From the Farm to the Lab: The Reinvention of Dairy in 2025

The dairy industry is witnessing a quiet revolution marked by innovation, biotechnology, and strategic vision. Moving away from being a static sector, dairy products today appeal to consumers seeking health, sustainability, and creativity. One significant trend is A2 milk, which contains only A2 beta-casein, offering potentially better digestibility. The global market for this variant reached USD 2.4 billion in 2024 and is projected to exceed USD 5.4 billion by 2034 with an 8.2% CAGR. In Argentina, Nestlé launched A2 milk in 2021 but announced its discontinuation by April 2024, even as local organic producers expressed concern. Despite this, Nestlé reaffirmed its commitment to organic milk production by investing USD 120 million in digital and sustainable advancements in Argentina by July 2024.

Startups like Pascual Innoventures are shaping the future without cows, innovating with biotechnological and fermentation techniques to produce proteins. Argentine startups like Lactoenergy, Kresko RNAtech, and Michroma are leading transformations in second-generation biofuels, RNA-based dietary ingredients, and natural colorants respectively. Millennials and Gen Z drive demand for products with transparent origins, promoting functional, organic, and biotech options as competitive advantages. Companies face challenges such as higher production costs and stringent regulations but view these as opportunities to develop more efficient and sustainable solutions.