Lactose and lactose syrup market in Western Europe

Earlier Report Observations

The market volume for lactose and lactose syrup in Western Europe showed notable fluctuations between 2018 and 2023. After a moderate contraction to 171 thousand tonnes in 2020, domestic consumption surged to 259 thousand tonnes in 2022 before easing to 242 thousand tonnes in 2023. Overall, the market expanded by 31% over the six-year period, with volatility largely driven by shifts in export volumes and production levels.

Production of lactose rose steadily until 2021, peaking at 442 thousand tonnes, then declined to 425 thousand tonnes in 2023. Exports, a key determinant of domestic availability, increased sharply through 2019-2021, exceeding 360 thousand tonnes annually, but fell back to 286 thousand tonnes by 2023. This drop in exports helped boost the internal market in 2022, even as production stabilized.

Throughout the period, growing demand for pharmaceutical-grade lactose used in drug formulations and dietary supplements provided a steady outlet for production. Concurrently, consumer preferences shifted toward lactose-free and plant-based alternatives, while investments in greener refining technologies—such as water-saving projects by major processors like DMK Deutsches Milchkontor—influenced supply-side dynamics. Climatic conditions affecting milk production also played a role in raw material availability for lactose.

Production lactose and lactose syrup in Western 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

Lactose and lactose syrup production in Western Europe has increased for the second consecutive year. In 2020, production reached 414.9 K t, marking a 5.8% year-over-year increase. Looking at the period from 2017 to 2020, production grew by 14.7%, which translates to an annualized rate of 4.7%. The lowest production level was recorded in 2018 at 353.1 K t, with the largest decline of 2.4% occurring that same year. In contrast, the largest increase of 11.1% was observed in 2019.

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

In value, 2017-2020, M $ US

Western Europe's lactose and lactose syrup production value has risen for the second year in a row. In 2020, the output was valued at 695.8 M $ US, showing a gradual increase of 8.6% compared to the previous year. Over the 2017-2020 period, production value decreased by 5.4%, with a compound annual growth rate (CAGR) of -1.8%. The minimum value was recorded in 2018 at 536.8 M $ US, which saw the largest decline of 27.0%. The largest increase of 19.4% occurred in 2019.

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

Exports lactose and lactose syrup from Western Europe

Exports in kind, K t

Lactose and lactose syrup exports from Western Europe have increased for the third consecutive year. In 2020, exports stood at 360.3 K t, representing a slight increase of 1.9% relative to the prior year. From 2017 to 2020, exports grew by 52.4%, equating to an annualized rate of 15.1%.

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

During the 2017-2020 period, New Zealand (8.5% of exports in kind), Japan (6.9% of exports in kind), and Ireland (6.7% of exports in kind) were notable but not dominant buyers of lactose and lactose syrup from Western Europe. Their combined share reached only 22.0% of total exports in kind.

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

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

Exports in value, M $ US

Lactose and lactose syrup exports from Western Europe have increased for the second consecutive year. In 2020, exports totaled 604.3 M $ US, showing an advance of 4.6% year-over-year. Over the 2017-2020 period, exports increased by 25.7%, with a compound annual growth rate (CAGR) of 7.9%. The minimum value was recorded in 2018 at 448.6 M $ US, which saw the largest decline of 6.7%. The largest increase of 28.8% occurred in 2019.

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

From 2017 to 2020, exports in value terms of lactose and lactose syrup from Western Europe were spread across many countries. Ireland (8.3% of exports in value terms), India (7.1% of exports in value terms), and New Zealand (6.5% of exports in value terms) jointly accounted for only 21.9% of total flows.

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

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

Imports lactose and lactose syrup to Western Europe

Imports in kind, K t

In 2020, cross-border shipments of lactose and lactose syrup to Western Europe amounted to 116.6 K t, which is 18.2% less compared to 2019. Between 2017 and 2020, imports decreased by 29.2%, equating to an annualized rate of -10.9%. The largest decline of 23.3% was recorded in 2018, while the largest increase of 13.0% occurred in 2019.

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

The market base for imports in kind from 2017 to 2020 was wide, with Denmark (11.0% of imports in kind), Italy (3.2% of imports in kind), and the United Kingdom (3.2% of imports in kind) jointly accounting for just 17.5% of total flows. The remaining 82.5% was shared by numerous other countries.

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

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

Imports in value, M $ US

Western Europe's lactose and lactose syrup import value has increased for the second consecutive year. In 2020, import value amounted to 333.1 M $ US, up by 6.1% compared to the previous year. Between 2017 and 2020, imports increased by 5.3%, equating to an annualized rate of 1.7%. The minimum value was recorded in 2018 at 280.5 M $ US, which saw the largest decline of 11.4%. The largest increase of 12.0% occurred in 2019.

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

Data for the 2017-2020 period indicate that imports in value terms of lactose and lactose syrup to Western Europe were not concentrated on a few key destinations. Denmark (8.3% of imports in value terms), the United States (3.2% of imports in value terms), and Italy (3.1% of imports in value terms) jointly accounted for only 14.6% of total flows.

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

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