Europe A2 Milk Market

Europe A2 Milk Market Analysis:

Europe A2 Milk Market is expected at USD xx.xx million in 2021 and is anticipated to the extent an over of USD xx.xx million by the end of the assessment period. The Europe A2 Milk Market is estimated to experience reasonable growth to record a CAGR of xx.xx% throughout the estimated period (2022 - 2027).

Two variants of the beta-casein protein are present in cow's milk: A2 and A1. Milk containing only one A2 beta-casein protein identified as A2 milk. A2 milk is milk from specific breeds and varieties of cows that helps produce the beta-casein protein in their milk with a proline number of 67. These cows are mostly older breeds and are mainly found in India. Some breeds that produce A2 milk are Shahiwal, Red Sindhi, Guernsey, and Gir. A2 milk contains more nutrients than normal milk because it contains nutrients such as potassium, calcium, protein, and vitamin D.

Recent Developments

In 2018, Nestlé S.A. launched its new organic and natural product, “illuma Atwo.” Illuma Atwo is an infant formula formulated with A2 milk. This is expected to expand the company's product portfolio and strengthen its market position during the forecast period.

In February 2019, Fonterra Co-operative Group signed an agreement with farmers to supply milk to the a2 Milk Company Limited for the 2019-2020 season in New Zealand. The Fonterra cooperative dairy is expected to be based in Waikato, near its Hautapu site in New Zealand. This is expected to increase the supply of high-quality milk to The A2 Milk Company.

Market Drivers and Restraints:

The increase in the level of A2 milk production and the increase in disposable income are the main factors likely to stimulate the growth of the target market. Furthermore, the increasing awareness of A2 milk among consumers regarding the quality of A2 milk and the increasing shift of consumers from regular milk to A2 milk are some of the other factors likely to drive the target market demand. However, the high prices for A2 milk associated with this A2 milk substitute are available, and the lack of adequate scientific evidence on the benefits of A2 milk are the factors hampering the market growth during the forecast period. The increasing number of dairy products and the growth of dairy industries are also driving the demand for A2 milk, as it is also used in the manufacture of milk powder, cheese, ice cream, yogurt, butter, ghee, and many other products. A2 milk is used in bakeries and pastries and is also used to make milk-based drinks. For this reason, it is anticipated that there will be more launches of new dairy products with natural ingredients, such as a2 Milk, which are expected to drive the growth of the A2 milk market during the period. Many people face problems with the digestion of milk and are afraid to consume milk because they experience gas and bloating after consuming regular milk. A2 milk is easy to digest because it only contains A2-beta-casein protein. This is one of the opportunities that can bring benefits to the players operating in the world market for A2 milk.

Market Segmentation

By form, the Europe A2 milk market is segmented into Powder and Liquid.

Based on the packaging, the Europe A2 milk market segments are Bottle, Carton, and Others.

On the basis of distribution channel, the Europe A2 milk market is divided into Online Retail, Grocery & Convenience Stores, Supermarket & Hypermarket, and Others.

Impact of covid-19 on Europe A2 Milk Market

The onset of the pandemic, COVID-19, has resulted in the establishment of an epidemic. It has undermined the dairy supply chain and disrupted the entire value chain of dairy inputs, from sourcing raw materials to manufacturing, packaging, and delivery. Due to COVID-19, there has been a domino effect in the dairy industry, which has caused a decrease in the demand for dairy products, especially as an ingredient, which has caused the spillage of excess purchased A2 milk. Dairy cooperatives are encouraged to buy milk, such as A2 milk, from farmers to provide them with income. However, the demand for A2 milk is experiencing a decline in demand, putting dairy companies in a difficult situation. This also resulted in lower purchasing costs and the implementation by dairy companies of a new distribution plan. Since A2 milk suppliers in several countries are experiencing declining growth, they are optimistic about their sales growth in China.

Regional Analysis

The market for Europe A2 Milk has been classified on the basis of geography to offer a clear understanding of the market. The Europe A2 Milk Market has been divided into the United Kingdom, Germany, France, Italy, Spain, and the rest of Europe. Many dairy farms in the region are increasingly turning to cattle breeds, as they mainly produce A2 milk. Additionally, through supermarket chains such as Walmart, Kroger, and Costco, industry leaders are focusing on expanding their presence in Germany.

Leading Company

Dairy Farmers had the largest share of the Europe A2 Milk Market in terms of sales revenue in 2021.

Key Players

The Europe A2 Milk Market is concentrated with well-established players. Key players in the Europe A2 Milk Market include Fonterra, Amul, Dairy Farmers, Pura, Jersey Dairy, MLK A2 Cow Milk, and A2 Milk Company Limited.