Increasing Demand for A2 Milk to Augment Growth of the A2 Milk Market

 

A2 Milk is a bottled variety of whole dairy cows' milk which has largely lost the beta-casein form of A1 proteins commonly found in dairy cows and rather has most of the A2 type occurring naturally within the milk itself. This natural A2 fat is more easily absorbed by the body than A1 and because of this is used in many nutritional supplements for its ability to help the body metabolize fatty acids.

Brown Swiss, Charolais, Holstein, Jersey, and Guernsey are the breeds that naturally produce A2 milk. The demand for A2 milk is increasing worldwide due to its health benefits such as increasing metabolic rate, promoting mental development, boosting immunity, and more. A2 milk is popular in New Zealand, Australia, China, the United Kingdom, and the United States.

Market Dynamics:

Increasing demand for dairy items along with massive use of A2 milk in preparation of milk powder, butter, yogurt, cheese, and ghee is expected to propel the growth of the A2 milk market. For instance, in June 2020, Heritage Foods launched a new product, A2 milk, on the occasion of World Milk Day. The product, with a 90-day shelf life, is available at leading modern retail stores, e-commerce platforms, selected standalone, and selected Heritage Parlors in 500 ml packs.

Due to the emergence of COVID-19, the demand for functional beverages is also increasing as a result of growing consumer spending and health consciousness, which, in turn, is also expected to fuel the growth of the A2 milk market. Moreover, increasing awareness among people about the health benefits of A2 milk and A2 milk based products in myriad countries around the world is expected to augment the growth of the A2 milk market.

Increasing demand or consumption of milk worldwide is also expected to drive growth of the A2 milk market. For instance, the U.K. dairies processed 1,249 million liters of milk in March 2019, according to Department for Environment Food & Rural Affairs. However, high cost of A2 milk and limited presence of the product in the market is expected to restrain the growth of the A2 milk market.

Competitive Analysis:

Major players operating in the A2 milk market are Jersey Dairy, Amul, MLK A2 Cow Milk, Fonterra, Pura, Dairy Farmers, The a2 Milk Company Limited, Heritage Foods, and Enfamil.

In September 2020, Enfamil launched Enfamil Premium A2 Infant Formula containing the A2 milk proteins and omega-3 protein DHA, a key building block in brain and eye development.

In October 2018, Nestle launched an A2 beta-casein protein infant formula product in Australia and New Zealand.

In February 2018, Nestle introduced Illuma Two Stage 3, an infant formula product containing A2 beta-casein protein, to the Chinese market.