Animal-free dairy proteins appear to provide functional advantages similar to those of cell-cultured “meat” products, which have garnered interest and investment from major food manufacturers. Memphis Meats, a startup based in San Francisco that specializes in cultured “meat,” has secured funding from both Tyson Ventures, the venture capital division of Tyson Foods, and Cargill. On the cost front, Memphis Meats is working to lower the currently high price of its cell-cultured “meat,” which was estimated at around $2,400 per pound last year, with hopes of reducing it to approximately $3 or $4 per pound by 2021. Likewise, Perfect Day will need to compete with existing dairy proteins to achieve success. Dairy industry analyst Matt Gould advised the co-founders in 2016 that they must aim to bring their price down to around $2.50 per pound.
In addition to pricing, product labeling is becoming another challenge. The co-founders of Perfect Day have been in talks with the U.S. Food and Drug Administration regarding how to communicate that their ingredients are technically dairy yet animal-free. Perfect Day’s patented method involves utilizing food-grade yeast and incorporating DNA sequences from dairy cows—now capable of being 3D printed—to produce proteins typically found in dairy milk. These proteins are cultivated in large fermentation tanks with corn sugar and additional nutrients to facilitate growth. Following this, the proteins are mechanically harvested and can be added to any foods or beverages currently using dairy proteins. Ryan Pandya, co-founder of Perfect Day, shared with Food Navigator that their products offer a viable alternative for those seeking options rich in calcium citrate and vitamin D.
Another emerging player in this sector is Gelton, a manufacturer of gelatin produced without animal use. The company claims to offer a vegan alternative to traditional gelatin, a market it identifies as being worth $3 billion. However, Gelton has indicated to Food Navigator that achieving competitiveness with the current bulk market price of gelatin—approximately $8 per kilogram, or about $3.63 per pound—will take time and scaling efforts. Unless Perfect Day and other animal-free alternatives gain significant traction in the market, it remains uncertain how U.S. consumers will react to genetically engineered milk proteins and gelatin. While some may appreciate the availability of options that ensure no animals were harmed or killed during production—along with benefits like calcium citrate and vitamin D—others might be put off by the “ick” factor associated with foods or beverages that stray too far from their comfort zones.