The A2 Milk Corporation (a2MC) Purchased a 75% Share in Mataura Valley Milk
In August 2021, the purchase of a2 Milk Company's (a2MC) 75% share in dairy nutrition firm Mataura Valley Milk was completed (MVM). The acquisition is critical from a strategic standpoint since it gives a2MC the opportunity to produce nutritional products, diversify its suppliers and geographic operations, establish relationships with significant partners in China, and diversify its supplier base.
Expanding Product Application in Baby Formulas to Accelerate Market Growth
A2 grade milk is said to be good for babies because it supports immunity and gives them the vital nutrients they need for healthy growth and development. A2 grade milk is considered to be equivalent to mother's milk because it also contains the A2 protein. Because the A2 beta-casein protein is comparable to that in breast milk, this type of milk and its related products are being employed in infant formulae more and more. A2 beta-casein milk is also used by many producers to make baby food. Every year, a number of innovative infant food items are introduced by various producers, driving up product demand.
High Cost Compared to Standard Milk Could Impede Growth
A2 milk costs about 50% more than other types of regular non-a2 milk at retail establishments. This is due to the fact that breeding a herd with 100% a2 genetics to produce a2 quality milk might take producers up to two years of continuous testing. Farmers also need to spend more time genetically evaluating each cow. As a result, the supply chain's first stages are tiresome. As a result, this affects how much a2 milk costs in comparison to ordinary milk. The high cost of a2 milk and the availability of vegan and less costly competitors can be problematic in developing economies. Hence, these adverse elements can be viewed as roadblocks to increasing the market share of a2 milk.
Major Players Develop Acquisition Plans to Boost Brand Image
The leading businesses in the A2 milk market plan acquisitions to improve their brand recognition globally. For instance, in December 2020, the a2 Milk Company (a2MC) is pleased to announce that it has, as previously anticipated, entered into binding agreements pertaining to the acquisition of a 75% shareholding in Mataura Valley Milk (MVM), a dairy nutrition company situated in Southland, New Zealand.
- In November 2019, to take advantage of the rising customer demand, Nestlé China expanded its A2 grade milk product portfolio for the elderly, YiYang YiChang.
- THE A2 MILK COMPANY LIMITED
- RIPLEY FARMS LLC
- PROVILAC DAIRY FARMS PVT. LTD.
- FREEDOM FOODS GROUP LIMITED
- ERDEN CREAMERY PRIVATE LIMITED
- TAW RIVER DAIRY
- URBAN FARMS MILK
- LION DAIRY & DRINKS
- The market in Asia Pacific is expected to gain a huge portion of the global A2 milk market share in the coming years. The area is considered an important market since developing nations like China and India are becoming more aware of the advantages of A2 beta-casein milk.
- Also, the product is predominantly produced in the Asia Pacific region due to the easy availability of A2 breed cows and the region's expanding dairy industry.
- In Europe, the growth in this region is primarily driven by increased demand as a result of customers' increased expenditure and acceptance of A2 milk as a beverage.
|Market Size in 2022||USD 2.1 Billion|
|Market Forecast in 2030||USD 5.7 Billion|
|Compound Annual Growth Rate||18.10 %|
|Unit||Revenue (USD Million) and Volume (Kilo Tons)|
|Segmentation||By Form, By Packaging Form, By Distribution Channel and By Geography|
|By Packaging Form||
|By Distribution Channel||