Lactose Market Size, Share, Growth Analysis, By Source (Yeast, Fungi), By Form (Liquid, Dry), By Application (Food & Beverages, Pharmaceutical Products & Dietary Supplements), By Region - Industry Forecast 2024-2031

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.

Europe held the second-largest share of the global market. The region's developing food industry, rising infant formula usage across Europe, and well-established dairy sector are expected to boost market expansion. According to industry experts and KOL interviews, Europe is one of the world's largest lactose producing locations, with roughly 650-700 thousand tons of production in 2020. Meanwhile, the North American market is predicted to grow at a rapid pace over the forecast period. The dairy sector's favorable business policies, the pharmaceutical industry's increased demand for refined-edible grade lactose, and the country's expanding demand for confectionery and other food products are driving market expansion in North America.