Lactose and lactose syrup market in New Zealand

Earlier Report Observations

The New Zealand lactose and lactose syrup market volume more than doubled from 71.5 thousand tonnes in 2018 to over 102 thousand tonnes in 2019, fueled by a sharp rise in imports, and remained stable near that level in 2020.

A multi-year contraction followed from 2021, reducing the market to 67.9 thousand tonnes by 2023. This decline aligned with global recalls of lactose-based infant formula, which suppressed worldwide demand and likely curtailed import volumes into New Zealand. During this period, Olam Food Ingredients announced a major investment to build a new dairy processing factory in Tokoroa, targeting the production of high-value dairy ingredients like lactose, indicating long-term industry development despite short-term market pressure.

Domestic production of lactose and lactose syrup showed resilience, stabilizing around 7.0-7.2 thousand tonnes annually after a temporary dip in 2021, while export volumes demonstrated a steady upward trend throughout the period.

Production lactose and lactose syrup in New Zealand

In kind, 2018-2021, t

From 2018 to 2021, New Zealand ranked 12th globally in the production of lactose and lactose syrup.

Top producers of lactose and lactose syrup, 2018-2021

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

In 2021, New Zealand produced 6 248 tonnes of lactose and lactose syrup, marking a 10.7% decrease from the previous year. Over the period from 2018 to 2021, production fell by 13.8%, which translates to an average annual decline of 4.8%. The only increase during this time was a modest 0.3% in 2020.

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

In value, 2018-2021, K $ US

Following a two-year decline, New Zealand's lactose and lactose syrup production value rebounded. In 2021, the output was valued at 11 678 thousand US dollars, up 8.2% from the previous year. The lowest value was recorded in 2020 at 10 793 thousand US dollars, which also saw the largest drop of 5.6%.

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

Exports lactose and lactose syrup from New Zealand

Exports in kind, K t

In 2021, New Zealand exported 24.4 thousand tonnes of lactose and lactose syrup, a 6.8% decrease from the previous year. Between 2018 and 2021, exports grew by 6.1%, averaging a 2.0% annual increase. The lowest export volume was in 2019 at 22.5 thousand tonnes, while the peak was in 2020 at 26.2 thousand tonnes, with the largest surge of 16.2% occurring that year.

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

An analysis of export volumes from 2018 to 2021 reveals a diverse distribution across multiple markets. Japan accounted for 15.9% of exports, India for 15.0%, and China for 10.7%, together making up 41.6% of total flows. The remaining 58.4% was spread among other trading partners.

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

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

Exports in value, M $ US

New Zealand's lactose and lactose syrup export value has risen for the third year in a row. In 2021, exports reached 45.6 million US dollars, showing a strong 12.9% increase from the previous year. From 2018 to 2021, export value grew by 24.5%, with an average annual growth rate of 7.6%.

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

Between 2018 and 2021, Japan, India, and China were significant but not dominant buyers of lactose and lactose syrup from New Zealand. Japan held a 13.4% share of export value, India 12.0%, and China 9.8%, collectively accounting for 35.2% of total exports in value terms.

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

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

Imports lactose and lactose syrup to New Zealand

Imports in kind, K t

After two years of growth, New Zealand's imports of lactose and lactose syrup declined. In 2021, imports totaled 104.0 thousand tonnes, down 14.6% from the previous year. Over the 2018-2021 period, imports increased by 19.2%, with a compound annual growth rate of 6.0%. The highest import volume was in 2020 at 121.8 thousand tonnes, while the largest increase of 35.7% occurred in 2019.

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

From 2018 to 2021, New Zealand's import volume was heavily concentrated on the United States and Germany, which together accounted for 82.4% of total flows, with other partners making up the remainder.

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

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

Imports in value, M $ US

New Zealand's lactose and lactose syrup import value has increased for the third consecutive year. In 2021, imports were valued at 45.6 million US dollars, up 9.5% from 2020. Between 2018 and 2021, import value surged by 95.6%, averaging a 25.1% annual growth rate.

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

During 2018-2021, the United States and Germany jointly represented 82.2% of New Zealand's total import value for lactose and lactose syrup, with the rest distributed among smaller markets.

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

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