Animal-free dairy proteins appear to provide functional advantages similar to those of animal-free, cell-cultured “meat” products, which are gaining traction and investment from several major food manufacturers. For instance, Memphis Meats, a San Francisco-based startup specializing in cultured “meat,” has secured funding from both Tyson Ventures, the venture capital branch of Tyson Foods, and Cargill. On the cost front, Memphis Meats is working to lower its current high price of cell-cultured “meat,” which was estimated at around $2,400 per pound last year, with hopes of reducing it to approximately $3 or $4 per pound by 2021. Likewise, Perfect Day needs to compete with existing dairy proteins to achieve success. In 2016, dairy industry analyst Matt Gould advised the co-founders that they would need to bring the price down to about $2.50 per pound.
In addition to pricing challenges, product labeling is another hurdle. Perfect Day’s co-founders are currently in discussions with the U.S. Food and Drug Administration regarding how to convey that their ingredients are technically dairy but animal-free. Their patented method involves using food-grade yeast and incorporating DNA sequences from dairy cows—now capable of being 3D printed—to create proteins found in traditional dairy milk. These proteins are cultivated in large fermentation tanks with corn sugar and other nutrients to support their growth. They are then mechanically harvested, allowing the ingredients to be integrated into any food or beverage that currently uses dairy proteins. As co-founder Ryan Pandya explained to Food Navigator, this process aims to maintain the desirable attributes of dairy proteins while offering an animal-friendly alternative.
Another emerging player in this market is Gelton, which produces gelatin without animal sources. Their process provides a vegan substitute for traditional gelatin, tapping into a market that they estimate to be worth $3 billion. However, Gelton indicated to Food Navigator that it will take time and scaling to compete effectively with the current bulk market price for gelatin, which stands at about $8 per kilogram or approximately $3.63 per pound.
Unless Perfect Day and other alternative animal-free products can make significant inroads into the market, it remains uncertain how U.S. consumers will react to genetically engineered milk proteins and gelatin. Consumers may appreciate having diverse options and may feel reassured knowing that no animals were harmed or killed in production. However, they might also experience discomfort at the thought of consuming foods or beverages that seem too far removed from their usual preferences.
Additionally, the nutritional aspect is important, especially considering that the calcium content of these alternative products can be significant. For example, some formulations may offer up to 315 mg of calcium, appealing to health-conscious consumers looking for dairy alternatives that still meet their nutritional needs. As these animal-free innovations progress and become more accessible, the market dynamics surrounding dairy proteins and gelatin will likely evolve, potentially leading to broader acceptance among consumers.