The global A2 milk market was valued at USD 2.24 billion in 2023 and is expected to rise from USD 2.48 billion in 2024 to USD 5.91 billion by 2032, reflecting a CAGR of 11.45% over the forecast period. Asia Pacific led the market, capturing a 37.66% share in 2023. Furthermore, the A2 milk industry in the U.S. is forecasted to grow substantially, potentially reaching USD 1.61 billion by 2032. This growth is primarily driven by the widespread availability of A2 beta-casein milk and the expansion of distribution networks, including supermarkets and hypermarkets.

Cow's milk that contains A2 beta-casein, rather than the more prevalent A1 protein found in conventional milk, is believed to avoid some of the health concerns associated with the latter. Rich in omega-3 fatty acids, A2 milk supports human growth and development. In recent years, higher income levels and growing awareness of the product's nutritional advantages have significantly fueled global market growth.

Information Source: https://www.fortunebusinessinsights.com/a2-milk-market-103212 

Report Coverage

The report offers a detailed analysis of market size, share, revenue, and volume. It also includes Porter's Five Forces and SWOT analyses for comprehensive insights. Both qualitative and quantitative assessments provide a well-rounded view of the market dynamics. Primary interviews validate the key findings and current business conditions, while secondary sources—such as white papers, journals, annual reports, and press releases—support the overall analysis.

Segments

Liquid Form to Lead Market Due to Rising Preference and Convenience

By form, the market is segmented into liquid and powder. The liquid segment is expected to hold a significant share due to growing consumption and ease of use. Fresh milk, in particular, is gaining popularity for its higher selenium and phosphorus content compared to powdered alternatives. The nutrient-rich profile of liquid A2 milk makes it a preferred choice among consumers.

Supermarkets and Hypermarkets to See Increased Sales Amid Widening Reach

Based on distribution channels, the market is categorized into supermarkets and hypermarkets, online retail, convenience stores, and others. The supermarkets and hypermarkets segment is anticipated to contribute prominently due to the ease of product accessibility. Post-pandemic trends also suggest strong growth for this channel as retail operations normalize.

Geographically, the market encompasses Asia Pacific, North America, Europe, the Middle East & Africa, and South America.

Drivers and Restraints

Growing Use in Infant Nutrition to Drive Market Expansion

A2 milk has recently emerged as a preferred choice in infant nutrition due to its ease of digestion and similarity to human breast milk. Manufacturers are increasingly incorporating A2 milk into baby food products, supporting industry growth. Additionally, rising concerns over health issues related to traditional milk and the growing lactose-intolerant population are further accelerating demand. However, the high cost of maintaining A2 cow breeds may present a hurdle for market growth.

Regional Insights

Asia Pacific to Lead Market with Increasing Presence of A2 Cattle

In 2021, the Asia Pacific market was valued at USD 709.12 million and is expected to grow steadily, supported by a higher number of A2 breed cows. Strong demand for dairy across India, Australia, China, and Japan will also play a crucial role. Supermarkets, hypermarkets, and online platforms are increasingly focusing on A2 milk to expand their offerings.

Europe is expected to record notable growth, driven by key players in the U.K., Germany, and France. The product’s rising use in bakery and confectionery items, along with increased R&D investments, positions the region as a promising market.

North America is witnessing rapid progress, underpinned by ongoing research and product innovations. Enhanced distribution in the U.S., Canada, and Mexico, along with improved access to A2 beta-casein milk, is likely to support portfolio expansion for key market players.

Competitive Landscape

Product Innovations and Strategic Investments to Drive Competitiveness

Leading companies are focusing on product innovations, mergers and acquisitions, and R&D activities to strengthen their market positions. Increased investment in new product development is expected to shape the market dynamics in the coming years.

Major Players Featured 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)
• Nestlé S.A. (Switzerland)
• Vedaaz Organics Pvt. Ltd. (India)
• Ripley Farms (U.S.)

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Key Industry Development

June 2020 – Heritage Foods introduced A2 milk with an extended shelf life of 90 days to diversify its product range.