Animal-free dairy proteins appear to provide functional advantages comparable to those of cell-cultured “meat” products, which have garnered significant attention and investment from major food manufacturers. For instance, Memphis Meats, a San Francisco-based startup specializing in cultured “meat,” has secured funding from Tyson Ventures, the venture capital division of Tyson Foods, as well as Cargill. On the financial front, Memphis Meats is working to lower the current 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 aims for success. Dairy industry analyst Matt Gould advised the co-founders in 2016 that achieving a price point of about $2.50 per pound would be necessary.
In addition to pricing challenges, product labeling has emerged as another hurdle. The co-founders of Perfect Day are currently in talks with the U.S. Food and Drug Administration to clarify how to label their ingredients, which are technically dairy yet animal-free. Perfect Day employs a patented process that involves utilizing food-grade yeast and incorporating DNA sequences from dairy cows—now capable of being 3D printed—to create proteins typically found in dairy products. These proteins are cultivated in large fermentation tanks using corn sugar and additional nutrients to promote growth. Once harvested mechanically, these proteins can be integrated into any food or beverage that currently uses dairy proteins, as explained by co-founder Ryan Pandya to Food Navigator.
Emerging in this sector is Gelton, a company producing gelatin without animal sources. Their process yields a vegan alternative to traditional animal-derived gelatin, which they identify as a $3 billion industry. However, Gelton indicated to Food Navigator that it will require time and scale to compete effectively with the current bulk gelatin market price of around $8 per kilogram, or approximately $3.63 per pound.
Unless Perfect Day and other alternative, animal-free products gain significant traction in the market, predicting U.S. consumer responses to genetically engineered milk proteins and gelatin remains challenging. Consumers may welcome additional options and appreciate that no animals were harmed in the production process. However, they might also react negatively to the “ick” factor associated with foods or beverages that feel too far removed from their usual choices, such as yogurt containing calcium citrate instead of traditional dairy sources. As the market evolves, it will be interesting to see how products like those from Perfect Day, which could include calcium citrate in yogurt, influence consumer preferences and perceptions in the future.