Key Factor Supporting Lactose Market Development in 2025: Increasing Dairy Production To Drive Market Growth

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How Large Will the Lactose Market Size By 2025?
The size of the lactose market has seen consistent expansion over the past few years. A notable growth from $1.36 billion in 2024 to $1.41 billion in 2025 with a compound annual growth rate (CAGR) of 3.8% is forecasted. The previous period of growth has been driven by factors such as a surge in the global consumption of dairy products, a boom in the global food and beverage sector, demand surge for infant formula and nutritional supplements, the expansion of the pharmaceutical and pharmaceutical excipients sectors, and an increase in health consciousness and nutritional awareness.

How Big Is the Lactose Market Size Expected to Grow by 2029?
In the coming years, steady expansion is anticipated for the lactose market, with its value expected to reach $1.68 billion in 2029, reflecting a compound annual growth rate (CAGR) of 4.5%. Several factors are predicted to fuel this growth during the forecast period, such as the growing usage of lactose in pet food recipes, the increasing demand for lactose-free and dairy-free products, the preference for low-fodmap and gut-friendly components, and the development of niche markets in the personal care and cosmetic sector. The market is also expected to grow due to the expansion of the lactose industry in emerging economies. The major trends to look out for during the forecast period are the inclusion of lactose in personal care and cosmetic products, the demand for high purity and pharmaceutical-grade lactose, its use in animal feed, quick-dissolving instantized lactose, and customized lactose mixtures.

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Which Key Market Drivers Powering Lactose Market Expansion and Growth?
The growth of the lactose market is projected to be driven by an increase in dairy production. Dairy production encompasses the farming and processing of milk and products related to milk, generally from livestock such as cows, goats, or sheep. An uptick in dairy production results in a larger supply of raw milk, leading to an increased volume of lactose as a byproduct. Moreover, heightened dairy production generates a surplus of lactose byproducts, which reduces the cost of lactose and encourages its usage in various sectors, including both food and non-food industries. As reported by the European Commission (EC), the executive branch of the European Union (EU) located in Belgium, there was a rise of 0.8% in raw milk production in the EU during the first half of 2023. As such, the escalation in dairy production is a critical factor in the growth of the lactose market.

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Which Fast-Growing Trends Are Poised to Disrupt the Lactose Market?
A noteworthy trend emerging in the lactose market is the increased focus on strategic partnerships. Large-scale enterprises in the lactose industry are concentrating on these alliances to broaden their range of products. To illustrate, in February 2022, Nestlé S.A., a multinational corporation based in Switzerland that specializes in food and drink processing, joined forces with Valio Ltd., a Finnish dairy products manufacturer, to bolster its premium dairy product selection.

What Are the Emerging Segments in the Lactose Market?
The lactose market covered in this report is segmented -

1) By Form: Powder, Granule
2) By Purity: Crude Lactose, Edible Lactose, Refined-Edible Grade Lactose
3) By Color: Yellow, Pale-Yellow To White, White
4) By End-Use: Food And Beverages, Confectionery, Animal Feed, Pharmaceutical, Cosmetics, Other End-Users

Subsegments:
1) By Powder: Spray-Dried Lactose, Instant Lactose, Lactose Monohydrate
2) By Granule: Granulated Lactose, Lactose Pellets

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Who Are the Global Leaders in the Lactose Market?
Major companies operating in the lactose market include Kerry Group, Saputo Inc., Lactalis Ingredients, Leprino Foods Company, Glanbia PLC., Lactose India Ltd., Davisco Foods International Inc., DMK Deutsches Milchkontor GmbH, Molkerei MEGGLE Wasserburg GmbH & Co. KG, Royal FrieslandCampina NV, FrieslandCampina, Armor Proteines, Bayerische Milchindustrie eG, Milei GmbH, Fonterra Co-operative Group, Agropur Cooperative, Nestle SA, Danone SA, Dairy Farmers of America Inc., Arla Foods amba, Gujarat Co-operative Milk Marketing Federation Ltd., Inner Mongolia Yili Industrial Group Co Ltd., Ba'emek Advanced Technologies Ltd., Hilmar Cheese Company, Avantor Inc., Danone North America Inc., Kraft Heinz Company, Glanbia Plc, Foremost Farms USA, Erie Foods International Inc.

Which are the Top Profitable Regional Markets for the Lactose Industry?
North America was the largest region in the lactose market in 2024. The regions covered in the lactose market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

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