed and developing countries. As a result, some market participants are concentrating their efforts on manufacturing infant formula that is as near to breast milk as feasible. As a result, global demand for infant-grade lactose is increasing. Similarly, with sustained economic expansion and urbanization around the world, breastfeeding rates in wealthy countries such as the United States, Germany, and Japan are likely to stay low, increasing demand for infant milk formula. As a result, demand for infant-grade lactose increased, supporting market development.

In 2021, Asia-Pacific region is expected to have the biggest share of the lactose market. The increasing manufacturing of infant formula in the region, as well as the growing pharmaceutical industry in Asian countries such as China and India, are some of the factors driving Asia Pacific's dominance in 2021. Furthermore, strategic expansion efforts by major competitors in the market to meet rising demand are fueling market growth. For example, Olam Food Ingredients announced an investment plan for a new dairy processing factory in Tokoroa, New Zealand, in September 2021. The new factory will improve the company's global production network by producing high-value dairy ingredients such as lactose.