North America A2 Milk Market

North America A2 Milk Market Analysis:

North America A2 Milk Market is estimated to experience reasonable growth to record a CAGR of xx.xx% throughout the estimated period (2022 - 2027).

Beta-casein (BC) is also called β-casein and is a phosphoprotein. Additionally, cow's milk contains both the A1 and A2 forms of beta-casein protein. In addition to this, beta-casein A1 and beta-casein A2 are the genetic variants of the milk protein beta-casein. Apart from this, gastrointestinal digestion of the protein β-casein A1 produces the opioid peptide β-casomorphin 7 (BCM7) due to the presence of His67. However, the probability of BCM7 appearance in A2 beta-casein is very low. The release of BCM7 causes negative gastrointestinal effects due to milk consumption and can also cause lactose intolerance in people. This, in turn, has increased the demand for A2 milk around the world in recent years. The North America 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.

Market Drivers and Restraints:

The increasing incidence of gastrointestinal problems associated with traditional milk containing A1 beta-casein protein may be due to the rise of the A2 dairy industry. Due to the consumption of standard or A1 milk worldwide, the increasing incidence of health problems is expected to remain the dominant factor in the demand in the market for A2 milk. Factors such as the rise in the health-conscious population and increased product recognition are also expected to have a positive effect during the forecast period on the growth of the A2 milk industry. Furthermore, with the small reach of the product in the market, the opportunity for A2 dairy farmers to expand their sales worldwide is strong. The demand for functional drinks with digestive benefits has increased. Demand for A2 milk is increasing due to increased customer health awareness, increased market purchases, and product awareness and information through advertisements. Also, buyers are increasingly leaning towards organic beverages, such as having simpler labels, no list of additives/preservatives, non-GMOs, and identifiable ingredients. It is one of the most important variables in demand for milk a2. Unlike traditional milk, the price of A2 milk is higher. Therefore, the high price of A2 milk is an obstacle to the development of the industry.

Market Segmentation:

The market segmentation for North America A2 Milk can be divided into form, Packaging, and Distribution channel. The powder segment is projected to become the market leader and record the highest CAGR to reach $ 3,948.6 million by the end of 2025. 

Based on the packaging, the largest share of the world A2 milk market in 2019 was attributed to the carton segment. Cartons allow merchandise to have a longer shelf life, pay lower shipping costs, and are also convenient and safer for customers. 

On the basis of distribution channels, the store-based category will dominate the industry. Supermarkets and hypermarkets offer customers a high degree of exposure and an attractive variety of herbal products. It helps them explore new varieties and appreciate logos to help distinguish products. In comparison, supermarket chains are one of the most visited stores for grocery shopping.

Impact of covid-19 on North America 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.

Regional Analysis:

Geographically the North America A2 Milk Market is segmented into US, Canada, Mexico and Rest of North America

The market for North America A2 Milk has been categorized on the basis of geography to offer a clear understanding of the market. North America A2 Milk Market has been divided into the United States, Canada, Mexico, and the rest of North America. The North American market is expected to reach USD 4.75 billion. Many dairy farms in the region are increasingly turning to cattle breeds such as Guernsey and Jersey, 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 the United States.

Leading Company

Nestlé S.A. had the largest share of the North America A2 Milk Market in terms of sales revenue in 2021.

Key Players

The North America A2 Milk Market is concentrated with well-established players. Key players in the North America A2 Milk Market include Saputo, Groupe Lactalis, Nestlé S.A, Westland Milk Products, Fonterra, Friesland Campina, Groupe Lactalis, Arla Foods, and Danone S.A.