Global A2 Infant Formula Market By Form (Powder, Liquid, Semi-liquid), By Age Group (Infant formula (0 to 6 months), Follow-on formula (6 to 12 months), Growing-up formula (12 to 36 months)), By End-use (Liquid Milk, Infant Formula, Others), By Distribution Channel(Hypermarket or Supermarket, Convenience Stores, Departmental Stores, Wholesale Stores, Online Retailers, Others) , By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global A2 Infant Formula Market size is expected to be worth around USD 3877.7 Mn by 2033, from USD 894.3 Mn in 2023, growing at a CAGR of 15.7% during the forecast period from 2024 to 2033.

A2 infant formula refers to a type of infant nutrition made from milk that contains only the A2 type of beta-casein protein, in contrast to the more common A1 beta-casein protein found in regular cow’s milk. The A2 protein is believed to be easier to digest and may reduce the risk of gastrointestinal discomfort and allergic reactions. This makes it an appealing option for infants who may have difficulty with traditional formulas.

While the potential benefits of A2 infant formula have been widely studied, clinical evidence regarding its superiority over A1-based formulas is still evolving. Nevertheless, many parents are turning to A2 formulas due to their perceived gentler effects on the digestive system.

The global trade in infant formula, including A2 variants, has seen significant growth in recent years. In 2022, the global export value of infant formula, which includes A2 variants, was estimated at $7.5 billion.

Notably, China is the largest consumer market for A2 infant formula, with companies like a2 Milk Company reporting a 1.5% growth in sales despite overall market challenges in the sector.

This surge in international trade has been driven by increasing demand for premium, easily digestible formulas in markets such as China, India, and Middle Eastern countries. These regions are witnessing an expanding middle class and growing concerns about infant health, boosting the demand for products like A2 infant formula.

Australia remains a significant exporter of A2 formula, particularly to markets in Asia. The country’s export value for infant formula, including A2 variants, was valued at $1.6 billion in 2022, with China being the largest recipient of Australian exports. Other countries, such as the U.S., New Zealand, and the UAE, have also become key players in the importation of A2 infant formula, further fueling global trade growth.

The A2 Milk Company has increased its marketing investment by 1.2%, which constitutes 16.9% of its net sales revenue to support new product launches and brand transitions in China.

Key Takeaways

• A2 Infant Formula Market size is expected to be worth around USD 3877.7 Mn by 2033, from USD 894.3 Mn in 2023, growing at a CAGR of 15.7%.
• Powder held a dominant market position, capturing more than a 65.3% share of the A2 infant formula market.
• Infant formula (0 to 6 months) held a dominant market position, capturing more than a 47.4% share.
• Infant Formula held a dominant market position, capturing more than a 79.1% share of the A2 infant formula market.
• Hypermarket or Supermarket held a dominant market position, capturing more than a 39.3% share.
• Asia Pacific (APAC) region holding the dominant position, accounting for 44% of the global market share, valued at approximately USD 395.3 million.

By Form

In 2023, Powder held a dominant market position, capturing more than a 65.3% share of the A2 infant formula market. This segment’s popularity is driven by its longer shelf life and convenience in storage and transportation. Powdered formulas are widely preferred by consumers due to their easy reconstitution and cost-effectiveness.

Liquid A2 infant formulas followed, accounting for a significant portion of the market. This form offers quick preparation and ease of use, especially for parents seeking convenience. Liquid formulas are typically sold in ready-to-feed bottles or concentrated forms.

The semi-liquid segment, though smaller, is steadily growing. It appeals to consumers looking for a balance between powder and liquid formulas. Semi-liquid formulas are gaining traction due to their smooth texture and easy digestion for infants transitioning from breast milk.

By Age Group

In 2023, Infant formula (0 to 6 months) held a dominant market position, capturing more than a 47.4% share of the A2 infant formula market. This segment is primarily driven by the high demand for infant nutrition during the first few months of life when babies need essential nutrients for growth and development. The formula is widely trusted as a substitute for breast milk.

Follow-on formula (6 to 12 months) accounted for a substantial share of the market as well. As infants grow, they need a formula that supports their evolving nutritional needs. This segment is gaining popularity as babies begin transitioning to solid foods but still rely on formula for key nutrients.

Growing-up formula (12 to 36 months) is the smallest but fastest-growing segment. Parents increasingly prefer these formulas for toddlers, offering a specialized blend of nutrients to support immune health and overall development. The demand for this segment is rising due to growing awareness of proper nutrition in the early years.

By End-use

In 2023, Infant Formula held a dominant market position, capturing more than a 79.1% share of the A2 infant formula market. This segment continues to lead due to the high demand for specialized nutrition for infants. Parents prefer infant formula as a trusted alternative to breast milk, offering a consistent and nutrient-rich feeding option.

Liquid Milk, while significant, holds a smaller share in comparison. It is used by some consumers who prefer a more natural, ready-to-consume option for feeding their children. However, liquid milk is not as commonly chosen as infant formula for the earliest stages of infant development.

By Distribution Channel

In 2023, Hypermarket or Supermarket held a dominant market position, capturing more than a 39.3% share of the A2 infant formula market. These large retail stores remain the primary shopping destination for many consumers, offering a wide variety of brands and product options. The convenience of one-stop shopping and frequent promotions make hypermarkets and supermarkets the preferred choice for buying infant formula.

Convenience Stores followed closely, holding a smaller but significant share. These stores offer easy access to A2 infant formula for consumers seeking quick and convenient purchases, especially in urban areas. Although prices may be slightly higher, the accessibility factor drives their popularity.

Departmental Stores also contribute to market sales, though their share is relatively smaller. They offer a curated selection of baby products, including A2 infant formula, often targeting mid- to high-income consumers looking for premium options.

Wholesale Stores play a key role in bulk sales, especially for families buying in larger quantities. They cater to both individual consumers and businesses, offering competitive prices for larger purchases.

Online Retailers have seen substantial growth in recent years. The convenience of shopping from home and the availability of a wide range of products are key drivers for the rise of e-commerce in the A2 infant formula market. This segment is expected to continue expanding as online shopping becomes more popular.

Key Market Segments

By Form

• Powder
• Liquid
• Semi-liquid

By Age Group

• Infant formula (0 to 6 months)
• Follow-on formula (6 to 12 months)
• Growing-up formula (12 to 36 months)

By End-use

• Liquid Milk
• Infant Formula
• Others

By Distribution Channel

• Hypermarket or Supermarket
• Convenience Stores
• Departmental Stores
• Wholesale Stores
• Online Retailers
• Others

Drivers

Growing Consumer Awareness of Health Benefits

One of the major driving factors for the A2 infant formula market is the increasing consumer awareness about the health benefits of A2 protein compared to A1 protein. Research has shown that A2 protein, found in the milk of certain cow breeds, is easier to digest and may help reduce the risk of discomfort and digestive issues that some infants face when consuming regular milk.

According to a report from the National Dairy Council, around 60% of people worldwide are lactose intolerant, and many experience discomfort when consuming standard cow’s milk that contains A1 beta-casein protein. As a result, more parents are opting for A2 infant formula, which offers a potentially gentler alternative for their babies.

This growing awareness is reinforced by findings from health organizations. The Food and Agriculture Organization (FAO) has highlighted that A2 milk is easier to digest for individuals with a sensitive gut, which extends to infants who have not yet developed a fully mature digestive system.

In countries like Australia and New Zealand, A2 milk has been a staple for years, with around 50% of the local population now consuming A2 products, according to a report by Dairy Australia.

Rising Demand for Premium and Specialized Infant Nutrition

The growing demand for premium and specialized infant nutrition is another key factor driving the A2 infant formula market. Parents today are increasingly willing to invest in high-quality products that they believe will better support their child’s health and development.

This trend is particularly noticeable in developed economies where parents are more conscious about the nutritional content of infant formula. According to the World Health Organization (WHO), nutrition in the first 1,000 days of a child’s life is critical to long-term health outcomes, including cognitive development, immunity, and growth.

As a result, infant formulas that offer additional benefits—such as being gentler on the stomach—are gaining popularity. The global market for premium baby foods, including formula, is expected to grow significantly in the coming years.

For instance, the global organic baby food market, which overlaps with premium products like A2 infant formula, was valued at approximately $8.3 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 10.8% through 2030, according to market estimates from Euromonitor.

Government Initiatives and Support for Infant Health

Government initiatives to support infant health are also playing a significant role in driving the A2 infant formula market. Many governments have introduced policies that encourage the consumption of specialized nutrition products, including infant formula, to address concerns about malnutrition and infant health.

For example, the Chinese government has launched several initiatives to improve maternal and child nutrition, which has indirectly boosted the demand for high-quality infant formula products, including A2-based formulas. China is one of the largest markets for A2 infant formula, driven by growing urbanization, rising disposable incomes, and a shift in dietary preferences.

According to the American Academy of Pediatrics, up to 2-3% of infants experience a milk allergy, which can lead to discomfort, rashes, or gastrointestinal problems. In response to this, many parents are switching to A2-based formulas, which may reduce the likelihood of these issues.

Restraints

High Cost of A2 Infant Formula

One of the key restraining factors for the A2 infant formula market is its high cost compared to regular infant formula made from A1 milk. This price premium is largely driven by the specialized sourcing of A2 milk, which comes from specific cow breeds like the A2 milk-producing cows.

According to Dairy Australia, A2 milk production is more expensive due to the need to maintain and breed specific cows, and this cost is passed on to consumers in the form of higher retail prices.

For instance, a standard 900g tin of A2 infant formula can cost up to 30% more than regular formula. In the UK, the price for A2 infant formula typically ranges between £15-£25 per can, while standard formula may cost between £12-£18 for the same size, based on data from UK food retailers.

This price difference can be a significant barrier for families, especially in regions where the average household income is lower. The Economic Research Service of the U.S. Department of Agriculture (USDA) notes that many households in the U.S. and Europe are already facing rising food prices, and the premium cost of A2 formula can deter price-sensitive consumers from making the switch.

Limited Availability and Accessibility

Another significant restraining factor is the limited availability and accessibility of A2 infant formula in certain regions, particularly in rural or underserved markets. While A2 products are widely available in developed countries such as Australia, the U.S., and the UK, their reach is still limited in emerging markets.

According to the World Bank, about 75% of the global population in low-income countries lives in rural areas, where access to specialized products such as A2 infant formula is often restricted. In many of these regions, standard infant formula is already difficult to obtain due to the lack of distribution infrastructure.

A report from the United Nations International Children’s Emergency Fund (UNICEF) estimates that around 35% of infants worldwide are not fed with the recommended breast milk substitutes in rural areas, and A2 infant formula is not a priority for most retailers in these locations.

Lack of Awareness and Education in Emerging Markets

A third restraining factor for the A2 infant formula market is the lack of awareness and education, especially in emerging markets where traditional formulas have a stronghold. In many parts of the world, parents are not fully informed about the potential benefits of A2 milk over regular A1 milk.

According to a report by the World Health Organization (WHO), infant nutrition is still largely influenced by cultural beliefs and traditional practices, and new products like A2 formula face challenges in terms of consumer education.

In regions such as Southeast Asia, Latin America, and parts of Africa, many parents continue to rely on locally available formula options or follow traditional feeding practices. According to the WHO, over 70% of infants in lower-income countries are still breastfed for extended periods, and awareness of alternative feeding options like A2 formula is low.

Opportunity

Increasing Demand for Premium and Specialty Infant Nutrition

According to the Organic Trade Association (OTA), the organic food market in the U.S. reached $62 billion in 2022, with organic dairy products, including infant formulas, experiencing significant growth. As organic A2 milk gains traction, the combination of both organic and A2 attributes offers a compelling growth opportunity in premium segments.

According to the U.S. Food and Drug Administration (FDA), more parents are seeking formulas that promise improved digestion, better tolerance, and a reduced risk of gastrointestinal discomfort, leading to higher demand for A2-based products. In fact, research by the Food and Agriculture Organization (FAO) shows that the global market for premium infant formula is expected to grow at a CAGR of 8.6% from 2023 to 2027, with A2 formula positioned to capture a significant portion of this increase.

Additionally, A2 milk is gaining popularity due to its perception as a healthier and more natural option. In Australia, the largest consumer of A2 milk, the market penetration for A2 infant formula has already reached over 30%, according to Dairy Australia. This growth is expected to expand further with rising awareness about the benefits of A2 protein.

Countries like China, with its high demand for infant formula, are seeing substantial interest in A2 products. For example, in 2022, A2 infant formula accounted for approximately 12% of the overall formula market in China, according to the Chinese Dairy Association (CDA). The opportunity lies in leveraging this growing consumer preference, especially in emerging markets where disposable income is increasing.

Rising Focus on Digestive Health and Lactose Sensitivity

A significant opportunity for growth in the A2 infant formula market is the increasing consumer awareness about digestive health and lactose sensitivity. As more parents recognize the benefits of A2 milk for reducing digestive discomfort, A2-based formulas are expected to see increased adoption.

According to the World Health Organization (WHO), approximately 68% of the world’s population suffers from some degree of lactose intolerance, with many of these individuals finding A2 milk easier to digest. This growing awareness has contributed to the rise of specialty infant formulas designed for infants with sensitive stomachs, fueling the demand for A2 milk-based options.

Trends

Incorporation of Organic and Natural Ingredients

A significant latest trend in the A2 infant formula market is the increasing incorporation of organic and natural ingredients into the products. This trend is driven by the growing consumer demand for cleaner labels and healthier dietary options for infants.

According to the Organic Trade Association (OTA), sales of organic infant formula in the United States saw an increase of 12% in the last year. Parents are increasingly scrutinizing product labels for organic certifications and the absence of artificial additives, leading to a surge in preference for organic A2 infant formulas which combine the perceived digestive benefits of A2 milk with the purity and safety of organic ingredients.

Enhanced Focus on Gut Health and Probiotics

Another growing trend in the A2 infant formula market is the enhanced focus on gut health, with many manufacturers now adding probiotics to their formulas. Probiotics are live bacteria and yeasts that are good for digestion and overall gut health.

According to the World Health Organization (WHO), there is increasing evidence that gut health in early life is crucial for immune system development and may influence health outcomes later in life. A2 infant formulas infused with probiotics are becoming popular as they potentially offer the dual benefits of easier digestion associated with A2 proteins and improved gut flora balance provided by probiotics.

Tailored Formulations for Specific Health Needs

The development of tailored formulations to address specific health needs is another key trend in the A2 infant formula market. As knowledge about infant nutrition evolves, parents and healthcare providers are increasingly seeking products that can address particular health concerns such as allergies, reflux, or lactose intolerance.

The Food Allergy Research & Education (FARE) organization reports that approximately 2-3% of infants suffer from milk protein allergies. A2 milk-based formulas are being developed to be inherently less allergenic than traditional cow’s milk formulas, which often contain both A1 and A2 beta-casein proteins.

Regional Analysis

In 2023, the A2 infant formula market saw significant regional variations, with the Asia Pacific (APAC) region holding the dominant position, accounting for 44% of the global market share, valued at approximately USD 395.3 million.

The growth in APAC is primarily driven by the increasing demand for premium infant nutrition, especially in countries like China and India, where rising disposable incomes and a growing middle class are fueling the adoption of A2-based products. In China alone, the infant formula market is expected to exceed USD 20 billion by 2025, with A2 products gradually gaining popularity due to their perceived digestive benefits.

North America also holds a significant share of the market, supported by a robust demand for high-quality infant nutrition. The U.S. is one of the largest markets for A2 infant formula, with a growing preference for specialty products. As of 2022, the U.S. market for organic and premium infant formula, which includes A2 variants, is valued at over USD 4 billion and is expected to grow at a CAGR of 7.2% through 2027.

Europe, while showing steady demand, is expected to grow at a more moderate pace due to the established nature of the market. However, countries like the UK, Germany, and France are increasingly adopting A2 formulas, contributing to a steady growth trajectory.

In Latin America, the A2 infant formula market is still emerging, with growth driven by rising awareness of health benefits and changing dietary preferences. Similarly, the Middle East & Africa (MEA) region is witnessing gradual growth, fueled by a shift towards premium nutrition in countries like the UAE and Saudi Arabia.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

The A2 infant formula market is highly competitive, with several key players driving innovation and capturing significant market shares. Prominent companies like Abbott Laboratories, Danone S.A., and Nestlé S.A. dominate the global market. Abbott, a leader in infant nutrition, offers a variety of A2-based formulas under brands like Similac.

Similarly, Danone’s extensive portfolio, including brands like Aptamil and Nutrilon, is expanding to include A2 variants in response to growing consumer demand for specialized products. Nestlé, a global giant in the food and beverage sector, continues to strengthen its position through a range of A2 formulas under the Nan brand.

Other significant players like The A2 Milk Company and Synlait Milk are more focused on producing A2-specific products. The A2 Milk Company, for example, is one of the most well-known names in the A2 milk segment, offering a range of infant formulas based exclusively on A2 protein.

Synlait Milk, based in New Zealand, partners with The A2 Milk Company to produce A2 infant formulas, taking advantage of the growing preference for premium, easily digestible milk proteins.

Regional players such as Arla Foods amba, Bubs Australia Limited, and FrieslandCampina N.V. also play a pivotal role. Arla Foods, with its global reach, offers A2 infant formulas in various markets, while Bubs Australia has strengthened its position in Asia and the Pacific.

FrieslandCampina, with its strong presence in Europe, continues to expand its offerings of A2-based nutrition for infants. Together, these companies represent a diverse and dynamic competitive landscape in the A2 infant formula market.

Top Key Players in the Market

• Abbott
• Abbott Laboratories
• Arla Foods amba
• Bellamy’s Organic
• Bubs Australia Limited.
• Care A2+
• Coca-Cola Amatil
• Danone S.A.
• Fonterra
• FrieslandCampina N.V.
• Hipp GmbH & Co.
• Jersey Dairy
• Kendamil
• Lion Pty Limited (Pura and Dairy Farmers)
• Mead Johnson
• Mead Johnson Nutrition Company
• Meiji Holdings Co., Ltd.
• Nestlé S.A.
• Perrigo
• Reckitt Benckiser Group plc
• Synlait Milk
• The A2 Milk Company
• Vertrieb KG

Recent Developments

In 2023 Abbott’s global revenue from infant nutrition was reported to be approximately USD 8.5 billion, with A2-based formulas contributing a notable share due to rising demand for specialized products.

In 2023, Arla Foods reported a 5% increase in its global dairy sales, with a significant portion attributed to its A2 infant formula range. This was part of the company’s overall 2023 revenue of €13.6 billion, with approximately 4% of this coming from specialized infant nutrition products.

Report Scope