A2 Milk Market

• Side-Effects Associated with the Excessive Consumption of A1 Milk Coupled with the Growing Expansion Policies Adopted by Key Player

The growing side-effects associated with the excessive consumption of A1 milk are likely to increase the demand for A2 Milk which in turn would boost its market growth. For instance, A1 milk causes neuro disorders such as cognitive impairments, which have been linked to learning disabilities and exacerbated autistic symptoms. This is due to the presence of a chemical in A1 milk that resembles morphine. Children that ingest A1 milk typically have constipation due to the morphine impact.

For instance, according to the World Health Organization, around 55 million individuals worldwide have dementia, and more than 60% of them reside in low- and middle-income nations. This number is anticipated to increase to 78 million in 2030 and 139 million in 2050 due to an increase in the percentage of elderly persons in the population in almost every country. Besides, these recent studies suggested that increased consumption of A1 milk can increase the chances of chronic disease which further has increased the demand for A2 milk.

For example, according to MRFR analysis, BCM-7 a chemical constituent found in A1 milk may be related to type 1 diabetes, heart disease, newborn mortality, autism, and digestive issues.

Besides, the growing expansion policies adopted by major players to strengthen their foothold in the A2 Milk market are likely to boost its market growth during the forecast period. For instance, in March 2018, Fonterra Co-operative Group Limited (Fonterra) and The a2 Milk Company (a2MC) entered into a comprehensive strategic partnership. This partnership usually connects Fonterra's milk pool and supply chain, manufacturing capacity, and in-market sales and distribution capacity with a2MC's brand strength and capabilities. Under this partnership, Fonterra will start talking to its farmers about sourcing an A2 milk pool for a2MC products in New Zealand.

This pool is planned to increase significantly over time to assist satisfy the rising demand for a2MC products. 

Australia will also create a similar milk pool. Furthermore, in May 2022, the a2 Milk Company and Lincoln University entered into a partnership to introduce a new program that will promote sustainable dairy farming initiatives in New Zealand. The a2 Milk Company and Lincoln University, New Zealand's only specialty land-based university, joined together to launch The Farm Sustainability Fund.

The a2 Milk Company will provide up to USD 500,000 to the Fund in the first year to finance grants for farm initiatives that show an integrated approach to a sustainable future and enable a positive and significant influence on the community and environment. The Fund is accessible to New Zealand farms that provide milk to Mataura Valley Milk Limited or Synlait Milk Limited according to a contract for use in the production of goods for The a2 Milk Company.

The Global A2 Milk Market Industry is benefiting from rising disposable incomes, particularly in developing regions. As consumers gain more financial freedom, they tend to invest in premium products, including A2 milk, which is often perceived as a higher-quality option. This trend is evident in markets where economic growth is fostering a middle class that prioritizes health and nutrition. Consequently, the demand for A2 milk is expected to rise, further propelling the market towards its projected growth trajectory.

The Global A2 Milk Market Industry is increasingly leveraging e-commerce channels to reach a wider consumer base. The convenience of online shopping has become a significant driver for the dairy sector, allowing consumers to access A2 milk products easily. This shift towards digital platforms is particularly relevant in urban areas where busy lifestyles limit traditional shopping. As e-commerce continues to grow, it is likely to contribute substantially to the market's expansion, facilitating a more extensive distribution network and enhancing product availability.

The Global A2 Milk Market Industry is experiencing a surge in demand driven by increasing health consciousness among consumers. A2 milk is perceived as a healthier alternative to conventional milk, particularly for individuals with lactose intolerance. This perception is supported by studies indicating that A2 milk may be easier to digest due to the absence of A1 beta-casein protein. As consumers become more aware of the benefits of A2 milk, the market is projected to reach 13.9 USD Billion in 2024, reflecting a growing preference for products that align with health and wellness trends.

The Global A2 Milk Market Industry is witnessing a notable expansion in dairy alternatives, which includes A2 milk as a preferred choice. This trend is largely influenced by the increasing number of lactose-intolerant individuals globally, estimated to affect around 68 percent of the world's population. A2 milk offers a viable solution for those seeking dairy products without the discomfort associated with lactose. As the market adapts to these dietary needs, it is anticipated that the industry will grow significantly, with projections indicating a market value of 64.6 USD Billion by 2035.

Innovation plays a crucial role in the Global A2 Milk Market Industry, as companies introduce diverse product offerings to cater to varying consumer preferences. This includes flavored A2 milk, yogurt, and cheese products, which appeal to a broader audience. The introduction of these innovative products not only enhances consumer choice but also drives market growth. As a result, the industry is expected to witness a compound annual growth rate (CAGR) of 14.96% from 2025 to 2035, indicating a robust expansion fueled by creativity and consumer demand.

By Region, the study segments the market into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific A2 Milk market accounted for USD 3.78 billion in 2021 and is expected to exhibit a 15.25% CAGR during the study period. This is mainly owing to the growing production of A2 milk across the region.

Further, the major countries studied are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: A2 MILK MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

North A2 Milk market accounts for the second-largest market share owing to the increasing number of people suffering from cancer, coupled with the increasing benefits associated with its consumption. For instance, according to the American Cancer Society, an anticipated number of new cancer cases and fatalities in 2021, as well as an estimated 1.9 million new instances of cancer being diagnosed. Further, the U.S. A2 Milk market held the largest market share, and the Canada A2 Milk market was the fastest-growing market in the North American region

The Europe A2 Milk Market is expected to grow at a CAGR of 12.25% from 2022 to 2030. This is due to the growing aging population across the region coupled with their growing consumer inclination towards a2 milk products. Moreover, the German A2 Milk market held the largest market share, and the U.K. A2 Milk market was the fastest-growing market in the Europe region

Recent Development

In 2022, SwadeshiVIP, one of the top A2 cow milk brands in Delhi NCR, has introduced A2 Shishu milk based on the "Shishu Good Health Formula." Pre-booking has already begun, and it has already gotten an incredible reaction from 600+ clients, who have reserved more than 446 ltrs.

On the occasion of India's 75th Independence Day in 2022, Sid's Farm, a high-end D2C dairy company situated in Telangana, introduced A2 Desi Cow Milk to its clients in Hyderabad. The company made pre-booking available due to the strong demand for A2 milk from customers, and during the first six hours of pre-booking, they received a tremendous response with over 400 customers pre-booking for more than 350 litres.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the A2 Milk market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the A2 Milk industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment, and rising market environment.

One of the primary business strategies adopted by manufacturers in the A2 Milk industry to benefit clients and expand the A2 Milk market sector is to manufacture locally to reduce operating costs.