A2 Milk Market Size, Share & Trends Analysis Report By Product (Powder, Liquid), By Packaging (Cartons, Bottles), By Distribution Channel (Hypermarkets & Supermarkets, Convenience Stores, Online), By Region, And Segment Forecasts, 2025 - 2030

A2 Milk Market Size & Trends

The global A2 milk market size was valued at USD 4.0 billion in 2024 and is projected to grow at a CAGR of 18.5% from 2025 to 2030. A key driver of this growth is the increasing preference for nutritious food worldwide. Additionally, rising health awareness is expected to boost A2 milk consumption, further contributing to market expansion in the coming years. Unlike traditional milk, A2 milk powder is easier for the human body to digest, enhancing its appeal.

As a result, consumers have increased their spending on healthy and nutritious foods, with a strong focus on maintaining physical fitness, which has significantly driven market growth during the COVID-19 era. Consequently, market revenue is expected to see a positive growth trajectory throughout the pandemic.

A2 milk is offered by various producers in both liquid and powder packaging, and it comes in different packaging options, such as cartons and bottles. Producers are also leveraging diverse distribution channels, including supermarkets, hypermarkets, convenience stores, and online platforms, to boost sales. The introduction of flavored options is anticipated to further increase product adoption. However, in countries such as the U.S., Germany, the UK, and Australia, governments have implemented regulations governing the production and distribution of milk and dairy products. For instance, the U.S. Food & Drug Administration (FDA) has established guidelines for milk production and its derivatives.

Additionally, dairy industry players are increasingly sourcing fat-free and healthy milk products to attract a broader customer base, which is expected to contribute to market growth during the assessment period. Emerging economies such as China and India, where the food and beverage industry are experiencing rapid expansion, are also projected to offer significant growth opportunities.

The rising trend of health consciousness, coupled with increasing demand for high-nutrition beverages among youth and millennials, is fueling global demand for A2 milk. As consumers grow more concerned about their health due to the rise in chronic conditions such as high blood pressure and heart disease, the market is set to benefit from new opportunities. Growing investments by key market players, particularly in organic A2 milk, which is popular in fitness centers for weight management, are also expected to drive the market. The increasing demand for healthy, energy-boosting beverages in North America is further contributing to the industry's growth.

Product Insights

The global A2 milk market is segmented into liquid and powder based on product type. In 2024, the liquid segment led the market, accounting for a revenue share of 73.8%. Consumers tend to prefer fresh milk because it is rich in essential nutrients such as calcium, vitamins, and proteins. As a result, liquid A2 milk contributed more significantly to market revenue due to its convenience and widespread consumption.

The powder segment is anticipated to grow at the highest CAGR of 19.4% from 2025 to 2030. This growth is driven by the increasing use of A2 milk powder in online, which is expected to significantly boost the segment's market share. The rising demand for A2 milk powder in various distribution channels, such as confectionery, baked desserts, and savory products, is also contributing to its expansion. Additionally, the powder packaging's low moisture content enhances its durability, allowing it to be stored for extended periods, further supporting its market growth.

Packaging Insights

The cartons segment is projected to account for 62.9% of the total market revenue in 2024. Carton packaging is considered safer and more convenient for food storage, as it protects the product and provides longer durability. Additionally, cartons are lightweight, which reduces transportation costs. The carton segment has been the primary contributor to global market revenue due to the strong demand for rigid packaging in the dairy products sector worldwide.

Furthermore, the bottles segment is expected to grow at the second-highest CAGR of 18.1% from 2025 to 2030. Milk bottles can be made from plastic or glass and are often used by milkmen for delivering fresh milk. They are also reusable through refilling. The increasing demand for convenient packaging solutions in the dairy beverages industry is anticipated to further enhance the segment's share during the forecast period.

Distribution Channels Insights

The supermarkets and hypermarkets segment accounted for the largest revenue share of 51.6% in 2024. These organized retail channels focus on providing customer-oriented services by offering a wide range of fast-moving consumer goods (FMCG) directly to consumers. These stores allow customers to physically verify products before purchasing, significantly contributing to market revenue.

Moreover, the online segment is expected to register the fastest growth during the forecast years, with a CAGR of 19.4% from 2025 to 2030. The use of online shopping portals and mobile apps is getting popular due to its simplicity and convenience. Products are available for economic rates on online channels compared to offline. Moreover, the rising smartphone users and internet penetration across the globe further boosted the online distribution channel segment during the forecast period.

Regional Insights

North America A2 milk market is expected to grow with a CAGR of 18.7% from 2025 to 2030. Countries such as the U.S. and Canada are positively contributing to the growth of the market owing to the significant demand for healthy milk across the countries. This rapid growth is expected due to the increased demand with acceptance of A2 milk as beverages and increased spending from consumers.

U.S. A2 Milk Market Trends

U.S. A2 milk market is expected to grow with a CAGR of 18.7% from 2025 to 2030. The U.S. A2 Milk market has been experiencing significant growth in recent years, driven by increasing consumer awareness of potential digestive benefits and a growing interest in premium dairy products. A2 Milk Company, the pioneer in this segment, has established a strong presence, but competition is intensifying as more domestic dairy producers enter the market.

Europe A2 Milk Market Trends

Europe A2 milk market is expected to grow with a CAGR of 18.1% from 2025 to 2030. The European A2 Milk market has been experiencing steady growth, driven by increasing consumer awareness of its potential health benefits. This growth is expected to continue, with consumers showing a willingness to pay premium prices for A2 milk products. The market is seeing diversification beyond liquid milk into A2 yogurts and cheeses. There's also a notable trend towards organic and grass-fed A2 milk, aligning with broader preferences for natural and sustainably produced dairy.

Asia Pacific A2 Milk Market Trends

Asia Pacific A2 milk market is expected to grow with a CAGR of 18.9% from 2025 to 2030, accounted for the largest market share of 53.7% in 2024 . Consumer awareness of A2 milk's potential digestive benefits is rapidly increasing, particularly among urban, health-conscious consumers and parents of young children. The market is seeing significant product diversification, with A2 milk being incorporated into onlines, flavored milk drinks, and other dairy products. In countries such as India, where lactose intolerance is prevalent, A2 milk is gaining traction as a more digestible alternative to conventional milk.

Japan A2 milk market is expected to grow with a CAGR of 18.1% from 2025 to 2030. Japanese consumers, known for their high health consciousness and willingness to try functional foods, are gradually becoming aware of A2 milk and its potential benefits. The aging population in Japan is a significant driver, as older consumers are often more concerned about digestive health. A2 milk is being marketed as a premium product, aligning well with Japan's preference for high-quality, value-added dairy products.

Key A2 Milk Company Insights

The market is characterized by the presence of various well-established players and several small and medium players. In July 2023, A Greener World (AGW) announced that the a2 Milk Company’s Grassfed a2 Whole Milk and Grassfed a2 2% Reduced Fat Milk have earned the Certified Regenerative label from AGW. This certification ensures the entire farm's commitment to regeneration and sustainability. It evaluates positive impacts on soil health, water quality, air, biodiversity, infrastructure, animal welfare, and social responsibility. The A2 milk manufacturers are aggressively following organic as well as inorganic strategies to expand their footprints across the geography.

Recent Developments

• In April 2024, The a2 Milk Company launched a fresh brand platform, marking its first collaboration with creative agency BMF. The new campaign, titled "Tough Tummies," revolves around the platform "Only a2 Will Do," emphasizing the unique absence of the A1 protein in a2 Milk, which is present in most regular milk. This campaign aims to highlight the benefits of a2 Milk for individuals with sensitive stomachs, promoting its natural composition as a healthier choice for easier digestion.

A2 Milk Market Report Scope

Global A2 Milk Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global a2 milk market report on the basis of product, packaging, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Liquid

  • Powder

• Packaging Outlook (Revenue, USD Million, 2018 - 2030)

  • Cartons

  • Bottles

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2018 - 2030)

  • Hypermarkets & Supermarkets

  • Convenience Stores

  • Online

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia & New Zealand

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa