Lactose and lactose syrup market in Europe

Earlier Report Observations

The European market for lactose and lactose syrup expanded significantly from 2018 to 2022, with market volume growing by over 70% from 243 thousand tons to 412 thousand tons. This growth was primarily driven by rising consumption of dairy products, supported by population growth, higher disposable incomes, and increased awareness of nutritional benefits. The pharmaceutical sector, accounting for a dominant share of lactose applications, saw growing demand for syrup and liquid forms, particularly in pediatric and geriatric care.

European producers invested in more cost-efficient and sustainable manufacturing processes, such as DMK Deutsches Milchkontor's initiatives to reduce water usage and improve refining. New product launches, including high-purity lactose for infant formula by Fonterra and lactose-free dairy solutions by Arla Foods, catered to evolving consumer preferences for specialized diets. However, between 2022 and 2024, rising raw material and energy costs affected dairy product prices, including lactose, which were passed on to end consumers.

By 2023, market volume slightly contracted to 393 thousand tons, influenced by broader dairy sector challenges such as reduced milk herds in key European basins and lower whey powder production. Despite this, demand for lactose-free products and infant formulas continued to rise, reflecting a growing population with lactose intolerance. The acquisition of Britvic by Carlsberg in 2024 marked a strategic move into the syrup segment, indicating ongoing diversification in related markets.

Production lactose and lactose syrup in Europe

In kind, 2017-2020, K t

Top producers of lactose and lactose syrup, 2017-2020

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

Europe's production of lactose and lactose syrup has grown for the second year in a row. In 2020, output reached 479.7 K t, marking a 7.1% increase compared to the previous year. Looking at the period from 2017 to 2020, production rose by 16.5%, with an average annual growth rate of 5.2%. The lowest production level was in 2018 at 405.5 K t, which saw a decline of 1.5%. The most significant growth occurred in 2019, with a 10.4% increase.

Annual dynamics of production in Europe in kind, 2017-2020, K t

In value, 2017-2020, M $ US

In 2020, the value of lactose and lactose syrup production in Europe was 1 363 M $ US, showing only minor changes from the year before. Over the 2017-2020 period, production value decreased by 4.2%, with a compound annual growth rate of -1.4%. The lowest value was recorded in 2018 at 1 124 M $ US, which experienced a 21.0% drop. The largest increase happened in 2019, with a 21.9% rise.

Annual dynamics of production in Europe in value, 2017-2020, M $ US

Exports lactose and lactose syrup from Europe

Exports in kind, K t

Europe's exports of lactose and lactose syrup have increased for the third consecutive year. In 2020, exports totaled 425.2 K t, up 6.5% from the previous year. From 2017 to 2020, exports grew by 87.2%, with an average annual growth rate of 23.2%.

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

Between 2017 and 2020, Europe's exports of lactose and lactose syrup in volume terms were distributed across a wide range of partners. New Zealand accounted for 6.9% of exports, Japan for 5.6%, and China for 5.5%, together making up 18.0% of total export flows.

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

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

Exports in value, M $ US

Europe's exports of lactose and lactose syrup in value terms have risen for the second year in a row. In 2020, exports amounted to 704.8 M $ US, a 9.1% increase compared to 2019. Over the 2017-2020 period, export value increased by 25.7%, with an average annual growth rate of 7.9%. The lowest value was in 2018 at 521.2 M $ US, which saw a 7.0% decline. The largest increase occurred in 2019, with a 24.0% rise.

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

From 2017 to 2020, Europe's exports of lactose and lactose syrup in value terms were spread across numerous countries. India represented 6.3% of exports, New Zealand 5.9%, and Japan 5.6%, together accounting for 17.8% of total export flows.

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

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

Imports lactose and lactose syrup to Europe

Imports in kind, K t

In 2020, Europe imported about 162.3 K t of lactose and lactose syrup, down 18.9% from the previous year. Over the 2017-2020 period, imports decreased by 28.6%, with an average annual decline of 10.6%. The largest drop was in 2018 at 25.7%, while the biggest increase was in 2019 at 18.6%.

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

From 2017 to 2020, Israel and the United States were the main sources of lactose and lactose syrup imports into Europe, together accounting for 2.4% of total import volumes.

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

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

Imports in value, M $ US

Europe's imports of lactose and lactose syrup in value terms have grown for the second consecutive year. In 2020, imports reached 653.8 M $ US, a 3.5% increase from the previous year. Over the 2017-2020 period, import value rose by 9.8%, with an average annual growth rate of 3.2%. The lowest value was in 2018 at 550.0 M $ US, which experienced a 7.7% decline. The largest increase was in 2019, with a 14.8% rise.

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

Throughout 2017-2020, the United States and Israel were the primary suppliers of lactose and lactose syrup to Europe in value terms, together making up 3.3% of total imports.

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

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