Plant or fermentation-based dairy: Which approach solves consumer demands better?

Plants or Fermentation Dairy: What should you focus on?

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Dairy is responsible for 2.9 percent of total human-induced greenhouse gas emissions. Additionally, one liter of milk requires 628 liters of water, surpassing the water footprint of all the other foods and making it the largest water polluter. Such numbers have spurred the R&D efforts to find environmentally friendly, sustainable dairy alternatives that appeal to the growing demand for vegan products.

While plant-based alternatives traditionally dominated this market, emerging technologies such as precision fermentation are rapidly gaining traction.

While this article explores the latest developments in sustainable dairy alternatives and discovers the leading companies, our Dairy Industry Trend report explores eight other trends that will impact the dairy industry.

Recent Developments in Plant-based Dairy Alternatives

Innovations by Industry Giants: What are F&B and dairy companies doing about it?

Nestle working on sustainable dairy alternatives

In 2021, Nestlé entered the market with Wunda, an innovative milk alternative made from peas. Positioned as a direct competitor to popular brands like Oatly and Danone’s plant-based milk, Wunda aims to capture the growing demand for plant-based alternatives.

Dean foods working on sustainable dairy alternatives

Meanwhile, Dean Foods, the largest milk bottler in the US, acquired Good Karma Foods, a prominent company specializing in plant-based milk and yogurt.

Cross-industry Innovations: Alcohol Companies in Dairy

The emergence of plant-based dairy has gained attention from the food and beverage industries and alcohol companies looking to make their mark in this space. 

Molson Coors working on sustainable dairy alternatives

In 2022, a renowned brewing giant, Molson Coors, launched Golden Wing, a plant-based barley milk. Golden Wing is positioned as a healthier alternative to traditional milk and aims to captivate consumers with its unique offering. 

Ever grain working on sustainable dairy alternatives

Similarly, in 2020, EverGrain, a subsidiary of AB InBev, entered the domain by supplying ingredients for Take Two, a plant-based barley milk product. 

Do you want to know other technological advancements of AB InBev? Track and understand competitors’ innovations, patents, market strategies, and R&D activities with real-time updates to stay ahead with our in-house tool, Slate.

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Recent developments in Fermentation Dairy Alternatives 

Using Highly Sustainable Whey Protein for Animal-free Dairy

A life cycle assessment conducted by Perfect Day, a leading alternative dairy startup, reveals significant environmental benefits of their Whey Protein compared to conventional milk protein. 

The assessment shows – 

  • A Remarkable Reduction In Greenhouse Gas Emissions Ranging From 91% To 97%
  • A Lower Energy Demand Of 29% To 60%, And
  • A Substantial Decrease In Blue Water Consumption By 96% To 99%. 

Further, Nestlé and Bel Group also partnered with Perfect Day for their animal-free dairy proteins. 

Fostering Collaboration for the Production of Fermentation-Derived Products

  • In 2023, General Mills announced the launch of their Cream Cheese containing fermentation-derived proteins sourced from Remilk.
  • Fonterra and Royal DSM will launch a new startup on fermentation-derived protein with dairy-like properties.
  • By partnering with biotech startup Algenuity, Unilever is actively working on developing precision fermentation-based dairy. With plans to introduce these innovative products by 2023, Unilever aims to offer cutting-edge dairy alternatives to meet evolving consumer demands.

Conclusion

The plant-based dairy industry is evolving rapidly, but challenges like taste optimization, nutritional parity, supply chain constraints, and regulatory hurdles continue to slow adoption. As new innovations in precision fermentation, molecular farming, and AI-driven formulations emerge, how can you ensure you’re investing in the right technologies?

At GreyB, we help you evaluate the latest innovations, assess competitive landscapes, and uncover untapped opportunities in plant-based dairy alternatives. Whether you’re exploring next-gen ingredients, novel processing methods, or strategic IP insights, our research-driven approach empowers you to make informed decisions.

Want to identify game-changing innovations in plant-based dairy? Talk to our experts today.

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