A2 Milk Market Report 2026

The A2 milk market size has grown rapidly in recent years. It will grow from $2.85 billion in 2025 to $3.27 billion in 2026 at a compound annual growth rate (CAGR) of 14.9%. The growth in the historic period can be attributed to growing consumer awareness of milk protein types, rising prevalence of lactose sensitivity perceptions, expansion of specialty dairy retail channels, early branding investments by a2 milk producers, increasing premium dairy consumption.

The A2 milk market size is expected to see rapid growth in the next few years. It will grow to $5.72 billion in 2030 at a compound annual growth rate (CAGR) of 15%. The growth in the forecast period can be attributed to expansion into emerging markets, rising demand for functional nutrition, broader online retail penetration, innovation in dairy processing technologies, increasing preference for protein-rich diets. Major trends in the forecast period include clean-label and natural ingredient preference, rising adoption of digestive-friendly dairy products, premiumization of specialty milk categories, expansion of a2 milk in functional and fortified formulations, growing shift toward alternative packaging formats for dairy.

The surging incidence of lactose intolerance is acting as a catalyst in propelling the A2 milk market forward. Lactose intolerance, a condition characterized by the body's inability to fully digest lactose, the sugar present in milk and other dairy products, has spurred interest in A2 milk. A2 milk, containing only A2 beta-casein protein, is deemed more suitable for individuals with lactose intolerance compared to A1 milk. As reported by the National Institutes of Health (NIH) in 2023, approximately 65% of the global population grappled with lactose intolerance. Specific regional statistics noted that 50% to 80% of South Americans, 100% of American Indians, and roughly 60% to 80% of Ashkenazi Jews and Africans experienced lactose intolerance. Consequently, the escalating prevalence of lactose intolerance is a significant driver of the A2 milk market.

Leading firms in the A2 milk market are directing their efforts towards developing innovative products, such as a2 Milk Grassfed Whole Milk and a2 Milk Grassfed 2% Reduced Fat Milk, aiming to gain a competitive advantage. These A2 milk offerings are sourced from cows that naturally produce solely the A2 protein. In April 2023, The a2 Milk Company Limited, a New Zealand-based dairy company, introduced the a2 Milk Grassfed Whole Milk and a2 Milk Grassfed 2% Reduced Fat Milk. Endorsed as Grassfed and Certified Regenerative by AGW (A Greener World), a US-based non-profit organization advocating verified farming practices, these products merge the digestive advantages of A2 Milk with grassfed milk. This provides health-conscious consumers with a novel dairy option.

In October 2024, Harbour Asset Management Limited, an investment management firm based in New Zealand, acquired a 5.016% stake in A2 Milk Company Limited. Following this acquisition, Harbour gained the authority to vote on, acquire, or dispose of shares through its subsidiary and investment agreements, including those with BNZ Investments Limited. This strategic move has sparked interest in the financial market, as Harbour strengthens its position within the dairy company’s landscape. A2 Milk Company Limited is a New Zealand-based provider of A2 milk.

Major companies operating in the A2 milk market are Anand Milk Union Limited, Erden Creamery Private Limited, Ripley Farms LLC, The a2 Milk Company Limited, Urban Farms Inc., Vinamilk, Vedaaz Organics Pvt. Ltd., Vrindavan Dairy LLP, Sids Farm Private Limited, Happy Milk, Indus Milk, Humpy A2, Alexandre Family Farm, Indigau, Synlait Milk Limited, Fonterra Co-operative Group Limited, Westland Milk Products, Murray Goulburn Co-operative Co. Limited, Bellamy's Organic, Milk New Zealand Corporation, Jersey Dairy, Organic Valley, Bubs Australia, Natrel, Snow Brand Milk Products Co. Ltd.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are influencing the A2 milk market by increasing import and packaging material costs, particularly for liquid and powder formats sourced across borders, thereby raising production expenses for manufacturers. These impacts are more pronounced in regions dependent on imported dairy inputs such as Asia-Pacific and parts of Europe, with segments like infant formula and premium liquid A2 milk being most affected. However, tariffs are also encouraging localized production, strengthening domestic supply chains, and creating opportunities for regional brands to gain market share while reducing reliance on global logistics constraints.

The A2 milk market research report is one of a series of new reports that provides A2 milk market statistics, including the A2 milk industry’s global market size, regional shares, competitors with an A2 milk market share, detailed A2 milk market segments, market trends, and opportunities, and any further data you may need to thrive in the A2 milk industry. This A2 milk market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

A2 milk is a variety of cow's milk that exclusively contains the A2 beta-casein protein, distinguishing it from regular cow's milk, which contains both A1 and A2 beta-casein proteins. This type of milk is often consumed by individuals who experience difficulties digesting regular milk.

A2 milk is available in both liquid and powder forms. In its liquid form, A2 milk serves as a beverage or health drink, packaged in cartons, box packs, glass bottles, cans, plastic pouches, and bottles. Distribution channels for A2 milk include supermarkets, hypermarkets, convenience stores, online retail, and other outlets. This specialized milk is utilized for various applications such as infant formula, milk-based beverages, bakery and confectionery products, as well as in the production of other dairy items.Asia-Pacific was the largest region in the A2 milk market in 2025. The regions covered in the A2 milk market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the a2 milk market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The A2 milk market consists of sales of skim A2 milk and whole A2 milk. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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