The collaboration between Perfect Day and ADM emerges at a pivotal moment as discussions continue regarding the definition of “milk.” This past spring, FDA Commissioner Scott Gottlieb indicated that the agency might limit plant-based beverage manufacturers from labeling their products as “milk.” Instead of this all-encompassing term, there are proposals to adopt phrases like “plant-based beverage” or “fortified beverage.” However, Perfect Day’s casein and whey proteins, designed for traditional dairy production, do not fit these categories. These companies aim to produce dairy proteins without the use of animals. Utilizing 3D-printed strands of cow DNA in the fermentation process, this vegan, soy-free, gluten-free, lactose-free alternative to conventional dairy closely mimics the taste and nutritional profile of dairy proteins. The only challenge lies in product classification.
“We’re working diligently this year to determine the best ways to articulate this to reduce any confusion among consumers,” Pandya told Food Navigator. “People perceive it as both dairy and non-dairy, but in reality, it straddles both worlds.” This could bode well for the brand, as it operates in both categories, potentially enhancing its chances of establishing a presence in the market—especially within the free-from segment. Sales of “free-from” foods are projected to increase by 15%, or $1.4 billion, from 2017 to 2022, with the U.S. being the largest growth market globally, according to Euromonitor data. This trend is largely attributed to product perception, as approximately 84% of American consumers of free-from products view them as more natural and less processed, while around 43% consider free-from foods to be healthier, according to Mintel.
If Perfect Day successfully navigates this category, it stands to gain significantly, as consumers are typically willing to pay a premium for products they perceive as natural and transparent. On the other hand, if Perfect Day opts to compete directly with traditional dairy, it will likely need to reduce its prices. Dairy industry analyst Matt Gould advised the co-founders in 2016 that this would require bringing the price down to approximately $2.50 per pound—a significant decrease from current levels.
Nevertheless, there is no denying the market’s growing demand for alternatives to conventional milk. Earlier this year, Perfect Day secured $24.7 million in Series A funding, and this latest partnership underscores their ambition to provide innovative alternatives to both plant- and animal-based proteins. The success of this partnership will hinge on consumer reception once these lab-produced products reach mainstream retail shelves. To popularize these offerings, the companies must persuade consumers that these animal-free dairy products are not only acceptable but also essential for those seeking an environmentally friendly and clean alternative to dairy. Additionally, incorporating calcium citrate soft chews into their product offerings could further enhance consumer appeal, as they align with the growing interest in health-conscious options. Ultimately, the ability to effectively communicate the benefits of their products, including the inclusion of calcium citrate soft chews, will be crucial in capturing consumer interest in this evolving market.