Lactose and lactose syrup market Ukraine

Earlier Report Observations

The Ukrainian lactose and lactose syrup market expanded significantly from 1 145 tonnes in 2018 to over 2 000 tonnes in 2020. This growth phase coincided with stricter market access requirements for dairy products introduced in 2018 and was further supported by rising consumer demand for dairy, driven in part by heightened awareness of lactose intolerance which stimulated interest in specialized product segments. The broader dairy sector, including lactose supply, was also influenced in 2020 by the ongoing Russian-Ukrainian conflict, agricultural land market dynamics, and fluctuations in grain prices.

Following the peak in 2020, market volume entered a period of volatility, declining to 1 507 tonnes in 2021, partially recovering to 1 676 tonnes in 2022, and then contracting again to 1 429 tonnes in 2023. The downturn in 2023 was marked by a shortage of raw milk on the domestic market, logistical problems that hindered dairy exports, and a growing consumer trend toward plant-based milk alternatives among those with lactose intolerance, which reshaped demand within the dairy ingredients market.

Industry factors in 2024 included electricity supply disruptions, adverse weather conditions, and persistent logistical constraints, which created challenges for milk processors and producers. Concurrently, the cost of milk production rose due to higher prices for feed, fertilizer, fuel, and electricity, compounded by international climate initiatives targeting carbon footprint reduction on farms. Despite these pressures, improved dairy farm productivity led to milk yields surpassing pre-war levels, affecting the availability of raw materials for downstream products like lactose.

Production lactose and lactose syrup Ukraine

In kind, 2017-2020, t

Between 2017 and 2020, Ukraine ranked 18th globally in the production 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

After a two-year decline, Ukraine's production of lactose and lactose syrup rebounded. In 2020, the country produced 427.0 tonnes, marking a significant 32.3% increase from the previous year. Over the 2017–2020 period, production decreased by 10.5%, which translates to an annualized decline of 3.6%. The lowest production level was recorded in 2019 at 322.7 tonnes, with the sharpest drop occurring in 2018 at 26.8%.

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

Exports lactose and lactose syrup to Ukraine

Exports in kind, t

In 2019, Ukraine's exports of lactose and lactose syrup fell to 0.0 tonnes, representing a dramatic 99.9% decrease compared to the previous year.

Annual dynamics of product's exports to Ukraine in kind, 2017-2020, t

From 2017 to 2020, Russia and Moldova were the top two markets, together accounting for 85.6% of Ukraine's total exports in volume. The remaining exports were distributed among various other countries.

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

World map of product's exports to Ukraine in kind, 2017-2020

Exports in value, K $ US

Ukraine's exports of lactose and lactose syrup in value terms dropped to 0.0 thousand US dollars in 2019, reflecting a sharp 100.0% decline from the year before.

Annual dynamics of product's exports to Ukraine in value, 2017-2020, K $ US

During 2017–2020, Moldova, Russia, and Turkmenistan were the largest buyers of lactose and lactose syrup from Ukraine in value terms, with shares of 39.6%, 38.6%, and 20.8%, respectively. Together, these three countries made up 99.0% of total export value.

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

World map of product's exports to Ukraine in value, 2017-2020

Imports lactose and lactose syrup in Ukraine

Imports in kind, t

The import market showed an unstable trend over the period. Imports reached their lowest point in 2018 at 797 tonnes, then peaked in 2020 at 1 575 tonnes, resulting in a two-fold variation. In 2020, imports rose by 7.4% compared to the previous year. The largest decline occurred in 2018 at 20.3%, while the biggest increase was in 2019 at 83.9%.

Annual dynamics of product's imports in Ukraine in kind, 2017-2020, t

From 2017 to 2020, Germany, Poland, and Lithuania were the main suppliers of lactose and lactose syrup to Ukraine in volume terms, contributing 25.1%, 25.0%, and 21.0% of total imports, respectively. Combined, they accounted for 71.2% of imports.

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

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

Imports in value, K $ US

Ukraine's imports of lactose and lactose syrup in value terms increased for the second consecutive year. In 2020, imports totaled 1 848 thousand US dollars, up 7.1% from 2019. Over the 2017–2020 span, imports grew by 18.7%, equivalent to an annualized rate of 5.9%. The lowest value was recorded in 2018 at 1 848 thousand US dollars, with the largest decline that year at 3.1% and the highest increase in 2019 at 14.4%.

Annual dynamics of product's imports in Ukraine in value, 2017-2020, K $ US

Throughout 2017–2020, Germany, Poland, and Lithuania led in the value of lactose and lactose syrup imports to Ukraine, with shares of 44.3%, 13.2%, and 13.1%, respectively. Together, they represented 70.6% of total import value.

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

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