by The A2 Milk Market is estimated to be valued at Us$ 1.74 Bn in 2022 and is expected to exhibit a CAGR Of 15.81% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
A2 milk refers to the milk that contains only A2 beta-casein proteins and lacks A1 beta-casein proteins. A1 and A2 are two variants of β-casein proteins which are found in cow’s milk. Compared to regular cow’s milk, a2 milk is claimed to be easier to digest and less likely to cause sensitivities. The major producers of a2 milk include the Jersey, Guernsey, Finnish Ayrshire and Swedish Red cows that naturally produce milk without A1 protein. A2 milk is marketed as an alternative to regular cow milk for people reporting sensitivities to regular cow milk.
Market Dynamics:
Rising health awareness among consumers regarding the potential health benefits of a2 milk compared to regular milk is a major driver for the market growth. Studies have suggested possible links between A1 beta-casein proteins in regular cow’s milk and diseases like heart disease and diabetes. This has increased demand for a2 milk products. Growing demand from China is also propelling the a2 milk market. China is one of the major importers of a2 milk powder from Oceania and is expected to account for over 30% share in global a2 milk powder trade by 2023. New Zealand, Australia and the U.S are the major suppliers catering to the increasing demand from China. Furthermore, expansion of production capabilities and product launches by leading players worldwide is encouraging market growth.
Segment Analysis
The global A2 milk market is segmented on the basis of form, distribution channel, and region. Based on form, the market is segmented into liquid and powder. The liquid segment currently dominates the market as liquid A2 milk is more popular among consumers. Based on distribution channel, the market is segmented into supermarkets & hypermarkets, specialty stores, online retail, and others. The supermarkets & hypermarkets segment accounts for the largest share in the global market owing to the high footfall of customers.
PEST Analysis
Political: Governments support development of dairy industry via subsidies, import and export regulations to ensure steady supply of milk.
Economic: Rising disposable incomes in developing nations boost demand for A2 milk which is considered premium. High GDP growth positively impacts the market.
Social: Increasing health consciousness among people encourages consumption of dairy perceived as healthier. Social media marketing influences purchase decisions.
Technological: Advanced techniques for milk testing allow separating A2 milk. Packaging technologies help extend shelf life and facilitate transportation of milk.
Key Takeaways
The global A2 Milk Market size is expected to witness high growth, exhibiting CAGR of 15.81% over the forecast period, due to increasing health benefits associated with its consumption. The market was valued at US$ 1.74 Bn in 2022. Asia Pacific region dominates the market currently due to increasing adoption in countries like India, China and Japan. Regional analysis shows that the Asia Pacific region is poised to grow at fastest rate due to rising population and growing health awareness in the region. Key players operating in the A2 milk market are Jersey Dairy, The a2 Milk Company Limited, Dairy Farmers, Pura, Fonterra, MLK A2 Cow Milk, Amul, and others. Jersey Dairy has been at the forefront of the A2 milk revolution while a2 Milk Company Limited has established itself as a leading brand globally.
In the Asia Pacific region India accounts for largest share owing to growing population and changing dietary preferences. Rapid economic growth in Asia Pacific region is also supporting market growth. Key players operating in the A2 milk market are focusing on expansion in Asia Pacific region.New product launches, partnerships, and collaborations are some strategies adopted by key players to gain competitive advantage in the market.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
