A2 Milk Market is Estimated to Witness High Growth Owing to Growing Consumer Demand for Premium Milk
Author : Purvaja Jadhao | Published On : 13 Jan 2024
The A2 milk is naturally rarer type of cow's milk that only contains the A2 beta-casein protein instead of both the A1 and A2 types of proteins. It is considered to be easier to digest than regular cow's milk which contains mostly A1 proteins. A2 milk products are marketed as being a healthier alternative to regular milk for digestive health. A2 Milk helps in reducing the risks of digestive discomfort, type 1 diabetes and heart disease.
The global A2 milk market is estimated to be valued at US$ 2036.6 Mn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The key opportunity driving the growth of the A2 milk market is the growing consumer demand for premium milk products. Consumers are increasingly preferring milk products perceived as healthier options and are willing to pay premium prices for the same. A2 milk is viewed by many consumers as a superior milk type due to its purported health benefits. Leading players in the market are undertaking various marketing initiatives highlighting the benefits of A2 milk which is helping boost consumer demand. They are also expanding their product portfolio by launching new variants like organic A2 milk, A2 milk powder, flavored A2 milk etc catering to evolving consumer tastes. If established players are able to effectively tap into the premiumization trend and expand their domestic as well as international operations, it can contribute towards the strong growth of the A2 milk market over the forecast period.
Porter's Analysis
Threat of new entrants: The threat of new entrants is moderate as the A2 milk market requires significant capital investments and the established brands have strong brand loyalty. However, the growing demand presents opportunities.
Bargaining power of buyers: The bargaining power of buyers is high given the number of established brands and private label options. Buyers can easily switch between brands based on pricing and quality.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as milk is a perishable raw material and suppliers depend on buyers for a steady demand.
Threat of new substitutes: The threat of new substitutes is low as A2 milk has a unique marketing proposition around its easy digestibility making it difficult to substitute.
Competitive rivalry: Competition is intense among the key global players to gain market share.
SWOT Analysis
Strengths: Growing health awareness, popularity as a lactose-free dairy option, premium pricing due to unique marketing proposition.
Weaknesses: Limited production capacities, reliance on few suppliers for raw materials, vulnerability to climate change impacting milk supply.
Opportunities: Untapped growth potential in developing markets, scope for product & packaging innovations, building private label offerings.
Threats: Intense competition, supply chain disruptions &cost pressures affecting profitability, vulnerability to changing consumer preferences.
Key Takeaways
The Global A2 Milk Market Demand size is projected to witness robust growth during the forecast period of 2023-2030.
Regional analysis- The Asia Pacific region is projected to witness growth at a CAGR of over 12% during 2023-2030.Factors such as growing middle class, westernization of diets, increasing lactose intolerance are fueling the demand in the region. China represents the largest market, followed by India.
Key players- Key players operating in the A2 milk market are Fisk Alloy, Inc., Southwire Company, AFL Global, MWS Wire Industries, Copperhead Industries, Shanghai Metal Corporation (SMC), Zhejiang Baichuan Conductor Technology Co., Ltd, Zhangjiagang jinxin metal wire Co., LTD, Nehring Electrical Works, General Clad Co., Ltd, and Jiangsu Greenshine Wire & Cable Co.,Ltd. and others. These players are focused on expanding their production capacities and geographical footprint to tap the growth opportunities.
For more details on the report, Read- https://www.pressreleasebulletin.com/a2-milk-market-is-driven-by-rising-intolerance-for-lactose/
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