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A2 Milk Market Trends

ID: MRFR//5033-CR | 115 Pages | Author: Pradeep Nandi| February 2021

Global A2 Milk Market Overview

A2 Milk Market Size was valued at USD 9.45 billion in 2021. The A2 Milk market industry is projected to grow from USD 10.85 Billion in 2022 to USD 28.55 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 17.75% during the forecast period (2022 - 2030). The increasingly health-conscious population coupled with the increased benefits associated with the consumption of A2 milk such as strengthening bones and teeth, stronger muscles, blood pressure regulation, tissue, and cell growth, increasing HDL, maintaining overall nutrients and many more are set to boost its market growth during the forecast period. 

Apart from this, the growing demand among consumers for various types of products related to A2 milk such as a2 cow milk, a2 formula, a2 protein, amul a2 milk, a2 cow, desi cow milk, a2 platinum, a2 dairy, a2 protein milk, a2 butter, organic a2 milk, a2 buffalo milk, a2 full cream milk, a2 gir cow milk products, a2 milk roducts, a2 dairy products, a2 ice cream, a2 infant formula, a2 milk formula, a2 milk nutrition, a2 skim milk, amul buffalo a2 milk, a2 chocolate milk, a2 smart nutrition, a2 powdered milk, a2 heavy cream, raw a2 milk, a2 milk cheese, amul buffalo milk a2, a2 nutrition products, a2 unsalted butter may contribute to its overall market growth. 

In the addition, the presence of some companies providing a wide range of a2 milk prices per liter available in various plans may boost its market growth. For example, Oshun Food Private Limited, an a2 company provides a2 milk in various plans such as 30 liters, 60 liters,90 liters, and many more at respective prices. However, some factors such as the high cost of gir cow milk as well as the Amul buffalo milk a2 price fluctuating due to the different packaging options may impede its market growth.

A2 Milk Market Overview

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

A2 Milk Market Trends

  • Side-Effects Associated with the Excessive Consumption of A1 Milk Coupled with the Growing Expansion Policies Adopted by Key Player

The growing side-effects associated with the excessive consumption of A1 milk are likely to increase the demand for A2 Milk which in turn would boost its market growth. For instance, A1 milk causes neuro disorders such as cognitive impairments, which have been linked to learning disabilities and exacerbated autistic symptoms. This is due to the presence of a chemical in A1 milk that resembles morphine. Children that ingest A1 milk typically have constipation due to the morphine impact. For instance, according to the World Health Organization, around 55 million individuals worldwide have dementia, and more than 60% of them reside in low- and middle-income nations. This number is anticipated to increase to 78 million in 2030 and 139 million in 2050 due to an increase in the percentage of elderly persons in the population in almost every country. Besides, these recent studies suggested that increased consumption of A1 milk can increase the chances of chronic disease which further has increased the demand for A2 milk. For example, according to MRFR analysis, BCM-7 a chemical constituent found in A1 milk may be related to type 1 diabetes, heart disease, newborn mortality, autism, and digestive issues.

Besides, the growing expansion policies adopted by major players to strengthen their foothold in the A2 Milk market are likely to boost its market growth during the forecast period. For instance, in March 2018, Fonterra Co-operative Group Limited (Fonterra) and The a2 Milk Company (a2MC) entered into a comprehensive strategic partnership. This partnership usually connects Fonterra's milk pool and supply chain, manufacturing capacity, and in-market sales and distribution capacity with a2MC's brand strength and capabilities. Under this partnership, Fonterra will start talking to its farmers about sourcing an A2 milk pool for a2MC products in New Zealand. This pool is planned to increase significantly over time to assist satisfy the rising demand for a2MC products. 

Australia will also create a similar milk pool. Furthermore, in May 2022, the a2 Milk Company and Lincoln University entered into a partnership to introduce a new program that will promote sustainable dairy farming initiatives in New Zealand. The a2 Milk Company and Lincoln University, New Zealand's only specialty land-based university, joined together to launch The Farm Sustainability Fund. The a2 Milk Company will provide up to USD 500,000 to the Fund in the first year to finance grants for farm initiatives that show an integrated approach to a sustainable future and enable a positive and significant influence on the community and environment. The Fund is accessible to New Zealand farms that provide milk to Mataura Valley Milk Limited or Synlait Milk Limited according to a contract for use in the production of goods for The a2 Milk Company.

A2 Milk Market Segment Insights

A2 Milk Category Insights

The A2 Milk market segmentation, based on category, includes guernsey, jersey, Holstein, and Brown Swiss. The Holstein segment held the majority share in 2021 contributing to around ~40-45% of the A2 Milk market revenue. This is mainly because these types of cows are major producers of milk. For instance, according to MRFR analysis, Holstein cow produces an average of 5500–6500kg of milk each lactation and has a fat level of 3.5–4.0%. It typically provides 25 liters of milk each day. This cow is usually a mixed breed and produces 10 to 15 liters of milk each day. Apart from this, recent expansion policies adopted by key players are likely to propel its market growth. For example, in October 2018, The Holstein Milk Company (THMC), which wants to grow its dairy brand in both Malaysia and Singapore, received an unknown amount of money from Singapore company Dymon Asia Private Equity. The round of private equity funding will aid its expansion into Australia, which has more than 5,000 cows in addition to Malaysia.

July 2022: The Holstein Milk Company launched four new products, including UHT Chocolate Milk with Soy, UHT Cafe Latte Tongkat Ali, UHT Oat Milk-Original, and UHT Almond Milk-Original.In addition, the company is also planning to start a 320-hectare dairy farm in Pondok Tanjung, Perak, and import dairy cows.

A2 Milk Packaging Type Insights

The A2 Milk market data has been bifurcated by packaging type into bottles, cartons, and others. The cartons segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is mainly owing to the various benefits provided by carton packaging such as lower shipping cost, allowing the product to have a long-lasting shelf life, as well as being safe and convenient for the utility of consumers.

January 2019: The a2 Milk Company with its range of a2 Milk packaged in cardboard cartons, is increasing its market share in the United States. These milk are touted as being simple to digest and could assist some people to avoid pain when consuming the beverage.

September 2018: A2 milk announced that the company would be selling its free-from A1 protein-type, product in 100%, recyclable FSC-certified paper-based cartons. With paper-based cartons that use 80% less plastic than bottles and have the FSC mark, the fresh dairy brand is lowering its usage of single-use plastics. The brand, which has a 10% market share in Australia, is expanding in the UK and is well-liked by people who experience allergic responses to ordinary milk. The milk comes from specially chosen cows on farms in Shropshire, Cheshire, and north Wales. It is free of the A1 protein type found in conventional milk, which some people think is the root of negative consequences.

Figure 2: A2 Milk Market, by Packaging, 2021 & 2030 (USD Billion)  A2 Milk Market, by Packaging, 2021 & 2030

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

A2 Milk Distribution Channel Insights

Based on Distribution Channel, the A2 Milk industry has been segmented into store-based and non-store-based. The store-based held the largest segment share in 2020, owing to the growing benefits possessed by supermarkets & hypermarkets such as discounts available on various items, and the availability of a wide range of products which further increases the purchasing power of consumers and eventually drives the A2 Milk market.

A2 Milk Regional Insights

By Region, the study segments the market into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific A2 Milk market accounted for USD 3.78 billion in 2021 and is expected to exhibit a 15.25% CAGR during the study period. This is mainly owing to the growing production of A2 milk across the region.

Further, the major countries studied are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.


Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

North A2 Milk market accounts for the second-largest market share owing to the increasing number of people suffering from cancer, coupled with the increasing benefits associated with its consumption. For instance, according to the American Cancer Society, an anticipated number of new cancer cases and fatalities in 2021, as well as an estimated 1.9 million new instances of cancer being diagnosed. Further, the U.S. A2 Milk market held the largest market share, and the Canada A2 Milk market was the fastest-growing market in the North American region

The Europe A2 Milk Market is expected to grow at a CAGR of 12.25% from 2022 to 2030. This is due to the growing aging population across the region coupled with their growing consumer inclination towards a2 milk products. Moreover, the German A2 Milk market held the largest market share, and the U.K. A2 Milk market was the fastest-growing market in the Europe region

Recent Development

In 2022, SwadeshiVIP, one of the top A2 cow milk brands in Delhi NCR, has introduced A2 Shishu milk based on the "Shishu Good Health Formula." Pre-booking has already begun, and it has already gotten an incredible reaction from 600+ clients, who have reserved more than 446 ltrs.

On the occasion of India's 75th Independence Day in 2022, Sid's Farm, a high-end D2C dairy company situated in Telangana, introduced A2 Desi Cow Milk to its clients in Hyderabad. The company made pre-booking available due to the strong demand for A2 milk from customers, and during the first six hours of pre-booking, they received a tremendous response with over 400 customers pre-booking for more than 350 litres.

A2 Milk Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the A2 Milk market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the A2 Milk industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment, and rising market environment.

One of the primary business strategies adopted by manufacturers in the A2 Milk industry to benefit clients and expand the A2 Milk market sector is to manufacture locally to reduce operating costs.

Key Companies in the A2 Milk market include

  • The A2 Milk Company Limited

  • NestlĂ© S.A.

  • Provilac Dairy Farms Pvt. Ltd

  • Olivia Foods Pvt. Ltd

  • Ripley Farms LLC

  • Freedom Foods Group Limited

  • Taw River Dairy

  • Vinamilk

  • Urban Farms Milk

  • Gujarat Cooperative Milk Marketing Federation Ltd

A2 Milk Industry Developments

August 2022: The a2 Milk Company (a2MC) has expanded its line of a2 Milk® products in Australia by including a lactose-free option to cater to the needs of the one in four Australians who have milk intolerance that has either been self- or professionally diagnosed.

October 2021: Hershey has partnered with the two CPG companies to produce milk with a2 Milk's co-brand. January will witness the release of Hershey's a2 Milk, which is produced with 2% reduced fat milk and Hershey's cocoa. Under this partnership with a2, Hershey will be able to enter the premium milk market and expand its brand awareness outside the aisles of snacks and confections. The majority of milk products contain both A1 and A2 proteins, although studies in medicine have shown that A1 can upset the stomach. The sole protein in the dairy products sold by A2 Milk is the A2 protein.

A2 Milk Market Segmentation

A2 Milk Category Outlook

  • Guernsey

  • Jersey

  • Holstein

  • Brown Swiss

A2 Milk Packaging Type Outlook

  • Bottles

  • Cartons

  • Others

A2 Milk Distribution Channel Outlook

  • Store-Based

  • Non-Store-Based

A2 Milk Regional Outlook

  • North America

    • US

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia & New Zealand

    • Rest of Asia-Pacific

  • Rest of the World

    • South America

    • Middle East & Africa

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