The demand for functional beverages that have positive effects on digestion has increased. The demand for a2 milk has been fuelled by the rise in consumer health consciousness, increase in consumer expenditure, and increase in product awareness & knowledge through ads. Additionally, consumers are gravitating towards beverages that are produced sustainably, such as those with recognisable ingredients, streamlined labels, no additives or preservatives, and non-GMO. One of the most important things driving the demand for a2 milk is this. Also, there has been a lot of interest in using a2 milk powder as a component in infant formulae. This is as a result of the fact that it is easier to digest than regular milk.
The recession will have a substantial effect on the A2 milk market. Even though it is anticipated that price inflation will decline in 2023, an increase in interest rates would undoubtedly cause the rate of economic growth to stall significantly. Power and raw materials will be pricy for a while. Other factors that contribute to inflation include the partial reversal of globalisation, labour shortages in many Western countries that raise the cost of manufacturing, and the transition to a shared economy in response to the biggest threat to our species.
Increased Consumer Health Consciousness Leads to Increased Consumption of A2 Grade Milk
Consumption of wholesome foods is becoming more popular among customers everywhere. Milk and yoghurt are two examples of dairy products that are among the foods that are consumed the most globally. Milk is widely consumed since it is regarded as a nutritious and healthful food. However, a growing number of people are finding they cannot consume milk or milk products because of lactose sensitivity or other medical issues. Because these products are readily available, people with lactose intolerance can consume them without experiencing any discomfort. One such product is A2 grade milk. A2 grade milk also has a lot of calcium, proteins, vitamins, and minerals, and its protein structure is more comparable to that of human breast milk than to that of milk from sheep, buffalo, or goats.
High Cost of A2 Milk to Limit Market Growth
A2 milk is produced by cows of Indian descent, although less milk is produced per cow. As a result, the gap between supply and demand is created. The difference between the supply and demand for A2 grade milk further drives up the cost of the finished good, making A2 milk more expensive than A1 milk. A2 grade milk has a higher total value due to its nutritive qualities, which promotes its use in nutritional items. Cows were used in the domestication process many years ago. Cows consequently generated A1 milk. A1 milk from cows is anticipated to be more plentiful than A2 beta-casein milk. In order to make milk accessible to the general people at a reasonable price, the majority of businesses started selling A1 milk as a result. As a result, A2 milk costs more than A1 milk.
Based on form, the A2 milk market is segmented into liquid and powder. The liquid category dominated the market in 2022. It aids customers in obtaining the optimum amount of nutrients, including vitamins, minerals, proteins, and calcium. These vitamins aid in preserving the nervous system's health. Moreover, compared to powdered milk, fresh A2 milk has higher phosphorus and selenium. The expansion of the market is being driven by increased consumption of liquid A2 beta-casein milk due to its natural flavour and mild taste.
By Packaging Form
Based on packaging form, the A2 milk market is segmented into carton, bottle and others. The carton category dominated the market in 2022. Containers allow for a product to have a longer shelf life, incur cheaper transportation expenses, and are also more practical and secure for consumers to utilise. The carton sector thus accounted for a bigger value share in the worldwide a2 milk market size due to this expanding choice and driving consumption, and it is projected that it will maintain its position during the forecast period.
By Distribution Channel
Based on distribution channel, the A2 milk market is segmented into supermarket & hypermarket, grocery & convenience stores, online retail and others. The supermarket & hypermarket category dominated the market in 2022. The proliferation of supermarkets and hypermarkets, as well as the availability of a wide variety of products in stores, are the main factors fueling the segment's growth. To prevent spoiling, dairy-based items are stored on shelves at controlled temperatures in supermarkets and hypermarkets. These shops are convenient for customers to buy necessities at lower prices, which is anticipated to greatly fuel the segment's expansion in the upcoming years.
Asia Pacific is projected to hold the largest share of the A2 milk market over the forecast period. The area is regarded as a significant market since developing nations like China and India are becoming more aware of the advantages of A2 beta-casein milk. Furthermore, because to the existence of A2 breed cows and the rising demand for dairy products in the region, the product is mostly produced in the Asia Pacific region. On the other hand, the Europe A2 milk market is anticipated to grow significantly due to the dairy industry's considerable development. Further anticipated to increase product demand throughout the anticipated period is the increased usage of A2 grade milk in baking and confectionery items in Germany, the United Kingdom, and France. Due to ongoing research and development efforts in the dairy sector, the region is anticipated to experience strong growth.
LIST OF KEY COMPANIES PROFILED:
- 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
- In March 2020, the a2 Milk Company, a cutting-edge dairy nutrition firm dedicated to improving people's lives via the advantages of the A2 protein, is happy to announce a licensing deal that will allow a2 Milk to enter the Canadian market.
|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||