(MENAFN- Straits Research) Market Dynamics
A2 milk is a cow's milk primarily composed of the A2 beta-casein protein and does not contain the A1 beta-casein protein. A2 milk is a substitute for conventional cow's milk. It is derived from certain cow breeds, including Guernsey, Jersey, Holstein, and Brown Swiss. Due to rising public awareness of the significance of health and wellness, there has been a significant increase in demand for functional beverages that offer digestive benefits. A2 protein formation resembles human breast, goat, sheep, and buffalo milk. In addition, factors such as increased consumer spending and increased product awareness and knowledge due to advertising have substantially affected the demand for A2 milk.
In addition, consumers have a growing preference for beverages obtained in a sustainable manner, such as those with simplified labels, no additives/preservatives, non-GMO ingredients, and recognizable ingredient lists. This is another most significant factor driving the demand for A2 milk. Similarly, the variety of uses for A2 milk powder as an ingredient has gained increasing popularity. Because its compositional characteristics make it easier to digest than conventional/A1 milk, global brands continually develop and release infant formulas containing A2 milk. However, A2 milk is more expensive than conventional milk, which hinders the expansion of the A2 milk market.
The Growth in Consumer Demand for Health and Wellness Products and The Prevalence of Lactose Intolerance to Drive the Global A2 Milk Market
As more and more information becomes accessible to consumers, they develop a greater awareness of the significance of meeting their nutritional needs. When making decisions regarding food and drink, most customers place a premium on healthfulness. For this reason, consumers are shifting their beverage consumption patterns toward healthier options, such as a2 milk. In addition, the evolution of healthy eating habits is associated with a rise in demand for beverage products that are deemed "clean," "free from," and "natural." Labels that are uncluttered and straightforward to read are increasingly regarded as meeting the new global standards. These indicate brands that adhere to specific dynamics, including, among others, simplified labels, absence of additives and preservatives, non-genetically modified organism status, country of origin, lack of anything artificial, and recognizable ingredient list. This is an additional important factor contributing to the expansion of the a2 milk market.
Due to the increase in lactose intolerance cases, lactose intolerance is one of the primary considerations when switching to a2 milk. Approximately seventy-five percent of the world's adult population is lactose intolerant. As a result, a1 beta casein-free milk has gained immense popularity among consumers. Moreover, consumers choose a2 milk over conventional milk for various reasons, including nutritional value, curative health properties, the ability to treat irritable bowel syndrome, digestibility, and personal preference. As a result, the rise in lactose intolerance among consumers worldwide is one of the most influential factors in the increasing popularity of a2 milk.
Diversity in A2 Milk Products to Create Global A2 Milk Market Opportunities
The natural nutrition of A2 milk appeals to a diverse group of consumers. According to market trends, this is a flexible and adaptable beverage. Consumers in the United States have shifted toward a high-protein diet. Demand for functional beverages with potential characteristics such as low-fat and low cholesterol has primarily contributed to the growth of food products such as a2 milk. Moreover, the palatable texture and nutritional properties of a2 milk make it an ideal vehicle for delivering functional benefits. This emerging trend has increased demand for a2 milk as both a beverage and an ingredient in infant formulas. In addition, millennials, health-conscious consumers, and regular exercisers are mainly responsible for increasing market sales of low-fat a2 milk and creating opportunities for market expansion.
Regional Insights
The Asia Pacific will likely hold the most significant market proportion growing at a CAGR of 15.51% during the forecast period. The dominance of Asia Pacific in the A2 market can be attributed to the increased demand for dairy products, including yogurt, milk powder, cheese, and butter. In addition, Asia-Pacific nations are home to a sizeable population of cows of the breed that produce a2 milk. In addition, an increase in consumer awareness of health issues and a growing trend among consumers to modify their dietary habits in the region are likely to fuel growth in the a2 milk market. In addition, there is customer demand for ingredients that are transparent and derived from reliable sources, as well as for high-quality manufacturing processes. Also, countries such as China, India, and Australia are becoming some of the largest consumers and producers of a2 milk and milk products due to their expanding populations, rising levels of consumer spending, and increasing opportunities to serve more prominent people. Due to such factors, Asia-Pacific will hold the largest market share for a2 milk.
Europe will hold a share of USD 1,629 million, growing at a CAGR of 15.83% during the forecast period. This region is among the largest manufacturer and consumers of a2 milk due to the increased demand for healthier dairy products and the availability of cow breeds necessary for producing a2 milk. Growing demand for a2 milk enables the opening of new markets for a2 milk products with high levels of innovation and an increase in premiumization in some of the world's largest markets, such as Germany and the United Kingdom. Owing to the increased incidence of lactose intolerance in European countries, the dairy-alternative industry generates a disproportionately large share of total revenue in these regions. In addition, this presents an opportunity to expand the market for a2 milk as a replacement for conventional milk and other dairy products, including plant-based milk.
Key Highlights
The global A2 milk market had a revenue share of USD 1,533 million in 2021, expected to reach USD 5,068 million growing at a CAGR of 16.12% during the forecast period.
Based on form, the liquid segment is expected to grow at a CAGR of 16.0% and hold the most significant market proportion during the forecast period.
Based on packaging form, the carton segment is expected to hold the largest share during the forecast period and grow at a CAGR of 16.35%.
Based on the distribution channel, the supermarkets & hypermarkets segment will likely hold the largest share during the forecast period and grow at a CAGR of 16.25%.
Based on regional analysis, Asia Pacific will likely hold the most significant market proportion growing at a CAGR of 15.51% during the forecast period.
Competitive Players in the Market
GCMMF (Amul)
Erden Creamery Private Limited
Freedom Foods Group Limited
Lion Dairy & Drinks
Provilac Dairy Farms Pvt. Ltd.
Ripley Farms LLC
Taw River Dairy
The a2 Milk Company Limited
Urban Farms Milk
Vinamilk
Market News
In 2022, Provilac Dairy Farms Pvt. Ltd. announced the launch of lactose-free cow milk.
Global A2 Milk Market: Segmentation
By form
Liquid
Powder
By packaging form
Carton
Bottle
Others
By distribution channel
Supermarket & Hypermarket
Grocery & Convenience stores
Online Retail
Others
By region
North America
Europe
Asia-Pacific
LAMEA
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