Demand from confectioners could see the lactose market reach US$1.47bn (€1.12bn) by 2017, according to a new report.
The Lactose: A Global Strategic Business Report said the need for the ingredient as a source of low-glycemic index carbohydrate is expected to drive rapid growth and development.
The US represents the single most important market, with Asia-Pacific backed by rising demand from India, China, New Zealand and Korea, forecast to have the largest compounded annual growth rate (CAGR) of 3.8% through 2017.
The report said that lactose faces competition from functional corn-based sweetener and fillers in the prepared foods, sweet bakery, and salty snacks categories and lactose-free foods as consumer awareness of milk allergies and lactose intolerance increases.
Davisco Foods International, FrieslandCampina, Glanbia Foods., Hilmar Ingredients and Leprino Foods feature in the report.