Global A2 Milk Market Report and Forecast 2024-2032

Global A2 Milk Market Outlook

The global A2 milk market size is projected to expand at a CAGR of 14.70% between 2024 and 2032, driven by increasing awareness regarding the benefits of A2 milk compared to the standard milk.

Key Takeaways

• There is a growing trend towards integrating organic and sustainable farming practices in the production of A2 milk.

• A2 milk is expanding beyond just liquid milk and offering a range of dairy milk products.

• Companies are investing significantly in marketing and branding to educate consumers about the unique benefits of A2 milk.

A2 milk is defined as the type of cow milk which is free from A1 β-casein protein types. It is rich in omega-3 and is produced by breeds like Jerseys, Asian, and African cows, among others. A2 milk is considered to be a better and healthier alternative to other cow’s milk in the market, due to which its demand is significantly growing.

The rising prevalence of diabetes across the globe, coupled with the growing health-conscious population which is adopting various preventative measures to reduce the risk of diabetes and related cardiovascular issues, are some of the major factors driving the A2 milk market growth. Moreover, the consumption of A2 milk promotes stool consistency and reduces abdominal pain and bloating among people with gastronomical issues. The rising awareness regarding the multiple health benefits offered by A2 milk, especially among the young population, as well as the emergence of e-commerce platforms like Amazon and Walmart, among others, is surging the accessibility to A2 milk.

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Key Trends and Developments

The rising trend of health and wellness; increased incorporation of organic and sustainable practices; growing investment in marketing and branding; and stringent regulatory standards to ensure product quality and safety are the major trends impacting the market growth.

Apr 3rd 2023

The a2 Milk Company, a growing premium milk brand in the U.S., expanded its product line to include a2 Milk Grassfed Whole Milk and a2 Milk Grassfed 2% Reduced Fat Milk.

September 19th 2023

Jaywing, a data, creative, and performance marketing agency, has been appointed by The a2 Milk Company (a2MC) to lead their SEO efforts and amplify digital content and PR.

Jan 14th 2024

The a2 Milk Company has launched a new round of grants through its a2™ Farm Sustainability Fund to support sustainable dairy farming in New Zealand and Australia.

Jan 23rd 2024

Once Upon a Farm, a leading company in childhood nutrition, has recently expanded into the dairy category with the introduction of its first-ever organic A2/A2 Whole Milk Shakes.

Rising trend of health and wellness

The global shift towards health and wellness lifestyles is influencing consumers to opt for products perceived as healthier, including A2 milk.

Increased incorporation of organic and sustainable practices

There is a trend towards integrating organic farming practices in the production of A2 milk, responding to the consumer demand for sustainably produced food products.

Growing investment in marketing and branding by companies

Companies are investing significantly in marketing efforts to educate consumers about the unique properties of A2 milk through targeted advertising and collaborations with health professionals.

Stringent regulatory standards to ensure optimum quality and safety

There is an increasing focus on regulatory standards and certifications for A2 milk products by various government bodies, ensuring quality and safety for consumers.

One of the crucial A2 milk market trends is the practice of integrating organic farming methods into the production of A2 milk which reflects a broader shift in consumer preferences towards sustainably produced food products. Organic certification plays a crucial role in building consumer trust. When A2 milk is certified organic, it assures consumers that the milk comes from farms that adhere to strict organic farming standards. These standards typically include the use of natural pest control and fertilisers, humane treatment of animals, and non-use of genetically modified organisms (GMOs).

The a2 Milk Company has launched the a2™ Farm Sustainability Fund which aims to support projects that demonstrate an integrated approach to a sustainable future, positively impacting the community and environment. The Fund combines farmer grant programs that have been supporting farmers in New Zealand and Australia for several years. In the latest funding round, the a2™ Farm Sustainability Fund plans to allocate up to USD 630,000 in total to applicants from New Zealand and Australia.

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Market Segmentation

“A2 Milk Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Form

• Liquid

• Powder

Market Breakup by Packaging Type

• Carton

• Bottles

• Others

Market Breakup by Distribution Channel

• Hypermarkets and Supermarkets

• Grocery and Convenience Stores

• Online 

• Others

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

The liquid segment is expected to continue its dominance in the market

The liquid segment accounts for the majority of A2 milk market share and is likely to lead in the  forecast period as well. The growing sales of packaged liquid milk can be attributed to its nutritional benefits, cost-effectiveness, and convenience. The natural flavour and soothing taste of liquid A2 milk as well as the growing trend of regular supply of fresh liquid milk, especially in developed countries, is likely to be a major driving factor in the market. The sales of liquid A2 milk are estimated to be further propelled by the growing awareness about the various health benefits offered by the product. Meanwhile, powdered A2 milk is anticipated to gain significant traction in the forecast period owing to the high shelf life of the product and its convenience of usage.

Milk carton is widely preferred owing to its convenience and economically and ecologically balanced nature

Cartons are easy to handle, open, and pour, making them user-friendly for a wide range of consumers, including families with children. The packaging is designed for easy storage in refrigerators and is often equipped with features like screw caps or spouts for resealing, which aids in maintaining freshness after opening. Cartons can effectively protect milk from light and air, two factors that can degrade the nutritional quality and flavour of milk. The cost-effectiveness and sustainable benefits offered by the packaging type add to the A2 milk market demand.

Meanwhile, bottled milk, particularly in glass bottles, is often associated with higher quality and freshness. Consumers may perceive bottled milk as being closer to the source and less processed compared to carton-packaged milk and this perception is especially strong for glass-bottled milk, which is frequently linked with premium quality products.

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Competitive Landscape

The market players are capitalising on the growing trend of health and wellness and are offering products with organic certifications to gain consumer trust and stay competitive in the market

The a2 Milk Company Limited

The a2 Milk Company was founded in 2000 and specialises in A2 milk products. It is known for its range of milk that contains the A2 type of beta-casein protein.

Ripley Farms LLC

Ripley Farms, based in New York, the United States, is a premium provider of A2 milk products. The company offers A2 beverages, and cheese, among other products.

Provilac

Provilac is a milk home delivery company, based in Maharashtra, India. Some of its well-known products include A2 milk, raw cow milk, and lactose-free milk, among others.

The a2 Milk Company received approval from the U.S. Food and Drug Administration (FDA), on November 2nd, 2022, to supply its a2 Platinum Premium infant milk formula to the U.S.

The market players are strategically introducing milk products to cater to the rising demand in the premium milk segment. The manufacturers are focusing on upgrading their existing range to meet the evolving demands of customers, such as the increasing popularity of grass-fed milk. Brands are thus adding new products to their portfolio to offer new and compelling dairy options to health-conscious consumers.

As per the A2 milk market analysis, the Asia Pacific accounts for a significant market share. The growing consumption of milk, especially in countries like China and India, owing to rising population, growing disposable income, and rapid urbanisation, among others, is invigorating the growth of the market. Further, the expansion of supermarkets and hypermarkets, the growing inclination towards health and fitness, and the rising prevalence of digestive issues are likely to bolster the sales of the product. Over the forecast period, the increasing awareness about the various health benefits offered by A2 milk, especially among the geriatric population, is anticipated to boost the A2 milk market value in the region.

Meanwhile, the European A2 milk market is influenced by a combination of factors related to health, consumer awareness, and marketing efforts. European consumers are increasingly health-conscious, and this has fueled interest in A2 milk, which is believed to be easier to digest for individuals experiencing discomfort with regular cow's milk, which contains both A1 and A2 beta-casein proteins. Furthermore, in many European markets, A2 milk is positioned as a premium product and this appeals to consumers who are willing to pay a higher price for products that are perceived as healthier or better quality.

Key Highlights of the Report

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