A2 Milk Market

2021 Analysis and Review: A2 Milk Market by Nature – Organic and Conventional for 2021 – 2031

About the Report

A2 is the purest form milk and doesn’t cause the inflammatory response. High protein content of A2 milk and various nutritional benefits have been escalating the consumption of A2 milk across developed countries. Furthermore consumers are willing to spend more on search of natural products which are clean labeled, non- GMO, and contain no preservatives. Changing behavior of consumers is expected to have positive impact on the market.

Consuming A2 milk has its own benefits. For instance, A2 milk is easier to digest, healthy for lactose intolerant people, and it is rich source of vitamins and minerals. These factors are propelling the demand for A2 milk, hence big dairy product manufacturing companies are launching new products containing A2 milk, such as A2 protein infant formulae, which is also expected to generate great demand for A2 milk.

In its new study, ESOMAR-certified market research and consulting firm Future Market Insights (FMI) offers insights about key factors driving demand for A2 milk. The report tracks the global sales of A2 milk in 20+ high-growth markets, along with analyzing the impact COVID-19 has had on the food and beverage industry in general, and A2 Milk in particular.

How Does Historical and Future Outlook for A2 Milk Market Match Up?

Earlier people used to consume A2 and A1 milk but they were not aware about the clear distinction between both variants. A2 milk came in as a branded and assured quality milk in the year 2000. A2 milk producing cow herds have been there since ancient times, and many people may be consuming A2 milk much before 2000. But the difference between A2 milk and regular milk was identified in the year 2000 by a milk producing company.

Increasing consumption of natural and organic food products, change in taste and preference of consumers, and increasing awareness about functional beverages have made A2 milk popular among consumer. Other benefits of this type of milk includes high protein content and free of hormones and antibiotics. According to FMI’s analysis, A2 milk sales have grown at 6.1% CAGR between 2016 and 2020.

Companies are spending heavily on advertising A2 milk to reach the target consumers. Coupled with this, the growing number of dairy companies is significantly influencing the demand for A2 milk. Also, launch of new products and formulations by dairy industry has a great impact on the demand for A2 milk.

A2 milk is used to make various dairy products such as cheese, butter, yogurt, ghee, ice cream, milk powder, and many more products. In addition to this, A2 milk is used to make many milk-based beverages such as coffee and tea, which is further driving the growth of the market. FMI expects global A2 milk market to grow at 10.3% CAGR through 2031.

Why is A2 Milk Preferred More than Regular Milk?

Consuming milk might trigger side effects in some people. Regular milk can lead to indigestion and bloating in many people due to the presence of lactose and high levels BCM-7 (a bio-active peptide released by the digestion of bovine beta-casein variants a1 and b). Various plant-based milks are available in the market, but they do not have the taste and benefits similar to dairy or cow milk. Increasing prevalence of lactose intolerance among consumers is increasing the consumption alternative milk such as A2 milk.

How will Demand for Quality Products Affect A2 Milk Sales?

The nutritional value of A2 milk is high as compared to regular milk. It contains more milk fat than regular milk, and this fat is considered to be healthy fat. In A2 milk, the fat content is around 4.8%, whereas, in normal milk, it is around 3.6%.

A2 milk also has high content of Omega 3, which helps in cleaning deposited cholesterol from blood vessels. A2 protein in cow’s milk also prevents cancer. Some of the leading manufacturers of A2 milk claim that it also has more protein as compared to regular milk. As such, consumers are inclined towards A2 milk after comparing the nutritional value, which is escalating the demand of the product all over the world.

Will A2 Milk Become Popular as Alternative Milk for Infants?

A2 milk is considered to be a healthy milk for infants as its nutritional content is very high. It is quite comparable to goat’s milk and mother’s milk, and is also considered as an alternative milk for infants. A2 milk is also used for making infant formula, which is additionally driving its demand, globally. Some of the big dairy product manufacturing companies are launching new products containing A2 milk, such as A2 protein infant formulae, which is also expected to generate great demand for A2 milk. For instance in 2018, Nestle launched its own brand of A2- only infant formula.

Will Consumer Preference for Clean Label Products Push Demand for A2 Milk?

Consumers around the world are showing high preference for clean label products. These products do not contain any artificial or synthetic chemical ingredients. Clean label products give satisfaction to consumers that the product is natural and healthy.

The U.S. Food and Drug Administration has issued some guidelines regarding food safety and label for nutrition which manufacturers have to follow to empower consumers to make better buying decisions. These regulations and stringent quality standards have been causing a shift in focus from regular to A2 milk.

What is the Impact of Growing Demand for Baked Products and Confectionery Items?

Milk and milk products such as cheese, butter, and cream are among the major ingredients used in bakery and confectionery products. Due to the increasing presence of Western culture around the world, the demand for bakery and confectionery items such as bread, cakes, and cookies has increased in the last few years, which has had a major effect on the A2 milk sales.

The consumption of baked products is quite high in countries such as the U.K., Germany, Italy, U.S. China, Russia, and Egypt. Around 40% of the global baked food is consumed only in these countries, resulting in high demand for A2 milk.

Country-wise Insights

How big is the Opportunity for Sales in the U.S. Market?

FMI has projected North America to remain one of the leading markets throughout the course of the forecast period. It is expected to account for nearly 23.0% of the global market in 2031. The U.S. holds 85.0% in 2021of the North American A2 milk market.

In the U.S. more attention is given towards ingredients used by manufacturers. The preference for healthy foods has encouraged companies operating in the U.S. to expand their portfolios. The trend towards acquisition of smaller companies at lower cost is likely to continue in the near future. Kroger, Walmart, Costco and Safeway are the major source of distribution of A2 milk in the U.S.

How big is the Opportunity in China for A2 Milk Market?

China remains one of the most lucrative markets and is expected to hold 19.5% of the APAC A2 milk market in 2031. Consumers in China are preferring powdered milk for infants, which is encouraging manufacturers to offer powder A2 milk. For instance, in 2019, Julebao has launched Zhizhen A2 milk powder. Source of this product is company owned cattle.

How big is the Opportunity in New Zealand for A2 Milk Market?

New Zealand holds 34.3% of APAC A2 milk market. New Zealand represents a potential market for A2 milk market owing to increasing health conscious consumers and their increasing per capita income which will enable them to go for premium products.

Moreover, the country exhibits high demand for confectionery and bakery products. Since milk is highly used in bakeries and confectioneries and A2 milk is considered to be a good ingredient for premium bakery and confectionery product, New Zealand will continue presenting attractive opportunities for growth.

Will India Emerge as a Key A2 Milk Market?

There has been a rise in demand for A2 milk in India due to the rise in production capacity as all the indigenous buffaloes and even cow breeds produce 100 percent A2 Milk. As consumers want better quality and pure milk, the demand for A2 milk is rising in India.

Consumers in India have been dealing with several diseases such as diabetes, cancer, cardiovascular disorder and autism. This has fuelled the demand for natural food and drinks, in a way creating attractive opportunity for the expansion of the market.

Sub-group of casein is the largest protein found in A2 Milk which is extremely nutritional for the body to fulfill daily protein requirements. Thanks to rising awareness about various benefits of A2 milk, India will continue exhibiting high demand.

How big is the Opportunity in Brazil for A2 Milk Market?

Brazil is exhibiting high demand for A2 milk, especially in the sports nutrition category. Sportsperson and athletes demand good quality milk to gain muscles and stay fit. A2 milk is a perfect source of calcium and protein with no preservatives. Coupled with this, the rising demand for clean label products will fuel sales in Brazil.

Category-wise Insights

Which Form of A2 Milk is More in Demand?

Liquid form of A2 milk will hold 84.6% of market share in 2021. Liquid form of A2 milk is more convenient and allows direct consumption to help consumers derive maximum benefits.

In is the Key Application of A2 Milk?

Demand for A2 milk and A2 milk-based beverages has significantly increased. The category held 40.3% of market share in 2020. Increasing demand for healthy beverages among consumers as they focus on staying healthy will drive demand in this segment.

Why is Carton Packaging More Preferred in A2 Milk Market?

Carton packaging holds 57.9% of shares in packaging segment of A2 milk market. Long shelf life and attractive packaging are unique selling features of carton packaging. Thus with this growing preference of consumers, manufacturers are providing A2 milk in carton-based packaging.

Competitive Landscape

Companies are concentrating more on R&D activities to introduce new flavour in A2 milk market. For Instance, in 2019, Australian leading A2 milk producing company “The A2 Milk Company” has launched chocolate flavor reduced fat A2 milk in the U.S. market.

Moreover, players are engaging in increasing their product portfolio by expanding their global operations and strengthening their distribution channels.

For Instance: The A2 Milk Company Limited portfolio includes various milk products such as flavored milk, infant formula, whole cow’s milk, semi-skimmed cow’s milk, white or plain A2 milk, A2 milk powder, low fat milk, and reduced fat milk.  In February 2018, the A2 Milk Company Limited announced a strategic relationship with New Zealand’s largest dairy company, Fonterra Co-operative Group Limited, to make A2 milk more available in Australia, New Zealand, and other parts of Asia Pacific.

Fonterra Co-operative Group Limited, In August 2018, Fonterra’s brand Anchor announced a strategic partnership with the A2 Milk Company Ltd. The aim of partnering was to enhance its milk portfolio and give more choices regarding milk to consumers.

Vietnam Dairy Products Joint Stock Company, In April 2018 launched a new product, 'probiotic drink probi‘, with blueberry flavor, to expand its product portfolio.  Some of the leading companies operating in the market are:

  • The A2 Milk Company Limited
  • Fonterra Co-operative Group Limited
  • Vietnam Dairy Products Joint Stock Company
  • Gujarat Cooperative Milk Marketing Federation Ltd.
  • Provilac Dairy Farms Private Limited
  • Vedaaz Organics Pvt. Ltd.
  • Ratnawali Dairy Products LLP
  • Erden Creamery Private Limited

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.

Scope of the Report



Forecast Period


Historical Data Available for


Market Analysis

USD Million for value and metric tons for Volume

Key Regions Covered

North America, Latin America, Europe, APAC, MEA

Key Countries Covered

US, Canada, Germany, U.K., France, Italy, Spain, Poland, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Vietnam, Indonesia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, South Africa

Key Segments Covered

Nature, Form, End Users, packaging, Distribution Channel, Regions

Key Companies Profiled

  • The A2 Milk Company Limited
  • Fonterra Co-operative Group Limited
  • Vietnam Dairy Products Joint Stock Company
  • Gujarat Cooperative Milk Marketing Federation Ltd.
  • Provilac Dairy Farms Private Limited
  • Vedaaz Organics Pvt. Ltd.
  • Ratnawali Dairy Products LLP
  • Erden Creamery Private Limited

Report Coverage

Market Forecast, brand share analysis, competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Questions Answered in the Report

  • Which is the leading A2 milk market?

    APAC currently leads the global market for A2 milk market. The APAC held 32.8% of the global A2 milk market in 2020. Owing to the rise in demand for organic and natural milk, A2 milk sales will continue rising in the region.

  • Which form of A2 milk is more in demand?

    Liquid form A2 milk is more in demand and is expected to hold 83.8% of the market in 2030. Liquid form of A2 milk incurs less transportation cost and offers impressive nutritious benefits, which are increasing its sales.

  • Which is the key application of A2 milk?

    Milk and Milk-based beverages increasingly use A2 milk. It holds 40.3% share in the market.

  • Why is Organic A2 Milk Preferred More?

    Nowadays, consumer are willing pay more for organic A2 milk. It holds nearly 11% share in the market. The high presence of probiotic and healthy gut bacteria will fuel the demand for organic A2 milk.

  • Who are the key players in A2 milk market?

    A few of the leading players in the A2 milk market are The A2 Milk Company Limited, FREEDOM FOODS GROUP LIMITED, Fonterra Co-operative Group Limited, Vietnam Dairy Products Joint Stock Company, Gujarat Cooperative Milk Marketing Federation Ltd., Provilac Dairy Farms Private Limited, Vedaaz Organics Pvt. Ltd, Ratnawali Dairy Products LLP, and Erden Creamery Private Limited.

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  • Is this research conducted by Future Market Insights?

    Yes, the research has been conducted by expert analysts of Future Market Insights through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to research analyst

  • What research methodology is followed by FMI?

    FMI follows a methodology that encompasses demand side assessment of the market, and triangulates the same through supply side analysis. This methodology is based on use of standard market structure, methods and definitions. Request detailed methodology

  • Who are the respondents for primary research?

    FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.

  • What are the sources of secondary research?

    FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.

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A2 milk market by Category



  • Liquid
  • Powder


  • Infant Formula
  • Dairy Product
    • Butter
    • Cheese
    • Yogurt
    • Milk Powder
    • Ice Cream
    • Others
  • Bakery & Confectionery
  • Milk & Milk-based Beverages


Distribution Channel

  • B2B
  • B2C
    • Store-based Retailing
      • Hypermarkets/Supermarkets
      • Grocery Stores
      • Convenience Stores
      • Specialty Stores
    • Online Retailing


  • North America
  • Latin America
  • Europe
  • APAC
  • MEA

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A2 Milk Market