The global A2 milk products market was valued at USD 5.3 billion in 2022 and is projected to expand at a CAGR of 10.1% from 2023 to 2030. A2 milk, also known as A2 beta casein milk, contains only the A2 type of beta-casein protein, while regular cow’s milk contains a mix of A1 and A2 proteins. A2 milk has been gaining traction in recent years due to its health benefits, including easier digestion and reduced risk of allergies and intolerances.

The growing health awareness among the global population is a major factor driving the demand for A2 milk. A2 milk is considered to contain more health benefits than regular cow’s milk, and is increasingly being consumed by health-conscious consumers. Furthermore, manufacturers are launching new products to cater to the rising demand for A2 milk. For instance, in October 2021, Fonterra, a New Zealand-based company, announced the launch of a new range of products under the A2 Milk Company brand. The company also announced an A2 milk-based infant formula which is rich in calcium and contains essential minerals that are essential for the development of bones and teeth.

In addition, increasing demand for organic milk is expected to further boost the market growth. Consumers are becoming more aware of the health benefits of consuming organic products, and are willing to pay a premium for organic milk. For instance, in October 2020, CapriLac, an Australian dairy company, launched a new range of organic, A2 milk products. The company offers organic A2 milk powder, organic A2 milk-based lattes, and organic A2 milk-based chai latte.

The increasing acceptance of A2 milk in the international market is expected to further support the growth of the market. For instance, in January 2021, the A2 Milk Company signed a distribution agreement with Dairy Crest, a leading dairy product distributor in the UK, to supply A2 milk products to the UK market. Dairy Crest is the UK’s largest independent dairy product distributor. Furthermore, the company is expanding its presence in the Indian market and is expected to gain a significant amount of market share in the country.

Moreover, the increasing number of initiatives taken by the government and other organizations to promote the consumption of A2 milk is expected to further fuel the demand for A2 milk products. For instance, in August 2020, the A2 Milk Company partnered with the All India Food Processors’ Association (AIFPA) to promote the consumption of A2 milk in India. The partnership aimed to increase awareness of the health benefits of A2 milk and its advantages over regular cow’s milk among consumers in India.

The A2 milk segment accounted for the largest share of the market in 2021. This is mainly attributed to the increasing popularity of A2 milk among consumers due to its superior nutritional value and health benefits. According to a report published by the International Dairy Federation, in 2020, A2 milk contains the A2 beta-casein protein and is free of the A1 beta-casein protein, which is believed to cause certain digestive issues. Additionally, the rising awareness about the health benefits of A2 milk among consumers is expected to be a major driving factor for the market growth.

The flavored milk segment is projected to expand at the fastest CAGR of 6.5% over the forecast period. Increasing demand for flavored milk products, especially among children, is expected to be a major factor driving the growth of this segment. Furthermore, manufacturers are introducing innovative flavors to attract consumers and expand their customer base. For instance, in January 2021, New Zealand-based dairy company Fonterra launched new flavors of its Anchor flavored milk products. These new flavors include banana, strawberry, and chocolate.

The supermarkets and hypermarkets segment held the highest market share of over 45.3% in 2022. The high market share of the segment is mainly attributed to the increasing availability of A2 milk products on shelves of these stores. Additionally, these stores offer a wide range of A2 milk products such as cow milk and plant-based milk, which is attracting a significant number of customers. Moreover, the presence of these stores in large numbers in developed countries, such as the US, the UK, and Germany, is further driving the growth of this segment.

The online segment is anticipated to expand at the highest CAGR of 11.2% over the forecast period. The growth of the segment is mainly attributed to the increasing adoption of online platforms by manufacturers to offer A2 milk products. For instance, in October 2020, A2 Milk Co. launched its online store in the UK. The online store will offer A2 milk products such as A2 Platinum, A2 Whole Milk, and A2 Skim Milk. In addition, the increasing number of internet users, rising penetration of smartphones, and growing preference for online shopping are further fueling the growth of this segment.

The conventional milk segment is estimated to account for the largest revenue share of 68.1% in the year 2022. Increasing health-consciousness among consumers, who prefer natural and fresh products, is driving the growth of the segment. Furthermore, the increasing adoption of conventional milk in developing countries, such as India and China, is anticipated to boost the segment growth. The increasing awareness about the health benefits of milk and milk-based products, such as calcium and vitamins, is propelling the demand for conventional milk.

The A2 milk segment is anticipated to register the highest CAGR of 12.2% through 2022. Growing demand for A2 milk and milk-based products due to their health benefits is driving the growth of the segment. The increasing demand for A2 milk among health-conscious consumers is propelling the segment growth. The increasing demand for lactose-free milk, which is available in A2 milk, is also driving the segment growth. Furthermore, increasing marketing activities by A2 milk companies, such as A2 Milk Company and Heritage Dairy, is anticipated to boost the segment growth.

Asia Pacific is expected to account for the largest share of the market, driven by rising awareness regarding the health benefits of A2 milk products. In the region, India and China are expected to be major contributors to the market growth. Increasing health awareness among consumers has led to the rising demand for A2 milk products in the region. For instance, in April 2021, the A2 Milk Company Limited launched A2 Platinum infant formula in China.

North America is expected to witness steady growth over the forecast period. The presence of major players in the region is expected to drive the growth of the market. The U.S. is anticipated to be the key contributor to the market growth in the North American region. For instance, in 2021, The A2 Milk Company Limited launched A2 Milk in the U.S. with the support of Danone North America as part of its joint venture with the company.

In this part of the A2 Milk products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your A2 Milk business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions
The main sources of revenues for A2 Milk products business come from retail sales, online sales, wholesale sales, and licensing agreements. Here you will find a list with a description of each of them and other possible sources of profit such as fundraising, food & beverage, the sale of merchandise, and leasing the place for parties and corporate events.

Projecting Expenses
In this section, all the regular expenses related to keeping the A2 Milk products business running will be described. The list of operating expenses includes milk procurement costs, packaging costs, wages, maintenance and repairs, utilities, insurance policies, advertising, and others.

Some of the key companies operating in the A2 milk market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:

– In May 2022, Fonterra Co-operative Group Ltd. launched a range of A2 milk products, including drinking milk, yogurt, and cheese.

– In June 2022, Lion Co. launched a range of A2 milk products in Australia, providing households with an alternative to regular cow’s milk.

– In October 2022, Parmalat S.p.A. launched a range of A2 milk products in Europe, including drinking milk, yoghurts, and cheese.

Some of the prominent players in the A2 milk market include:

– Fonterra Co-operative Group Ltd.
– Lion Co.
– Parmalat S.p.A.
– A2 Milk Company
– Dairy Farmers of America
– Dairy Australia
– Bright Food Group
– Schreiber Foods
– Saputo Inc.
– Lactalis Group

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global A2 Milk products market based on product, distribution channel, type, and region:

1. Product Outlook (Revenue, USD Million, 2017 – 2030)

– A2 Milk
– A2 Milk Powder
– A2 Milk Pouches
– Others

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Supermarkets & Hypermarkets
– Online
– Departmental Stores
– Others

3. Type Outlook (Revenue, USD Million, 2017 – 2030)

– Organic
– Conventional

4. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

[Q]: What is A2 Milk?
[A]: A2 milk is a type of cow’s milk that contains only the A2 beta-casein protein. It is produced by cows that naturally only produce the A2 protein. It has been consumed in parts of the world for centuries, but has only recently gained popularity as a health food in certain regions.

[Q]: What are the Benefits of A2 Milk?
[A]: A2 milk is believed to be easier to digest than traditional cow’s milk, as it does not contain the A1 beta-casein protein, which has been linked to digestive issues in some people. It is also a good source of minerals, vitamins, and proteins. It is also lactose-free, making it suitable for those with lactose intolerance.

[Q]: Who are the Key Players in the A2 Milk Products Market?
[A]: The key players in the A2 milk products market are The a2 Milk Company, Fonterra Co-operative Group, Synlait Milk, Arla Foods, and Nestlé S.A.

[Q]: What is Driving Market Growth?
[A]: Growing health consciousness, increasing demand for organic and natural food products, and rising disposable incomes are some of the key factors driving the growth of the global A2 milk products market. The growing prevalence of lactose intolerance and the awareness of the benefits of A2 milk are also contributing to the market growth.

[Q]: What is the Market Outlook?
[A]: The global A2 milk products market is expected to witness significant growth over the forecast period. This growth is attributed to the increasing demand for healthy and nutritional food products, the rising demand for organic products, the growing awareness of the health benefits of A2 milk, and the rising disposable income.