Get the latest insights on price movement and trend analysis of Lactose in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East Africa).

Dairy Price Index in World increased to 154.40 Index Points in June from 153.60 Index Points in May of 2025. This dataset includes a chart with historical data for World Dairy Price Index.

The Lactose Market is estimated to be worth USD 3.27 billion in 2025 and is projected to reach a value of USD 5.86 billion by 2035, expanding at a CAGR of 6% over the assessment period of 2025 to 2035.

Attributes	Description
Estimated Global Industry Size (2025E)	USD 3.27 billion
Projected Global Industry Value (2035F)	USD 5.86 billion
Value-based CAGR (2025 to 2035)	6%

Semi Annual Market Update

Particular	Value CAGR
H1 2024	5.6% (2024 to 2034)
H2 2024	6.2% (2024 to 2034)
H1 2025	5.8% (2025 to 2035)
H2 2025	6.3% (2025 to 2035)

Country wise Insights

Countries	CAGR 2025 to 2035
United States	5.9%
China	6.8%
India	7.5%

Category-wise Insights

Segment	Value Share (2025)
Lactose Monohydrate (Derivative Type)	38.6%

Segment	Value Share (2025)
Food and Beverage (End Use Application)	47.8%

The German lactose market was finally on the rise to reach $161M in 2024, after two years of decline. Over the period under review, consumption saw buoyant growth. Lactose consumption peaked at $171M in 2021; however, from 2022 to 2024, consumption remained at a lower figure.

The global lactose powder market size reached 985.0 Kilo Tons in 2024. Looking forward, IMARC Group expects the market to reach 1,271.8 Kilo Tons by 2033, exhibiting a growth rate (CAGR) of 2.74% during 2025-2033.

Report Attribute	Key Statistics
Base Year	2024
Forecast Years	2025-2033
Historical Years	2019-2024
Market Size in 2024	985.0 Kilo Tons
Market Forecast in 2033	1,271.8 Kilo Tons
Market Growth Rate (2025-2033)	2.74%

IMARC Group provides an analysis of the key trends in each sub-segment of the global lactose powder market report, along with forecasts at the global and regional level from 2025-2033. Our report has categorized the market based on application.

The global lactose market attained a value of USD 1.83 Billion in 2024. The market is further expected to grow in the forecast period of 2025-2034 at a CAGR of 3.60%, to reach USD 2.61 Billion by 2034.

The FAO Dairy Price Index* was 142.9 points in January 2025. The coronavirus pandemic and the war in Ukraine drove the price of dairy products up throughout 2022. The prices decreased but began to rise again towards the end of 2023.For further information about the coronavirus (COVID-19) pandemic, please visit our dedicated facts and figures page. For further information about the Russian invasion of Ukraine, please visit our dedicated page on the topic.

The Lactose Free Milk Market is segmented by Form (Liquid, Powder); Category ( Plain, Flavoured); Distribution Channel (Hypermarket/Supermarket, Convenience Stores, Online Retail Stores, Other Distribution Channels); and Geography (North America, Europe, Asia-Pacific, South America, and the Middle East and Africa). The report offers market size and forecasts in value (USD million) for the above segments.

The CIS lactose market rose to $51M in 2024, surging by 4.6% against the previous year. Overall, consumption showed a relatively flat trend pattern. The level of consumption peaked at $54M in 2022; however, from 2023 to 2024, consumption failed to regain momentum.

According to Cognitive Market Research, the global Lactose market size will be USD 2591.8 million in 2025. It will expand at a compound annual growth rate (CAGR) of 6.50% from 2025 to 2033.

North America held the major market share for more than 37% of the global revenue with a market size of USD 958.97 million in 2025 and will grow at a compound annual growth rate (CAGR) of 5.3% from 2025 to 2033.
Europe accounted for a market share of over 29% of the global revenue with a market size of USD 85.46 million.
APAC held a market share of around 24% of the global revenue with a market size of USD 622.03 million in 2025 and will grow at a compound annual growth rate (CAGR) of 9.0% from 2025 to 2033.
South America has a market share of more than 4% of the global revenue with a market size of USD 98.49 million in 2025 and will grow at a compound annual growth rate (CAGR) of 6.8% from 2025 to 2033.
Middle East had a market share of around 4% of the global revenue and was estimated at a market size of USD 103.67 million in 2025 and will grow at a compound annual growth rate (CAGR) of 7.0% from 2025 to 2033.
Africa had a market share of around 2.20% of the global revenue and was estimated at a market size of USD 57.02 million in 2025 and will grow at a compound annual growth rate (CAGR) of 6.2% from 2025 to 2033.
Granule form is the fastest growing segment of the Lactose industry

Market Dynamics of Lactose Market

Key Drivers for Lactose Market

Growing Demand for Infant Formula to Boost Market Growth

Lactose is the primary carbohydrate in human breast milk, making it an essential ingredient in infant formula to support healthy digestion, calcium absorption, and brain development. As more mothers enter the workforce, the demand for formula feeding alternatives continues to grow, particularly in developing countries with rising birth rates. Additionally, lactose is favored over alternative sweeteners due to its natural composition and ease of digestion for infants. The increasing adoption of premium and organic infant formulas, along with government programs supporting infant nutrition, is further boosting lactose demand in the baby food industry. For instance, In May 2024, New Culture, an animal-free dairy company, entered a strategic partnership with CJ CheilJedang, a leading biotechnology company, to scale up the production of animal-free casein protein for mozzarella.

https://www.prnewswire.com/news-releases/new-culture-and-cj-cheiljedang-enter-into-strategic-partnership-for-commercial-manufacturing-capacity-302140327.html

Rising Applications in the Food & Beverage Industry To Boost Market Growth

Lactose is widely used in the food and beverage industry as a sweetener, stabilizer, and texture enhancer in products such as bakery goods, confectionery, dairy, and sports nutrition. It provides a mild sweetness without a strong impact on blood sugar levels, making it ideal for low-glycemic and diabetic-friendly foods. The growing consumer preference for functional foods, protein supplements, and dairy-based beverages is increasing lactose usage. Additionally, the expansion of ready-to-eat meals and processed foods has led to greater lactose incorporation in formulations, further driving market growth.

Restraint Factor for the Lactose Market

Rising Prevalence of Lactose Intolerance Will Limit Market Growth

Lactose intolerance affects a significant portion of the global population, especially in Asia, Africa, and Latin America, where many people lack the lactase enzyme needed to digest lactose properly. Symptoms such as bloating, diarrhea, and stomach discomfort discourage lactose consumption, reducing demand for traditional dairy-based products. As a result, many consumers are shifting towards plant-based milk alternatives (soy, almond, oat) and lactose-free dairy products, limiting lactose market expansion. Additionally, food manufacturers are developing enzyme-treated dairy products and non-dairy formulations, which further diverts demand away from traditional lactose sources.

Market Trends in Lactose Market

Growing Demand for Lactose-Free and Reduced-Lactose Products

As lactose intolerance awareness increases, consumers are actively seeking lactose-free or reduced-lactose alternatives. Food manufacturers are responding by developing lactose-free milk, yogurt, cheese, and protein supplements using lactase enzyme technology, which helps break down lactose into...

Pharmaceutical Grade Lactose Market was valued at USD 661.81 Million in 2022 and is expected to reach USD 1026.58 Million in 2032 registering a CAGR of 5% during the forecast period.

The Lactose Market size is expected to reach a valuation of USD 3.2 billion in 2033 growing at a CAGR of 6.5%. The Lactose Market research report classifies market by share, trend, demand, forecast and based on segmentation.

The global market size of Lactose Powder is $XX million in 2018 with XX CAGR from 2014 to 2018, and it is expected to reach $XX million by the end of 2024 with a CAGR of XX% from 2019 to 2024.
Global Lactose Powder Market Report 2019 - Market Size, Share, Price, Trend and Forecast is a professional and in-depth study on the current state of the global Lactose Powder industry. The key insights of the report:
1.The report provides key statistics on the market status of the Lactose Powder manufacturers and is a valuable source of guidance and direction for companies and individuals interested in the industry.
2.The report provides a basic overview of the industry including its definition, applications and manufacturing technology.
3.The report presents the company profile, product specifications, capacity, production value, and 2013-2018 market shares for key vendors.
4.The total market is further divided by company, by country, and by application/type for the competitive landscape analysis.
5.The report estimates 2019-2024 market development trends of Lactose Powder industry.
6.Analysis of upstream raw materials, downstream demand, and current market dynamics is also carried out
7.The report makes some important proposals for a new project of Lactose Powder Industry before evaluating its feasibility.
There are 4 key segments covered in this report: competitor segment, product type segment, end use/application segment and geography segment.
For competitor segment, the report includes global key players of Lactose Powder as well as some small players. At least 6 companies are included:
* Lactalis Group
* Nestle
* Fonterra
* Dairy Farmers of America
* Land O’Lakes
* Meggle Pharma

The information for each competitor includes:
* Company Profile
* Main Business Information
* SWOT Analysis
* Sales, Revenue, Price and Gross Margin
* Market Share

For product type segment, this report listed main product type of Lactose Powder market
* Food Grade
* Pharmaceutical Grade
For end use/application segment, this report focuses on the status and outlook for key applications. End users sre also listed.
* Food Industry
* Diet & Sports Nutrition Industry
* Pharmaceutical Industry
* Others

For geography segment, regional supply, application-wise and type-wise demand, major players, price is presented from 2013 to 2023. This report covers following regions:
* North America
* South America
* Asia & Pacific
* Europe
* MEA (Middle East and Africa)
The key countries in each region are taken into consideration as well, such as United States, China, Japan, India, Korea, ASEAN, Germany, France, UK, Italy, Spain, CIS, and Brazil etc.

Reasons to Purchase this Report:
* Analyzing the outlook of the market with the recent trends and SWOT analysis
* Market dynamics scenario, along with growth opportunities of the market in the years to come
* Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and non-economic aspects
* Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
* Market value (USD Million) and volume (Units Million) data for each segment and sub-segment
* Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
* Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
* 1-year analyst support, along with the data support in excel format.
We also can offer customized report to fulfill special requirements of our clients. Regional and Countries report can be provided as well.

Lactose-Free Milk Market Outlook

According to our latest research, the global lactose-free milk market size reached USD 14.3 billion in 2024, driven by rising lactose intolerance awareness and increasing demand for functional dairy alternatives. The market is experiencing robust expansion at a CAGR of 7.1% and is forecasted to reach USD 26.7 billion by 2033. This impressive growth is primarily fueled by shifting consumer preferences toward health-conscious products, expanding product portfolios, and advancements in food processing technologies.

One of the foremost growth factors propelling the lactose-free milk market is the rising prevalence of lactose intolerance worldwide. As per recent epidemiological studies, more than 65% of the global population exhibits some degree of lactose malabsorption, particularly in regions such as Asia Pacific, Africa, and South America. This demographic trend has significantly influenced consumer purchasing behavior, with a marked shift toward lactose-free dairy alternatives. Additionally, growing public awareness campaigns about digestive health and the adverse effects of lactose consumption have further accelerated market demand. Food manufacturers and dairy processors are responding to this trend by introducing innovative lactose-free milk variants, tailored to meet the nutritional needs and taste preferences of a diverse consumer base.

Another critical driver for the lactose-free milk market is the expanding distribution network and availability of lactose-free products across multiple retail channels. The proliferation of supermarkets, hypermarkets, online stores, and specialty outlets has made it easier for consumers to access a wide range of lactose-free milk products. E-commerce platforms, in particular, have played a pivotal role in boosting sales, providing consumers with greater convenience, better price transparency, and access to a broader product selection. The integration of advanced supply chain technologies and cold chain logistics has also ensured the freshness and safety of lactose-free milk, further enhancing consumer trust and market penetration.

Product innovation and diversification are also contributing to the sustained growth of the lactose-free milk market. Leading dairy companies are investing heavily in research and development to create new product variants, such as flavored and organic lactose-free milk, fortified with additional nutrients like calcium, vitamins, and probiotics. These value-added offerings cater to health-conscious consumers seeking functional foods that support overall wellness. Moreover, the rise of plant-based and clean-label trends has led to the introduction of organic and minimally processed lactose-free milk options, appealing to environmentally aware and ethically driven consumers. Such innovations not only expand the consumer base but also position lactose-free milk as a premium segment within the broader dairy market.

Regionally, the lactose-free milk market exhibits varying degrees of maturity and growth potential. North America and Europe continue to dominate the market due to high consumer awareness, advanced dairy processing infrastructure, and strong retail networks. However, the Asia Pacific region is emerging as a lucrative growth frontier, fueled by rising disposable incomes, urbanization, and increasing diagnosis rates of lactose intolerance. Latin America and the Middle East & Africa are also witnessing steady growth, supported by evolving dietary patterns and the entry of international dairy brands. The regional dynamics of the market are shaped by cultural dietary habits, regulatory frameworks, and the pace of urbanization, with each region presenting unique opportunities and challenges for market participants.

Product Type Analysis

The lactose-free milk market is segmented by product type into regular lactose-free milk, flavored lactose-free milk, organic lactose-free milk, and others. Regular lactose-free milk continues to command the largest share of the market, as it closely mimics the taste and nut

Lactose Market was worth USD 2.6 billion in 2024, and forecast to touch USD 4.4 billion in 2032, growing at a CAGR of 6.5% from 2025-2032.

The international market for milk and milk products free from lactose in the year 2024 was estimated to be USD 13,874.3 million. The market for lactose free milk led to growth in 2025 and thus the overall world market was estimated to have been worth USD 14,581.8 million in 2025. Sales during the forecasting period (2025-2035) would be at a constant average rate of growth of 5.6 % CAGR, finally ending up with a value of USD 25,118.8 million in 2035.

Attributes	Description
Estimated Global Lactose Free Dairy Product Industry Size (2025E)	USD 14,581.8 million
Projected Global Lactose Free Dairy Product Industry Value (2035F)	USD 25,118.8 million
Value-based CAGR (2025 to 2035)	5.6 %

Semi-Annual Market Update

Particular	Value CAGR
H1	5.2 % (2024 to 2034)
H2	5.4 % (2024 to 2034)
H1	5.5 % (2025 to 2035)
H2	5.6 % (2025 to 2035)

Country-wise Insights

Country	CAGR (2025-2035)
USA	5.2%
Germany	4.8%
China	6.1%
Japan	4.5%
India	7.0%

Category-Wise Insights

Segment	Value Share (2025)
Milk (By Product Type)	48.7 %

Segment	Value Share (2025)
Organic (By Nature)	37.9%

The lactose market size was valued at USD 1.5 billion in 2024 and is projected to reach USD 2.7 billion by the end of 2037, rising at a CAGR of 5.5% during the forecast period, i.e., 2025-2037. Asia Pacific industry is anticipated to dominate the market with a share of 39.1% due to strong R&D investment, increasing industrialization, and high consumption in the food and pharmaceutical industries.

Lactose Free Dairy Market Outlook

In 2023, the global lactose-free dairy market size was valued at approximately USD 12 billion and is anticipated to reach USD 25 billion by 2032, reflecting a compound annual growth rate (CAGR) of around 8.5%. The rising incidence of lactose intolerance and the growing consumer inclination towards healthy and convenient dietary options are significant drivers of this market's exceptional growth.

One of the primary growth factors driving the lactose-free dairy market is the increasing prevalence of lactose intolerance worldwide. Studies indicate that a significant portion of the global population suffers from varying degrees of lactose intolerance, which has propelled the demand for lactose-free dairy products. This demographic change is not limited to any single region but is a global phenomenon, thereby expanding the market's potential reach. Consumers are becoming more aware of lactose intolerance and seeking products that cater to their dietary restrictions without compromising on taste or nutritional value.

Another key growth factor is the rising health consciousness among consumers. There is a growing trend towards adopting healthier diets, driven by increased awareness of the adverse health effects of lactose consumption for lactose-intolerant individuals. Consumers are increasingly opting for lactose-free products not just out of necessity but also as a preventive measure to improve their overall well-being. This shift in consumer behavior is reflected in the burgeoning variety of lactose-free dairy products available in the market, ranging from milk and cheese to yogurt and ice cream.

The market is also witnessing significant growth due to advancements in food processing technology and innovation. New processing techniques allow manufacturers to produce lactose-free dairy products that retain the taste and nutritional benefits of traditional dairy. Innovations such as the development of more efficient lactase enzyme treatments and fortification of lactose-free products with additional nutrients are enhancing product offerings. These technological advancements make lactose-free dairy products more appealing to a broader consumer base, thereby driving market expansion.

Lactose-Free Infant Formula is emerging as a crucial product within the lactose-free dairy market, catering specifically to infants who are unable to digest lactose. This specialized formula provides essential nutrients similar to regular infant formula but without the lactose content, ensuring that infants with lactose intolerance can still receive the necessary nutrition for healthy growth and development. As awareness of lactose intolerance in infants increases, parents are seeking reliable alternatives to traditional infant formulas. The growing demand for lactose-free infant formula is driving innovation in this segment, with manufacturers focusing on enhancing the nutritional profile and taste to meet the needs of both infants and their caregivers.

Regionally, North America and Europe have been leading the market due to the high prevalence of lactose intolerance and the early adoption of lactose-free products. However, the Asia Pacific region is anticipated to exhibit the highest growth rate over the forecast period. The increasing awareness about lactose intolerance, coupled with rising disposable incomes and changing dietary patterns, is contributing to the growth of the lactose-free dairy market in this region. Countries like China and India are witnessing a significant rise in demand for lactose-free dairy products.

Product Type Analysis

The lactose-free dairy market is segmented into various product types, including milk, cheese, yogurt, ice cream, butter, and others. Each product type plays a significant role in catering to the diverse needs and preferences of lactose-intolerant consumers. Lactose-free milk, being a staple dairy product, holds a substantial share of the market. It is widely consumed by individuals of all age groups and is readily available in supermarkets and convenience stores. The demand for lactose-free milk is driven by its essential role in daily nutrition and its versatility in cooking and baking.

Lactose-free cheese is another critical segment of the market. Cheese is a popular dairy product used in a variety of culinary applications. The availability of lactose-free cheese allows lactose-intolerant consumers to enjoy their favorite dishes wi

In 2024, the global lactose market decreased by -3.6% to $3.8B for the first time since 2018, thus ending a five-year rising trend. The market value increased at an average annual rate of +1.5% over the period from 2012 to 2024; the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. Global consumption peaked at $3.9B in 2023, and then contracted in the following year.

Pharmaceutical Lactose Market Outlook

The pharmaceutical lactose market size was valued at approximately USD 1.1 billion in 2023 and is projected to reach USD 1.6 billion by 2032, with a compound annual growth rate (CAGR) of 4.1% from 2024 to 2032. This growth is primarily driven by increasing demand in the pharmaceutical industry for lactose as an excipient in drug formulation, owing to its excellent properties such as compressibility, cost-effectiveness, and availability. The expansion of pharmaceutical manufacturing, especially in emerging economies, and the rising adoption of lactose in the formulation of tablets and capsules are significant growth factors boosting the market. Moreover, the supportive regulatory framework and technological advancements in lactose processing are further propelling market expansion.

One of the pivotal growth factors for the pharmaceutical lactose market is the burgeoning pharmaceutical industry worldwide. As the demand for medications rises, driven by aging populations and the prevalence of chronic diseases, the need for efficient and effective drug delivery systems grows. Lactose is a preferred excipient due to its compatibility with active pharmaceutical ingredients (APIs) and its inert properties, making it ideal for use in various formulations. The increasing focus on developing oral solid dosage forms, which constitute a significant portion of pharmaceutical products, is subsequently driving the demand for pharmaceutical-grade lactose. Furthermore, the trend towards advanced drug delivery mechanisms and personalized medicine is likely to enhance lactose's application scope, further fueling market growth.

Technological advancements in lactose processing and production also significantly contribute to market expansion. Innovations such as spray-drying and milling techniques have enabled the production of lactose with specific particle size distributions and enhanced flow properties, catering to the diverse requirements of tablet and capsule manufacturing. Moreover, these advancements improve the bioavailability of APIs, making lactose an even more attractive option for pharmaceutical manufacturers. Coupled with the growing research activities to discover new lactose applications and the development of lactose derivatives, the market is anticipated to witness substantial growth over the forecast period. Companies are investing heavily in R&D to develop lactose-based excipients that can meet the evolving demands of the pharmaceutical industry, further driving market growth.

Regionally, the increasing investment in healthcare infrastructure and pharmaceutical manufacturing facilities, especially in Asia Pacific, is expected to significantly boost the pharmaceutical lactose market. Countries like China and India are emerging as prominent pharmaceutical manufacturing hubs due to their cost-effective manufacturing capabilities and favorable government policies. Additionally, North America and Europe continue to be significant markets due to their advanced pharmaceutical industries and high adoption of lactose in drug formulations. Meanwhile, Latin America and the Middle East & Africa present immense potential for market expansion due to the increasing focus on improving healthcare services and the rising demand for pharmaceuticals. As these regions invest more in healthcare and pharmaceutical advancements, the demand for pharmaceutical lactose is projected to grow accordingly.

Edible Lactose plays a significant role beyond its pharmaceutical applications, particularly in the food industry. It is commonly used as a sweetener and a bulking agent in various food products, including baked goods, confectioneries, and dairy items. Its natural sweetness and ability to enhance the texture of food products make it a preferred choice among food manufacturers. Additionally, edible lactose is utilized in the production of infant formulas and nutritional supplements, where it serves as a source of energy and aids in the absorption of calcium and other essential nutrients. As consumer preferences shift towards natural and clean-label ingredients, the demand for edible lactose in the food industry is expected to grow, offering new opportunities for manufacturers to expand their product offerings.

Product Type Analysis

The pharmaceutical lactose market is segmented into various product types, including monohydrate lactose, anhydrous lactose, spray-dried lactose, and others. Monohydrate lactose is a prominent segment due to its widespread application in the