Cheese Alternatives, 2023 State of the Industry
The number of alternatives to animal-derived cheese is quickly growing, and new technologies are allowing for the creation of a diverse range of both plant-based and precision-fermentation-produced cheeses.
The process of turning a milk into a cheese involves two fundamental steps.
The task of the cheesemaker is to take a liquid suspension of proteins (i.e., milk) and turn it into the solid – hard, soft, or spreadable – that consumers recognize as cheese. Broadly speaking, there are two overarching steps to accomplish this, regardless of whether or not the original milk is plant-based or animal-derived: fermentation and coagulation.
Traditionally, fermentation involves letting a microbe grow and proliferate in milk. As the microbe consumes the milk’s sugar, it releases acid as waste. The acid lowers the pH of the milk, which aids in the next step of the process: coagulation. Here, the proteins begin to lose their ability to stay suspended in acidic water and begin to clump together, forming the solid curds that will later be processed into different cheeses. Cheesemakers may sometimes add any combination of enzymes, acids, or heat to accelerate coagulation (or modify the final cheese product); cheesemakers may also skip fermentation and add acid directly. Therefore, the diversity of cheese products comes as a result of both the original choice of milk and the chemistry of its coagulating proteins.
For example, the vegan cheese company, Miyoko’s Creamery, starts off by blending cashews with water and other liquids until it resembles a heavy cream. This cream is then inoculated with lactic acid bacteria that introduce different flavors to their eventual cheese. Additionally, they use acids, such as vinegar, to cause their cheese to curdle (similar to how several animal-sourced cheeses use the enzyme concoction, rennet, to aid coagulation). Miyoko then processes their cheeses further, either to enhance its sensory properties by aging, or by being made into different forms, such as shreds or dips.
Plant-based cheeses require additional ingredients to recreate the properties of animal-derived cheese.
But Miyoko’s Creamery is not the only plant-based cheese alternative on the market. Similar to animal-derived cheese, plant-based cheese comes in many forms including shreds, slices, blocks, wheels, spreads, and dips. Because plant-based cheese companies aren’t starting with animal milk as their primary ingredient, they may instead use a variety of ingredients to mimic the taste, texture, and physical properties of animal-derived cheese products. Commonly used ingredients for plant-based cheese include plant proteins and starches, nuts, oils, various live cultures, and acidic ingredients. Companies work carefully to pick these ingredients because of their influence on the final taste and texture of the product. For example, different plant-based proteins or starches may affect the spreadability of a plant-based cheese or how it melts in response to different cooking temperatures. Further, some vegetable starches are more neutral in taste. Nuts are also commonly included to add a creamy quality to the cheeses.
One of the biggest challenges in the plant-based cheese space is obtaining the desired melting and spreading textures associated with animal-based cheeses. Casein is the primary protein in animal-dairy products, and is responsible for many of the characteristics of animal-derived cheese. Thus far, there has been no suitable plant-based protein replacement for this single protein component. One potential contender is Motif FoodWork’s prolamin technology. Motif FoodWorks extracts prolamin, which is a molecule that helps cheese to melt, from corn. This single molecule can help improve the texture and sensory profiles of plant-based cheeses. There are several other approaches that plant-based cheese companies can take to impart a meltable and spreadable quality to their cheese. For example, many companies use coconut oil in their formulation. Coconut oil’s low solidifying temperature allows for it to melt at a high temperature and solidify at room temperature while leaving a glossy shine, similar to how cheese would behave on pizza. Additionally, phosphate-based emulsifying salts can be used to influence plant-based proteins to have desired cheese-like properties. Gellen gum can also be incorporated to influence the flexibility and brittleness of a cheese. Finally, even the choice of which starch and fiber to use can influence the stretch and texture of a plant-based cheese, and this is something Cargill is actively researching for their line of plant-based cheeses. Improving the texture and sensory experience while cooking with and consuming plant-based cheese is still an area for improvement. Further techniques, such as aging and fermentation of raw ingredients, can alter the taste of the final product to more closely resemble animal-derived cheese.
Precision-fermentation cheese can create animal-based cheeses without the need for animal milk.
Another approach that companies are taking to produce cheese alternatives is using precision fermentation. Briefly, precision fermentation is the process by which microbes are genetically engineered to produce specific biological compounds while growing. By using precision fermentation, companies can synthesize the exact proteins found in animal milk that give animal-derived cheese its properties. Using this approach, companies plan to create a variety of products that should be chemically identical to animal cheese without ever needing animal milk.
To create these products, companies first have to identify what protein they are going to produce. The two proteins that make up the majority of cheese are casein and whey. These are the primary proteins found in milk, with casein making up about 80% of all proteins found in milk and whey proteins making up the other 20%. Casein proteins form a molecular assembly known as a micelle; forming this “supramolecular assembly” is what keeps casein suspended in liquid. During the cheese-making process, it is the disruption of the casein micelles that causes the coagulation of casein into cheese curds (whereas whey often remains in the liquid, requiring additional steps to coagulate). Casein is a very distinct protein found in animal milk, and its unique chemical behavior makes it responsible for many of the unique properties of cheese, like its ability to remain solid at room temperature but also melt under higher heat. Successfully producing caseins would allow precision-fermentation-based companies to replicate the many properties of cheese that consumers enjoy.
Precision Fermentation Companies and their Cheese Products
After settling on a protein to produce, companies then go on to engineer organisms to express those proteins. Common organisms include yeasts, bacteria, and other microbes; however, one company, Nobell Foods, engineers soybean to produce casein. The table above lists the precision fermentation companies using their protein to produce animal-free cheese products. Ideally, once companies select a microorganism, they may be able to produce large amounts of their target protein that can then be extracted from their process. Once the protein is extracted, it can be mixed with water and other ingredients to form a liquid composition similar to milk that can undergo traditional cheese-making processes. In other words, it all comes back to recreating a milk, or at least a suspension of proteins that behaves like animal-derived milk.
Plant-based cheeses are becoming more common – and more accessible – for consumers.
Regardless of differences in production or post-processing, the majority of plant-based cheese options on the market are approaching prices competitive with animal-derived cheeses. The figure below demonstrates that plant-based cheese shreds are, on average only about 10 USD more per kilogram compared to organic cheese shreds from the same brand (for example, Good & Gather). All of the companies that provide cheese shreds mentioned in this report are still more expensive than animal-based cheese shreds, with their price ranging from 80% more to 200% more in price per ounce. Nevertheless, the range of plant-based cheeses available for purchase is similar to the range of cheeses available for animal-based cheeses. There are several companies that have a wealth of forms to choose from, including Miyoko’s Creamery, Field Roast, Daiya Foods, and Follow Your Heart. Each of these companies focuses on different key ingredients, which helps to address issues that may arise due to dietary restrictions and allergies.
Prices (in USD) of Plant-based and Animal-derived Shredded Cheese Products
Cheeses produced using precision fermentation are beginning to appear as a result of partnerships between companies.
In February of 2022, the first cheese product made through precision fermentation came to market; Perfect Day partnered with The Urgent Company (under the latter’s brand, Modern Kitchen) to create cream cheese spreads using their whey protein. Further, larger food production groups have been rolling out both precision-fermentation (and plant-based products), demonstrating a vested interest in alternative cheeses. This includes the Bel Group which launched a plant-based version of their iconic Babybel cheese in 2022 and is planning to release a precision fermentation-based cream cheese in 2023: Nurishh Incredible Dairy, in partnership with Perfect Day.
The number of companies using precision fermentation for cheese is projected to grow in 2023. For example, in 2022 New Culture announced a partnership with the Archer-Daniels-Midland Company (ADM) through which they plan to bring a product to market in early 2024. New Culture is focused on creating a semi-soft cheese, mozzarella, which has not yet been seen on the market through precision fermentation technology. Several other companies plan to have products on the market, including Change Foods.
There remains room for innovation in the alternative cheese market.
Challenges faced by both plant-based cheese and precision fermentation cheese manufacturers provide opportunities for growth and innovation. Within the plant-based space, the incorporation of unique plant molecules or incorporation of precision fermentation-derived molecules may help products become more cheese-like in taste and texture. Indeed, an Innovation Challenge of the Future Food Tech conference in 2022 was on “Technologies to Improve the Texture and Melting Properties of Plant-Based Cheese” (supported in partnership with the Danone North America group). Within the precision fermentation space, emerging technologies that increase biomanufacturing yield and streamline the scale-up process may be the solution to driving costs down, allowing for precision-fermentation cheese to be at price parity with animal and plant-based cheeses.
Written by Ivy Fernandes, Helikon Associate
Edited by Jeremiah Johnston
Helikon Consulting strives for accuracy and completeness in our reports. If we have presented information incorrectly or unintentionally omitted relevant details, please let us know by submitting a request for updates using this form.
