The A2 Yogurt Market (2024 - 2030)

Based on recent market research, the A2 yogurt market reached a value of USD 6.67 billion in 2023 and is forecasted to achieve a total market worth of USD 20.02 billion by 2030. Throughout the analysis period (2024 - 2030), the market is expected to exhibit a Compound Annual Growth Rate (CAGR) of 17%.

Overview of A2 Yogurt Industry

The primary driving force behind the expansion of the market is the increasing awareness among consumers regarding health, leading to a surge in the consumption of A2 yogurt. Diversification of A2 milk product portfolios is anticipated to further stimulate demand within the global A2 yogurt market. Conversely, factors such as elevated pricing and accessibility of substitutes are anticipated to pose significant challenges to market growth. The global A2 yogurt market is comprehensively scrutinized in the research report, providing a detailed examination of key market segments, trends, drivers, constraints, competitive landscape, and other pertinent factors.

There has been a notable rise in the demand for functional beverages that promote digestive health. Factors such as heightened consumer health consciousness, increased spending capacity, and enhanced product awareness through advertising campaigns have all contributed to the escalating demand for A2 yogurt. Furthermore, consumers are displaying a preference for sustainably produced beverages, characterized by transparent ingredients, simplified labeling, absence of additives or preservatives, and non-GMO status. Notably, the utilization of A2 yogurt in infant formulas has garnered significant interest.

Impact of COVID-19 on the Industry

The COVID-19 pandemic spurred an increase in yogurt consumption owing to heightened awareness of its health benefits and the growing emphasis on immune-boosting foods. Individuals sought out foods believed to enhance their immune systems during the pandemic, with a particular preference for functional and highly nutritious options.

Market Drivers

Market growth is propelled by the escalating demand for natural and organic foods.

With shifting consumer preferences towards natural and organic foods, coupled with an increased awareness of functional beverages, A2 milk has gained popularity. This type of milk boasts high protein content and is free from hormones and antibiotics.

Increased consumer awareness is expected to drive market expansion.

Leading companies such as Yakult, Danone, Nestle, and Chobani are actively promoting yogurt consumption and raising awareness about its benefits. Despite challenges such as harmful hormonal treatments in milk-producing cows and chemical additives in yogurt, rising demand for yogurt in emerging markets is anticipated due to higher disposable incomes and heightened health consciousness.

Market Restraints

The market growth is hindered by the intolerance of probiotic yogurt to stomach acid and bile.

Probiotics face harsh conditions in the stomach and small intestine post-production, leading to degradation over time. According to food scientists in the UK, only a select few bacteria, such as lactobacillus and bifidobacteria, can endure stomach acid. The acidity in the stomach typically destroys the remaining probiotic bacteria, with a sensitivity threshold of less than pH 2.

The A2 Yogurt Market, Segmented by Flavor

• Unflavored
• Flavored

The unflavored sector, which holds the largest market share, is expected to witness substantial growth by 2030, with a projected CAGR of 5.2%. Unflavored yogurt is commonly utilized in the food service industry to enhance the taste and texture of processed foods. Factors such as the availability of high-nutritional-value yogurt, enriched protein content, and consistent product innovations are expected to drive the global yogurt market's expansion throughout the forecast period.

Global A2 Yogurt Market, Segmented by Distribution Channel

• Supermarkets And Hypermarkets
• Convenience Stores
• Specialist Retailers
• Online Stores
• Others

The supermarkets and hypermarkets segment, which constitutes a significant portion of the distribution channel market, is projected to witness substantial growth, reaching millions by 2030, with a CAGR of 4.6% during the forecast period. This growth is attributed to an enhanced standard of living, driven by increased disposable income and the influence of Western culture. Moreover, it is anticipated that the share of yogurt and yogurt-based products in supermarkets and hypermarkets will witness significant growth during the forecast period due to the diverse range of brands available, facilitating consumer choice.

Global A2 Yogurt Market, Segmented by Geography & Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa

The Asia-Pacific region dominates the yogurt market share and is expected to maintain its leading position during the forecast period. The Asia-Pacific yogurt market is projected to grow at an accelerated pace, driven by increasing demand for probiotic products and their perceived benefits in enhancing immune function, digestion, and metabolism. Additionally, yogurt's popularity as a dessert, available in various flavors such as fruit, organic, and drinkable yogurt, contributes to market growth in the region.

To enhance their market presence, drive profitability, and sustain competitive edge, players in the global yogurt industry have adopted various strategic initiatives. Key companies profiled in this study include Arla Foods Amba, Britannia Industries Limited, Chobani, L.L.C., Danone, General Mills, Gujarat Cooperative Milk Marketing Federation (Amul), Lactalis Corporation, Nestle S.A., Saputo Inc., and Schreiber Foods Inc.

Global A2 Yogurt Market, Segmented by Companies

1. Arla Foods Amba
2. Britannia Industries Limited
3. Chobani, L.L.C.
4. Danone
5. General Mills, Inc.
6. Gujarat Cooperative Milk Marketing Federation (Amul)
7. Lactalis Corporation
8. Nestle S.A.
9. Saputo Inc.
10. Schreiber Foods Inc.

Recent Developments in the Global A2 Yogurt Market:

Product Launch: In 2021, A2 milk manufacturer ABC Kogen Dairy introduced Thai tea fresh milk and black yogurt for detox.

Regulatory Approval: In 2021, AFF received regulatory approval for the production of the first 100% Grassfed with Seasonal Milkfat, A2/A2 Organic, and Certified Regenerative yogurts.