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Lactose powder is a versatile ingredient widely used in the food and beverage industry as a cost-effective filler, bulking agent, and carrier for flavors and colors. Lactose powder adds texture and mouthfeel to bakery and confectionery products such as bread, cookies, cereals, and pancakes. Moreover, in the infact nutrition, lactose is the key ingredient due to its prebiotic properties that aid digestion and nutrient absorption in babies. Manufacturers are also coming up with new ingredient launches to meet the rising demand for the product. For instance, in November 2022, FrieslandCampina Ingredients, a supplier of natural ingredients based on milk, cheese, whey, and vegetable raw materials, launched three microencapsulated long-chain polyunsaturated fatty acids (LCPUFA), one ARA ingredient and two DHA ingredients for application in infant milk formulas. The ingredients are encapsulated in a lactose powder matrix and are derived from milk sourced from FrieslandCampina’s own member farmers.
Research into the potential prebiotic properties of lactose beyond infant formula might open the door for new applications in the future. The rapid growth of the pharmaceutical and food processing sectors in developing countries, particularly in Asia Pacific, further fuels the demand for the product. With a growing focus on sustainability, there is a rising interest in sourcing lactose powder from byproducts of the dairy industry.
However, the growing lactose tolerance is posing a challenge to the market. Consumers with lactose intolerance actively seek out lactose-free alternatives, potentially leading to decreased demand for lactose powder in the food sector. According to the Boston Children’s Hospital, around 30 to 50 million Americans are lactose intolerant.
The report covers the following key insights:
By Grade | By Application | By Geography |
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The food-grade segment is expected to hold a major share of the global lactose powder market and is likely to remain dominant over the foreseeable future. Food and beverage industries extensively use food-grade lactose powder for its functionality and cost-effectiveness. It acts as a bulking agent, texture enhancer, and flavor carrier in various bakery and confectionery products. The rising popularity of fortified beverages further fuels the demand for food-grade lactose powder. Moreover, lactose powder does not readily absorb moisture, which helps maintain product shelf life and quality.
The pharmaceutical-grade segment is expected to grow significantly over the forecast period. Lactose powder plays a vital role in the pharmaceutical industry as an excipient, a substance that serves as an inactive ingredient in the medication. Moreover, it serves as a diluent to dilute potent drug concentrations and a carrier for dry-powder inhalers. Research and development in novel drug delivery systems are exploring lactose powder’s potential. Its controlled release properties and biocompatibility make it an attractive ingredient for innovative drug formulations.
The food and beverage industry is expected to hold a major share of the global market. Lactose powder offers a wide range of functional properties such as thickening, gelling, stabilizing, and texturizing, which makes it applicable across various food and beverage categories. The global food processing industry is experiencing steady growth, with increasing demand for convenient and shelf-stable food products. Rich starch plays a crucial role in such products, enhancing taste, mouthfeel, and shelf life. Lactose powder is used in various food applications, from thickening soups, sauces, and gravies to adding texture to bakery products, noodles, infant formula, confectioneries, bakery products, and others. Manufacturers are innovating new products to meet the rising demand. For instance, in April 2022, Ingredion Inc. launched functional Lactose Powders. The new products were designed to improve flavor and color release, even in white products.
The pharmaceutical industry is expected to grow significantly over the forecast period. Lactose powder is used as a binder and disintegrant in tablets and capsules. Moreover, Lactose powder is generally considered safe for consumption and meets the regulatory requirements in various regions.
North America is expected to hold the major share of the global market. The region has a well-developed dairy sector, with major producers such as the U.S. and Canada, leading to a strong foundation for a robust lactose powder production capacity. The food industry in North America is constantly expanding. Therefore, the product finds uses in various food products such as baked goods, confectionery, and other processed foods.
The Asia Pacific market is expected to grow at a fast pace in the global lactose powder market. The region is experiencing a significant rise in infant formula manufacturing, which heavily relies on lactose powder as an ingredient. Moreover, the expanding pharmaceutical industry in countries such as China, India, and Japan further helps boost the market growth. The rising disposable income across the region is leading to the growing consumption of convenience and processed foods among consumers, further boosting the product demand.
The report will include the profiles of key players such as Ingredion Inc., Lactalis Ingredients, FrieslandCampina Ingredients, Star Food Industries, Lactose India Limited, The Milky Whey, Armor Pharma, Loughran Brewers Select, GPA Healthfoods, and DFE Pharma.
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