Lactose sourced from whey, which is a by-product derived from cheese making process. Lactose is widely used in industries including food and beverage, pharmaceuticals, animal feed and confectionary. Lactose market is mainly driven by the sustainable need generated by the food and beverage industries. Rapid growth in food and beverage industry is expected to drive the global lactose market during the forecast period. Besides, food and beverage industries, continuous growth in pharmaceuticals and animal feed industry will also fuel up the global lactose market. The growing demand for infant formula containing lactose by dual working households is also expected to register a rapid growth in the global lactose market especially in the developing countries.

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Driven by increased demand for milk, the lactose market is expected to grow over the forecast period. Increasing dairy market especially in U.S. and Western Europe are the major factors contributing to the demand growth of global lactose market. Sustained demands by rapidly growing food and beverage, pharmaceuticals, confectionary and animal feed industries are expected to drive the global lactose market. Lactose is a product that constitutes two combined sugars- glucose and galactose which make lactose a healthy sugar fit for consumption. Characteristics such as cost effectiveness, water solubility, and easy availability are expected to increase the global lactose market.

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Consumption of lactose improves the intestinal health and enhances mineral absorption which is further expected to be the drivers for global lactose market during the forecast period. Rising living standards of consumers, easier healthcare services access, and rapidly population increase are few other factors that contribute to the global lactose market demand. Lactose market also witnesses growth owing to the growing sales of infant formula wherein lactose is used as a main product. Households having dual income, increased women workforce contribute significantly to the increasing sales of infant formula which thereby boost up the global lactose market and is expected to continue growing over the forecast period.

However, few are intolerant to lactose which drives the introduction of lactose-free milk or lactose-free food products thereby restraining the growth of global lactose market. The demand for lactose-free food products is expected to increase owing to the increased allergy incidences among the consumers. Besides, low conversion rates of lactose for feedstock is also considered to be one of the restraints hindering the global lactose market.