Asia-Pacific A2 Milk Market Outlook, 2029

The A2 milk market in the Asia-Pacific (APAC) area has experienced substantial growth in recent years, motivated by a rise in health-awareness among consumers, an increase in lactose intolerance, and enhanced recognition of the possible digestive advantages of A2 milk. The market is mainly spearheaded by nations, where A2 milk offerings are becoming more popular in both retail and online platforms. Historically, the progression of the A2 milk market in the APAC area can be traced back to the early 2000s when the A2 Milk Company was established in New Zealand.

The founders of the company acknowledged that the A2 beta-casein protein, present in specific cows, could be easier to digest for individuals who face discomfort with standard milk containing both A1 and A2 proteins. This realization led to the commercialization of A2 milk, which quickly found a foothold in health-oriented markets, the appetite for A2 milk has surged due to rising lactose intolerance and a burgeoning middle class in search of healthier, premium food options. The launch of A2 milk-based infant formula has also played a role in its growing appeal, as Chinese parents, especially those in urban centers, look for milk substitutes that are softer on their children’s digestive systems.

countries, with its deep-rooted dairy consumption traditions and elevated levels of lactose intolerance, has also adopted A2 milk as a substitute for regular milk. The awareness of digestive health benefits, combined with A2 milk’s perceived capability to be kinder on the stomach, is propelling its acceptance among consumers. Overall, the A2 milk market in the APAC area continues to widen as more consumers transition towards healthier, more digestible milk choices. With increasing product accessibility, continuous marketing efforts, and innovations, the market is projected to expand swiftly in the upcoming years, especially in burgeoning markets.

According to the research report, 'Asia- Pacific A2 milk Market Outlook, 2029,' published by Bonafide Research, the Asia - Pacific A2 milk market is anticipated to grow at more than 17.51% CAGR from 2024 to 2029. The European A2 milk sector has undergone considerable expansion in recent times, propelled by several essential factors. One of the most notable contributors to this growth is the rising consumer awareness regarding digestive health and the increasing demand for lactose-free or easier-to-digest dairy options. A2 milk, which exclusively has the A2 beta-casein protein, is viewed as milder on the digestive system in contrast to standard milk, which encompasses both A1 and A2 proteins.

As more individuals, particularly those with mild milk sensitivities or lactose intolerance, look for digestive-friendly dairy choices, the A2 milk sector has gained attraction. The repercussions of COVID-19 on the A2 milk sector were varied. On one side, the pandemic resulted in heightened health awareness among consumers, increasing the demand for products such as A2 milk that are regarded as healthier and simpler to digest. On the flip side, interruptions in supply chains and the shutdown of retail stores during lockdowns created challenges. Nonetheless, as grocery shopping transitioned to online platforms, the demand for A2 milk persisted in rising, especially via e-commerce and home delivery services.

Regarding policies and regulations, the European sector is regulated by stringent food safety and labeling laws, which guarantee that A2 milk products fulfill high-quality standards. For instance, in the EU, dairy products must adhere to the European Food Safety Authority's (EFSA) regulations concerning health claims, labeling, and production methods. This ensures that A2 milk products are promoted accurately and safely, thereby enhancing consumer confidence. The timeline of A2 milk in Europe traces back to the early 2000s when A2 Milk Company began commercializing A2 milk after recognizing its potential digestive advantages.

Market Drivers

• The Asia-Pacific A2 milk market is mainly driven by increasing consumer awareness regarding digestive health, the rise in lactose intolerance, and the growing demand for premium, healthier dairy choices. Numerous consumers within the region, especially in nations such as China, India, and Japan, encounter digestive issues with conventional milk that contains both A1 and A2 proteins. A2 milk, which consists solely of A2 beta-casein, is viewed as simpler to digest, making it an appealing substitute for those experiencing mild lactose intolerance or milk sensitivities.
• Moreover, the expanding middle class and rising disposable income in numerous Asia-Pacific countries are boosting the demand for higher-quality, premium goods, including A2 milk. This phenomenon is particularly noticeable, where A2-based infant formula has become increasingly favored among parents looking for gentler nutrition options for their children. The escalating emphasis on health and wellness, combined with the growing availability in retail channels, further drives the expansion of the A2 milk market throughout the region.

Market challenges

• The Asia-Pacific A2 milk market encounters various challenges, with one significant hurdle being its increased price in comparison to standard milk. The process of producing A2 milk involves selective breeding of cows, which raises production expenses and positions A2 milk as a premium offering. This price disparity can hinder its accessibility, especially in developing nations where price sensitivity is more pronounced. Another obstacle is the insufficient consumer awareness in certain areas.
• Although A2 milk is growing in popularity, numerous consumers in rural locations or underdeveloped markets remain unaware of its digestive advantages. Consequently, educational and awareness initiatives are required to broaden the market reach. Moreover, competition from other dairy alternatives, such as plant-based milks (e. g., almond, soy, oat), presents a considerable challenge, as these alternatives frequently attract health-minded consumers due to their lactose-free characteristics and perceived ecological benefits. Surmounting these challenges is crucial for A2 milk’s sustained advancement in the area.

Market Trends

• There is a growing move towards premium and health-oriented dairy products, fueled by increasing consumer awareness regarding digestive wellness. A2 milk, which consists solely of the A2 beta-casein protein, is becoming more favored as a more easily digestible option compared to regular milk, particularly among those who have lactose intolerance or milk sensitivities.
• The need for A2-based infant formula is rising, especially in nations such as China, where parents are searching for high-quality, specialized nutrition for their kids. This trend is aiding in the swift growth of A2 milk within the baby food market. Another trend is the increasing availability of A2 milk in various formats, including liquid milk, powder, and infant formula, making it more reachable to consumers. Moreover, the growth of retail channels, especially online platforms, is improving market access, serving health-conscious and convenience-driven consumers throughout the area.

Liquid A2 milk represents the largest portion of the Asia-Pacific A2 milk market due to its historic consumption trends, ease of use, and heightened health consciousness among consumers searching for digestive-friendly dairy alternatives.

In the Asia-Pacific area, liquid milk stands as the most widely consumed type of dairy, and A2 milk in liquid format fits well with the established practices of milk consumption. Consumers recognize liquid milk for everyday use in a variety of drinks, including tea, coffee, and smoothies, and also for cooking purposes. A2 milk in its liquid state provides an easy and adaptable option for those wanting to transition to a digestive-friendly choice without changing their normal milk consumption habits. Moreover, growing awareness regarding the digestive advantages of A2 milk, especially for those with lactose intolerance or mild sensitivities to milk, is fueling the preference for liquid A2 milk.

As the A2 milk sector expands in nations such as China, Japan, and India, consumers are progressively choosing liquid milk as a healthier substitute for regular milk, which contains both A1 and A2 proteins. The liquid variety is practical, readily available, and fits seamlessly into daily routines, making it the favored choice. The expansion of retail distribution channels, such as supermarkets and online shopping opportunities, has further enhanced the availability of liquid A2 milk, guaranteeing widespread accessibility across both urban and rural locations. With its conventional usage, consumer recognition, and practicality, liquid A2 milk continues to lead in the Asia-Pacific market, catering to the increasing demand for healthier, more easily digestible milk choices throughout the region.

Carton packaging stands as the largest and quickest-expanding packaging format within the Asia-Pacific A2 milk market due to its eco-friendliness, capability to maintain product quality, and increasing consumer inclination towards sustainable solutions.

Carton packaging has emerged as the favored option in the Asia-Pacific A2 milk sector because of its environmental advantages. With sustainability becoming a significant priority for consumers, especially in nations like Japan, Australia, and South Korea, cartons, which are recyclable and constructed from renewable resources, resonate with eco-aware choices. This rising environmental consciousness has prompted a transition from plastic packaging towards more sustainable alternatives such as paperboard cartons, which can be recycled with greater ease, thereby decreasing overall plastic waste.. Moreover, cartons provide excellent protection for milk, ensuring its freshness and prolonging shelf life.

The packaging’s capacity to obstruct light, oxygen, and moisture aids in preserving the quality of A2 milk without requiring additional preservatives. This quality maintenance is particularly crucial in areas with diverse climate conditions and lengthy supply chains, safeguarding that A2 milk stays fresh and safe for consumption over extended durations. Additionally, cartons are light in weight, economically beneficial for transportation, and simpler to manage, making them a practical choice for both producers and consumers. The format is perfectly suited for home usage, providing ease in pouring and storing, which further enhances its appeal in the region.

The increasing appetite for environmentally-friendly, high-standard, and practical packaging solutions, alongside the emphasis on sustainability, has propelled carton packaging to become the leading and growing format in the Asia-Pacific A2 milk market. This pattern is anticipated to persist as an increasing number of consumers favor A2 milk packaged in environmentally responsible manners.

Infant formula represents the largest portion of the Asia-Pacific A2 milk market as a result of the growing need for gentle, easily digestible nourishment options for infants, motivated by concerns regarding digestive discomfort and sensitivities to milk.

In several Asia-Pacific nations, especially China, A2 milk-based infant formula has achieved considerable popularity owing to its perceived advantages for infants experiencing digestive problems. A2 milk, which consists solely of the A2 beta-casein protein, is regarded as a more easily digestible choice compared to standard milk, which has both A1 and A2 proteins. As understanding of the potential digestive issues related to A1 protein increases, parents are progressively opting for A2 milk-based formulas as a softer alternative for their infants.

This is especially pertinent in markets where lactose intolerance and milk sensitivities are prevalent, making A2 milk appear as a natural remedy to alleviate colic, bloating, and constipation in infants. Moreover, the rising affluence and expanding middle-class demographic within the region have resulted in a heightened demand for premium and specialized nutrition, encompassing A2-based infant formulas. Parents are inclined to invest in superior products for the health and nourishment of their children, which has accelerated the growth of this segment.

A2 milk-based infant formula is also perceived as a safer and more trustworthy option, particularly following notable food safety controversies surrounding traditional infant formulas. Consequently, the A2 milk-based infant formula segment has emerged as the leading and fastest-growing area in the Asia-Pacific market, propelled by increasing health awareness, shifting dietary preferences, and greater consumer confidence in the product's digestive benefits.

Supermarkets and hypermarkets represent the largest distribution channels in the Asia-Pacific A2 milk market due to their extensive accessibility, varied product selections, and established function in everyday consumer purchasing behaviors.

Supermarkets and hypermarkets lead the distribution of A2 milk in the Asia-Pacific sector because they act as the main retail venues for the majority of consumers. These large-format establishments are readily reachable, situated in urban areas, suburban locales, and even rural zones, enabling them to connect with a vast and varied consumer demographic. With the rising availability of A2 milk products, such as liquid milk, powdered milk, and infant formula, these retail locations have transformed into the preferred destinations for consumers seeking to buy A2 milk as part of their routine grocery shopping.

Furthermore, supermarkets and hypermarkets present an extensive selection of A2 milk brands and packaging dimensions, accommodating various consumer requirements and preferences. This assortment permits consumers to select the most appropriate product for their households, whether it’s A2 milk for consumption or A2-based infant formula. The presence of numerous brands amplifies consumer options and competition, which consequently propels the market’s expansion. In addition, supermarkets and hypermarkets offer the convenience of one-stop shopping, where consumers can discover not only A2 milk but also a variety of associated products such as organic, dairy-free, and health-oriented choices.

With a solid foundation of customer loyalty and consistent foot traffic, these retail types likewise gain from promotional price reductions, seasonal deals, and loyalty incentives, further stimulating A2 milk purchases. The blend of accessibility, product diversity, and the convenience of integrated shopping experiences has established supermarkets and hypermarkets as the largest and most rapidly expanding distribution channels for A2 milk in the Asia-Pacific region, ensuring wide-ranging consumer outreach and market development.

The quickest developing nation in the Asia-Pacific area regarding the A2 milk sector is China. China's appetite for A2 milk has been swiftly increasing due to heightened awareness of its potential health advantages and escalating worries over digestive problems related to standard A1 milk.

A2 milk, which consists solely of the A2 beta-casein protein, is viewed by some consumers as simpler to digest and less likely to result in discomfort, thus appealing to individuals with lactose intolerance or gastrointestinal difficulties. As the Chinese middle class expands and becomes increasingly health-aware, there has been a transition toward premium dairy products, including A2 milk. This movement is further enhanced by the growing emphasis on product differentiation and consumer inclination for natural, cleaner food selections. The A2 Milk Company, a prominent global entity in the A2 milk industry, has deliberately focused on the Chinese market by catering to local preferences for high-quality, specialized food items.

The brand has experienced an increase in sales in China, particularly among urban residents who are more inclined to spend on premium health-oriented goods. The rising trend of online shopping has also facilitated consumers' access to A2 milk, boosting its popularity. Moreover, governmental policies and heightened foreign investment have established a favorable climate for dairy brands, resulting in greater innovation and diversity in the A2 milk options available to Chinese consumers. As China continues to witness a growing demand for dairy products with health benefits, the A2 milk sector is anticipated to sustain a robust growth path, establishing it as the fastest-growing market for A2 milk in the Asia-Pacific region.

Considered in this report

• Historic Year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• A2 Milk Market with its value and forecast along with its segments
• Region & country wise A2 Milk market analysis
• Application wise A2 Milk distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Form

• Liquid
• Powder

By Packaging

• Glass Packaging
• Plastic Packaging & Pouches Packaging
• Carton Packaging
• Cans

By Application

• Infant Formula
• Dairy Product
• Bakery & Confectionery
• Milk & Milk-based Beverages

By Sales Channel

• Supermarket & Hypermarket
• Convenience Store
• Online
• Others

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.


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