The demand for A2 infant formula in the global market is poised to grow significantly with an estimated valuation of USD 834 million in 2023. The overall market is projected to exhibit a CAGR of 18% over the forecast period. The net valuation of the market is expected to reach USD 1,704 million by 2033.
A2 Infant Formula Market Trends
| Report Attribute | Details |
|---|---|
| A2 Infant Formula Market Revenue (2023) | USD 834 million |
| Anticipated Market Value (2033) | USD 1,704 million |
| Value-based CAGR (2023 to 2033) | 18% |
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Factors such as increasing consumer awareness for infants and growing demand for gentle and specialized infant formula options have contributed to the market demand. As more parents seek alternatives for their infants with sensitivities or intolerances, the A2 infant formula provides a viable solution.
The global A2 infant formula market has experienced a positive sales outlook from 2018 to 2022, and it is projected to continue growing over the coming years. The market has seen product innovations, improved formulations, and regional market expansion, further boosting sales. This has led to an expansion of the market as more consumers opt for A2 infant formula to meet their babies' specific nutritional needs.
| Historical Market Valuation, 2022 | USD 810 million |
|---|---|
| HCAGR (2018 to 2022) | 2.9% |
The market has also witnessed the expansion of distribution networks, including supermarkets, pharmacies, online platforms, and specialty stores. This enhanced accessibility has made A2 infant formula more readily available to consumers, thereby boosting sales.
The table below lists the countries that promise higher growth opportunities for regional as well as global market players. The United States is expected to maintain a dominant position in the global market with a 19.8% share, reflecting a higher demand for A2 infant formula products.
Germany, with a market share of 9.7% in 2023, has a strong focus on high-quality and organic products and a preference for alternatives to standard cow's milk-based formulas. Meanwhile, Australia, with a market share of 8.4% in 2023, is an emerging market due to its popularity of baby formulas made of cow milk.
| Countries | CAGR (2023 to 2033) |
|---|---|
| United States | 8.6% |
| Germany | 14% |
| China | 13.6% |
| Australia | 12% |
The A2 infant formula market in the United States is poised to exhibit a CAGR of 8.6% and reach a valuation of USD 337.4 million by 2033.
The US infant formula crisis of 2022 brought many European and Australian baby formula companies to the United States market. Now, three imported brands, Bubs, Care A2+, and A2 Platinum, sell the majority of A2 milk baby formula in the country.
Good Start®, Enfamil®, and Similac® offered A2 baby formula before the formula crisis but were not widely advertised, so parents might not be familiar with them. The A2 infant formula was available in the regional market and was promoted as appropriate for sensitive stomachs.
The popularity of baby formulas made with cow milk is driving the market for A2 infant formula in Australia. Furthermore, the market is expected to grow at a CAGR of 12%, reaching a size of USD 143.1 million by 2033.
There is an increasing demand for natural and premium products in the baby formula market in Australia. A2 infant formula, being made from A2 cow milk, is often associated with being a more natural choice for infant nutrition. This aligns with the preferences of parents who are seeking high-quality, organic, and minimally processed options for their babies.
The A2 Platinum® brand is very popular in Australia, and its infant formula and toddler milk are made from cow milk that contains A2 beta-casein protein.
Germany’s market is expected to attain a CAGR of 14% and reach a market valuation of USD 165.3 million by 2033.
The infant formula ingredient market in Germany is experiencing escalating demand due to a strong focus on high-quality and organic products. In addition to this, consumers' growing awareness of the health benefits of A2 milk over A1 milk is also driving the growth of the A2 milk market.
The demand for A2 infant formula in China is poised to grow at a CAGR of 13.6% over the forecast period. Market players in China offer a variety of A2 infant formula products with different formulations and nutritional profiles to cater to a larger consumer base.
Distribution channels for A2 infant formula also extend beyond the domestic market, particularly to neighboring South East Asian countries. The market in China has been witnessing growth recently due to increasing consumer awareness about the potential benefits of A2 milk for infant nutrition in many emerging Asian countries.
Based on form, the powder segment is expected to hold a market share of 78% in 2023 and reach a market valuation of USD 1,329.1 million by 2033.
| Attributes | Details |
|---|---|
| Top Form Type | Powder Form |
| Market Share in 2023 | 78% |
Powdered A2 infant formula is the most commonly consumed form of infant formula. It is easy to store and convenient to prepare by mixing it with water. Powdered infant formula is also the least expensive form compared to other infant formulas. In addition to this, the powder form allows parents to measure and control the precise amount of formula needed for each feeding, making it a preferred choice for many parents.
Based on age group, the infant formula for 0 to 6 months is expected to hold a market share of 38% in 2023 and reach a market valuation of USD 647.5 million by 2033.
| Attributes | Details |
|---|---|
| Top Age Group | 0 to 6 Months |
| Market Share in 2024 | 38% |
While A2 infant formula may still be consumed in the follow-on formula and growing-up formula stages, the major demand is generally seen for children in the 0 to 6 month’s age group. However, it's essential to consider that individual preferences and recommendations from healthcare professionals influence the exact age group with higher consumption.
The global A2 infant formula market has a diverse and dynamic competitive landscape. Leading companies specializing in diverse fields are focusing on research and development, sustainable sourcing, and new formulations.
These companies strongly emphasize product certifications and meeting the growing demand for natural and sustainable ingredients. Additionally, it tries to preserve its market position and capitalize on the growing demand by focusing on quality, innovation, and matching customer preferences.
Recent Developments in the A2 Infant Formula Market
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| Attributes | Details |
|---|---|
| Estimated Market Size (2023) | USD 834 million |
| Projected Market Size (2033) | USD 1,704 million |
| Anticipated Growth Rate (2023 to 2033) | 18% |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD million or billion for Value and Units for Volume |
| Key Regions Covered | North America, Latin America, Europe, Middle East & Africa (MEA), East Asia, South Asia and Oceania |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Germany, Spain, Italy, France, United Kingdom, Russia, China, India, Australia & New Zealand, GCC Countries, and South Africa |
| Key Segments Covered | By Form Type, By Age Group, By Distribution Channel and By Region |
| Key Companies Profiled |
The A2 Milk Company; Synlait Milk; Bubs Australia Limited.; Care A2+; Bellamy's Organic; Abbott; Mead Johnson; Perrigo |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The A2 infant formula market is expected to grow at a CAGR of 18% through 2033.
The A2 infant formula market is expected to be worth USD 1,704 million by 2033.
Currently, North America is at the top of the global market share for A2 infant formula.
The specialty health and wellness stores are expected to hold a 22% market share in 2023.
Some of the key players include the A2 Milk Company, Synlait Milk, and Bubs Australia.
| Market Size (2024E) | USD 50,126 million |
|---|---|
| Market Value (2034F) | USD 1,15,326 million |
| Value-based CAGR (2024 to 2034) | 8.7% |
| Market Size (2023) | USD 2036.6 million |
|---|---|
| Market Size (2033) | USD 5120.9 million |
| CAGR (2023 to 2033) | 9.5% |
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A2 Infant Formula Market
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