Lactose Market Landscape 2025: Forecast Data and Growth Strategy Insights

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What Is the Expected CAGR for the Lactose Market Through 2025?
In recent times, the size of the lactose market has shown consistent growth. It is projected to increase from $1.36 billion in 2024 to $1.4 billion in 2025, with a compound annual growth rate (CAGR) of 2.9%. The historical growth trajectory can be traced back to several factors including, higher global intake of dairy products, expansion of the worldwide food and beverage sector, the burgeoning demand for infant formula and nutritional supplements, the expansion of the pharmaceutical and pharmaceutical excipients industry, along with increased awareness about health and nutrition.

What's the Projected Size of the Global Lactose Market by 2029?
In the forthcoming years, the lactose market size is predicted to enjoy a stable upward trend, potentially reaching a value of $1.66 billion by 2029, advancing at a compound annual growth rate (CAGR) of 4.4%. This growth over the projected period can be linked to the increased usage of lactose in pet food recipes, the growing occurrence of lactose-free and dairy-free products, the preference for low-fodmap and beneficial gut ingredients, the discovery of unique applications in the cosmetic and personal care sectors, and the development of the lactose market in developing economies. Key trends are expected to revolve around the inclusion of lactose in cosmetics and personal care items, highly pure and pharmaceutical-grade lactose, lactose as a component in animal feed recipes, the use of instantized lactose for rapid dissolution, and the production of personalized lactose mixes.

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Top Growth Drivers in the Lactose Industry: What's Accelerating the Market?
The lactose market's growth is anticipated to be driven by the surge in dairy production. This refers to the cultivation and processing of milk and its byproducts typically derived from animals such as cows, goats, and sheep. With an increase in dairy production, there's an enhancement in the availability of raw milk, leading to a larger production of lactose as a side product. This rise in lactose production results in its increased affordability, promoting its usage across various sectors, including food and non-food areas. For example, the European Commission (EC), the executive arm of the European Union (EU) based in Belgium, reported in August 2023 that during the initial half of 2023, raw milk production within the EU rose by 0.8%. Hence, the escalating dairy production is fuelling the expansion of the lactose market.

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What Trends Will Shape the Lactose Market Through 2029 and Beyond?
One key trend seeing increased traction in the lactose market is the focus on strategic partnerships. Major lactose industry players are leveraging these collaborations to broaden their range of products. For example, in February 2022, Switzerland-based multinational food and beverage processing giant, Nestlé S.A., teamed up with Finland-based dairy products manufacturer Valio Ltd. to bolster its line-up of high-end dairy products.

What Are the Main Segments in the Lactose Market?
The lactosemarket 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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Which Top Companies are Driving Growth 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 Regions Will Dominate the Lactose Market Through 2029?
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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