Global A2 Milk Market Product Form(Liquid, Powder), By Application(Infant Formula, Dairy Product, Bakery and Confectionery, Other Applications), Distribution Channel(B2B, B2C, Supermarkets/Hypermarkets, Grocery Stores, Convenience Stores, Specialty Stores, Online Retailing), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2024-2033
- Published date: March 2024
- Report ID: 116805
- Number of Pages: 365
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Report Overview
The global A2 Milk Market size is expected to be worth around USD 5.86 billion by 2033, from USD 2.24 billion in 2023, growing at a CAGR of 10.1% during the forecast period from 2023 to 2033.
The A2 milk market refers to the segment of the dairy industry that focuses on milk produced by cows that specifically produce A2 beta-casein protein rather than the more common A1 beta-casein protein. A2 milk is marketed as a healthier alternative to traditional milk due to claims that it is easier to digest and may cause less discomfort for individuals who experience lactose intolerance or digestive issues after consuming dairy products.
The distinction between A1 and A2 milk arises from genetic differences in cows. Some breeds of cows naturally produce milk with higher levels of A2 beta-casein, while others produce milk with higher levels of A1 beta-casein. The A2 milk market typically involves products labeled and marketed as containing predominantly A2 beta-casein protein, and it has gained popularity in recent years as consumers seek out alternatives to conventional dairy products.
Proponents of A2 milk claim various health benefits, including easier digestion, reduced inflammation, and improved gastrointestinal health. However, scientific evidence supporting these claims is still emerging, and more research is needed to fully understand the potential health effects of A2 milk compared to traditional milk.
Key Takeaways
- Market Size: A2 Milk Market is projected to reach USD 5.86 billion by 2033, with a CAGR of 10.1% from 2023.
- Product Preference: Liquid A2 milk dominates with over 72.8% market share in 2023, emphasizing convenience.
- Application Insights: The infant formula segment holds more than 36.5% share, indicating trust among parents.
- Distribution Channels: B2C sales captured over 68.5% market share in 2023, reflecting direct consumer preference.
- Regional Analysis: Asia-Pacific leads with 36.8% market share, driven by rising demand.
- Approximately 30% of the global cow population produces milk with only the A2 beta-casein protein.
- The A2 Milk Company expects its infant formula business to contribute more than 60% of its revenue by the end of the 2024 financial year
- The A2 Milk Company expects to have a presence in more than 30 markets globally by the end of the 2024 financial year
Product Form
In 2023, Liquid held a dominant market position, capturing more than a 72.8% share. This means that most people prefer to drink A2 milk in its liquid form rather than in other forms like powder. Liquid A2 milk is convenient and ready to drink, making it popular among consumers seeking a quick and easy dairy option. Its widespread availability in supermarkets and convenience stores contributed to its high market share.
On the other hand, Powder accounted for the remaining market share, indicating a smaller but still significant portion of the A2 milk market. Powdered A2 milk is typically used in situations where liquid milk is less convenient, such as for travel or storage purposes. It can also be used as an ingredient in various recipes and food products. While not as popular as liquid A2 milk, the powder segment still appeals to certain consumers who value its versatility and longer shelf life.
Overall, the dominance of Liquid in the A2 milk market underscores consumers’ preference for convenience and immediate consumption, while the presence of Powder highlights the demand for alternative forms of A2 milk for specific needs and purposes.
By Application
In 2023, Infant Formula held a dominant market position, capturing more than a 36.5% share. This indicates that a significant portion of A2 milk consumption was for infant nutrition purposes, highlighting the trust and preference of parents for A2 milk in feeding their babies. The demand for A2 milk in infant formula is driven by its perceived health benefits and suitability for sensitive digestive systems.
Dairy Product accounted for a substantial share of the A2 milk market, showing consumers’ interest in incorporating A2 milk into various dairy products such as yogurt, cheese, and butter. The segment’s popularity suggests that A2 milk is not only consumed as a beverage but also integrated into other dairy-based foods, appealing to consumers seeking healthier alternatives across their diet.
Bakery & Confectionery represented another significant segment of the A2 milk market. This indicates the use of A2 milk in baking and confectionery applications, where it may be valued for its nutritional properties and potential to enhance the taste and texture of baked goods. The segment’s presence highlights the versatility of A2 milk as an ingredient in culinary applications beyond traditional dairy consumption.
Other Applications encompassed a diverse range of uses for A2 milk outside of the aforementioned categories, including food processing, dietary supplements, and specialty products. While this segment held a smaller share of the market compared to the others, it demonstrates the continued exploration of A2 milk’s potential across various industries and applications beyond conventional dairy consumption.
Overall, the dominance of Infant Formula in the A2 milk market reflects its critical role in meeting the nutritional needs of infants, while the presence of Dairy Product, Bakery & Confectionery, and Other Applications underscores the versatility and expanding use of A2 milk across different sectors and consumer preferences.
Distribution Channel
In 2023, B2C held a dominant market position, capturing more than a 68.5% share. This signifies that most A2 milk sales were directly to consumers, either through physical retail outlets or online platforms. Consumers prefer the convenience and accessibility of purchasing A2 milk directly for personal consumption, driving the significant market share of the B2C distribution channel.
Supermarkets/Hypermarkets accounted for a notable portion of the A2 milk market, reflecting consumers’ preference for one-stop shopping destinations where they can find a wide range of products, including A2 milk. The convenience and variety offered by supermarkets and hypermarkets contribute to their significance as distribution channels for A2 milk.
Grocery Stores also held a considerable share of the A2 milk market, catering to consumers who prefer smaller, neighborhood-focused shopping experiences. These stores provide accessibility to A2 milk for consumers who prioritize convenience and familiarity in their shopping habits.
Convenience Stores represented another important distribution channel for A2 milk, particularly for consumers seeking quick and accessible dairy options on the go. The convenience and extended operating hours of these stores make them popular destinations for purchasing A2 milk, especially for busy individuals and commuters.
Specialty Stores catered to niche markets and specific consumer preferences for premium or specialized A2 milk products. These stores often focus on offering unique and high-quality dairy products, attracting consumers who prioritize product quality and authenticity.
Online Retailing experienced significant growth in the A2 milk market, providing consumers with the convenience of purchasing A2 milk from the comfort of their homes. The ease of online ordering and home delivery services appeals to consumers seeking convenience and flexibility in their shopping experience.
Overall, the dominance of B2C distribution highlights consumers’ preference for direct access to A2 milk, while the presence of Supermarkets/Hypermarkets, Grocery Stores, Convenience Stores, Specialty Stores, and Online Retailing demonstrates the diverse range of distribution channels catering to different consumer preferences and shopping habits.
Key Market Segments
Product Form
- Liquid
- Powder
By Application
- Infant Formula
- Dairy Product
- Bakery & Confectionery
- Other Applications
Distribution Channel
- B2B
- B2C
- Supermarkets/Hypermarkets
- Grocery Stores
- Convenience Stores
- Specialty Stores
- Online Retailing
Driving Factors
Growing Number of Diseases with Excessive Consumption of A1 Milk to Boost Market Growth
The global perception of milk as a healthful beverage is widely acknowledged, yet evolving preferences among consumers are reshaping milk consumption patterns, given the array of alternatives available. Cow’s milk, renowned for its nutritional benefits, contains two primary proteins: A1 and A2.
A1 milk, derived from cows of Western origin known for their prolific milk production, dominates the market due to its abundant availability and widespread consumption. However, excessive intake of A1 milk has been linked to various health concerns, including cognitive issues and histamine reactions in children, as well as obesity, heart ailments, and diabetes in adults.
In response, the rising awareness of the potential health benefits associated with A2 milk consumption, juxtaposed with the adverse effects of excessive A1 milk intake, is driving the growth of the A2 milk market.
Increasing Product Application in Infant Formulae Boosting the Market Growth
A2 milk is believed to be good for babies because it can help strengthen their immune systems and give them all the important nutrients they need to grow up healthy. It’s thought to be similar to the protein found in a mother’s milk, which is why many people see it as a good alternative for babies who can’t breastfeed.
That’s why more and more baby formula brands are using A2 milk in their products. Also, lots of companies are starting to use A2 milk to make baby food. Every year, new kinds of baby foods made with A2 milk are hitting the market, and more people are wanting to buy them.
Restraining Factors
High Prices May Hamper the Market Growth
Cows from India make A2 milk, but they don’t produce as much compared to other types of milk. Because of this, there’s not enough A2 milk to go around, so the demand is higher than the supply. When there’s not enough of something and lots of people want it, the price goes up. That’s why A2 milk ends up being more expensive than A1 milk, which is more common.
A2 milk is nutritious, so it’s worth more to people, especially for things like making healthy food products. A long time ago, when people first started taking care of cows, they mostly produced A1 milk because there was more of it. That’s why most companies started selling A1 milk – it was cheaper to produce and there was more of it available. That’s why A2 milk costs more than regular A1 milk.
Opportunity
The A2 milk market presents several promising opportunities for growth and development. Firstly, there is a growing trend towards healthier and more natural food choices among consumers, which has led to increased interest in A2 milk due to its perceived health benefits and easier digestibility. This presents an opportunity for companies to capitalize on this consumer shift by expanding their A2 milk product lines and marketing them effectively to target audiences.
Additionally, there is a rising awareness of lactose intolerance and dairy-related digestive issues, prompting more individuals to seek out alternative dairy options like A2 milk. This creates a ripe opportunity for A2 milk producers to tap into a niche market segment and cater to the specific needs of these consumers. Moreover, with advancements in technology and manufacturing processes, there is potential for innovation in the A2 milk sector, such as the development of new formulations, flavors, and packaging solutions to enhance product appeal and accessibility.
Furthermore, the increasing demand for organic and premium dairy products presents an opportunity for A2 Milk to position itself as a premium offering, commanding higher prices and profit margins. Overall, the A2 milk market is primed for growth and innovation, with ample opportunities for companies to capitalize on shifting consumer preferences and market trends.
Trending Factors
More and more people are wanting to eat foods that are good for them all over the world. Milk and yogurt are really popular foods that lots of people eat. Milk is especially popular because it’s seen as being really good for you. But, there are more and more people who can’t drink milk or eat milk products because they have trouble digesting them or other health issues.
That’s where products like A2 milk come in handy. A2 milk is great for people who have trouble with regular milk because it doesn’t bother their stomachs as much. Plus, A2 milk has lots of good stuff like calcium, protein, vitamins, and minerals that are important for staying healthy. The way the protein is in A2 milk is also a lot like the protein in human breast milk, as well as in milk from animals like sheep, buffalo, and goats.
Regional Analysis
The Asia Pacific region has emerged as a significant player in the global A2 milk market, capturing an impressive market share of 36.8%. This substantial growth is primarily fueled by a rising demand for A2 milk, driven by its widespread usage in critical sectors such as healthcare, dairy products, and dietary supplements.
The expansion of dairy industries and an increase in consumer awareness are key factors driving the growth of the A2 milk market in the Asia Pacific. Countries like China, India, Japan, South Korea, Australia, and New Zealand are witnessing a surge in A2 milk production and consumption, contributing significantly to market expansion.
In North America, the A2 milk market is experiencing notable growth, driven by economic development and increasing consumer demand for healthier dairy alternatives. The emphasis on health and wellness, along with the popularity of A2 milk among consumers, particularly in the United States and Canada, is driving market growth.
Europe is poised for substantial growth in the A2 milk market, driven by growing demand from various sectors including healthcare, dairy products, and dietary supplements. The region’s focus on promoting healthier food choices and sustainability initiatives is driving increased adoption of A2 milk, positioning Europe as a key market player in the global A2 milk industry.
Key Regions and Countries
- North America
- The US
- Canada
- Europe
- Germany
- France
- The UK
- Spain
- Italy
- Russia & CIS
- Rest of Europe
- APAC
- China
- Japan
- South Korea
- India
- ASEAN
- Rest of APAC
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- GCC
- South Africa
- Rest of MEA
Key Players Analysis
In the A2 milk market, several key players are driving innovation, market expansion, and product development. These players are pivotal in shaping the industry landscape and meeting consumer demand for A2 milk products.
Market Key Players
- Freedom Foods Group Limited
- Vinamilk
- Fonterra Cooperative Group Limited
- Erden Creamery Private Limited
- The A2 Milk Company Limited
- Provilac Dairy Farms Private Limited
- Vedaaz Organics Pvt. Ltd.
- Others
Recent Developments
2023 Provilac Dairy Farms Private Limited launched a premium A2 milk brand targeting urban consumers seeking high-quality dairy products with enhanced nutritional value.
2023 Vedaaz Organics Pvt. Ltd. introduced organic A2 milk variants sourced from ethically managed dairy farms, catering to environmentally conscious consumers seeking sustainable food options.
Report Scope
Report Features Description Market Value (2023) US$ 2.24 Bn Forecast Revenue (2033) US$ 5.86 Bn CAGR (2023-2033) 10.1% Base Year for Estimation 2023 Historic Period 2018-2023 Forecast Period 2024-2033 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered Product Form(Liquid, Powder), By Application(Infant Formula, Dairy Product, Bakery and Confectionery, Other Applications), Distribution Channel(B2B, B2C, Supermarkets/Hypermarkets, Grocery Stores, Convenience Stores, Specialty Stores, Online Retailing) Regional Analysis North America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA Competitive Landscape Freedom Foods Group Limited, Vinamilk, Fonterra Cooperative Group Limited, Erden Creamery Private Limited, The A2 Milk Company Limited, Provilac Dairy Farms Private Limited, Vedaaz Organics Pvt. Ltd., Others Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three license to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
What is the size of A2 Milk Market?A2 Milk Market size is expected to be worth around USD 5.86 billion by 2033, from USD 2.24 billion in 2023
What is the CAGR for the A2 Milk Market?The A2 Milk Market expected to grow at a CAGR of 10.10% during 2023-2032.Who are the key players in the A2 Milk Market?Freedom Foods Group Limited, Vinamilk, Fonterra Cooperative Group Limited, Erden Creamery Private Limited, The A2 Milk Company Limited, Provilac Dairy Farms Private Limited, Vedaaz Organics Pvt. Ltd., Others
- Freedom Foods Group Limited
- Vinamilk
- Fonterra Cooperative Group Limited
- Erden Creamery Private Limited
- The A2 Milk Company Limited
- Provilac Dairy Farms Private Limited
- Vedaaz Organics Pvt. Ltd.
- Others
- Nestlé S.A Company Profile
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