Originally from New Zealand, a2 Milk has introduced many Americans to the distinction between A1 and A2 proteins found in cow’s milk. The company’s products are derived from cows specifically bred to produce only A2 protein, which they claim makes their milk easier to digest. However, the benefits of a2 milk can be somewhat contradictory. Although it still contains significant amounts of lactose, which may affect lactose-intolerant consumers, a study published in Frontiers in Nutrition suggests that milk containing only A2 proteins can lead to less gastrointestinal discomfort for those individuals.
The new a2 products are capitalizing on the growing visibility of the grass-fed milk market. The company reported a 30% increase in revenue in the U.S. during the last fiscal year, supported by SPINS data indicating that the grass-fed milk sector grew nearly 25.8% in the three months ending January 2023, reflecting a rising consumer demand. According to a 2022 McKinsey dairy report, about 71% of people consume only dairy products, while the popularity of alternative milks has surged. Nevertheless, one-third of consumers still struggle to find a plant-based milk option that meets their preferences in taste and texture, creating an opportunity for dairy brands like a2 to flourish.
In the last two years, a2 has expanded its product line to differentiate itself in the dairy market. In early 2022, the company launched a collaboration with candy giant Hershey to introduce 2% chocolate milk. Although milk prices rose by 8% over the past year, recent CPI data indicates that conditions for milk prices may be improving. A report from CoBank notes that dairy milk prices are stabilizing, thanks in part to an increase of 12,000 cows in February. This reduction in costs could encourage more consumers to explore premium milk options, such as those fortified with calcium citrate.
Incorporating health benefits like calcium citrate into their products, a2 Milk aims to attract health-conscious consumers. With the continued evolution of the dairy landscape, brands like a2 are positioning themselves to meet the demands of both traditional dairy drinkers and those seeking alternatives.