June 9, 2023

The global A2 milk market size was pegged at USD 1.84 billion in 2021. The market is anticipated to surge from USD 2.03 billion in 2022 to USD 4.27 billion by 2029 at 11.0% CAGR during the forecast period. Fortune Business Insights™ has deep-dived these inputs in its latest research report, titled, “A2 Milk Market, 2022-2029.”

According to the analysis, A2 protein will be highly sought-after for easy digestion among the lactose intolerant population. A notable surge in disposable income and burgeoning population will complement increasing awareness about the upsides of A2 milk across emerging and advanced economies.

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Major Players Profiled in the Report:

  • The A2 Milk Company (New Zealand)
  • Godrej Jersey (India)
  • Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) (India)
  • PROVILAC Dairy Farms Pvt. Ltd. (India)
  • Freedom Foods Group (Australia)
  • Vinamilk (Vietnam)
  • Erden Creamery Private Limited (India)
  • Nestle S.A. (Switzerland)
  • Vedaaz Organics Pvt. Ltd. (India)
  • Ripley Farms (U.S.)


Liquid Segment to be Sought-After Due to Rising Consumption

Based on form, the market is segmented into liquid and powder. The liquid segment will contribute notably to the global market during the forecast period, mainly attributed to rising consumption and convenience. Notably, fresh A2 milk has become sought-after due to more selenium and phosphorous than powdered milk. Maximum nutrients are the biggest benefits for end-users to shift to the liquid form of the milk.

Supermarkets and Hypermarkets Segment to Remain Dominant with Easy Availability

In terms of distribution channel, the market is classified into supermarkets and hypermarkets, online retail, convenience stores, and others. The supermarkets and hypermarkets segment could account for a significant share of the global market on the heels of easy availability in stores. Besides, the post COVID 19 outlook suggests robust growth in the distribution channel due to ease of lockdown and resumption of trade.

With respect to geography, the market covers Asia Pacific, North America, Europe, the Middle East & Africa, and South America.

COVID-19 Impact

Closure of Supermarkets Challenged Stakeholders

The prevalence of the demand-supply gap challenged stakeholders striving to overcome challenges stemming from the COVID-19 pandemic. The closure of supermarkets did not bode well for the business outlook. That said, the trend for online stores and the resumption of global trade prompted industry players to invest in R&D investments. The prevailing trends suggest a robust outlook globally, with major players poised to inject funds to boost their footprint.

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Drivers and Restraints

Expanding Product Uses in Infant Formula to Underpin Industry Growth

The A2 milk market share will witness an upward trajectory owing to its popularity as substitute milk for infants. Leading manufacturers have infused funds into milk products for easy digestibility and similarity with breast milk. Furthermore, the prevalence of disease symptoms associated with the consumption of regular milk will prompt consumers to seek the milk product. Prominently, the soaring number of the lactose intolerant population could encourage manufacturers to boost their portfolios. However, high costs with regards to the maintenance of cows could impede the growth prospect.

Regional Insights

Asia Pacific to Witness Investments Galore with Bullish Presence of Breed Cows

The Asia Pacific market size was valued at USD 709.12 million in 2021 and will witness a similar trend owing to the rising prevalence of A2 breed cows. Besides, strong demand for dairy products in supermarkets, hypermarkets, and online stores will augur well for the regional growth. Moreover, the emergence of startups and the expanding footprint of well-established players will solidify the position of Asia Pacific in the global landscape.

The Europe A2 milk market growth will be pronounced owing to the presence of major companies across the U.K., Germany, and France. Furthermore, milk has become trendier in confectionery and bakery products. Stakeholders are likely to augment their research and development activities to tap into the regional market.

An increased emphasis on R&D activities and innovations has made North America a favorable investment hub. Bullish distribution channels across the U.S., Canada, and Mexico and the easy availability of A2 beta-casein milk products encourage major companies to expand their geographical presence.

Competitive Landscape

Stakeholders Prioritize Product Launches to Foster Portfolios

Prominent players could inject funds into mergers & acquisitions, product rollouts, technological advancements, and R&D activities. Besides, major companies could invest in innovations and product offerings in the ensuing period.

Key Industry Development

  • August 2018 – Fonterra Cooperative Brand Anchor announced a strategic partnership with the A2 Milk Company Ltd. The aim of the partnership was to augment its milk portfolio and give more choices regarding milk to consumers.

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