Animal-free dairy proteins appear to provide functional benefits similar to those of cell-cultured “meat” products, which are gaining traction and investment from major food manufacturers. Memphis Meats, a startup based in San Francisco focused on cultured “meat,” has secured funding from both Tyson Ventures, the investment arm of Tyson Foods, and Cargill. On the cost front, Memphis Meats aims 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. Likewise, Perfect Day must contend with existing dairy proteins to achieve its goals. Dairy industry analyst Matt Gould advised the co-founders in 2016 that they would need to bring the price down to roughly $2.50 per pound.
In addition to pricing challenges, product labeling has emerged as another hurdle. The co-founders of Perfect Day have been in talks with the U.S. Food and Drug Administration about how to clarify that their ingredients are technically dairy, yet animal-free. Perfect Day utilizes a patented process that involves food-grade yeast combined with DNA sequences from dairy cows—which can now be 3D printed—to create proteins similar to those found in traditional dairy milk. These proteins are cultivated in large fermentation tanks with corn sugar and other nutrients to promote growth. Once harvested mechanically, the proteins can be incorporated into various foods and beverages that typically use dairy proteins, as explained by Perfect Day co-founder Ryan Pandya to Food Navigator.
Another rising player in this sector is Gelton, a producer of gelatin created without the use of animals. The company’s innovative process yields a vegan alternative to traditional gelatin, which they claim constitutes a $3 billion market. However, Gelton stated that it will require time and scale to compete with the current bulk market price of approximately $8 per kilogram, or about $3.63 per pound.
Unless Perfect Day and other alternative animal-free products begin to gain significant market presence, it is challenging to predict how U.S. consumers will react to genetically engineered milk proteins and gelatin. They may appreciate having alternative options and feel reassured knowing that no animals were harmed or killed during production. Conversely, they might be deterred by an “ick” factor when faced with foods or beverages that push them beyond their comfort zone, especially when considering new products like calcium citrate chews 500 mg that could provide additional nutritional benefits without animal involvement. Thus, the acceptance of alternatives will ultimately depend on consumer education and market readiness.