A2 milk contains only the A2 protein rather than both the A1 and A2 proteins, which are found in regular cow’s milk. It is considered easier to digest and may have other health benefits like lesser discomfort and less likelihood of developing heart disease or diabetes. The increasing cases of lactose intolerance, obesity, and other health problems have propelled consumers to shift towards natural and organic products over the past few years.
Market key trends:
One of the major trends driving the growth of the A2 milk market is the increasing consumer preference for natural and organic products. Consumers are becoming more health-conscious and want to shift away from processed foods and beverages toward natural products. According to a survey, 76% of global consumers agree that natural foods are healthier and 69% think that brands should provide more natural/organic options. Additionally, the growing lactose intolerance among people worldwide is also fueling the demand for A2 milk as it may cause less discomfort than regular milk. According to the National Institute of Health, around 68% of the global population has a reduced ability to digest lactose after infancy. This increasing trend toward natural products and rising cases of lactose intolerance are expected to propel the market for A2 milk over the forecast period.
The global A2 Milk Market Trends is estimated to be valued at US$ 2036.6 Mn in 2023 and is expected to exhibit a CAGR of 9.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Threat of new entrants: The threat of new entrants in the A2 milk market is moderate due to high capital requirements for establishing dairy farms and processing plants. However, growing health awareness is encouraging new players to enter the market with innovative products.
Bargaining power of buyers: The bargaining power of buyers is strong since A2 milk is a differentiated product and buyers can opt for regular milk as a substitute. Buyers also find variations in product quality and prices across suppliers.
Bargaining power of suppliers: Dairy farmers have moderate bargaining power due to the specialized nature of A2 milk production. Suppliers have to adhere to stringent quality standards set by processors to produce and sell A2 milk.
Threat of new substitutes: The threat from substitutes is low as there are limited product alternatives for A2 milk. Most substitutes like regular milk, plant-based milk lack the unique nutritional profile of A2 milk.
Competitive rivalry: The competitive rivalry is high among the top players due to factors like brand recognition, private labeling, and innovative new products.
Strengths: Growing health benefits of A2 milk, premium product positioning, strong brand portfolio of leading players.
Weaknesses: High production and compliance costs, limited product awareness in developing nations.
Opportunities: Untapped growth in Asia Pacific and Latin America, demand for specialized dairy products, product line extensions.
Threats: Trade barriers, price fluctuations of raw milk, stringent regulatory compliances and certifications.
The global A2 milk market is expected to witness high growth, exhibiting CAGR of 9.5% over the forecast period, due to increasing awareness about sensitivities to A1 protein in regular cow milk and growing demand for specialized dairy products. The Asia Pacific region is projected to dominate the A2 milk market during the analysis period led by rising per capita incomes, rapid urbanization and growing health consciousness in populous nations like India and China.
The Asia Pacific region is projected to dominate the A2 milk market during the analysis period growing at a CAGR of over 10%. Developing countries like India and China are witnessing a steady rise in health and wellness trend that is driving consumers towards specialized dairy alternatives like A2 milk. India and China collectively account for over 65% of milk production in Asia helping key players leverage local procurement channels and enhance supply chain efficiencies.
Key players operating in the A2 milk market are The A2 Milk Company Limited, FREEDOM FOODS GROUP LIMITED, Fonterra Cooperative Group Limited, Vietnam Dairy Products Joint Stock Company, Gujarat Cooperative Milk Marketing Federation Ltd, Provilac Dairy Farms Private Limited, Vedaaz Organics Pvt. Ltd , Ratnawali Dairy.