Pharmaceutical Grade Lactose Market Size, Share & Trends Analysis Report By Region (North America, Europe, Asia Pacific, Central & South America, Middle East & Africa), And Segment Forecasts, 2019 - 2025

Industry Insights

The global pharmaceutical grade lactose market size was estimated at USD 177.6 million in 2017 and is expected to expand at a CAGR of 4.6% over the forecast period. Growing product demand in infant formulation, owing to its excellent characteristics including iron absorption, immune cell activation, and production of cytokines, is expected to drive the market in the coming years.

Demand for pharmaceutical grade lactose is expected to grow at a significant rate owing to its high demand as an excipient in the drug manufacturing industry. Supportive government regulations, coupled with low prices offered by product manufacturers, are expected to be key factors influencing product demand in pharmaceutical applications over the forecast period.

Abundant availability of milk, coupled with booming dairy industry, has ensured consistent supply of whey permeates, which is an essential raw material for production of pharmaceutical grade lactose. However, a hike in milk prices across the globe is expected to result in increased prices of the product.

The U.S. Environmental Protection Agency (EPA) is encouraging sustainable and cost-effective setup of manufacturing facilities. The agency regulates effluents and discharges of these industrial holdings and has prescribed standards for the same. Nevertheless, stringent regulations are anticipated to pose a challenge for industry players in the coming years.

Product prices are relatively low in Asia Pacific, especially China, owing to the low cost of raw material and labor, coupled with the high competition due to presence of numerous small and medium-scale manufacturers. Rapid growth of the pharmaceutical industry in the region as well as lack of stringent regulations are expected to result in high demand for low-cost pharmaceutical grade lactose.

Growing demand for the product as a drug carrier is expected to boost industry growth over the projected period. Rising consumer disposable income, in addition to growing consumer awareness regarding health and safety, is expected to have a positive impact on industry growth.

Product prices have observed a CAGR of over 1.0% from 2016 to 2017. High investments in R&D by industry participants to improve chemical and physical properties of the product is expected to further drive the prices. In addition, increasing demand for raw materials from other application industries is likely to propel product prices over the forecast period.

Presence of numerous product suppliers in the market may decrease the power of suppliers. However, stringent regulations regarding usage, handling, storage, and distribution of the product is expected to benefit suppliers. In addition, high switching cost for buyers is projected to increase the power of suppliers, leading to moderate bargaining power on their part.

Regional Insights

Europe accounted for the largest market share of 42.0% in 2017 and is estimated to reach USD 97.2 million by 2025. This can be attributed to increased trend of outsourcing pharmaceutical products in the region, coupled with presence of a well-established healthcare sector. Various initiatives by regional governments for innovation and development of product is expected to aid market growth.

The North America pharmaceutical grade lactose market is benefitted primarily by the presence of established players. In addition, increasing demand for infant formula in the region is expected to boost industry growth over the projected period. Favorable government policies and increasing investments by regional players to develop efficient products is estimated to encourage market growth.

Asia Pacific is expected to exhibit substantial growth over the forecast period, owing to increasing birth rate in emerging economies such as China and India, leading to growth in product demand for infant formulation. The region is expected to witness an increase in production capability owing to lack of stringent government regulations and low labor costs.

High prevalence of chronic diseases and steady government efforts to boost the availability of affordable medicines are anticipated to drive the market in Central and South America over the forecast period. Furthermore, initiatives by international market participants to establish their businesses in the Middle East is presumed to have a positive impact on industry growth.

Pharmaceutical Grade Lactose Market Share Insights

Major players have been adopting various strategies, including new product development, partnerships, agreements, collaborations, and joint ventures, in order to increase their market penetration and cater to changing technological requirements for different end-use applications.

Companies across the globe are focusing on development of new strategies in order to gain a competitive edge in the industry. Small-scale regional, as well as established players, are investing in R&D for new cost-efficient techniques to gain market share. Market participants are also involved in establishment of new facilities to expand their manufacturing capabilities.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global pharmaceutical grade lactose market report on the basis of region:

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • The U.K.

    • Italy

    • Spain

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa