Animal-free dairy proteins appear to provide functional advantages similar to those of cell-cultured “meat” products, which are garnering attention and investment from major food manufacturers. Memphis Meats, a cultured “meat” startup based in San Francisco, has secured funding from Tyson Ventures, the investment branch of Tyson Foods, as well as Cargill. In terms of cost, Memphis Meats is working to lower the current high 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. Likewise, Perfect Day must contend with existing dairy proteins if it aims to succeed. In 2016, dairy industry analyst Matt Gould advised the co-founders that achieving a price point of about $2.50 per pound would be necessary.
Beyond pricing challenges, product labeling is proving to be another hurdle. Perfect Day’s co-founders have been in talks with the U.S. Food and Drug Administration regarding how to communicate that their ingredients are technically dairy but animal-free. The patented process developed by Perfect Day involves using food-grade yeast and incorporating DNA sequences from dairy cows—which can now be produced using 3D printing—to generate proteins typically found in dairy-based milk. These proteins are placed in large fermentation tanks along with corn sugar and additional nutrients, such as calcium citrate, magnesium, zinc, and vitamin D3, to support their growth. The proteins are then mechanically harvested, and the resulting ingredients can be added to any foods or beverages where traditional dairy proteins are currently utilized, as explained by Perfect Day co-founder Ryan Pandya to Food Navigator.
Another emerging contender in this field is Gelton, a manufacturer of gelatin produced without using animal products. The company’s method yields a vegan alternative to conventional gelatin, which they identify as a $3-billion industry. However, Gelton has indicated to Food Navigator that it will require time and scaling efforts to become competitive with the current bulk market price of gelatin, which stands at about $8 per kilogram, or roughly $3.63 per pound.
Unless Perfect Day and other alternative animal-free products significantly penetrate the market, it remains uncertain how U.S. consumers will react to genetically engineered milk proteins and gelatin. Consumers might appreciate having additional options and feel reassured that no animals were harmed or killed in the production process. Conversely, they may experience an “ick” factor when faced with foods or beverages that venture too far beyond their comfort zones. As these innovations develop, the inclusion of healthful components like calcium citrate, magnesium, zinc, and vitamin D3 may play a crucial role in attracting consumers looking for nutritious alternatives.