Lactose and lactose syrup market in CIS

Earlier Report Observations

From 2018 to 2023, lactose and lactose syrup production in Russia demonstrated consistent growth, rising from 152 tonnes to 261 tonnes. This expansion was supported by the strengthening of the dairy industry's production capacity, stable demand for dairy ingredients, and the development of new product segments such as lactose-free infant formula. Investments in production facilities and product range diversification further propelled output, even as a declining cattle population posed challenges to the raw material base.

Despite rising domestic output, the total market volume for lactose and lactose syrup contracted from 22 475 tonnes in 2018 to 14 084 tonnes in 2023. The decline was primarily linked to a sharp reduction in imports, which began before the pandemic. In 2020, COVID-19-related supply chain disruptions accelerated the import slump, and in 2022, shifts in international trade relations and rising raw material prices caused imports to fall further. Domestic demand was partly sustained by growing consumer awareness of lactose intolerance and a shift toward lactose-free products.

The consistent growth in production and the shift toward lactose-free products defined the market's development from 2018 onward. By 2024, industry reports pointed to production reaching 1.9 thousand tonnes, underscoring the ongoing expansion of domestic manufacturing capacity.

Production lactose and lactose syrup in CIS

In kind, 2017-2020, t

Top producers of lactose and lactose syrup, 2017-2020

World map of production of lactose and lactose syrup, 2017-2020

Lactose and lactose syrup production in the CIS has increased for the second consecutive year. In 2020, production reached 212.2 t, marking a 0.7% rise compared to the previous year. Looking at the period from 2017 to 2020, production grew by 28.9%, which translates to an annualized rate of 8.8%. The lowest production level was recorded in 2018 at 151.6 t, with the largest decline of 7.9% occurring that same year. In contrast, the most significant increase was observed in 2019, with a jump of 39.1%.

Annual dynamics of production in CIS in kind, 2017-2020, t

Exports lactose and lactose syrup from CIS

Exports in kind, t

Market performance showed noticeable fluctuations during this period. The minimum export volume was recorded in 2020 at 87 t, which represents a 74.0% decrease from the previous year. The maximum was reached in 2018 at 458 t, resulting in a 5.3-fold difference between these two years. The largest increase occurred in 2018, with a surge of 118.9%.

Annual dynamics of product's exports from CIS in kind, 2017-2020, t

From 2017 to 2020, Ukraine and Poland played central roles in exports in kind, together accounting for 2.4% of total flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from CIS in kind, 2017-2020

Exports in value, K $ US

CIS's lactose and lactose syrup export volume declined for the third consecutive year. In 2020, exports amounted to 671 K $ US, showing a sharp decline of 33.3% year-over-year. Over the period from 2017 to 2020, exports decreased by 46.1%, with a compound annual growth rate (CAGR) of -18.6%.

Annual dynamics of product's exports from CIS in value, 2017-2020, K $ US

Between 2017 and 2020, the Netherlands and Ukraine together accounted for the main share of exports in value terms, representing 11.7% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from CIS in value, 2017-2020

Imports lactose and lactose syrup to CIS

Imports in kind, t

Lactose and lactose syrup import volumes in the CIS declined for the second consecutive year. In 2020, imports amounted to 19 356 t, down by 7.1% compared to the previous year. From 2017 to 2020, imports decreased by 13.2%, equating to an annualized rate of 4.6%. The highest import level was recorded in 2018 at 22 782 t, with the largest increase of 2.1% occurring that year. The most significant decline was observed in 2019, with a drop of 8.6%.

Annual dynamics of product's imports to CIS in kind, 2017-2020, t

Over the period from 2017 to 2020, France (24.1% of imports in kind), Lithuania (20.0% of imports in kind), and Germany (12.8% of imports in kind) consistently held leading positions in the country structure of imports in kind, jointly accounting for 56.9% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to CIS in kind, 2017-2020

Imports in value, K $ US

After a two-year decrease, the volume of lactose and lactose syrup imports in the CIS increased. In 2020, imports amounted to 23 880 K $ US, marking a modest increase of 5.6% compared to the previous year. However, between 2017 and 2020, imports overall decreased by 10%, with an annualized rate of 3.5%. The lowest value was recorded in 2019 at 22 608 K $ US, with the largest decline of 9.7% occurring in 2018.

Annual dynamics of product's imports to CIS in value, 2017-2020, K $ US

Throughout 2017 to 2020, Germany (19.4% of imports in value terms), the Netherlands (18.3% of imports in value terms), and France (18.2% of imports in value terms) formed the key group of partners for imports in value terms of lactose and lactose syrup to the CIS, jointly representing 56.0% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to CIS in value, 2017-2020