Market Overview:
A2 milk contains only the A2 type of beta-casein protein and not the A1 type, which is more commonly found in regular cow’s milk. The lack of A1 beta-casein protein makes A2 milk easier to digest for some people. It is often marketed as being better tolerated by people sensitive to cow’s milk. A2 milk consumption has been increasing in India, China and East-Asian countries owing to growing health awareness and emerging lactose intolerance issues.
Market key trends:
One of the key trends in the A2 milk market is the growing preference for specialty milk products among consumers. Specialty milk varieties offer additional perceived health benefits over regular cow milk such as ease of digestion. Increasing lactose intolerance among Asian consumers is generating demand for A2 milk as an alternative. Manufacturers are focusing on marketing and promotional campaigns to raise consumer awareness about A2 milk proteins and their benefits. They are enhancing product visibility through large retail chains and e-commerce platforms. Rising health-consciousness and clean label trends are also expected to support the growth of the A2 milk market over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants into the A2 milk market is moderate. The market already has a strong presence of established players but the growing demand provides opportunities for new players.
Bargaining power of buyers: The bargaining power of buyers in the A2 milk market is high. Buyers can easily substitute A2 milk with regular milk depending on price fluctuations.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as the suppliers of A2 milk depend on a few processing companies for production and sales.
Threat of new substitutes: The threat of substitutes is low as there are limited substitutes for the claimed benefits of A2 milk. However, regular milk remains the closest substitute.
Competitive rivalry: The competitive rivalry in the market is high due to the strong presence of multiple established brands.
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.
Key Takeaways
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 the claimed digestive health benefits of A2 milk. The market size for 2023 is estimated to be US$ 2036.6 Mn.
Regional analysis: Asia Pacific region is currently the fastest growing market for A2 milk and is expected to continue dominating the global market owing to increasing health conscious population in countries like Australia, China and India.
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 Products LLP, Erden Creamery Private Limited.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it