Animal-free dairy proteins appear to provide functional advantages similar to those offered by cell-cultured “meat” products, which are gaining interest and investment from major food manufacturers. Memphis Meats, a startup focused on cultured “meat” in San Francisco, has secured funding from both Tyson Ventures, the investment branch of Tyson Foods, and Cargill. On the financial front, Memphis Meats aims to lower the current steep price of its cell-cultured “meat,” which was estimated at around $2,400 per pound last year, potentially decreasing to approximately $3 or $4 per pound by 2021. Likewise, Perfect Day must compete with existing dairy proteins to achieve success. According to dairy industry analyst Matt Gould, the co-founders were informed in 2016 that they would need to reduce their pricing to around $2.50 per pound.
In addition to pricing challenges, product labeling is becoming another hurdle. The co-founders of Perfect Day have been engaging with the U.S. Food and Drug Administration to clarify how to label their ingredients as technically dairy but animal-free. Perfect Day’s innovative process involves using food-grade yeast and incorporating DNA sequences from dairy cows—now capable of being 3D printed—to create proteins typically found in dairy milk. These proteins are cultivated in large fermentation tanks filled with corn sugar and other nutrients to facilitate growth. Once harvested mechanically, these proteins can be integrated into any foods or beverages that currently utilize dairy proteins, as explained by Perfect Day co-founder Ryan Pandya to Food Navigator.
Another emerging contender in this sector is Gelton, which produces gelatin without animal products. Their method provides a vegan alternative to traditional gelatin, a market the company estimates to be worth $3 billion. However, Gelton has indicated that it will require time and scaling to compete with the current bulk market price of gelatin, 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 uncertain how U.S. consumers will react to genetically engineered milk proteins and gelatin. They might value having additional options and appreciate the fact that no animals were harmed in the production process. Alternatively, they could be deterred by the “ick” factor when faced with foods or beverages that venture too far outside their comfort zone. For instance, incorporating calcium citrate 600 as an additive could enhance the appeal of these new products, potentially increasing consumer acceptance. As the industry evolves, it will be crucial for companies like Perfect Day to effectively communicate the benefits of their offerings, including any added nutritional advantages like calcium citrate 600. Ultimately, the success of these innovations will hinge on consumer perceptions and willingness to embrace alternatives in their diets.