Lactose and lactose syrup market in Oceania

Earlier Report Observations

The market size for lactose and lactose syrup in Oceania fluctuated significantly between 2018 and 2023. It rose from 97.2 thousand tons in 2018 to a peak of 120.9 thousand tons in 2019, then declined to 110.1 thousand tons in 2020 and 98.2 thousand tons in 2021. A modest recovery to 99.2 thousand tons followed in 2022, before a sharp contraction to 74.1 thousand tons in 2023.

In 2021, Olam Food Ingredients announced an investment plan for a new dairy processing factory in Tokoroa, New Zealand, to produce high-value dairy ingredients such as lactose. This expansion in production capacity contributed to an increase in domestic output, with production rising from 14.8 thousand tons in 2021 to 17.2 thousand tons in 2022.

By 2024, global factors shaped the market environment. Severe droughts and floods in key milk-producing regions reduced raw material availability for lactose, while producers redirected milk toward higher-margin products. Concurrently, rising demand for lactose in infant formula and pharmaceuticals, alongside growing consumer preference for lactose-free dairy, influenced market dynamics, with major companies like Lactalis and Arla expanding their lactose-free product lines.

Production lactose and lactose syrup in Oceania

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

After a two-year decline, lactose and lactose syrup production in Oceania increased. In 2020, production reached 14 663 tonnes, remaining virtually unchanged compared to 2019. Between 2017 and 2020, production decreased by 5.1%, equating to an annualized rate of 1.7%. The lowest production level was recorded in 2019 at 14 640 tonnes, with the largest decline of 4.7% occurring that year.

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

In value, 2017-2020, K $ US

In 2020, the output value of lactose and lactose syrup in Oceania was 21 769 thousand US dollars, showing a decrease of 9.0% compared to 2019. Over the period from 2017 to 2020, production value declined by 22.3%, with a compound annual growth rate (CAGR) of -8.1%. The largest decline was recorded in 2018 at 15.1%, while the largest increase occurred in 2019 at 0.6%.

Annual dynamics of production in Oceania in value, 2017-2020, K $ US

Exports lactose and lactose syrup from Oceania

Exports in kind, K t

In 2020, lactose and lactose syrup exports from Oceania stood at 33.1 thousand tonnes, indicating a rise of 34.2% compared to 2019. Between 2017 and 2020, exports increased by 40.3%, equating to an annualized rate of 12.0%. The largest decline was recorded in 2019 at 7.6%.

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

Data from 2017 to 2020 show that exports of lactose and lactose syrup from Oceania were not concentrated on a few key destinations. China accounted for 17.5% of exports in kind, India for 12.5%, and Japan for 12.5%, with these three countries jointly representing only 42.6% of total export flows.

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

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

Exports in value, M $ US

After a two-year decline, lactose and lactose syrup export volumes from Oceania increased. In 2020, exports amounted to 49.1 million US dollars, showing a strong improvement of 21.9% from the previous year. Over the period from 2017 to 2020, exports increased by 14.9%, with a compound annual growth rate (CAGR) of 4.8%. The lowest value was recorded in 2019 at 40.3 million US dollars, while the largest decline occurred in 2018 at 3.4%.

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

During 2017 to 2020, China, Japan, and India were important buyers of lactose and lactose syrup from Oceania in value terms. China accounted for 14.3% of exports, Japan for 11.1%, and India for 11.0%. However, their combined share reached only 36.3% of total exports in value terms, with the remaining 63.7% distributed among many other trading partners.

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

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

Imports lactose and lactose syrup to Oceania

Imports in kind, K t

In 2020, Oceania's volume of lactose and lactose syrup imports amounted to 128.5 thousand tonnes, which is 1.9% lower compared to the previous year. Over the period from 2017 to 2020, imports increased by 16%, with a compound annual growth rate (CAGR) of 5.1%. The lowest import volume was recorded in 2018 at 108.5 thousand tonnes, while the highest was in 2019 at 130.9 thousand tonnes. The largest decline occurred in 2018 at 2.0%, and the largest increase was in 2019 at 20.7%.

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

From 2017 to 2020, the United States and Germany together captured 80.4% of total imports in kind of lactose and lactose syrup into Oceania, with the rest of the flows spread thinly across other markets.

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

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

Imports in value, M $ US

Foreign lactose and lactose syrup supplies to Oceania increased for the second consecutive year. In 2020, Oceania imported a total of 157.0 million US dollars of lactose and lactose syrup, which is 10.1% greater year-over-year. Over the period from 2017 to 2020, imports increased by 23%, with a compound annual growth rate (CAGR) of 7.1%. The lowest value was recorded in 2018 at 101.5 million US dollars. The largest decline occurred in 2018 at 20.5%, while the largest increase was in 2019 at 40.5%.

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

From 2017 to 2020, the United States, Germany, and Austria were the main sources of lactose and lactose syrup imports into Oceania in value terms. The United States accounted for 52.4% of imports, Germany for 24.3%, and Austria for 6.9%, with these three countries together representing 83.6% of total imports in value terms.

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

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