The United Kingdom has a significant production and consumption of cheese, with 470,000 tons produced and 790,000 tons consumed annually. This equates to 11.9kg of cheese consumed per person. However, the dairy industry’s greenhouse gas emissions, primarily from methane released during cattle digestion, contribute significantly to the country’s overall emissions. It has been estimated that the average UK consumer’s cheese consumption creates 79.73kg of CO2e, accounting for 1.2% of the country’s total emissions.
To address this issue, animal-free cheese made from precision fermentation-derived dairy proteins offers a promising solution. This technology can recreate traditional dairy cheese with significantly lower greenhouse gas emissions, as well as reduced land and water usage. The market potential for this technology is yet to be determined, but new research funded by German precision-fermentation start-up Formo aims to shed light on its disruptive potential.
Precision fermentation involves programming microorganisms to produce complex organic molecules like protein. While this technology may seem new, it has been used in pharmaceuticals for years, such as in the production of non-animal insulin.
The focus of Formo’s research is on the UK market. This choice is influenced by several factors, including consumer attitudes that fall between the US and EU markets, the presence of a strong vegan/vegetarian/flexitarian movement, existing penetration of plant-based dairy products, and the UK’s momentum in novel food approval reforms.
The study conducted by Formo and Peter Slade, an associate professor at Canada’s University of Saskatchewan, involved 1,249 participants residing in the UK. The study utilized a survey and a discrete choice experiment to assess consumer demand for animal-free dairy cheese produced through cellular agriculture. The results indicated that animal-free dairy could capture a significant portion of the cheese market, particularly if sold at competitive prices.
The study also compared the efficacy of livestock emission taxes versus precision fermentation in reducing dairy consumption. The findings suggested that investing in livestock alternatives and creating a hospitable regulatory environment may be more effective in reducing emissions than taxing livestock products.
For animal-free dairy to make a splash in the UK and EU markets, it must first receive pre-market approval. Precision fermentation-derived products have already gained approval in other jurisdictions, such as Perfect Day’s whey protein in the US. Formo aims to be the first European company to launch precision fermentation-based cheese and is optimistic about securing novel food approvals in the UK and EU.
The company plans to enter the market through foodservice and retail channels, with restaurants being the first to offer its products. Formo is currently working on developing a diverse range of products and hopes to debut them by the end of the year. Europe, being the home of cheese, is their primary focus at the moment.
Overall, the research conducted by Formo and Peter Slade highlights the potential for animal-free dairy cheese and its ability to disrupt the mass market if sold at competitive prices. Precision fermentation technology offers a more effective way to reduce emissions compared to livestock emission taxes. With the right approvals and market entry, animal-free dairy has the potential to revolutionize the food and beverage industry, catering to the growing consumer demand for sustainable and innovative food options.
