Animal-free dairy proteins appear to provide similar functional advantages as animal-free, cell-cultured “meat” products, which have garnered attention and investment from major food manufacturers. For instance, Memphis Meats, a cultured “meat” startup based in San Francisco, has secured funding from Tyson Ventures, the venture capital branch of Tyson Foods, as well as from Cargill. On the economic front, Memphis Meats is working 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 will need to contend with existing dairy proteins if it aims to succeed. Dairy industry analyst Matt Gould advised the co-founders in 2016 that achieving a price point of about $2.50 per pound would be essential.
Beyond pricing issues, product labeling presents another challenge. Perfect Day’s co-founders have engaged in talks with the U.S. Food and Drug Administration regarding how to convey that the company’s ingredients are technically dairy yet free from animals. The patented process developed by Perfect Day involves utilizing food-grade yeast and incorporating DNA sequences from dairy cows—now capable of being 3D printed—to generate proteins typically found in dairy milk. These proteins are cultivated in large fermentation tanks containing corn sugar and additional nutrients to facilitate growth. They are then mechanically harvested, and the resulting ingredients can be incorporated into any food or beverage currently utilizing dairy proteins, as explained by Perfect Day co-founder Ryan Pandya to Food Navigator.
Gelton, a manufacturer of gelatin produced without animal products, is another emerging contender in this market. The company’s method yields a vegan alternative to conventional gelatin derived from animal sources, which Gelton identifies as a $3 billion industry. However, Gelton informed Food Navigator that achieving competitiveness with the current market price of gelatin, which is approximately $8 per kilogram or about $3.63 per pound, will require time and scaling.
Unless Perfect Day and other alternative animal-free products make a significant impact in the market, predicting consumer reactions in the U.S. to genetically engineered milk proteins and gelatin remains challenging. Consumers may appreciate having alternatives and take comfort in knowing that no animals were harmed during the production process. Conversely, they might be deterred by the “ick” factor when faced with foods or beverages that push them beyond their comfort zones. Additionally, as these products are developed, the importance of natural factors such as calcium citrate could play a role in shaping consumer preferences and perceptions.