Lactose and lactose syrup market in the United States

Earlier Report Observations

The US market for lactose and lactose syrup experienced notable shifts between 2018 and 2023. After rising to 181 thousand tons in 2019, domestic consumption entered a sustained decline, falling to 132 thousand tons in 2020 and further to 31 thousand tons by 2023.

This downward trend was accelerated by growing lactose intolerance among consumers, which reduced domestic demand for lactose-containing products. Simultaneously, a sharp increase in exports, particularly for pharmaceutical applications, diverted production away from the home market. Major companies, such as Glanbia Ingredients Ireland, expanded purification facilities targeting these export opportunities.

Investments in new processing lines in states like Wisconsin and Minnesota supported export growth, while feed manufacturers shifted toward cheaper alternatives like dextrose due to high lactose costs, further contracting domestic offtake.

Production lactose and lactose syrup in the United States

In kind, 2017-2020, K t

From 2017 to 2020, the United States was the world's largest producer of lactose and lactose syrup.

Top producers of lactose and lactose syrup, 2017-2020

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

Following a two-year increase, lactose and lactose syrup production in the United States declined. In 2020, the country produced 508.2 K t, marking a modest year-over-year drop of 8.7%. The peak was recorded in 2019 at 556.8 K t, which represented the largest annual increase of 6.0%.

Annual dynamics of production in the United States in kind, 2017-2020, K t

In value, 2017-2020, M $ US

In 2020, the output of lactose and lactose syrup in the United States was valued at 531.2 M $ US, reflecting a 1.2% loss compared to the previous year. Between 2017 and 2020, production increased by 5.4%, equating to an annualized rate of 1.8%. The minimum value occurred in 2018 at 420.5 M $ US, while the maximum was in 2019 at 537.4 M $ US. The largest decline was in 2018 at 16.6%, and the largest increase was in 2019 at 27.8%.

Annual dynamics of production in the United States in value, 2017-2020, M $ US

Exports lactose and lactose syrup from the United States

Exports in kind, K t

Cross-border shipments of lactose and lactose syrup from the United States declined for the second consecutive year. In 2020, exports amounted to 378.7 K t, remaining stable year-on-year. Over the period 2017-2020, exports increased by 4.5%, with a compound annual growth rate (CAGR) of 1.5%. The maximum value was recorded in 2018 at 393.1 K t. The largest decline occurred in 2019 at 3.6%, while the largest increase was in 2018 at 8.5%.

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

From 2017 to 2020, exports in kind of lactose and lactose syrup from the United States were not heavily concentrated. China accounted for 19.8% of exports, Mexico for 11.5%, and Japan for 11.5%, with these three countries together capturing only 42.8% of total flows.

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

World map of product's exports from the United States in kind, 2017-2020

Exports in value, M $ US

Lactose and lactose syrup volumes leaving the United States increased for the second consecutive year. In 2020, exports amounted to 395.8 M $ US, which is 8.2% greater than the previous year. Over the period 2017-2020, exports increased by 10.5%, with a CAGR of 3.4%. The minimum value was recorded in 2018 at 314.6 M $ US. The largest decline occurred in 2018 at 12.2%, while the largest increase was in 2019 at 16.3%.

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

From 2017 to 2020, China, New Zealand, and Japan formed the largest group of buyers of lactose and lactose syrup from the United States in value terms, with shares of 18.5%, 10.5%, and 10.4%, respectively. However, their combined contribution was limited to 39.4% of total exports, reflecting a diversified country structure.

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

World map of product's exports from the United States in value, 2017-2020

Imports lactose and lactose syrup to the United States

Imports in kind, K t

In 2020, lactose and lactose syrup imports into the United States amounted to 2.9 K t, representing a strong decrease of 16.7% from 2019. Over the period 2017-2020, imports decreased by 32.2%, with a CAGR of 12.1%. The largest decline was recorded in 2018 at 25.5%, while the largest increase occurred in 2019 at 9.2%.

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

From 2017 to 2020, Germany, Canada, and the Netherlands continued to head the list of suppliers of lactose and lactose syrup to the United States in kind. Germany accounted for 49.5% of imports, Canada for 23.5%, and the Netherlands for 21.2%, jointly taking 94.2% of total imports.

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

World map of product's imports to the United States in kind, 2017-2020

Imports in value, M $ US

After a two-year fall, cross-border shipments of lactose and lactose syrup into the United States increased. In 2020, imports amounted to approximately 11.0 M $ US, up by 1.8% compared to the previous year. Between 2017 and 2020, imports decreased by 17.5%, equating to an annualized rate of 6.2%. The minimum value was recorded in 2019 at 10.8 M $ US. The largest decline occurred in 2019 at 15.7%.

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

Over 2017 to 2020, Germany and the Netherlands together captured 83.6% of total imports in value terms, with the rest of the flows spread thinly across other markets.

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

World map of product's imports to the United States in value, 2017-2020