A2 Dairy Products Market Size, Share, By Nature (Organic, Conventional), By Product (Milk, Cheese, Yogurt, Butter, Others), By Type (Liquid, Powder), By Packaging (Cartoons, Bottles, Others), By Distribution Channels (Supermarket & Hypermarket, Convenience Stores, Online, Others) and By Region - Trends, Analysis and Forecast till 2034

Report Code: PMI548624 | Publish Date: July 2024 | No. of Pages: 186

A2 Dairy Products Market Overview

A2 Dairy Products Market Size was valued at USD 2.1 Billion in 2024 and is expected to reach USD 15.8 Billion by 2034 growing at a CAGR of 24.8%

A2 dairy is sometimes better digested by people. A2 dairy is produced by cows trained to deliver only the A2 type of beta-casein, a major milk protein. Regular cow milk, or A1 milk, is the most common type and contains both A1 and A2 beta-casein. The only structural difference between these different proteins is that some have posited that A1 beta-casein might be relatively more challenging to digest, which could cause digestive problems like bloating or discomfort. A2 dairy, however, is an attempt to give milk primarily composed of the A2 protein to make for easier digestion.

A2 dairy products are available in the market and are marketed similarly to conventional dairy products but with the key distinction of their A2 category. They come as packaged fresh, flavored, and powdered, such as infant formula. A range of branded organic and conventional A2 milk may be bought, looking after consumers' health and quality of consciousness, although using a premium price-paying approach.

A2 milk is a variety of cows' milk that mostly lacks a form of β-casein proteins named A1 and, instead, has mostly the A2 form. This cow's milk has been brought to market by the a2 Milk Company and is sold mainly in Australia, New Zealand, China, and the United States. This milk has been sold in the UK from 2012 to 2019. Similarly, milk of animals other than cattle, except for the difference in β-casein due to polymorphism, pertains to the same for humans, sheep, goats, donkeys, yaks, camels, buffalo, and a host of others, and "A2 milk" is used in this sense.

The a2 Milk Company and other purveyors of goat's milk products say milk with A1 proteins is volatile. Still, no widely accepted scientific work has identified a direct link that would show the involvement of the A1 protein with any adverse effect on health. A1 and A2 beta-casein are the only genetic variants of the beta-casein milk protein differing at one amino acid. The a2 Milk Company developed a genetic test to determine whether a cow produced the A2 or A1 type of protein in her milk.

A2 Dairy Products Market Research Report

Disclaimer: This data is only a representation. Actual data may vary and will be available in the report.

A2 Dairy Products Market Dynamics

Key Drivers of Target Market:

Increased demand for lactose-tolerant alternatives                                                                                                                           

  • Most people cannot take or digest lactose, the natural sugar in milk. Some believe that A2 milk is better for lactose-intolerant people. However, the missing A1 beta casein protein makes consumers who are aiming for lactose-friendly products switch to A2 milk products.

Health fads and craze

  • A2 milk, in the mindset of some consumers, is an entirely natural product associated with a couple of health benefits. Therefore, this easier-to-digest, gentle-on-stomach belief about A2 beta-casein over A1 beta-casein plays a major driver. Further research also posits that A2 milk is a potential source of other health benefits, like inflammation and gut health. More research needs to be done to validate these claims, which compels people to have better health hopes.

Restrains:

Higher price

  • A2 dairy products are generally more expensive than regular dairy products. This is attributed to the fact that cows that produce A2 milk are of a certain breed, and therefore, projecting the continuous supply of such milk within a needed time frame can be difficult and costly. Other production costs associated with maintaining a different supply chain of A2 milk and dairy products involve specialized breeding, milking and processing facilities, and transportation and storage.

Limited availability

  • In most cases, A2 dairy products are not as easily found as conventional cow milk, which causes discontinuity for consumers who seek them.

Opportunities:

Product innovation

  • Beyond milk—A2 dairy producers can offer more diversified A2 products like cheese, yogurt, ice cream, and infant formula. This can offer a chance to attract a broader consumer base of customers seeking the digestive benefits of A2 across different product categories.

Focus on functional benefits.

  • Emphasize the health advantages that A2 dairy has other than digestion. It can be a product being marketed for gut health from A2 dairy, for stronger bones, or even specifically for certain demographics targeting products enriched in addition to specific vitamins or minerals.

A2 Dairy Products Market Segmentation

The market is segmented based on Nature, Product, Type, Packaging, Distribution Channels and Region.

By Nature:

  • Organic: Organic A2 dairy products are expensive. This mirrors the heavier regulations and good practices involved in organic farming, such as avoiding synthetic pesticides or fertilizers. Organically farmed A2 dairy will show significant growth over the upcoming years, boosted by an increasing number of health-aware consumers for whom organically farmed products matter and who intend to extract probable extra health benefits from organic food. Organic A2 dairy caters to that niche audience eyeing natural and sustainable food choices.
  • Conventional: Conventional A2 dairy products are priced lower than their organic counterparts. This is simply because traditional farming practices have relatively lower production costs. Due to superior pricing, the market share of conventional A2 dairy is currently higher. Accordingly, these products can easily be found in most stores.

By Product:

  • Milk: Milk has remained the undisputed category leader within the A2 dairy market. Several consumers who seek the greatest digestive advantage of A2 protein make milk their number one priority. A2 milk is available in multiple fat percentages, ranging from whole to skim, thus catering to individual dietary preferences.
  • Cheese: The A2 cheese segment is also making headway. Many manufacturers are preparing different types of cheese, like cheddar, mozzarella, and parmesan, with only A2 beta-casein protein. It caters to lactose-sensitive people who sometimes feel uncomfortable after taking regular cheese. On the other hand, with A2 cheese becoming more common, there are also opportunities for people to indulge in their love for cheese without bothering about digestion.
  • Yogurt: Similar to cheese, the segment for A2 yogurt is increasing. This appeals to people who want their probiotics from yogurt without suffering the possible digestive discomfort from regular yogurt. This A2 yogurt could also be suitable for those with very mild casein allergies and allow them to enjoy yogurt.
  • Butter: A2 butter will do everything regular butter does but may be more easily digested. It is quite useful to bakers and cooks who use loads of butter but could have been having some discomfort with butter as it was. Moreover, A2 butter is also suitable in cases of lactose intolerance, whereby one can get the perfect taste and texture without the drawbacks of digestion.
  • Others: The A2 market is constantly innovating. Some of those "other products" that cater to special dietary needs and tastes include A2 ice cream, infant formula, protein powder, or even ghee. One of the most exciting segments in the A2 ice cream sector is that it now allows those people who are lactose intolerant or have digestive sensitivities to enjoy this cold and delicious treat. One such solution would be A2 infant formula for parents looking for alternate formula feeding for their babies. On the other hand, the A2 protein powder caters to all health-conscious consumers who want easier digestion immediately after a workout. Finally, A2 ghee, a clarified butter, will offer a lactose-free version for all those happy cooks who love the flavor nuttiest of ghee in their food.

By Type:

  • Liquid: Liquid A2 dairy products are mostly milk; consequently, they are the most widely consumed because of ease of usage. They require no preparation method; thus, they are ready to be taken the way they are in the carton or bottle. Consequently, they become suitable for daily consumption, and thus, they are just perfect for on-the-go situations. Liquid A2 dairy appeals to a much broader spectrum of consumers, including families, busy professionals, and those who just use the familiar form of liquid milk. The most critical advantage of liquid A2 dairy over powdered products is its much shorter shelf life. Consumption and refrigeration timelines must be considered to avoid spoiling.
  • Powdered: Powdered A2 dairy has a much longer comparative shelf life. This makes them ideal for emergency preparedness, situations with limited refrigeration, or those individuals who use dairy products sparingly every day. Powdered A2 dairy is lightweight and compact—excellent for travel or camping trips. It also minimizes storage space requirements compared to bulky liquid containers. Unlike liquids, powdered A2 dairy requires mixing with water before consumption. A preprocessing requirement in those products is likely to scare off some consumers, particularly those who seek the grab-and-go convenience that liquid options provide.

By Packaging:

  • Cartoons: Lightweight and Economical: Cartons are lightweight and usually the cheapest way to package A2 dairy products, mainly milk. Therefore, they greatly appeal to budget buyers or environmentally sensitive consumers since they can easily be recycled. Since cartons are generally non-returnable, their remains after consumption become waste.
  • Bottles: These are mainly made of plastic or glass, give the impression of a premium product, and usually have a longer shelf life than cartons. A sustainable option is a reusable glass bottle, particularly attractive to environmentally aware customers. In such a case, bottled A2 dairy products tend to have slightly higher prices than the ones in cartons because it is an expensive item there, and the bottle, being made of glass, has reusability. Glass bottles are heavier than cartons and, besides, they incur the risk of being broken during transport or handling.
  • Others: Similarly, A2 dairy markets are also exploring a range of other forms of packaging—pouches, and bags—as part of the market for A2 dairy products. These will offer benefits, on top of lightweight, such as flexibility and potentially a lower environmental profile compared with traditional packaging material.

By Distribution Channels:

  • Supermarkets & Hypermarkets: These large retail stores form the majority of A2 dairy distribution. They are truly a one-stop shop, as they stock a wide range of products: milk, cheese, yogurt, and butter. The controlled temperature environment in supermarkets ensures that the products are stored with utmost care and are fresh.
  • Convenience Stores: These are less extensive than the supermarkets, but the convenience stores do carry a limited selection of A2 dairy products, largely milk and yogurts. This caters to people on the go who need to get in and out or, probably more so, in areas with accessibility issues to the larger grocery store chains.
  • Online retailing: With the boom in online grocery markets, A2 Dairy is getting a piggyback ride. Online retailers give consumers an easier way to buy their products, probably with more varieties compared to convenience stores, and even deliver at home for customer convenience. This will benefit consumers who are usually looking for home-based convenience and might not have easy access to physical stores that stock A2.
  • Others: channels for the distribution of products: A2 dairy products could also be found in health food stores or specialized organic food stores. Several dairy farms may sell directly to consumers through farm stands or delivery services. These options will increase the availability of A2 products to consumers seeking out certain brands or farm-fresh options.

Regional Insights

  • North America: Though this region does not currently hold the top spot, it is highly promising for the growth of the A2 dairy market. Customers in North America are also becoming health-conscious and reaching out to try more easily digestible products. When coupled with growing awareness about A2 milk, these present immense opportunities for market growth in this region.
  • Asia Pacific: The region is projected to be one of the major A2 dairy markets owing to two key factors. First, there is a substantial presence of A2 breed cows, like Gir and Jersey that produce milk containing only the A2 beta-casein protein. Second, there is a fast-growing demand for dairy products in countries like China and India. Growing awareness about the probable digestive advantages of A2 milk would further propel the Asia Pacific market.
  • Europe: this region has an established dairy industry, presenting a potential market for A2 products. There has been a growing trend in the use of A2 milk in bakery and confectionery products in Germany, France, and the UK. This factor, along with increasing consumer interest in the digestive benefits of A2 dairy, should drive market growth in Europe.
  • Latin America: Although nascent, the A2 dairy market in Latin America is showing signs of growth. The market was valued at approximately USD 170 million in 2021 and will likely continue growing in the following years. This growth may be attributed to the growing awareness among consumers about the potential health benefits of A2 milk, such as digestive advantages. Increasingly, people who are lactose intolerant or sensitive are turning toward A2 dairy as a plausible alternative.
  • Middle East & Africa: The A2 dairy market in this region is similar to that of Latin America—in its infancy. Indeed, there are some positive pointers toward a promising future for this market. With rising incomes and urbanization in this part of the world, demand for premium and functional dairy products is on an upward trend.

A2 Dairy Products Market Report Scope:

Attribute

Details

Market Size 2024

USD 2.1 Billion 

Projected Market Size 2034

USD 15.8 Billion

CAGR Growth Rate

24.8%

Base year for estimation

2023

Forecast period

2024 – 2034

Market representation

Revenue in USD Million & CAGR from 2024 to 2034

Market Segmentation

By Nature - Organic, Conventional

By Product - Milk, Cheese, Yogurt, Butter, Others

By Type - Liquid, Powder

By Packaging – Cartoons, Bottles, Others

By Distribution Channels - Supermarket & Hypermarket, Convenience Stores, Online, Others

Regional scope

North America - U.S., Canada

Europe - UK, Germany, Spain, France, Italy, Russia, Rest of Europe

Asia Pacific - Japan, India, China, South Korea, Australia, Rest of Asia-Pacific

Latin America - Brazil, Mexico, Argentina, Rest of Latin America

Middle East & Africa - South Africa, Saudi Arabia, UAE, Rest of Middle East & Africa

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study segmented the target market report based on Nature, Product, Type, Packaging, Distribution Channel, and Region.

Segmentation:

By Nature:

  • Organic
  • Conventional

By Product:

  • Milk
  • Cheese
  • Yogurt
  •  Butter
  • Others

By Type:

  • Liquid
  •  Powder

By Packaging:

  • Cartoons
  •  Bottles
  • Others

By Distribution Channels:

  • Supermarket & Hypermarket
  •  Convenience Stores
  •  Online
  • Others

By Region:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Russia
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • Israel
    • South Africa
    • Rest of Middle East & Africa

A2 Dairy Products Market Key Players

The key players operating the A2 Dairy Products Market include The A2 Milk Company, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), Godrej Jersey, PROVILAC Dairy Farms Pvt. Ltd., Freedom Foods Group, Vinamilk, Erden Creamery Private Limited, Nestle S.A., Vedaaz Organics, Pvt. Ltd., Ripley Farms.

A2 Dairy Products Market Key Players

Disclaimer: This data is only a representation. Actual data may vary and will be available in the report.

A2 Dairy Products Market Key Issues Addressed

  • In January 2024, Mother Dairy launched a pure buffalo milk variant. It will initially be launched in the Delhi-NCR region, and its distribution will be further expanded to Maharashtra, Uttar Pradesh, and Haryana. Leading milk and milk products company Mother Dairy announced the launch of its Pure Buffalo Milk variant for consumers. It will be first launched in Delhi-NCR, and further distribution will be expanded to Maharashtra, Uttar Pradesh, and Haryana.

A2 Dairy Products Market Company Profile

  • The A2 Milk Company
  •  Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF)
  •  Godrej Jersey
  •  PROVILAC Dairy Farms Pvt. Ltd.
  •  Freedom Foods Group
  •  Vinamilk
  • Erden Creamery Private Limited
  • Nestle S.A.
  • Vedaaz Organics Pvt. Ltd.
  •  Ripley Farms

“*” marked represents similar segmentation in other categories in the respective section.

A2 Dairy Products Market Table of Contents

Research Objective and Assumption

  • Research Objectives
  • Assumptions
  • Abbreviations

Market Preview

  • Report Description
    • Market Definition and Scope
  • Executive Summary
    • Market Snippet, By Nature
    • Market Snippet, By Product
    • Market Snippet, By Type
    • Market Snippet, By Packaging
    • Market Snippet, By Distribution Channels
    • Market Snippet, By Region
  • Opportunity Map Analysis

Market Dynamics, Regulations, and Trends Analysis

  • Market Dynamics
    • Drivers
    • Restraints
    • Market Opportunities
  • Market Trends
  • Product Launch
  • Merger and Acquisitions
  • Impact Analysis
  • PEST Analysis
  • Porter’s Analysis

Market Segmentation, Nature, Forecast Period up to 10 Years, (USD Bn)

  • Overview
    • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
    • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
    • Segment Trends
  • Organic
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Conventional
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, Product, Forecast Period up to 10 Years, (USD Bn)

  • Overview
    • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
    • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
    • Segment Trends
  • Milk
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Cheese
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Yogurt
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Butter
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Others
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, Type, Forecast Period up to 10 Years, (USD Bn)

  • Overview
    • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
    • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
    • Segment Trends
  • Liquid
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Powder
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, Packaging, Forecast Period up to 10 Years, (USD Bn)

  • Overview
    • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
    • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
    • Segment Trends
  • Cartoons
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Bottles
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Others
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, Distribution Channels, Forecast Period up to 10 Years, (USD Bn)

  • Overview
    • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
    • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
    • Segment Trends
  • Supermarket & Hypermarket
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Convenience Stores
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Online
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Others
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, By Region, Forecast Period up to 10 Years, (USD Bn)

  • Overview
    • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
    • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
    • Regional Trends
  • North America
    • Market Size and Forecast (USD Bn), By Nature, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Product, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Type, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Packaging, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Distribution Channels, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
      • U.S
      • Canada
  • Asia Pacific
    • Market Size and Forecast (USD Bn), By Nature, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Product, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Type, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Packaging, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Distribution Channels, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
      • India
      • Japan
      • South Korea
      • China
      • Rest of Asia Pacific
  • Europe
    • Market Size and Forecast (USD Bn), By Nature, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Product, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Type, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Packaging, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Distribution Channels, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
      • UK
      • Germany
      • France
      • Russia
      • Italy
      • Rest of Europe
  • Latin America
    • Market Size and Forecast (USD Bn), By Nature, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Product, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Type, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Packaging, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Distribution Channels, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
      • Brazil
      • Mexico
      • Rest of Latin America
  • Middle East and Africa
    • Market Size and Forecast (USD Bn), By Nature, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Product, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Type, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Packaging, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Distribution Channels, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
      • GCC
      • Israel
      • South Africa
      • Rest of Middle East and Africa

Competitive Landscape

  • Heat Map Analysis
  • Company Profiles
  • The A2 Milk Company
  •  Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF)
  •  Godrej Jersey
  •  PROVILAC Dairy Farms Pvt. Ltd.
  •  Freedom Foods Group
  •  Vinamilk
  • Erden Creamery Private Limited
  • Nestle S.A.
  • Vedaaz Organics
  •  Pvt. Ltd.
  •  Ripley Farms

The Last Word

  • Future Impact
  • About Us
  • Contact

FAQs

A2 Dairy Products Market Size was valued at USD 2.1 Billion in 2024 and is expected to reach USD 15.8 Billion by 2034, growing at a CAGR of 24.8%

A2 Dairy Products Market is segmented into Nature, Product, Type, Packaging, Distribution Channels, and Region.

Factors driving the market: Increased demand for lactose-tolerant alternatives, Health fads, and crazes.

The A2 Dairy Products Market’s restraints include Higher prices, Limited availability

The A2 Dairy Products Market is segmented by region into North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa. North America is expected to dominate the Market.

The key players operating the A2 Dairy Products Market include The A2 Milk Company, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), Godrej Jersey, PROVILAC Dairy Farms Pvt. Ltd., Freedom Foods Group, Vinamilk, Erden Creamery Private Limited, Nestle S.A., Vedaaz Organics, Pvt. Ltd., Ripley Farms.