Global Market Size, Forecast, and Trend Highlights Over 2025-2037
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. In 2025, the industry size of lactose is estimated at USD 1.6 billion.
The global lactose market is expanding primarily due to the increasing usage of lactose in pharmaceutical applications, particularly in pediatric formulations and excipient manufacturing. As lactose is stable and compressible, the U.S. Food and Drug Administration considers it an essential inactive ingredient in over 6,020 approved drug formulations. Data from the U.S. Census Bureau's International Trade shows that shipments of pharmaceutical preparations that contain lactose have been consistently rising, indicating a rise in demand worldwide.
From a production perspective, whey, a byproduct of making cheese, is the first ingredient in the lactose raw material supply chain. Regarding price, according to the Bureau of Labor Statistics (BLS), the Consumer Price Index (CPI) for newborn and medical nutritional products climbed by 3.3% in 2024, while the Producer Price Index (PPI) for dry milk products, including lactose, increased by 3.0%. According to U.S. International Trade Commission (USITC) trade records, 426,000 metric tons of lactose were exported in 2024, with significant shipments going to China and Mexico. USDA's Agricultural Research Service (ARS) has also provided funding for research and development efforts in lactose extraction optimization; in FY 2023, USD 18.9 million was allotted to dairy innovation and nutrient extraction.
