Startups are revolutionizing the dairy industry by producing real dairy products without the need for cows. Using precision fermentation, these companies are able to create synthetic dairy that looks, smells, and tastes like the real thing. British company Better Dairy is one such innovator, using yeast to produce milk proteins by converting sugar in a process similar to brewing.
While milk alternatives made from plant-based sources have gained popularity in recent years, they still fall short of replicating the taste and texture of real dairy. Precision fermentation companies are aiming to fill this gap in the market and grab a share of the $900 billion global dairy industry.
Israeli startup Remilk has received regulatory approval to sell its synthetic dairy products in the US, Israel, and Singapore. Meanwhile, Californian company Perfect Day already offers synthetic milk, ice cream, and cream cheese, and has secured contracts with food giant Nestlé and coffee chain Starbucks. These precision fermenters have collectively raised nearly $3 billion from investors since the start of 2021.
One of the key advantages of synthetic dairy is that it eliminates certain undesirable aspects of traditional milk production. Lactose, which can cause allergies in some individuals, and hormones, which have been linked to adult diseases, can be removed. Additionally, fermentation tanks do not require antibiotics and can be set up anywhere, addressing concerns about food security and climate change. The process also uses less water, energy, and land, resulting in lower greenhouse gas emissions compared to conventional dairy production.
However, these innovators face challenges in gaining consumer trust. The use of steel tanks instead of cows may be unfamiliar to some people, with a quarter of respondents in an American survey expressing hesitation about trying precision-fermented food. Regulatory hurdles also pose a barrier, as it can take several months to obtain approval for synthetic dairy products. Labelling disputes are another concern for these startups, who aim to eventually obtain approval and gain access to European markets by 2024.
While the technology is still developing, companies like Better Dairy are working towards making their products fully vegan by creating synthetic versions of cow’s milk proteins. Cost is another factor to consider, as the price of a fermentation tank capable of holding 30 litres of milk can reach £150,000 ($190,000), whereas purchasing a cow that produces a similar amount of milk in a day would cost around £1,600.
As precision fermentation continues to advance, it has the potential to transform the dairy industry and provide consumers with sustainable and animal-free alternatives. However, it will require further efforts to gain consumer acceptance and navigate regulatory challenges. With investments pouring into this sector, synthetic dairy is on the rise and poised to make a significant impact in the market.
