A2 Milk Infant Formula Market Size, Growth, and Trends 2025 to 2035

A2 Milk Infant Formula Market Size 2025 to 2035

The global A2 milk infant formula market size reached at USD 2.10 billion in 2025 and is predicted to increase from USD 2.29 billion in 2026 to reach approximately USD 4.97 billion by 2035, expanding at a CAGR of 9% from 2026 to 2035. Rising health consciousness among parents and growing demand for easy-to-digest dairy alternatives are driving the market.

Key Takeaways 

• By region, North America dominated the global market with the largest share of 42% in 2025.
• By region, Asia Pacific is expected to grow at a fastest CAGR from 2026 to 2035.
• By product type, the powder formula segment held the major market share in 2025.
• By product type, the liquid / ready-to-feed formula is projected to grow at a CAGR between 2026 and 2035.
• By age/stage, the infant formula (0-6 months) segment contributed the biggest market share in 2025.
• By age/stage, the growing-up / toddler formula (12–36 months) segment is expanding at a significant CAGR between 2026 and 2035.
• By distribution channel, the supermarkets and hypermarkets segment held the major market share in 2025.
• By distribution channel, the online/e-commerce segment is expected to grow at a CAGR between 2026 and 2035.

A2 Milk Infant Formula Industry Coverage

Key Drivers of the A2 Milk Infant Formula Market

Proper nutrition is fundamental to fostering healthy development in children, and A2 milk presents an advantageous option for parents seeking purity, digestibility, and nutritional value in every serving. When it comes to choosing the right milk for infants, parents are increasingly turning to A2 milk infant formula. One of the important growth factors for the A2 milk infant formula market is the increasing prevalence of lactose intolerance and milk allergies among infants. Another significant factor boosting the market growth is the rising number of working mothers and the increasing female workforce participation.

A2 Milk Infant Formula Market Trends 

• A2 milk is emerging as more than a transient health trend. It is evolving into a global phenomenon. Numerous countries across Asia, Europe, and America are witnessing substantial growth in A2 milk sales. 
• A significant trend within this sector is the increasing focus on precision nutrition. This concept, particularly in the context of infant formula, involves utilizing genetic and metabolic data to create tailored formulas. 
• In an environment marked by mass farming and industrial production practices, A2 milk distinguishes itself through its ethical and sustainable origins.

Key Technological Shift in the A2 Milk Infant Formula Market 

Manufacturers employ genetic testing methodologies to identify cows that naturally produce A2 beta-casein, thereby ensuring that the raw materials utilized in A2-specific formulas are suitable. This genetic screening process minimizes the necessity for extensive processing at later stages. Additionally, artificial intelligence is increasingly integral to the formulation of A2 Milk Infant Formula, as AI technologies facilitate the analysis of extensive datasets, predicting optimal product formulations based on factors such as infant age, health conditions, and genetic predispositions.

Recent Investments and Growth in the A2 Milk Infant Formula Market 

• In August 2025, A2 Milk Co. announced the acquisition of an infant formula business within New Zealand, alongside plans to invest NZ$100 million (approximately USD 59.3 million) to enhance factory capacity. This announcement was part of a comprehensive full-year results presentation. The company, listed in both New Zealand and Australia, is acquiring a plant owned by Yashili New Zealand Dairy in Pokeno while divesting its majority interest in Mataura Valley Milk.
• New Zealand's A2 Milk reported a 21% increase in its full-year profits, primarily fueled by robust demand from China, which remains its largest market. The total sales of infant milk formula rose by 10%, with a notable 17% growth in its English label offerings, while sales under the China label experienced a 3.3% increase.

Value Chain Analysis of the A2 Milk Infant Formula Market

Raw material Procurement 

• Raw material procurement for A2 milk infant formula includes sourcing specialized A2 cows' milk and other important ingredients. 
• Key players: Fonterra, Synlait, Nestle.

Processing 

• It involves selective breeding for A2 cows, strict genetic testing, microfiltration or pasteurization to preserve proteins, blending with essential nutrients, and spray-drying into powder.
• Key players: The a2 Milk Company, Fonterra, Nestlé, Danone, Amul (GCMMF), Bellamy's Organic, and Bubs Australia

Distribution 

• Distribution is heavily dependent on distribution channels like hypermarkets, supermarkets and online platforms.

A2 Milk Infant Formula Market Regional Insights 

How Did North America Dominate the A2 Milk Infant Formula Market?

North America dominated the market in 2025, bolstered by advanced processing capabilities, a strong retail infrastructure, and a rapid ascent of e-commerce, which now complements traditional distribution methods. Increasing health consciousness propels significant growth in products such as high-protein milk and specialty items, including lactose-free offerings, A2 milk varieties, and organic clean-label formulations that cater to both lactose-intolerant infants and health-oriented parents seeking superior nutritional value and digestibility.

North America A2 Milk Infant Formula Market Size 2025 to 2035

The North America A2 milk infant formula market size was valued at USD 0.88 billion in 2025 and is predicted to increase from USD 0.96 billion in 2026 to reach approximately USD 2.11 billion by 2035, expanding at a CAGR of 9.14% from 2026 to 2035.

U.S. A2 Milk Infant Formula Market Trends 

The principal advantage of A2 milk infant formula is its enhanced digestibility for certain infants, contributing to the market expansion in the U.S. Parents and caregivers may consider A2 baby formula if their child experiences gastrointestinal discomfort, such as gas or bloating, when consuming traditional cow milk formula. Some A2 baby formulas are certified organic, guaranteeing that the milk utilized originates from cows not treated with antibiotics or growth hormones and produced following organic farming standards. For instance, Similac Organic with A2 Milk is an example of gentle nutrition that is USDA-certified organic and crafted from A2 milk, providing an easy-to-digest option formulated with cow’s milk containing A2 protein produced exclusively by specific cows.

Asia Pacific A2 Milk Infant Formula Market Trends 

Asia Pacific expects the fastest growth in the market during the forecast period. The region is primarily driven by an increasing consumer awareness concerning digestive health and the rise of lactose intolerance. The expanding middle class and heightened disposable income in various Asia Pacific nations are driving demand for premium products, including A2 milk. This trend is especially notable as A2-based infant formulas gain favor among parents seeking gentler nutritional alternatives for their children. 

China A2 Milk Infant Formula Market Trends 

The A2 milk infant formula sector in China is impacted by consumer demand for premium, easily digestible products, particularly for infants, following a notable increase in birth rates. In 2024, births in China rose by more than half a million, encouraging optimism regarding the segment’s future growth potential. Manufacturers are competing to develop infant formula that accurately matches the nutritional value of maternal milk, with significant regulatory advancements, such as China's recent approval for the inclusion of human milk oligosaccharides (HMOs) in infant formula, presenting new avenues for product innovation. By 2030, it is projected that China's middle class will expand by an additional 80 million individual. In 2024 alone, per capita income in China increased by 5.3% to ¥41,314, as reported by the national statistics bureau, boosting the market expansion. (Source: English.scio.gov.cn) 

Europe A2 Milk Infant Formula Market Trends

Trends in Europe’s A2 milk infant formula market are evolving in response to consumer preferences and technological advancements. The continent enforces strict regulations regarding infant formula, ensuring high standards for product quality. Parents select infant formulas to provide their babies and children with essential nutrients necessary for healthy growth and development. Kabrita, a company specializing in goat milk-based infant formula, is gaining acceptance among parents. There is a rising consumer interest in premium, traceable dairy products, with Germany and France leading the way in adoption.

Germany A2 Milk Infant Formula Market Trends 

In Germany, the A2 milk infant formula market is experiencing significant growth due to an increasing preference for A2 protein-based formulas over traditional A1 formulas. Technological advancements in manufacturing processes and supply chain management are improving product availability and reducing costs. Key market players are focusing on innovation, including the introduction of organic and non-GMO A2 milk variants to cater to health-conscious parents.

Segmental Insights

Product Type Insights

Why Did the Powder Formula Segment Dominate the A2 Milk Infant Formula Market in 2025?

The powder formula segment dominated the market in 2025. The powdered formula is the least expensive choice. It is available in containers with a scoop as well as in compact bags for convenience while traveling. This kind of formula usually provides a longer shelf life than liquid formulas, making it the preferred option for many babies who consume formula

The liquid/ready-to-feed formula segment is expected to grow at the fastest rate during the forecast period. This convenient option is especially appealing for parents on the go, as it simplifies nighttime feedings and eliminates clumping issues that some powdered formulas may cause.

Age/Stage Insights

Which Age Segment Dominated the A2 Milk Infant Formula Market In 2025?

The infant formula (0-6 months) segment held the largest share of the market in 2025, as A2 beta-casein protein is structurally closer to breast milk. In cases where breastfeeding is not feasible or needs supplementation, infant formulas offer a safe alternative, providing comprehensive nutrition critical for growth, cognitive development, and immune support.

The growing-up/toddler formula (12-36 months) segment is experiencing notable growth during the forecast period. Parents prefer these formulas for toddlers as they offer a specialized blend of nutrients to support immune health and overall development, driven by increasing awareness of proper nutrition in early childhood.

Distribution Channel Insights

Why Did the Supermarkets and Hypermarkets Segment Dominate the A2 Milk Infant Formula Market in 2025?

Supermarkets and hypermarkets segment held the largest market share in 2025. These large, self-service grocery stores provide various foods and household supplies, which enhances the visibility of infant formulas and is expected to boost sales. Supermarkets and hypermarkets offer a wide variety of infant formula under one roof.

The online/e-commerce segment is projected to grow at the fastest rate during the forecast period. This channel is particularly appealing to new parents due to its convenience. A highlight in this area is Meiji, which emerged as the best-selling infant formula brand on Vietnamese e-commerce platforms in the first five months of 2023.

Recent Developments in the A2 Milk Infant Formula Market

a2 Milk 

• Launch: In April 2025, New Zealand-based a2 Milk planned to introduce an infant formula containing HMOs in mainland China in the second half of 2025. Marketed as a2 Genesis, this product will include three types of HMOs: 2’FL (2’-fucosyllactose), 3’SL (3′-sialyllactose), and 6’SL (6′-sialyllactose), along with algal DHA, prebiotic galacto-oligosaccharide (GOS), and the probiotic Bifidobacterium lactis HN019. (Source: Asiafoodbeverages.com)

Abbott

• Launch: In August 2024, Abbott announced the expansion of its Pure Bliss™ by Similac® line of organic, European-made infant formulas, providing parents with a variety to meet specific formula preferences. This line emphasizes the sourcing of ingredients, whether they be certified organic or exclusively sourced from Ireland. (Source: Abbott.mediaroom.com)

Top Companies in the A2 Milk Infant Formula Market

• The a2 Milk Company Limited is widely recognized as a pioneer and market leader in the A2 milk sector, leveraging robust branding, advanced dairy science, and a premium product portfolio. 
• Nestlé is another significant player in the growing A2 milk infant formula market, having introduced A2 protein formulas under its NAN brand in Australia (NAN SupremePro A2) and S-26 in other regions.
• Abbott has continually launched novel innovations in their A2 milk infant formulas to make them closer to breast milk. Abbott introduced the first infant formula with organic A2 milk in the U.S., which includes A2 beta casein.

Other Companies in the A2 Milk Infant Formula Market 

• Danone
• Kraft Heinz
• Bellamy's Organic
• FrieslandCampina
• HiPP
• Reckitt Benckiser
• Ausnutria Dairy
• Mead Johnson & Company, LLC
• Perrigo

Segments Covered in the Report

By Product Type

• Powder Formula 
• Liquid / Ready-to-Feed Formula 
• Concentrated / Ready-to-Mix Formula 

By Age / Stage

• Infant Formula (0–6 months) 
• Follow-On Formula (6–12 months) 
• Growing-Up / Toddler Formula (12–36 months) 

By Distribution Channel

• Supermarkets / Hypermarkets 
• Pharmacies / Drugstores 
• Online / E-commerce

By Region

• North America
• Europe
• Asia Pacific
• MEA
• Latin America