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.
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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.
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.
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Companies operating in the market have been focusing on product launches to gain competitive edge. For instance: Fonterra Co-operative Group Limited announced its joint venture with Future Consumer Ltd., to enhance its product portfolio and expand its business in India.
Vietnam Dairy Products Joint Stock Company in April 2018, launched soy milk walnut drink. This product is a plant-based drink. The company is enhancing its product portfolio by launching new products. Gujarat Cooperative Milk Marketing Federation Ltd. in February 2015, launched its new product, Amul EPIC ice cream and in March 2017, launched a new product, ‘Memory Milk’ targeting students. The product is considered a brain power booster, and stress and anxiety reducer.
Get Valuable Insights into A2 Milk Market
Future Market Insights, in its new offering, provides an unbiased analysis of the A2 milk market presenting historical demand data (2016-2020) and forecast statistics for the period from 2021-2031. The study divulges compelling insights on the A2 milk market based on Nature (Organic and Conventional), By (Powder and Liquid), By Application (Infant Formula, Dairy Product, Bakery & Confectionery, Milk & Milk-based Beverages), By Packaging (Glass Bottles, Plastic Bottles & Pouches, Carton Packaging, Cans) and By Distribution Channel (B2B, and B2C) across seven major regions.
Key Questions Answered in the Report
Which is the leading A2 milk market?
Which form of A2 milk is more in demand?
Which is the key application of A2 milk?
Why is Organic A2 Milk Preferred More?
Who are the key players in A2 milk market?
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