Change is brewing? Animal-free products backed by precision fermentation poised to disrupt conventional dairy

19 Jul 2023 --- Synthetic biology food company Formo and the University of Saskatchewan, Canada, have researched the anticipated market impacts of lab-brewed dairy. It points to the potential for a radically transformed food system driven by consumer demand for alternative cow-free products while claiming that precision fermentation helps overcome the challenges often associated with formulating dairy-free cheese that has, so far, fallen short on taste.

When price parity is reached, topline takeaways include a forecasted 21% drop in animal-based dairy cheese consumption while alternatives gain 33% market share with conventional. The analysis also suggests 79% of the precision fermentation market share would come from traditional cheese consumers.

Many dairy-based cheese solutions have not hit consumers’ taste and texture expectations. However, according to Oscar Zollman, a researcher at Formo, precision fermentation is the answer to improving this and making a premium non-dairy cheese product that doesn’t compromise on taste.

“By reprogramming microorganisms, precision fermentation allows for the creation of a vibrant tapestry of proteins brewed in beer-production-like facilities. It’s these milk proteins that make cheese wonderful, with the pull, stretch, mouthfeel, tang and performance we adore, and their absence is the reason why so many people have felt plant-based cheeses falling short,” he tells Food Ingredients First.

Precision fermentation is the process of harnessing microorganism hosts to produce ingredients such as fats.“By creating proteins both identical to those we know and developing entirely new ones, we are able to both recreate and reimagine the experiences underpinning animal protein experiences. A beautiful spectrum of possibilities is emerging - elevating the cheese experiences people have grown up loving while scrapping the downsides associated with industrialized dairy.” 

Global interest in animal-free dairy
Zollman explains that the data was generated from British consumers and the company plans further research on other markets soon.

“We’ve seen deep excitement from a range of countries, from Singapore to Brazil, at home in Germany and across the US. Our previous research has found that over 70% of consumers worldwide would be willing to embrace animal-free dairy,” he says.

Dr. Peter Slade of the University of Saskatchewan and his team are optimistic about “taking precision fermentation mainstream,” along with the improvements it offers over industrial livestock production. Precision fermentation is a pioneering and upcoming food innovation that allows milk production in microorganisms.

 “What seems to be more of a factor than the technology is simply the end products themselves,” Zollman adds. “While Singaporeans seem less excited about cheese, they were among the most excited groups about egg replacements.”

“What might excite a Brit about Cheddar wouldn’t in Germany. Precision fermentation needs to plug into existing food cultures and respect the heritage; nothing is achieved without that.”

The research – published in the International Food and Agribusiness Management Review Journal – used data from 1,249 UK residents and explores the intersection of precision fermentation, the cheese market, and efforts to reduce emissions in the dairy sector. 

What is precision fermentation?
Precision fermentation is the process of harnessing microorganism hosts to produce specific ingredients such as fats or proteins. The analysis also suggests 79% of the precision fermentation market share would come from traditional cheese consumers.

This is done by changing microorganisms’ DNA and then fermenting them in large brewery-style facilities. Precision fermentation allows for producing functionally identical products to those produced by animals or completely new proteins.

Lab-brewed dairy hits the market
Formo is confident that precision fermentation will conquer mass markets rather than catering solely to the vegan category. Moreover, cost parity will eventually be reached, according to the business.

 “With our exceptional technology and numerous opportunities to collaborate, our next steps revolve around bringing our products to the market boldly and efficiently,” Raffael Wohlgensinger, CEO and founder of Formo, tells us.

“The high demand we’re seeing from consumers and partners alike means it’ll be necessary to carefully select the right parties to move forwards in this exciting journey.”

Moreover, Formo could also leverage public funds from the UK government’s sustainable protein hub investment. Governments like the UK and Israel are helping precision fermentation businesses reach the next level.

“We’ll be scaling production in collaboration with our chosen partners to meet demand in preparation for launch and ensure our products hit the market in the loudest way possible. That being said, we do not intend to rest on our laurels. Innovation remains at the forefront of our company’s mission, and we will continue to leverage our tech platform to develop and introduce more products,” underscores Wohlgensinger.

Precision fermentation vs. dairy carbon tax
Dr. Slade’s research also compared the efficacy of initiatives such as livestock emission taxes to precision fermentation to reduce dairy consumption. It finds that precision fermentation has a “significantly stronger effect” in curbing emissions.

Carbon taxes on conventional dairy would yield only 10% of the savings possible through precision fermentation.At an average carbon price level of €60 (US$67.39), the cut in emissions of carbon taxes on conventional dairy would yield only 10% of the savings possible through precision fermentation.

“The cost of an industrialized food system is high and people are waking up to that,” Christian Poppe, director of global public affairs at Formo, highlights.

“People realize it, but it’s too much of a sacrifice to swap to uninspired plant-based alternatives right now. Step one is getting ridiculously delicious products onto the market that make people feel like they have a viable alternative. Step two is having a conversation about the associated environmental and ethical costs of the different products available.”

Poppe also underscores that the “superior impact” of precision fermentation in curbing dairy consumption should be a “wake-up call” for governments to see the technology’s potential.

By Gaynor Selby and Marc Cervera