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The global A2 milk market size was valued at USD 2.03 billion in 2022 and is projected to grow from USD 2.26 billion in 2023 to USD 5.26 billion by 2031, exhibiting a CAGR of 11.0% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with A2 milk experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 9.89% in 2020 as compared to 2019.
Cow's milk includes the A2 type of beta-casein protein rather than the more common A1 protein typically found in regular milk that does not have the proteins at risk of causing some disease. It is a rich source of omega-3 fatty acids that help the human body's growth and development. Nowadays, the expanding income levels and the rising awareness concerning the nutritional benefits of the product have boosted the market's growth globally.
Disruption of Supply Chain amid COVID-19 to Hinder Growth
The COVID-19 pandemic has negatively affected the supply chains of the market. The sudden lockdown in several countries has influenced raw material supply for manufacturing, packaging, and delivery. As a result, the global market has disrupted the entire supply chain. In addition, the demand for dairy products has also decreased due to the severe impact of COVID-19 on various channels. The present situation of the global market is shown to be stable due to continuous efforts of key players and manufacturers. In the present context, the global market is projected to account for higher industry revenue in the coming years.
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Growing Consumer Health Awareness Leading to Increased Consumption of A2 Grade Milk
The trend of eating nutritious and healthy food is increasing among consumers across all regions. Dairy products, such as milk and yogurt, are considered one of the most consumed foods worldwide. Milk is consumed largely, as it is considered as a healthy and nutritious product. But, there is an increasing number of people who cannot consume milk and milk products due to lactose intolerance and other health-related problems. The availability of products, for example, A2 grade milk makes it easier for people with lactose intolerance to use these products without any discomfort. Moreover, A2 grade milk is a rich source of calcium, proteins, vitamins, and minerals; and the structure of A2 protein is more similar to human breast milk as well as milk from sheep, buffalo, and goats.
Growing Number of Diseases with Excessive Consumption of A1 Milk to Boost Market Growth
The benefits of milk on human health is well known in all parts of the world. However, there is a shift in consumption of milk, owing to the availability of multiple options. Cow milk is considered healthy among different milk options, and consists of two major proteins such as A1 and A2. A1-based milk or A1 milk is obtained from cows of Western origin that produce large quantities of milk. The high production of A1 milk further leads to large availability and high consumption. The high utilization of A1 milk leads to health issues such as cognitive disorders and histamine in children; and obesity, heart disease, and diabetes in other age groups of the population. Thus, the health benefit of A2 milk over the negative impact of excessive consumption of A1 milk propels the A2 milk market growth
Increasing Product Application in Infant Formulae Boosting the Market Growth
A2 grade milk is considered healthy for infants as it helps to boost the immunity and provides essential nutrients required for the proper growth and development of infants. In addition, A2 protein is present in mother’s milk, and thus A2 grade milk is thought to be equivalent to mother’s milk. Thus, this type of milk and its allied products are increasingly used in infant formulae as the A2 beta-casein protein is similar to that found in breast milk. Also, numerous manufacturers are utilizing A2 beta-casein milk for making infant food. Several novel infant food products are being launched every year by various producers, surging the product demand.
High Prices May Hamper the Market Growth
Cows of Indian origin produce A2 milk; however, the production of A2 milk per cow is less. Thus, this creates the gap between supply and demand. The gap in supply and demand of A2 grade milk further leads to rise in prices of the final product, making the A2 type of milk costlier than A1 milk. The nutritious nature of A2 grade milk also increases its overall value leading to its increased application in dietary products. Several years back, cows were involved in the domestication process. As a result, cows produced A1 milk. Cows that produce A1 milk are likely to have more quantity than A2 beta-casein milk. As a result, most companies began to sell A1 milk so that milk can be made available to the public at an affordable price. Hence, the price of A2 is higher than regular A1 milk.
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Liquid Hold Largest Market Share Owing to its High Rate of Convenience and Consumption
The liquid segment holds the most significant A2 milk market share on account of being more convenient. It helps consumers derive maximum nutrients such as vitamins, minerals, proteins, and calcium. These vitamins support maintaining the health of the nervous system. Fresh A2 milk also entails more phosphorus and selenium than powdered milk. The natural flavor and gentle taste of liquid A2 beta-casein milk surge consumption, driving the market growth.
Supermarkets and Hypermarkets Segment to Hold Largest Market Share Due to Varied Range Available
The supermarkets and hypermarkets segment accounted for the most considerable revenue share in 2021. The primary factors driving the segment growth are the availability of a wide range of products in stores and the rise in supermarkets and hypermarkets. Supermarkets and hypermarkets have controlled temperature shelves for dairy-based products to avoid spoilage. Consumers find it convenient to purchase everyday needs at lower prices in such stores, which is expected to drive the segment growth significantly in the coming years. Additionally, the online segment is anticipated to ascend at the fastest CAGR over the forecast period due to the convenience offered by these distribution channels. Moreover, the growing internet usage for shopping, reduction in lead time, higher convenience, and more discounts are the crucial factors driving the sales of the market through online stores.
Asia Pacific A2 Milk Market Size, 2021 (USD Million)
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Asia Pacific accounted for the largest market share in 2021 and is anticipated to witness substantial gains over the A2 milk industry forecast period. The region is considered a prominent market due to growing awareness concerning the benefits of A2 beta-casein milk in developing countries such as China and India. Moreover, the product is produced mainly in the Asia Pacific region due to the presence of A2 breed cows and the increasing demand for dairy products in the region.
The European region is expected to be a significant market due to the highly developed dairy industry. The growing use of A2 grade milk in bakery and confectionery products in Germany, the U.K., and France is also expected to boost the product demand in the anticipated period. The region is expected to exhibit robust growth due to the dairy sector's continuous research and development activities.
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With increasing cases of lactose intolerance in North America, there has been a rising demand for the product in the region. Moreover, increased innovations and research and development activities in the market are also driving the market. The easy availability of A2 beta-casein milk and widening distribution channels, including supermarkets and hypermarkets are also aiding the market growth in the region.
Companies to Focus on the Growth in their Production Capacity to Meet the Global Demand
Major companies have established their dominance in the market by higher integration throughout the value chain. Key companies include GCMMF, the A2 Milk Company, Vinamilk, Freedom Foods Group, Vedaaz Organics Pvt. Ltd, Nestle S.A., and Ripley Farms.
An Infographic Representation of A2 Milk Market
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The A2 milk market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, form, and leading distribution channels of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market in recent years.
Value (USD Billion)
By Distribution Channel
Fortune Business Insights says that the market value was USD 1.84 billion in 2021 and is projected to reach USD 4.27 billion by 2029.
Growing at a CAGR of 11.0%, the market will exhibit steady growth in the forecast period (2022-2029).
The liquid segment is expected to be the leading segment based on form in the global market during the forecast period.
Growing number of diseases with regular milk is a key factor driving the market.
The A2 Milk Company, PROVILAC, Vedaaz Organics Pvt. Ltd., Vinamilk, and Freedom Foods Group are a few key players operating in the market.
Asia Pacific is expected to hold the highest market share.
Supermarkets and hypermarkets distribution channel is expected to grow at a faster rate.
Increasing product application in infant formulae is driving the market.
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