A2 Milk Market will Reach USD 25.5 billion by 2027 with CAGR 17%

The increase in the number of dairy products and the growing dairy industry are the major factors responsible for the growth of the global A2 milk market.

The global A2 milk market was valued at USD 8.5 billion in 2020, and it is expected to reach USD25.5billion by 2027, with a CAGR of 17.0%, during the forecast period from 2021 to 2027.

Milk is considered to be one of the most famous dairy products which staple in many countries across the world. Recently, there has been increasing in the variety of milk production with respect to the value of its contents. Mainly, there are two forms of milk available across the globe. The product called A1 and A2 milk. The difference between both is the presence of A1 β-casein protein in A2 milk.  A2 milk has gained attention from both consumers and researchers. A2 milk is getting popular among people who are intolerant to lactose and predominant taste and nourishment than plant-based milk. A2 type of milk offers pool of benefits as compared to A1 milk. A2 milk helps in preventing the indications of stomach-related problems like swelling, gas and diarrhea, and problems. A2 milk is also rich in omega-3fatty acids which provide protection from cancer and helps in the general development and advancement of the human body. Researchers claimed that it is easier to digest than any other kind of milk. Because of expansion in wellbeing awareness among purchasers, increasing knowledge regarding products and their brands, effectiveness, there is high demand for A2 milk.

Growing concern related to gastrointestinal problems associated with traditional milk with A1 beta-casein protein is responsible for rise in demand of the A2 milk market. Other factors such as awareness regarding product recognition and rising health-conscious population expected to have a positive effect during the forecast period on the growth of the global A2 milk industry. Currently, the product's market reach is limited, however the chances for A2 milk makers to expand sales across the world is strong.

The U.S. FDA have issued strict guidelines and policies regarding food quality, safety and product nutritional level. A2 milk is proved to be free from antibiotics and hormones and this factor is contributing towards rapid growth in demand for market.

Factors that act as driver for market growth include growing initiatives by government and private organizations, and rising awareness for need for healthy beverages. The campaign initiated by “the a2 milk” company with the help of AnalogFolk Sydney organization for developing global digital strategic principles for marketing A2 milk. This provided a platform for development for the dairy company to adapt local development by creating content on their social website across all country sites and investor community.

 The a2 Milk Company also Rolls out for the First National Advertising Campaign by mentioning the benefits of milk and its impact on the health of people lives. “Thank you A2” named campaign was launched by agency HBT which resulted in rise in sales of a2milk about 90%.

Lion Dairy & Drinks launched a campaign run by AJF GrowthOps organization. The ‘Dairy Farmers A2 Goodness’ campaign which promoted an important fact that company’s milk comes from Australian farms with free roaming and pasture raised cows.

The A2 Milk Company Limited experimented with new range of low-calories chocolate flavoured A2 milk in the US market as a piece of its globalization strategy. The company additionally offers huge determination of A2 milk products from enhanced milk to entire cow's milk, plain A2 milk to low fat milk semi-skimmed cow's milk to new-born child equation, and low-fat milk. Hence, introduction of various products in the market is expected to gear up the market growth during the forecast period.

Key Findings in A2 Milk Market Research:

  1. Based on Product Type, liquid A2 milk is accounted the highest market share in 2020
  2. Based on the Application, infant's formula holds maximum share in A2 milk market. This can be attributed to high demand for infant as many infants are lactose intolerant.
  3. Based on distribution channel, supermarkets and hypermarkets was the largest segment in 2020 and is expected to maintain its dominance during the forecast period
  4. Geographically, North America was the largest market in 2020, and Asia pacific is expected to have higher CAGR during the forecast period.

Recent News in A2 Milk Industry:

  • In July 2019, A strong evidence obtained from a clinical trial carried out on children in pre-school of China that A1 beta-casein has negative effects on both cognitive performance and digestion when compared to A2 beta-casein.
  • In May, 2021, The A2 Milk Company embarks on a plan to withdraw the old stock from the market and slower down sales to deal with an oversupply of their product after Covid-19.

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