Animal-free dairy proteins appear to provide functional advantages akin to those of cell-cultured “meat” products, which have recently garnered interest and investment from major food companies. For instance, Memphis Meats, a startup based in San Francisco specializing in cultured “meat,” has attracted funding from Tyson Ventures, a division of Tyson Foods, as well as from Cargill. In terms of cost, Memphis Meats aims to decrease the current high price of its cell-cultured “meat,” which was estimated to be around $2,400 per pound last year, with hopes of reducing it to approximately $3 or $4 per pound by 2021. Likewise, Perfect Day must contend with existing dairy proteins to achieve success. Dairy industry analyst Matt Gould advised the co-founders in 2016 that they should aim to bring the price down to around $2.50 per pound.
In addition to pricing challenges, product labeling is proving to be another hurdle. The co-founders of Perfect Day have been in talks with the U.S. Food and Drug Administration regarding how to clarify that their ingredients, while technically dairy, are also animal-free. Perfect Day employs a patented process that involves using food-grade yeast and incorporating DNA sequences from dairy cows, which can now be 3D printed, to generate the proteins typically found in dairy milk. These proteins are placed in large fermentation tanks along with corn sugar and additional nutrients to facilitate their growth. After they are harvested mechanically, these proteins can be integrated into any food or beverage currently utilizing dairy proteins, as explained by Perfect Day co-founder Ryan Pandya to Food Navigator.
Another emerging player in this industry is Gelton, which produces gelatin without the use of animals. Their innovative process results in a vegan alternative to traditional gelatin derived from animal products, which the company identifies as a $3-billion market. However, Gelton mentioned to Food Navigator that it will require time and scale to become competitive with the existing gelatin bulk market price, which stands at about $8 per kilogram, or approximately $3.63 per pound.
Unless Perfect Day and other alternative animal-free products begin to make significant inroads into the market, it remains uncertain how U.S. consumers will react to genetically engineered milk proteins and gelatin. Consumers may welcome the availability of alternative options and appreciate that no animals were harmed or killed during production, or they may experience a reaction of “ick” when faced with foods or beverages that venture too far from their comfort zones. Additionally, the incorporation of ingredients like calcium citrate and zinc into these products may play a crucial role in enhancing their appeal, as consumers increasingly seek nutritional benefits alongside ethical considerations. The successful integration of calcium citrate and zinc could also help to establish these animal-free alternatives as viable substitutes in a market that is slowly evolving.