A2 MILK MARKET ANALYSIS

There are two types of beta-casein proteins present in milk i.e. A1 and A2. A2 milk is cow’s milk with the A2 beta-casein protein, which do not contain A1 beta-casein protein. Guernsey, Jersey, Holstein, Charolais, and Brown Swiss are the breeds that naturally produce A2 milk. Due to many health benefits offered by consumption of A2 milk such as boosting immunity, promoting mental growth, increasing metabolic rate, and others the demand for A2 milk among customers is growing across the globe.

Market Dynamics:-

A2 milk can be used as milk alternative for infants under the age group of one year. Mother’s milk is very essential for infants in order to ensure health and growth. A2 milk is a great alternative to goat’s and mother’s milk. Various manufacturers are using A2 milk for the manufacturing of infant food. In addition to this, infant food products are being launched using A2 milk annually by several manufacturers, which is anticipated to boost the global market A2 milk market during the forecast period.

According to Department for Environment Food & Rural Affairs, U.K. dairies processed 1,167 million liters of milk in July 2018, which reached to 1,249 million liters of milk in March 2019. Therefore, significant growth in consumption of milk is expected to boost the demand for A2 milk during the forecast period.

However, high price of A2 milk and limited presence of the product in the market is likely to have adverse effect on the market growth in the near future. Attributing to the presence of limited players in the market, it offers impetus growth opportunities for A2 milk producers to enlarge distribution across the globe.

Market Outlook:-

Asia Pacific is predicted to record fastest growth in the global A2 milk market, in terms of revenue during the forecast period. Factors such as growing awareness associated with the health benefits offered by A2 milk products among the consumers is projected to generate higher demand for the A2 milk over the approaching years. A2 milk finds applications in the products such as milk powder, butter, yogurt, ghee, and cheese. Owing to the extensive applications of A2 milk in variety of products the market growth of A2 milk is likely to increase, since A2 milk is used as natural constituent in the production of these products. Therefore, significant increase in demand for dairy products is expected to drive growth of global A2 milk market in the region during the forecast period.

According to India Brand Equity Foundation (IBEF), India’s dairy industry generated a revenue of US$ 77.5 billion in 2016, and is expected to reach US$ 135 billion by 2020, on increasing consumption and also expected that India will be the largest dairy producer by 2020.

Key Players:-

Major players operating in the global A2 milk market include Jersey Dairy, The a2 Milk Company Limited, Dairy Farmers, Pura, Fonterra, MLK A2 Cow Milk, Amul, and others.

Market Taxonomy:-

On the basis of nature, the global A2 milk market is segmented into:

• Organic
• Conventional

On the basis of product form, the global A2 milk market is segmented into:

• Liquid
• Powder

On the basis of packaging, the global A2 milk market is segmented into:

• Glass Bottles
• Carton Packaging
• Plastic Bottles & Pouches
• Cans

On the basis of application, the global A2 milk market is segmented into:

• Infant Formula
• Dairy Products
• Bakery & Confectionary
• Milk & Milk-based Beverages

On the basis of distribution channel, the global A2 milk market is segmented into:

• Supermarkets & Hypermarkets
• Grocery Stores
• Online/Non-Store Retailing

On the basis of region, the global A2 milk market is segmented into:

• North America
  • U.S.
  • Canada
• Latin America
  • Brazil
  • Argentina
  • Mexico
• Europe
  • U.K.
  • Germany
  • Italy
  • Spain
  • France
  • Poland
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • New Zealand
  • Japan
  • ASEAN
  • Australia
• Middle East and Africa

A2 Milk Market Key Developments:

• In 2018, Nestle S.A. launched its new organic and natural product, ‘illuma Atwo’. Illuma Atwo is an infant formula which is formulated with A2 milk. This is expected to expand company’s product portfolio and strengthen its market position over the forecast period.
• In February 2019, Fonterra Co-operative Group, signed an agreement with famers to supply the milk to The a2 Milk Company Limited for the season 2019-2020 in New Zealand. The milk pool of The Fonterra Co-operative is expected to be based in the Waikato near its Hautapu site in New Zealnad. This is expected to increase supply of high quality milk to The a2 Milk Company
• In November 2019, The a2 Milk Company Limited extended its supply agreement with Synlait Ltd., a New Zealand based milk products company. The supply agreement includes platinum products and other nutritional products of The a2 Milk Company Ltd. This is expected to increase the volume of nutritional products produced by Synlait exclusively for The a2 Milk Company Ltd.