Plants or Fermentation-based Dairy: What should you focus on?

Dairy is responsible for 2.9 percent of total human-induced greenhouse gas emissions. To add to it, one liter of milk requires 628 liters of water, surpassing the water footprint of all the other foods and making it the largest polluter of water. 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.

This article explores the latest developments in sustainable dairy alternatives and discovers the leading companies.

Recent Developments in Plant-based Dairy Alternatives

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

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.

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 not only from the food and beverage industries but also from alcohol companies looking to make their mark in this space. 

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

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

Not just this, companies have launched products enabling manufacturers to formulate functional plant-based products! 

Who are these companies? Find out about them in our Dairy Industry Trend report.

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Recent developments in Fermentation derived 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

While plant-based dairy alternatives have gained popularity, they still face challenges regarding taste, texture, and heavy processing with additives. 

Meanwhile, precision fermentation offers a solution by providing the same nutrition and taste as traditional dairy while being more sustainable and accessible to scale up than plant-based alternatives. 

Therefore, while plants are the present, it’ll be interesting to watch how fermentation will lead the future of dairy.

Also Read: A Closer Look at 8 Transformational Dairy Industry Innovation Trends in 2024