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

Lactose Market Driver

• 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.
• Additionally, the pharmaceutical industry has seen tremendous expansion in recent years, particularly in developing countries such as Brazil, China, India, and others in the Asia Pacific region. The rising prevalence of chronic diseases, as well as the government's increased healthcare awareness activities, are driving up demand for sophisticated treatment solutions. As a result, the key market participants are focusing on releasing blockbuster medication molecules to meet demand, which is expected to fuel the pharmaceutical market's expansion over the study period. This rapid rise in the pharmaceutical industry is expected to increase demand for lactose, which aids in the compressibility and flowability of drug molecules during drug formulation.

Lactose Market Restraint

• Lactose is primarily used in the feed, food, and pharmaceutical industries. Furthermore, due to the high cost and scarcity of lactose, the majority of feed makers are turning to alternatives such as table sugar, molasses, dextrose, and maltodextrins. This is a significant factor limiting market expansion throughout the projection period. Furthermore, recent product recalls involving lactose-based goods, such as infant formula, will impact demand for formula and, as a result, restrict market growth. For example, Abbott Nutrition launched a voluntary recall of certain powdered newborn formulae in February 2022 owing to potential bacterial illnesses, including Salmonella. Products manufactured at the Sturgis factory can be found throughout the United States and were most likely exported to other nations as well. As a result, Canadians health officials have also issued a recall warning. As a result, the availability of alternatives and increased recalls of lactose-based products are expected to impede market growth during the forecast period.