A2 Yogurt Market Outlook from 2025 to 2035

The global A2 yogurt industry is estimated to be worth USD 3.4 Billion by 2025. It is projected to reach USD 5.6 Billion by 2035, reflecting a CAGR of 6.4% over the assessment period 2025 to 2035.

A2 yogurt is a dairy product made from A2 milk that contains only the A2 beta-casein protein, mostly contrary to the conventional milk that contains both A1 or a2 proteins. A2 milk comes from cows with a particular genetic disposition called A2A2, so they produce milk devoid of the A1 variant.

This process involves selectively breeding the cows-mostly Jersey and Guernsey breeds-in order that they provide A2 milk. This type of milk is preferred by consumers not comfortable in drinking regular milk, with many claiming it is easier to digest and causes less digestive distress.

The A2 yogurt market has been expanding considerably owing to the rise in consumer knowledge, health, and wellness. As more and more people go for natural dairy products that do not cause any discomfort while takes in digesting, A2 yogurt has become popular as a healthier alternative.

There is an increasing draw for products that claim additional nutritional benefits without the issues consumers may initially have suffered. This is within the wider industry trend for clean-label foods that are synonymous with natural ingredients and have transparency focused on their provenance.

The key trends from key markets such as Australia, the USA, and Germany show rising demand for A2 yogurt. Consumers in Australia, where the A2 type was first marketed, are driving demand for health benefits and are willing to pay more for high-quality dairy alternatives.

Within the USA market, functional foods that promote digestive health are gaining wider acceptance, with sustainability and regional sourcing becoming increasingly central to the conversations in Germany. Overall, all the trends can be interpreted as a switch to a healthier mode of eating-A2 yogurt would come out as a way of giving value to consumers conscious about health needs as an alternative to conventional dairy products.

Attributes Description
Estimated Global A2 yogurt Industry Size (2025E) USD 3.4 Billion
Projected Global A2 yogurt Industry Value (2035F) USD 5.6 Billion
Value-based CAGR (2025 to 2035) 6.4%

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Semi-Annual Market Update

The below table presents a comparative assessment of the variation in CAGR over six months for the base year (2024) and current year (2025) for the global A2 Yogurt Market. This analysis reveals crucial shifts in performance and indicates revenue realization patterns, thus providing stakeholders with a better vision of the growth trajectory over the year. The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December.

Particular Value CAGR
H1 6.3% (2024 to 2034)
H2 5.1% (2024 to 2034)
H1 5.4% (2025 to 2035)
H2 5.1% (2025 to 2035)

In the first half (H1) of the decade from 2025 to 2035, the business is predicted to surge at a CAGR of 5.4%, followed by a higher growth rate of 5.1% in the second half (H2) of the same decade. Moving into the subsequent period, from H1 2025 to H2 2035, the CAGR is projected to increase to 5.4% in the first half and remain considerably high at 5.1% in the second half.

Key Industry Highlights

Navigating the A2 Dairy Production Landscape: Opportunities and Challenges for Processors

In many ways, A2/A2 dairy production is receiving increasing interest because of consumer demand for health benefits, providing both opportunities and challenges for dairy processors. A2 milk is thought to provide benefits such as less digestive discomfort for some individuals because it contains only A2 beta-casein protein.

There are differences in the way structure influences A1 and A2 protein's effect on casein micelle stability, which creates challenges in processing that include problems with acid gelation and heat stability.

In light of the increasing demand for A2-dairy products, processors must modify their procedures to overcome these hurdles. It is of utmost importance to investigate the behavior of A2-milk during various processing conditions. Processing methods can be adapted and also the possibility of the addition of other ingredients with a view to high quality A2-dairy products.

However, modification could demand more precision in control and could increase production costs. Nevertheless, the rapidly growing A2 dairy product market presents unique opportunities. Companies that successfully negotiate a path around challenges can place themselves in a favorable position for this expanding segment, as consumers increasingly want their dairy minimally processed and health-friendly.

Ultimately, consistent high-quality A2-dairy product production depends on how effectively companies can blend these observations into dairy processing.

Increased Consumption and Production of A2 Milk: Fueling the Growth of the A2 Yogurt Market

With strong consumption and production growth for A2 milk, already popular with health-conscious consumers, its market for A2 yogurt is likely to double. The increased awareness of the health benefits of A2 milk has propelled the balanced manufacturers to focus on A2/A2 milk production for the comfort of the consumers. This shift in focus is mainly because A2 milk reduces digestive discomfort pertaining to regular A1 milk, and hence, it is juicy for those who are sensitive.

The successful commercialization of A2 milk began in New Zealand with the establishment of The A2 Milk Company in 2003. The company's fame has since spread rapidly across continents, with A2 milk capturing nearly 10% of the Australian milk market in the span of less than a decade, showing that the product is quite popular with consumers.

This trend has also made its way to North America and Europe, where the dairy farmers are increasingly adopting A2 genetics to cater to consumer demand. The production of A2 milk requires particular attention to avoid contamination with A1 protein, thus necessitating separate facilities for processing.

With all the troubles surrounding A2 production, the economics of A2 production are sound, judging by the premium consumers are willing to pay for certain shadowy and vague health benefits. The increased consumption and production of A2 milk are therefore likely to provide major fillups to market the expected growth of A2 yogurt in the years ahead.

Harnessing Opportunities in Emerging Markets: The Growth Potential of A2 Yogurt

A2 yogurt stands to benefit from increased disposable income and rising health consciousness in emerging markets. In nations such as India, where milk has belonged to the food basket for centuries, A2 milk and its products are becoming more widely acknowledged. Health-conscious consumers are now looking for nutritious dairy staples of sorts in accordance with their dietary preferences.

India, while having a big population and a rich heritage in dairy, is beginning to sway toward A2 milk production. India, the world leader in milk production, produces approximately 176.3 million tonnes of milk a year, according to the esteemed National Academy of Agricultural Sciences. Given the increasing awareness regarding the probable benefits of A2 milk, many farmer groups are coping with the growing demand for A2 yogurt and live A2 cattle.

This change is being further reinforced by the growing supply of A2 dairy products in urban areas, where the consumer will pay a premium for perceived health benefits. Developing countries endorse natural and organic food. Consumers increasingly prefer products without the addition of preservatives. This surging demand for a healthier dairy option puts A2 yogurt on a good pedestal and will most likely see healthy growth in emerging markets from 2025 to 2035.

Nandini Roy Choudhury
Nandini Roy Choudhury

Principal Consultant

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2020 to 2024 Global A2 yogurt Sales Analysis Compared to Demand Forecasts for 2025 to 2035

2020 to 2024 Global A2 Yogurt Sales Analysis

From 2020 to 2024, the market for A2 yogurt has grown at immense rates, significantly due to the rise in health consciousness among consumers. The demand for dairy products perceived to be healthier alternatives soared, with A2 yogurt being ingested for its digestibility and nutritional benefits.

In the years that followed, companies such as The A2 Milk Company and Nestlé took advantage of the rise, creating more products and raising anti-A2 industry awareness through targeted marketing campaigns. Respondents to the COVID-19 pandemic heightened the urgency for consumers seeking immune-boosting food, further boosting sales during that timeframe.

Demand Forecasts for 2025 to 2035

The A2 yogurt industry analysis indicates that the market is set to provide a new push with the fed advancements in dairy processing technologies and increased impacts on personalized nutrition during the years 2025 to 2035. Innovations in product formulation will prove more appealing to A2 yogurt, bringing it closer to being a mainstay of health-conscious diets. Moreover, the growing disposable income in upcoming economies enables the consumer to go for premium dairy products.

Directly therefore, Amul and Lactalis are expected to continue expanding their presence in these markets for functional foods among the lucrative crowd. These are among the many factors that determine the significant increment of the A2 yogurt market over the last decade

Market Concentration

Mostly, market share leadership in A2 yogurt sector goes by Tier 1 companies such as The A2 Milk Company, Danone, and Nestlé. On the other hand, The A2 Milk Company has invested heavily, including buying a 75% stake in Mataura Valley Milk, which has come to complement its income through better-endowed nutritional products.

Tier 2 companies, such as Lactalis and Arla Foods, concentrate on particular regions and specialized products, working together to develop appealing offerings. As an example, Lactalis collaborates with local dairies to deliver distinctive A2 yogurt lines targeted at health-minded consumers.

Tier 3 companies like Highland Farms and Alexandre Family Farm emphasize quality and local demands rather than sheer volume. By cultivating robust connections within their communities, these businesses promote A2 yogurt brands and shape the competitive environment through partnerships, mergers, and acquisitions.

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Country-wise Insights

The following table shows the estimated growth rates of the top three territories. China and USA are set to exhibit high consumption, recording CAGRs of 6.1% and 5.9%, respectively, through 2035.

Countries CAGR 2025 to 2035
USA 5.9%
Canada 7.4%
Germany 4.8%
UK 6.0%
China 6.1%

The A2 yogurt industry analysis indicates that the A2 yogurt sector in Australia and New Zealand has been moulded mainly by The A2 Milk Company, which endeavours much into the representations of the A2 protein. Since its establishment, the company has persuaded the farmers to join herd improvement programs that will enable them to select cows that produce milk containing predominantly A2 beta-casein.

The launch of products in New Zealand by A2 Milk was met with fierceness not only from Fonterra but also faced other initial challenges. A2 Milk commenced selling its products in New Zealand in 2003.

Meanwhile, recent years have seen an evident market competition and innovation in A2 yogurt as the most significant players-Danone and Nestlé-broke into the segment by forming strategic alliances and newly launched products. One of the examples is the move where Danone considered improving its portfolio by adding A2 yogurts since they are popularly taken on the basis of loving very digestible dairy products.

This, as far as liquid milk consumption is concerned, has created an event where A2 is leading among the Fresh Liquid Milk category in the Australian market. Continued effort on R&D and the possibility of mergers and acquisitions put the company in an appropriate position to tap the health consciousness popularity of the consumers. The A2 yogurt sector in the area continues to be bright due to better awareness of the A2 products.

Unlocking Opportunities: The Rapid Growth of the A2 Yogurt Market in China

The A2 yogurt industry outlook in China is growing rapidly owing to the increasing demand for dairy products. The growth of the dairy market in the country is predicted to be enormous, as evidenced by projections indicating that the overall market will grow by about 10%, while the milk formula markets are expected to grow an impressive 25% from over the period of 2016 to 2021.

Rising affluence, evolving consumers' tastes, and enhanced marketing channels have been responsible for this increased access. Even as domestic demand continues to outpace supply, international exporters import New Zealand, Australia, Europe, and the United States in order to fill the gap. According to the New Zealand dairy market research, Chinese dairy companies are currently investing abroad to secure resources "crucial" to their offering, including powdered milk and cheese.

Raising awareness of the health benefits associated with A2 protein is another reason for the consumption of A2 yogurt in China. As more people become aware of the benefits of health consciousness and easier digestion, so too is their demand for A2 yogurt likely to increase. This bright market landscape and changing consumer inclination mean that A2 yogurt in China is positioned for significant growth and opportunities for local and international players.

Growth Prospects for the A2 Yogurt Market in Europe

This market is highly suitable for growth because of a highly developed dairy industry, coupled with increase in consumer knowledge of health benefits. The increasing demand for A2 milk is coming from countries like Germany, the UK, and France, especially in bakery and confectionery products. Another reason for the increasing popularity of A2 yogurt would be the fact that Europeans suffer from lactose-intolerance so much that many of them have learned to seek alternatives which would be easier to digest.

Continuous research and development with innovations in the dairy sector introduce more products into the market. Danone and Nestlé, for instance, invest significantly in launching A2 Yogurts targeted at health-conscious consumers. The A2 yogurt industry analysis is also well-defined in terms of diversity in distribution preferred to supermarkets along with the upcoming online platforms to catch the attention of potential clients.

This trend seems to be maturing, as people will have more focus on the quality of ingredients and nutrition. This makes the future bright for the European A2 yogurt industry for several years to come, really booming as health-conscious minded consumers are turning increasingly towards products that comply with their dietary needs.

Category-Wise Insights

Plain A2 Yogurt hold highest share in global market

Segment Plain (By Flavor)
Value Share (2025) 37.6%

The simple portion of the A2 yogurt market is fast gaining ground from the health benefits and uses it promotes. Made using A2 milk, plain yogurt has got no artificial colors, flavors, and additives that are often found in flavored varieties. This kind of segment is at its best in the food service industry, improving flavor and texture into different dishes.

Health-enthusiasts buy plain A2 yogurt because it's high in protein and, since there's no added sugar, it helps in better digestion. This has been supported by the raising awareness of A2 milk nutritional advantages. The growing trend for clean-label products corresponds with the increasing consumer desire to know about transparency in food sourcing and production.

Routine product innovations such as introducing high-protein variants and fortified product lines will soon pave the way toward market growth. The plain A2 yogurt segment is a large segment of the market globally and is expected to grow at a good CAGR as the consumer continues to look for natural and nutrients-rich food alternatives.

Influence of Supermarkets and Hypermarkets on A2 Yogurt demand

Segment Supermarkets and Hypermarkets (By Distribution Channel)
Value Share (2025) 36.4%

The presence of A2 yogurt in supermarkets and hypermarkets significantly contributes to the positive A2 yogurt industry outlook. They contribute the largest revenue share during 2021 with respect to the convenience and number of products sold through this channel.

Supermarkets and hypermarkets maintain controlled temperature shelves for their dairy products, which is essential for perishable items like the A2 yogurt. A consumer is looking for availability as such retail formats have made it more accessible for consumers who seek A2 yogurt for meeting their increasing demand for health-conscious dairy products.

One-stop shopping also allows a consumer to buy A2 yogurt with other necessary items, thus encouraging trial purchases and repeat purchases. These stores further provide competitive pricing strategies, which will make A2 yogurt more eye-catching for price-sensitive consumers.

Besides, the continuous development of online shopping will complement the traditional retailing, as consumers resort more to the comfort of home delivery. The A2 yogurt industry outlook indicates that the expansion of supermarkets and hypermarkets, coupled with the growth of online platforms, is expected to boost the A2 yogurt market significantly in the coming years.

Competition Outlook

The competition scenario in the A2 yogurt industry oulook is significantly inflating with well-established and emerging brands. Danone, Nestlé, and Chobini are a few of the major companies where their strong competitive strategies include the widest distribution networks, brand recognition, and large market coverage in leading innovative A2 yogurt offerings.

These companies engage in continuing product launches and strategic partnerships to boost their A2 yogurt offers. A good example is Danone, which has added innovative A2 yogurt products for health-conscious consumers.

On the other hand, Arla Foods and Lactalis have taken a big leap in regional markets and niche product categories. Their collaboration with local dairy farmers secures high-quality A2 milk, which ensures constant product quality. Smaller players such as Highland Farms and Alexandre Family Farm also add into the market by addressing local tastes and emphasizing on sustainability. In short, members of such companies are mergers, acquisitions, or strategic alliances that shape up a competitive environment healthy for innovative growth in A2 yogurt.

For instance

  • Health and Wellness Focus: Growing product demands for the digestive health effect without any artificial ingredients has made it further advanced into customers' minds. The expansive A2 yogurt lines by companies like Chobani and Danone further demonstrate their focus in marketing natural ingredients and probiotic utility to health-minded audiences.
  • Regional Market Growth: Significant growth within the regions for the A2 yogurt segment is being recorded, including emerging portions of Asia and North America. Nestlé and Lactalis are investing in marketing efforts to educate consumers about the benefits of A2 milk, tapping into the rising trend of lactose intolerance awareness.

Leading Brands

  • Arla Foods Amba
  • Britannia industries limited
  • Chobani, Llc
  • Danone
  • General Mills, Inc.
  • Gujarat Cooperative Milk Marketing Federation (Amul)
  • Lactalis Corporation
  • Nestle S.A.
  • Saputo Inc
  • Schreiber Foods Inc.
  • Highland Farms
  • Alexandre Family Farm
  • Miller’s Bio Farm
  • Others

Key Segments of the Report

By Product Type:

As per product type, the industry has been categorized into Greek Yogurt, Yogurt Drinks and Frozen Yogurt.

By Flavor:

As per Flavor, the industry has been categorized into Plain and Flavored.

By Distribution Channel:

This segment is further categorized into Supermarkets and Hypermarkets, Online Retailers, Specialty Stores, Food Service Industry and Others Distribution Channel.

By Source Type:

As per Source Type, the industry has been categorized into Conventional and Organic.

By Region:

Industry analysis has been carried out in key countries of North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa.

Frequently Asked Questions

What is the current value of the A2 yogurt industry?

The global industry is estimated at a value of USD 3.4 Billion in 2025.

At what rate did the sales for A2 yogurt grow between 2020 and 2024?

Sales increased at 5.1% CAGR between 2020 and 2024.

Who are the leading manufacturers of A2 yogurt?

Some of the leaders in this industry include Arla Foods Amba, Britannia industries limited, Chobani, Llc, Danone, General Mills, Inc., Gujarat Cooperative Milk Marketing Federation (Amul), Lactalis Corporation, Nestle S.A., Saputo Inc, Schreiber Foods Inc., Highland Farms, Alexandre Family Farm and Miller’s Bio Farm.

Which region will garner a significant value share by 2025?

The North America is projected to hold a revenue share of 32.6% over the forecast period.

At what CAGR is the global forecast to grow from 2025 to 2035?

The industry is projected to grow at a forecast CAGR of 6.4% from 2025 to 2035.

Table of Content
  • 1. Executive Summary
  • 2. Industry Introduction, Including Taxonomy and Market Definition
  • 3. Market Trends and Success Factors, Including Macro-economic Factors, Market Dynamics, and Recent Industry Developments
  • 4. Global Market Demand Analysis 2020 to 2024 and Forecast 2025 to 2035, including Historical Analysis and Future Projections
  • 5. Pricing Analysis
  • 6. Global Market Analysis 2020 to 2024 and Forecast 2025 to 2035
    • 6.1. Product Type
    • 6.2. Flavor
    • 6.3. Distribution Channel
    • 6.4. Source Type
    • 6.5. Region
  • 7. Global Market Analysis 2020 to 2024 and Forecast 2025 to 2035, by Product Type
    • 7.1. Greek Yogurt
    • 7.2. Yogurt Drinks
    • 7.3. Frozen Yogurt
  • 8. Global Market Analysis 2020 to 2024 and Forecast 2025 to 2035, by Flavor
    • 8.1. Plain
    • 8.2. Flavored
  • 9. Global Market Analysis 2020 to 2024 and Forecast 2025 to 2035, by Distribution Channel
    • 9.1. Supermarkets and Hypermarkets
    • 9.2. Online Retailers
    • 9.3. Specialty Stores
    • 9.4. Food Service Industry
    • 9.5. Others Distribution Channel
  • 10. Global Market Analysis 2020 to 2024 and Forecast 2025 to 2035, by Source Type
    • 10.1. Conventional
    • 10.2. Organic
  • 11. Global Market Analysis 2020 to 2024 and Forecast 2025 to 2035, by Region
    • 11.1. North America
    • 11.2. Latin America
    • 11.3. Western Europe
    • 11.4. Eastern Europe
    • 11.5. Balkans & Baltic
    • 11.6. Russia & Belarus
    • 11.7. Central Asia
    • 11.8. East Asia
    • 11.9. South Asia & Pacific
    • 11.10. Middle East & Africa
  • 12. North America Sales Analysis 2020 to 2024 and Forecast 2025 to 2035, by Key Segments and Countries
  • 13. Latin America Sales Analysis 2020 to 2024 and Forecast 2025 to 2035, by Key Segments and Countries
  • 14. Western Europe Sales Analysis 2020 to 2024 and Forecast 2025 to 2035, by Key Segments and Countries
  • 15. Eastern Europe Sales Analysis 2020 to 2024 and Forecast 2025 to 2035, by Key Segments and Countries
  • 16. Balkans & Baltic Sales Analysis 2020 to 2024 and Forecast 2025 to 2035, by Key Segments and Countries
  • 17. Russia & Belarus Sales Analysis 2020 to 2024 and Forecast 2025 to 2035, by Key Segments and Countries
  • 18. Central Asia Sales Analysis 2020 to 2024 and Forecast 2025 to 2035, by Key Segments and Countries
  • 19. East Asia Sales Analysis 2020 to 2024 and Forecast 2025 to 2035, by Key Segments and Countries
  • 20. South Asia & Pacific Sales Analysis 2020 to 2024 and Forecast 2025 to 2035, by Key Segments and Countries
  • 21. Middle East & Africa Sales Analysis 2020 to 2024 and Forecast 2025 to 2035, by Key Segments and Countries
  • 22. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
  • 23. Company Profile
    • 23.1. Arla Foods Amba
    • 23.2. Britannia Industries Limited
    • 23.3. Chobani, LLC
    • 23.4. Danone
    • 23.5. General Mills, Inc.
    • 23.6. Gujarat Cooperative Milk Marketing Federation (Amul)
    • 23.7. Lactalis Corporation
    • 23.8. Nestle S.A.
    • 23.9. Saputo Inc
    • 23.10. Schreiber Foods Inc.
    • 23.11. Highland Farms
    • 23.12. Alexandre Family Farm
    • 23.13. Miller’s Bio Farm
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