Resource &
Knowledge Center

Focus on Dairy Ingredients

Fuel & Fiber with Carbs from Milk

Over the last 100 years, ADPI has provided technical information to its members and supported the dairy industry through driving change and innovation. As the demand for protein continues to rise in 2026, many in the dairy industry are sitting with by-products of protein production — lactose and permeate — and wondering how we can valorize these ingredients. Lactose has high value as a natural sweetener, while dairy permeate is being increasingly used in a variety of food and non-food applications.  GOS, a prebiotic fiber derived from lactose, is becoming more recognizable after use in the nutritional and dietary space, with an increasingly attractive profile for use in a variety of foods. 

For more information on all carbs derived from milk:

Meet scientists from ADPI member organizations who are formulating with carbs from milk:

Dairy Ingredient Application Guides

Download a copy of our newest resources, outlining the applications, composition, and functionality of dried dairy ingredients. 

Valorization of Lactose & Permeate

With the US experiencing an imminent increase in cheese production, the dairy ingredients industry is simultaneously experiencing an abundance in permeate and lactose production. ADPI is working with members across the industry on these topics and are focused on sharing many resources on how these ingredients can be utilized in innovative ways. The following includes glimpses of content presented at the recent 2026 Global Ingredients Summit by ADPI’s KJ Burrington, VP of Technical Development, and Stephanie Clark, PhD, Manager of Academic Engagement, and Dairy Management Inc’s Stephanie Ropiak, PhD, Senior Director of Product Research. 
Of 79% reported production in the US, 100% of liquid whey permeate is going into animal feed, with 90% of dry permeate in animal feed and only 10% to human food. This is a large opportunity to take advantage of permeate’s valuable characteristics including:
 
  • Formula cost reductions (sweet whey replacement and partial replacement of NFDM)
  • Sodium reduction
  • Flavor enhancement
  • Contributes valuable vitamins and minerals to improve nutrition 
  • Replacement of other carbs with a clean label
  • Hydration benefits

Lactose

Lactose, or “milk sugar,” has many valuable functional properties including:
 
  • Replacement for other sugar carbohydrates
  • Use in traditional applications like infant formulas, confectionaries, dry mixes, and Skim Milk Powder standarization
  • A low glycemic index as compared to sucrose (65 v 87)
  • Enhances the absorbtion of calcium and magnesium
  • Prebiotic properties
Non-food uses of lactose and permeate are allowing for innovation in several categories such as:
 
  • Healthcare applications
  • Skin care and cosmetics
  • Dyes for textiles and woods
  • Construction applications
  • Bioplastics
  • Biofuels and alternative energy applications

Want to learn more about non-food uses?  Download our literature review:

Spotlight on Ingredients

Going back to our roots at ADPI, let’s highlight dried dairy ingredients and how we can continue to drive the use of these ingredients worldwide. It is important to highlight that these original, clean label dairy ingredients have fed generations, providing much-needed nutrition for all ages and stages.

  • Dairy Permeate is a by-product of the removal of proteins from milk, resulting in a high concentration of lactose
  • Can be used to reduce sodium and enhance flavors in almost any application
  • Provides browning and crumb softening properties to bakery products, and sugar replacement and browning properties for confectionary products
  • Nutritionally, it provides lactose and a portion of all the vitamins and minerals from milk and/or whey
Lactose &
Infant Formula Grade Lactose
  • Lactose is a crystalline sugar with functionality similar to sucrose, and is a source of energy especially important in infant formula
  • Contributes less sweetness (40% less than sucrose) and a lower solubility than sugar
  • Can be used as a carrier for seasonings for even distribution in dry mixes and adhesive properties on snacks
Galacto-oligosaccharies (GOS)
  • GOS is derived from lactose and is a non- digestible fiber
  • GOS functions like a prebiotic, working with the good strains of bacteria in the gut
  • Naturally occurring in human breast milk, GOS is a valuable ingredient used in baby formulas

Upcoming Events

Check out these upcoming events focusing on dairy ingredients.

There will be dedicated speakers and sessions on lactose and permeate at:

  • 2026 Global Ingredients Summit
  • 2026 Annual Conference

Need expert advice?

For ADPI members: take advantage of our Center of Excellence! If you have specific questions, reach out to one of our subject matter experts today for consulting. 

Areas of Expertise:

  • Functionality and Applications
  • Training and Development
  • Food Scientist

Areas of Expertise:

  • Dairy Products Chemistry, Microbiology, Processing and Sanitation
  • Sensory Evaluation
  • Food Scientist

Click below for Stephanie’s literature review on Lactose & Permeate in Non-Food Applications:

Areas of Expertise:

  • Business Development
  • Dairy Purchasing Strategies
  • Risk Management
  • Market Research
  • Strategic Planning
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2023 Utilization & Production Trends Report

The latest Utilization & Production Trends Report is ready for review! ADPI member organizations can access the report online, and non-members can purchase a PDF copy of the report.  

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