A2 milk has become increasingly popular in the last few years and their demand is expected to rise considerably in the coming years. According to a study by Future Market Insights (FMI), launch of advertising campaigns and focus on attractive packing will boost A2 milk sales between 2021 and 2031. According to the report, the market is expected to reach US$ 1.9 Bn by 2021.
Increasing consumption of natural food and focus on clean label will drive A2 milk market in the coming years. The A2 milk is more nutritious than regular dairy milk as it contains calcium which is good for bones, potassium, and high level of protein. A2 Milk is free from a1 beta casein and is easier to digestion. Furthermore, it has various health benefits that help in the prevention of heart related diseases.
Dairy products such as cheese, butter, cream are gaining popularity due to their application in the preparation of bakery and confectionary items. Besides this, launch of A2 milk in infant formula will pave the way for the consistent expansion of the market through the course of the forecast period. The study reveals that the demand for A2 milk in bakery and confectionery segment will rise at 11% CAGR between 2021 and 2031.
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Key Takeaways from the A2 Milk Market Study
- Increasing focus on healthy eating will drive A2 milk sales at 9.6% CAGR between 2021 and 2031
- The U.S. will account for over 80% of A2 milk sold in North America. Rising focus on health and wellness will remain a chief growth driver in the U.S.
- Increasing focus on heart health will drive sales in the U.K. at 7.4% in 2021
- Expansion of the sports nutrition market in Germany and France will emerge as a key growth enabler for A2 milk market
- Abundant supply of A2 milk and its use in staple diet will continue supporting growth in India and China
“The growing number of dairy companies is significantly influencing the demand for A2 milk. Also, launch of new products and formulations by dairy companies will have a positive impact on the demand for A2 milk. A2 milk is used to make dairy products such as cheese, butter, yoghurt, ghee, ice cream, milk powder, and other items. Besides these, the rising demand for ice cream and other desserts will give tailwinds to A2 milk sales,” said a lead analyst at FMI
Application of A2 Milk in Infant Nutrition Creating Growth Opportunities
An increasing number of mothers facing problems during feeding milk, which has escalated the demand for infant formulae. A2 milk is considered to be healthier dairy milk as it has high milk fat content, which is very helpful for cell growth in the human body. Hence, leading players are gradually expanding their portfolio by launching infant formulas containing A2 milk.
The powder form of A2 milk as an ingredient is used in infant formulas. Furthermore, buyers are ready to pay more if the products have clean label certification, contain no preservatives, and are low in fat and offers full disclosure of ingredients used. Including A2 milk as a key ingredient can help producers achieve the aforementioned parameters. This has been aiding the use of A2 milk in infant formula.
Who is winning?
A few of the leading players in the A2 milk market are The a2 Milk Company Limited, Erden Creamery Private Limited, Fonterra Co-operative Group Limited, Freedom Foods Group Limited, Provilac Dairy Farms Private Limited, Vietnam Dairy Products Joint Stock Company,Vedaaz Organics Pvt. Ltd, Ratnawali Dairy Products LLP, and. Gujarat Cooperative Milk Marketing Federation Ltd.
A2 milk market by Category
Nature
- Organic
- Conventional
Form
- Liquid
- Powder
Application
- Infant Formula
- Dairy Product
- Butter
- Cheese
- Yogurt
- Milk Powder
- Ice Cream
- Others
- Bakery & Confectionery
- Milk & Milk-based Beverages
Packaging
- Glass Bottles
- Plastic Bottles & Pouches
- Carton Packaging
- Cans
Distribution Channel
- B2B
- B2C
- Store-based Retailing
- Hypermarkets/Supermarkets
- Grocery Stores
- Convenience Stores
- Specialty Stores
- Online Retailing
- Store-based Retailing
Region
- North America
- Latin America
- Europe
- APAC
- MEA
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Key Questions Answered in the Report
- Which is the leading A2 milk market?
APAC currently leads the global market for A2 milk market. The APAC held 32.8% of the global A2 milk market in 2020. Owing to the rise in demand for organic and natural milk, A2 milk sales will continue rising in the region.
- Which form of A2 milk is more in demand?
Liquid form A2 milk is more in demand and is expected to hold 83.8% of the market in 2030. Liquid form of A2 milk incurs less transportation cost and offers impressive nutritious benefits, which are increasing its sales.
- Which is the key application of A2 milk?
Milk and Milk-based beverages increasingly use A2 milk. It holds 40.3% share in the market.
- Why is Organic A2 Milk Preferred More?
Nowadays, consumer are willing pay more for organic A2 milk. It holds nearly 11% share in the market. The high presence of probiotic and healthy gut bacteria will fuel the demand for organic A2 milk.
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