A2 Infant Formula Market To Hit USD 3877.7 Mn Globally by 2033

Overview

New York, NY – February 21, 2025 – The A2 Infant Formula Market is projected to grow significantly, with an expected valuation of USD 3877.7 million by 2033, up from USD 894.3 million in 2023, at a CAGR of 15.7%. A2 infant formula, which uses milk containing only A2 beta-casein protein, addresses digestive concerns in infants as it is believed to be easier to digest compared to the more common A1 protein.

This market’s expansion is fueled by growing consumer awareness of these potential benefits, especially among parents seeking gentler alternatives for their infants. Powdered formulas dominate the market due to longer shelf life and cost-effectiveness, with North America and the Asia Pacific regions taking the lead in market share.

Despite the optimistic growth, challenges such as the high cost of A2 formulas and limited availability in certain regions pose restraints. However, increasing demand for premium infant nutrition and the focus on digestive health present substantial opportunities for further market penetration and expansion.

Key Takeaways

• A2 Infant Formula Market size is expected to be worth around USD 3877.7 Mn by 2033, from USD 894.3 Mn in 2023, growing at a CAGR of 15.7%.
• Powder held a dominant market position, capturing more than a 65.3% share of the A2 infant formula market.
• Infant formula (0 to 6 months) held a dominant market position, capturing more than a 47.4% share.
• Infant Formula held a dominant market position, capturing more than a 79.1% share of the A2 infant formula market.
• Hypermarket or Supermarket held a dominant market position, capturing more than a 39.3% share.
• Asia Pacific (APAC) region holds the dominant position, accounting for 44% of the global market share, valued at approximately USD 395.3 million.

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Report Scope

Experts Review

• Experts have noted government incentives and technological innovations as pivotal in driving the A2 infant formula market growth. For instance, initiatives in countries like China to improve maternal and infant nutrition indirectly bolster demand for high-quality formulas, including A2 products.
• The market also offers lucrative investment opportunities due to rising consumer preference for specialty nutrition products, despite potential risks such as high production costs and price sensitivity among consumers. Technological advancements in product development, such as the incorporation of organic ingredients and probiotics, enhance the market appeal.
• Additionally, regulatory environments vary globally, with stricter formula regulations in regions like the EU requiring careful compliance by manufacturers. Nonetheless, the responsive regulatory landscape is generally supportive, emphasizing safety and nutritional adequacy. The market’s dynamics are further shaped by increasing consumer awareness about health benefits, which continues to influence purchasing decisions, particularly in well-informed consumer segments.

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Key Market Segments

By Form

• In 2023, the powdered form of A2 infant formula reigned supreme, commanding over 65.3% of the market share. Its dominance stems from a longer shelf life, ease of storage, and straightforward transportation. Consumers gravitate toward powdered formulas for their simplicity in preparation and wallet-friendly pricing. Liquid A2 infant formulas trailed behind but still secured a noteworthy slice of the market. Valued for their fast preparation and hassle-free use, they cater to parents prioritizing convenience. Available in ready-to-feed bottles or as concentrates, liquid options offer practical feeding solutions. The semi-liquid segment, though less prominent, is carving out a growing niche.

By Age Group

• In 2023, infant formula for ages 0 to 6 months led the pack, snapping up more than 47.4% of the A2 market share. This segment thrives on the critical need for robust nutrition in a baby’s earliest months when growth and development hinge on essential nutrients. Widely embraced as a breast milk alternative, it’s a go-to for many parents. The follow-on formula, designed for 6 to 12 months, also claimed a solid market portion. As babies’ nutritional demands evolve, this category supports their transition to solid foods while still delivering vital nutrients, boosting its appeal.

By End-Use

• In 2023, infant formula dominated the A2 landscape, seizing more than 79.1% of the market share. Its stronghold reflects the unrelenting demand for specialized infant nutrition. Seen as a reliable stand-in for breast milk, it delivers consistent, nutrient-dense feeding that parents trust. Liquid milk, though notable, takes a backseat with a smaller share. Some opt for it as a natural, ready-to-drink choice, but it lags behind infant formula for the youngest age groups.

By Distribution Channel

• In 2023, hypermarkets and supermarkets held the top spot, grabbing over 39.3% of the A2 infant formula market. These retail giants remain a favorite for their vast brand selection and all-in-one shopping convenience, sweetened by regular deals that keep customers coming back. Convenience stores weren’t far behind, securing a meaningful share. Their strength lies in quick, easy access—especially in city hubs—despite slightly steeper prices, making them a handy choice for on-the-go buys.

Regional Analysis

• In 2023, the A2 infant formula market displayed notable regional differences, with the Asia Pacific (APAC) region leading the charge, capturing 44% of the global market share and reaching a valuation of around USD 395.3 million.
• The surge in APAC is largely propelled by a rising appetite for premium infant nutrition, particularly in nations like China and India. Here, increasing disposable incomes and an expanding middle class are driving greater uptake of A2 products. In China, the infant formula market is projected to surpass USD 20 billion by 2025, with A2 formulas gaining traction thanks to their reputation for easier digestion.
• North America also commands a substantial portion of the market, bolstered by strong demand for top-tier infant nutrition. The U.S. stands out as a key player in the A2 segment, with a growing inclination toward specialty formulas. As of 2022, the U.S. market for organic and premium infant formulas, including A2 varieties, was valued at over USD 4 billion, with an anticipated compound annual growth rate (CAGR) of 7.2% through 2027.
• In Europe, demand remains consistent but is expected to grow at a more tempered rate due to the market’s maturity. Nevertheless, countries such as the UK, Germany, and France are steadily embracing A2 formulas, supporting a solid growth path.
• Latin America’s A2 infant formula market is still in its early stages, with progress spurred by increasing awareness of health benefits and evolving dietary habits. Likewise, the Middle East & Africa (MEA) region is seeing slow but steady expansion, driven by a move toward premium nutrition in markets like the UAE and Saudi Arabia.

Top Use Cases

• Alternative to Regular Formula: A2 infant formula is used by parents who believe their babies may be sensitive to the A1 protein found in regular cow’s milk. Some studies suggest that A2 protein is easier to digest, making it a preferred choice for infants with milk sensitivities or lactose intolerance.
• Digestive Comfort: A2 infant formula is chosen by parents whose babies experience discomfort, such as gas or bloating, from conventional formulas. The A2 protein is thought to cause fewer digestive issues, leading to smoother feeding and less tummy trouble for infants with sensitive digestive systems.
• Support for Milk Protein Sensitivity: A2 formula is commonly used for infants who experience allergic reactions or sensitivities to milk protein. This formula contains only the A2 protein type, which some studies suggest may be gentler and less likely to cause allergic reactions compared to the A1 protein in regular milk.
• Convenience for Formula-Feeding Parents: For parents who are unable to breastfeed or choose not to, A2 infant formula offers an easy and convenient alternative to breast milk. The formula provides a nutritional balance that mimics the natural composition of breast milk, offering essential vitamins and minerals for infant growth and development.
• Support for Babies with Gastrointestinal Issues: Some babies may have gastrointestinal conditions such as reflux or colic. A2 infant formula is sometimes recommended to ease these conditions as it is believed to reduce irritation in the gut due to the different protein structure, offering a gentler option for sensitive babies.

Recent Developments

1. Abbott and Abbott Laboratories

Recent Developments:

• Innovation in A2 Formula: Abbott launched an upgraded version of Similac A2 in 2023, featuring HMO (human milk oligosaccharides) to support immune health. This innovation aligns with growing consumer demand for premium, science-backed infant nutrition.
• Partnerships: Abbott partnered with the U.S. Department of Agriculture (USDA) in 2023 to support the WIC (Women, Infants, and Children) program, ensuring access to specialty formulas, including A2 formulas, for low-income families.

2. Arla Foods amba

Recent Developments:

• Partnerships: Arla partnered with China Feihe, a leading Chinese infant formula manufacturer, in 2023 to supply A2 milk protein for infant formula production. This partnership aims to tap into the growing Chinese market for premium infant nutrition.
• Innovation: Arla launched a new A2 milk-based infant formula under its Milk&More brand in 2023, targeting European and Asian markets. The formula is marketed as easier to digest and suitable for infants with lactose sensitivity.

3. Bellamy’s Organic

Recent Developments:

• Partnerships: Bellamy’s partnered with Bega Cheese in 2023 to secure a sustainable supply of A2 milk for its infant formula production. This partnership ensures the traceability and quality of its A2 ingredients.
• Market Expansion: In 2023, Bellamy expanded its A2 infant formula product line to include toddler milk, targeting children aged 1–3 years. This product is available in Australia, China, and Southeast Asia.

4. Bubs Australia Limited

Recent Developments:

• Partnerships: Bubs partnered with Walmart in 2023 to distribute its A2 infant formula products in the U.S. This partnership has significantly increased Bubs’ market presence in North America.
• Innovation: In 2023, Bubs launched Bubs Supreme A2 Toddler Milk, targeting children aged 1–3 years. The product is fortified with probiotics and prebiotics to support digestive health.

Conclusion

A2 Infant Formula has emerged as a popular alternative for parents seeking a more digestible and potentially gentler option for their babies, especially those with milk protein sensitivities or digestive discomfort. Its unique protein structure, which lacks the A1 protein, may provide relief for infants who experience issues with traditional formulas. As more parents prioritize comfort and natural ingredients, the A2 formula’s market share is expected to grow. However, it is important to note that individual responses may vary, and consulting healthcare professionals is always recommended when choosing the best feeding option for infants.

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