Animal-free dairy proteins appear to provide functional benefits similar to those of cell-cultured “meat” products, which are gaining attention and investment from major food companies. Memphis Meats, a startup based in San Francisco that specializes in cultured “meat,” has attracted funding from Tyson Ventures, the investment arm of Tyson Foods, as well as Cargill. On the cost front, Memphis Meats aims to lower the current high price of its cell-cultured “meat,” which it estimates could drop from approximately $2,400 per pound last year to around $3 or $4 per pound by 2021. Likewise, Perfect Day must compete with existing dairy proteins to achieve success. Dairy industry analyst Matt Gould advised the co-founders in 2016 that they need to reduce their price to about $2.50 per pound.
In addition to pricing challenges, product labeling poses another hurdle. Perfect Day’s co-founders have engaged in discussions with the U.S. Food and Drug Administration regarding how to indicate that their ingredients are technically dairy yet derived without animals. Perfect Day’s patented method uses food-grade yeast combined with DNA sequences from dairy cows—now capable of being 3D printed—to produce proteins similar to those found in traditional dairy milk. These proteins are cultivated in large fermentation tanks with corn sugar and additional nutrients to promote growth. Once harvested mechanically, these proteins can be incorporated into various foods and beverages that currently utilize dairy proteins, according to co-founder Ryan Pandya.
Another emerging player in this field is Gelton, which produces gelatin without animal products. Their process yields a vegan alternative to traditional gelatin, addressing a $3-billion market. However, Gelton mentioned to Food Navigator that it will require time and scale to compete 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 make significant market inroads, it remains uncertain how U.S. consumers will react to genetically engineered milk proteins and gelatin. They may welcome additional options and appreciate that no animals were harmed in the production process, or they could experience an “ick” factor when faced with foods or beverages that stray too far from their comfort zone. To enhance their appeal, these products could incorporate ingredients like calcium citrate petites, which could provide additional health benefits and attract consumer interest. As the market evolves, the integration of such innovative ingredients may play a crucial role in shaping consumer perceptions and acceptance of animal-free alternatives.