A2 Milk Market Report 2025

The A2 milk market size has grown rapidly in recent years. It will grow from $2.41 billion in 2024 to $2.81 billion in 2025 at a compound annual growth rate (CAGR) of 16.3%. The growth in the historic period can be attributed to perceived digestive benefits, lactose intolerance awareness, dairy allergy considerations, traditional breeding practices, rising health consciousness.

The A2 milk market size is expected to see rapid growth in the next few years. It will grow to $4.89 billion in 2029 at a compound annual growth rate (CAGR) of 14.9%. The growth in the forecast period can be attributed to consumer preference for natural products, expansion of distribution channels, government support and regulations, increased awareness of a2 protein types, diversification into non-dairy products. Major trends in the forecast period include marketing and branding strategies, retailer partnerships, research on potential health benefits, collaborations in the dairy industry, innovation in packaging and product formats.

The surging incidence of lactose intolerance is acting as a catalyst in propelling the A2 milk market forward. Lactose intolerance, a condition characterized by the body's inability to fully digest lactose, the sugar present in milk and other dairy products, has spurred interest in A2 milk. A2 milk, containing only A2 beta-casein protein, is deemed more suitable for individuals with lactose intolerance compared to A1 milk. As reported by the National Institutes of Health (NIH) in 2023, approximately 65% of the global population grappled with lactose intolerance. Specific regional statistics noted that 50% to 80% of South Americans, 100% of American Indians, and roughly 60% to 80% of Ashkenazi Jews and Africans experienced lactose intolerance. Consequently, the escalating prevalence of lactose intolerance is a significant driver of the A2 milk market.

The rising infant population is anticipated to drive the growth of the A2 milk market in the future. The infant population refers to the number of newborns within a particular demographic or geographical region, from birth up to one year of age. A2 milk is utilized for infants as a natural and potentially more digestible option during the early stages of development. For example, in March 2024, according to the European Commission, a government body based in Belgium, 3.88 million babies were born in the European Union in 2022, with an overall fertility rate of 1.46 live births per woman. This rate differed among member states, ranging from 1.08 in Malta to 1.79 in France. The average age of women at the birth of their first child was 29.7 years, with Bulgaria reporting the lowest average at 26.6 years, and Italy the highest at 31.7 years. Thus, the growing infant population is fueling the expansion of the A2 milk market.

Leading firms in the A2 milk market are directing their efforts towards developing innovative products, such as a2 Milk Grassfed Whole Milk and a2 Milk Grassfed 2% Reduced Fat Milk, aiming to gain a competitive advantage. These A2 milk offerings are sourced from cows that naturally produce solely the A2 protein. In April 2023, The a2 Milk Company Limited, a New Zealand-based dairy company, introduced the a2 Milk Grassfed Whole Milk and a2 Milk Grassfed 2% Reduced Fat Milk. Endorsed as Grassfed and Certified Regenerative by AGW (A Greener World), a US-based non-profit organization advocating verified farming practices, these products merge the digestive advantages of A2 Milk with grassfed milk. This provides health-conscious consumers with a novel dairy option.

Leading entities in the A2 milk market are dedicated to innovating their product line, exemplified by the introduction of A2 Shishu Milk, tailored to gain a competitive advantage. A2 Shishu Milk is an infant milk formula specially formulated for the health and well-being of infants and children. For instance, in August 2022, Swadeshi VIP, an India-based food and beverage manufacturing company, unveiled A2 Shishu Milk. This product is enriched with A2 beta-casein protein, along with essential nutrients such as Calcium, Vitamin A, Phosphorus, and Potassium. A2 Shishu Milk serves as a supplementary choice for infants and children aged from 0 to 6 months, devised with a formula promoting good health for infants.

In October 2024, Harbour Asset Management Limited, an investment management firm based in New Zealand, acquired a 5.016% stake in A2 Milk Company Limited. Following this acquisition, Harbour gained the authority to vote on, acquire, or dispose of shares through its subsidiary and investment agreements, including those with BNZ Investments Limited. This strategic move has sparked interest in the financial market, as Harbour strengthens its position within the dairy company’s landscape. A2 Milk Company Limited is a New Zealand-based provider of A2 milk.

Major companies operating in the A2 milk market include Anand Milk Union Limited, Erden Creamery Private Limited, Ripley Farms LLC, The a2 Milk Company Limited, Urban Farms Inc., Vinamilk, Vedaaz Organics Pvt. Ltd., Vrindavan Dairy LLP, Sids Farm Private Limited, Happy Milk, Indus Milk, Humpy A2, Alexandre Family Farm, Indigau, Synlait Milk Limited, Freedom Foods Group Limited, Fonterra Co-operative Group Limited, Lion Pty Limited, Westland Milk Products, Murray Goulburn Co-operative Co. Limited, Bellamy's Organic, Milk New Zealand Corporation, Jersey Dairy, Organic Valley, Bubs Australia, Natrel, Snow Brand Milk Products Co. Ltd.

Asia-Pacific was the largest region in the A2 milk market in 2024. The regions covered in the a2 milk market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the a2 milk market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A2 milk is a variety of cow's milk that exclusively contains the A2 beta-casein protein, distinguishing it from regular cow's milk, which contains both A1 and A2 beta-casein proteins. This type of milk is often consumed by individuals who experience difficulties digesting regular milk.

A2 milk is available in both liquid and powder forms. In its liquid form, A2 milk serves as a beverage or health drink, packaged in cartons, box packs, glass bottles, cans, plastic pouches, and bottles. Distribution channels for A2 milk include supermarkets, hypermarkets, convenience stores, online retail, and other outlets. This specialized milk is utilized for various applications such as infant formula, milk-based beverages, bakery and confectionery products, as well as in the production of other dairy items.

The A2 milk market research report is one of a series of new reports that provides A2 milk market statistics, including the A2 milk industry’s global market size, regional shares, competitors with an A2 milk market share, detailed A2 milk market segments, market trends, and opportunities, and any further data you may need to thrive in the A2 milk industry. This A2 milk market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The A2 milk market consists of sales of skim A2 milk and whole A2 milk. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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