Lactose is a sugar made up of subunits of galactose and glucose, and it has the chemical formula C12H22O11. In the stomach, lactose is converted into glucose and galactose by lactase, an enzyme, all of which are simpler carbohydrates that our body utilizes for energy and different functions. While fermentation, lactose is not absorbed by most yeasts and can be used to profit. Lactose is not explicitly applied to specific products, since it is less soluble than many sugars widely found in foods. Infant formula is a noteworthy exemption, where lactose inclusion is required to suit human milk composition. The cariogenicity of lactose among sugars is relatively small.
The global lactose market is likely to reach USD 1569.93 million by the end of 2024 by registering a CAGR of over 2% across the globe. Lactose is attracting the interest of the pharmaceuticals and nutraceuticals industry in recent times, as the global demographic continued to embrace the health & wellness trend. Further, the quest of consumers for consuming more nutrition outside of their routine food grows, lactose is the only source of galactose meeting the immunological and neural requirements of consumers. These factors are projected to fuel the growth of Global Lactose market in the analysis periods.
The rising growth in pharmaceutical and infant formula industries is projected to have a significant growth rate over the forecasted period of 2020-2027 across the globe. Lactose is the main component in the manufacture of formulae for infants, desserts, and other dairy goods. Throughout the pharmaceutical sector, the market for lactose is also slowly growing. In particular, in emerging countries, including Brazil, China, India, and other Asia Pacific nations, the pharmaceutical industry is rising at a significant pace. The Indian healthcare goods and services sector had expanded from 2000 to 2005 at a cumulative annual growth pace of 14%. During that time, the pharmaceutical industry grew at a compounded annual growth rate of 9%. In addition, the pharmaceutical industry in India registered an estimated 9.4% year-on-year growth during 2017-2018. The pharmaceutical industry ‘s rapid growth expected to result in improved demand for lactose, which is mainly used as a binding agent, as a filler in capsules, in certain types of reliable medication, including in powdered medication type in inhalers. Countries in the Asia Pacific accounted for around 65% of global consumption in 2018, mostly dominated by China in 2018 (40%). 2In terms of both sales and quantity, China is expected to dominate the baby infant formula market, accounting for more than 2/3 of Asia-Pacific’s share in 2018. As a key component of infant formula, lactose has witnessed a steady global demand. It is projected to positively affect the income from the lactose market over the forecast period.
Source: Shingetsu Rrsearch
The increasing demand for lactose-free dairy products is predicted to hinder the global market. Lactose-free consumer items are consumer goods that are manufactured of no lactose in particular. The amount of lactose is decreased or eliminated in Lactose-free food items. According to the National Centre for Biotechnology Information (NCBI), nearly 65% of the global population was vulnerable to lactose sensitivity. Consequently, this has contributed to a rise in lactose-free growth. Lactose intolerance has also observed in almost 90% of adults in East Asia. The rising lactose-intolerant population is driving the rise of lactose-free dairy products worldwide in large part. Lactose-free dairy foods are usually goods with a lower calorie profile owing to the lack of fructose; this fuel the market for lactose-free dairy products in the health-conscious community.
Additionally, a key factor for the rise in the manufacturing of lactose-free dairy products increased health awareness and wellness concerns among consumers. Lactose sensitivity is common in adolescents, according to the US National Library of Medicine, and 30 million people in the US reported lactose allergy symptoms by the age of 20 years. Especially with the rise in self-diagnosed cases of lactose intolerance among customers, the increasing market for lactose-free goods has significantly increased in Europe and the US in recent years. Therefore, dairy goods intake is the largest in the global population.
Sudden emergence and the introduction of global pandemic COVID-19 also led to the decline and cessation of all economic operators. Covid-19 has affected over 19 million people and has triggered more than 719,000 deaths and significant economic damage. As one of the country’s essential industries, the dairy sector has persisted in producing, processing, manufacturing, shipping, selling, and serving nationally and worldwide fresh, safe, and nutritious dairy products. Factors involve moving away from the foodservice distribution sector when hotels, restaurants, and schools have stopped. The International Dairy Federation Association has compiled the following details on employees, production chains, logistics, and other issues. It periodically communicates with the sector to share best practices, recommendations, and other alerts relevant to the crisis. Many processors often mention having difficulty locating drivers to transport from farms because of concerns about catching the virus. Despite the obstacles presented by the outbreak, workers of the dairy sector turn up to work every day and continue supporting their fellow people. In addition, product demand has risen for various reasons, including an increasing trend in home baking, which has contributed to increased product demand. Thus, covid-19 has a significant negative impact on the market of lactose products across the globe.
Based on derivatives, the global lactose market segmented into Lactulose, Galactose, Lactitol, Lactosucrose, and Others. The lactulose dominates the global lactose market with a market share of 58.84% in 2019. It is projected to reach USD 385.46 million by 2024, owing to the rising demand of lactulose in various industries like food and pharmaceutical. Further, the rise in the application of lactulose in different confectionery products will trigger the growth of the market in the forecast years.
Based on form, the Global lactose market bifurcates into powder and granule. The powder segment dominates the global lactose market with a market share of 67.54% in 2019 and is projected to reach USD 1043.56 million by 2024. The powder is used as a filler for tablets and capsules and also be used as a stabilizer in baked goods.
Based on the end-user, the global Lactose market segmented into Food and Beverage, Pharmaceutical, Feed Stock, Cosmetics and Personal Care, and Others. The food and beverage end-user segment, followed by the pharmaceutical segment, is expected to hold the largest share during the forecasted period of 2020-2027 across the globe. This is due to as it observed as a part of bottle-feeding babies’ colonic microflora is similar to those of adults, which likely to result in growth in the market over the forecast period. In addition, the rising demand for energy beverages in industrialized countries like the United States, Germany, and France is further expected to accelerate the global market.
By geography, the global Lactose market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. Europe is the leading market and estimated to grow at a CAGR of 1.76% during the forecasted period in the Global lactose market. The growth in the region can be attributed to the efforts of lactose manufacturers for altering the fat, carbohydrate, and cholesterol levels in dairy products catering to the specific consumer demands, will continue favor growth of the lactose market across Europe.
Companies such as BASF SE, Saputo Dairy Australia Pvt Ltd, E.I. du Pont de Nemours and Company, Fonterra Co-Operative Group Ltd., Glanbia Plc, Kerry Plc, Merck KGaA, Agropur Co-Operative, Tnuva Group, Zeria Pharmaceutical Co. Ltd., Milei GmbH, Proliant Inc., and Other Prominent Players are the key players in the global Lactose market.