Lactose and lactose syrup market in Australia and New Zealand

Earlier Report Observations

The lactose and lactose syrup market in Australia and New Zealand expanded significantly in 2019, reaching 120.9 thousand tons, before contracting over the following year to 109.8 thousand tons.

The market volume dipped to 98.1 thousand tons in 2021, the same year Olam Food Ingredients announced a major investment in a new dairy processing plant in Tokoroa, New Zealand, to boost production of high-value ingredients including lactose. This enhanced local manufacturing capacity coincided with a stabilization of the market at 99.2 thousand tons in 2022, supported by rising global demand for infant formula and dairy-based products, alongside the launch of innovative lactose products for specialized applications like dry powder inhalation.

A sharp contraction followed in 2023, with the market volume falling to 74.1 thousand tons. In the subsequent years, import volumes to the region showed a clear recovery, aligning with global industry trends that highlight sustained demand for lactose in pharmaceutical and infant nutrition sectors.

Production lactose and lactose syrup in Australia and New Zealand

In kind, 2018-2021, t

Top producers of lactose and lactose syrup, 2018-2021

World map of production of lactose and lactose syrup, 2018-2021

Lactose and lactose syrup production in Australia and New Zealand has increased for the second year in a row. In 2021, production reached 14 850 tonnes, up 1.3% from 2020. Over the 2018-2021 period, production declined by 3.4%, with an average annual growth rate of 1.1%. The lowest production level was recorded in 2019 at 14 640 tonnes, which also saw the largest decline of 4.7%.

Annual dynamics of production in Australia and New Zealand in kind, 2018-2021, t

In value, 2018-2021, K $ US

In 2021, the value of lactose and lactose syrup production in Australia and New Zealand was $28 017 thousand US, a significant increase of 28.7% compared to the previous year. From 2018 to 2021, production value grew by 17.8%, translating to an annualized rate of 5.6%. The lowest value was recorded in 2020 at $21 761 thousand US, which also experienced the largest decline of 9.0%.

Annual dynamics of production in Australia and New Zealand in value, 2018-2021, K $ US

Exports lactose and lactose syrup from Australia and New Zealand

Exports in kind, K t

Australia and New Zealand exported 29.1 thousand tonnes of lactose and lactose syrup in 2021, marking a sharp decline of 12.1% from the previous year. Over the 2018-2021 period, exports increased by 9%, with an average annual growth rate of 2.9%. The lowest export volume was in 2019 at 24.7 thousand tonnes, while the highest was in 2020 at 33.1 thousand tonnes, which also saw the largest increase of 34.2%.

Annual dynamics of product's exports from Australia and New Zealand in kind, 2018-2021, K t

An analysis of export volumes from 2018 to 2021 reveals a wide distribution across many markets. China accounted for 18.1% of exports, Japan for 12.9%, and India for 12.3%, together making up 43.3% of total flows. The remaining 56.7% went to various other partners.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Australia and New Zealand in kind, 2018-2021

Exports in value, M $ US

Foreign supplies of lactose and lactose syrup from Australia and New Zealand have increased for the second consecutive year. In 2021, exports were valued at $54.9 million US, up 11.7% year-over-year. Between 2018 and 2021, export value grew by 32.9%, equating to an annualized rate of 9.9%. The lowest value was recorded in 2019 at $40.3 million US, which also saw the largest decline of 2.4%. The largest increase occurred in 2020, with a rise of 21.9%.

Annual dynamics of product's exports from Australia and New Zealand in value, 2018-2021, M $ US

From 2018 to 2021, lactose and lactose syrup from Australia and New Zealand was supplied to a broad range of markets. China accounted for 14.5% of export value, Japan for 11.5%, and India for 10.5%, together representing 36.5% of total exports. The remaining 63.5% went to numerous smaller destinations.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Australia and New Zealand in value, 2018-2021

Imports lactose and lactose syrup to Australia and New Zealand

Imports in kind, K t

The volume of lactose and lactose syrup imports into Australia and New Zealand has declined for the second consecutive year. In 2021, imports reached 112.4 thousand tonnes, a robust contraction of 12.4% compared to 2020. Over the 2018-2021 period, imports increased by 3.7%, with an annualized rate of 1.2%. The highest import volume was recorded in 2019 at 130.9 thousand tonnes, which also saw the largest increase of 20.8%.

Annual dynamics of product's imports to Australia and New Zealand in kind, 2018-2021, K t

Throughout 2018-2021, the United States, Germany, and the Netherlands were the key partners for lactose and lactose syrup imports into Australia and New Zealand. The United States accounted for 54.9% of import volume, Germany for 24.2%, and the Netherlands for 6.2%, together representing 85.4% of total flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Australia and New Zealand in kind, 2018-2021

Imports in value, M $ US

Australia and New Zealand's lactose and lactose syrup imports have increased for the third consecutive year. In 2021, imports amounted to $161.0 million US, showing a 2.7% increase from the previous year. Between 2018 and 2021, import value grew by 58.8%, equating to an annualized rate of 16.7%.

Annual dynamics of product's imports to Australia and New Zealand in value, 2018-2021, M $ US

Throughout 2018-2021, the United States, Germany, and Austria remained the key partners for lactose and lactose syrup imports by value. The United States accounted for 51.3% of import value, Germany for 24.9%, and Austria for 6.3%, together making up 82.4% of total flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Australia and New Zealand in value, 2018-2021