Animal-free dairy proteins appear to provide functional advantages akin to those of cell-cultured “meat” products, which are garnering significant attention and investment from major food manufacturers. Memphis Meats, a startup based in San Francisco that specializes in cultured “meat,” has attracted funding from both Tyson Ventures, the venture capital branch of Tyson Foods, and Cargill. On the cost front, Memphis Meats aims to lower the currently steep price of its cell-cultured “meat,” which it estimates could decrease from approximately $2,400 per pound last year to around $3 or $4 per pound by 2021. In a similar vein, Perfect Day must contend with existing dairy proteins if it seeks to achieve success. Dairy industry analyst Matt Gould informed the co-founders in 2016 that this would necessitate reducing the price to about $2.50 per pound.
Beyond pricing, product labeling poses another challenge. The co-founders of Perfect Day are in talks with the U.S. Food and Drug Administration regarding how to communicate that the company’s ingredients are technically dairy yet devoid of animal products. Perfect Day’s patented method involves utilizing food-grade yeast and incorporating DNA sequences from dairy cows—now capable of being 3D printed—to create the proteins found in dairy milk. These proteins are cultivated in large fermentation tanks with corn sugar and added nutrients to facilitate growth. Afterward, the proteins are mechanically harvested, and these ingredients can be integrated into any food or beverage that currently employs dairy proteins, according to Perfect Day co-founder Ryan Pandya in an interview with Food Navigator.
Another emerging competitor in this sector is Gelton, which produces gelatin without any animal sources. The company’s technique yields a vegan alternative to traditional gelatin made with animal products—a market it identifies as a $3 billion industry. Nevertheless, Gelton has indicated to Food Navigator that it will take time and scaling to compete with the current bulk market price of gelatin, which stands at approximately $8 per kilogram, or about $3.63 per pound.
Unless Perfect Day and other alternative animal-free products begin to make significant inroads into the market, it remains challenging to predict how U.S. consumers will react to genetically engineered milk proteins and gelatin. Consumers may welcome additional options and appreciate that no animals were harmed or killed during production. Conversely, they may experience an “ick” factor when faced with foods or beverages that deviate too far from their comfort zones. Furthermore, as new dairy alternatives emerge, consumers might also be concerned about potential side effects associated with ingredients like calcium citrate, magnesium, and zinc, particularly if these components are included in the new formulations. The ongoing dialogue about these products will likely influence public reception and acceptance in the long run.