GLOBAL – A recent report titled “The 2040 EU Sustainable Dairy Landscape: Corporate Transition in Traditional and Animal-Free Dairy” by Bright Green Partners reveals significant shifts expected in the dairy industry by 2040 due to rising production costs and changing consumer preferences.
The study highlighted the potential for plant-based and fermentation-made dairy products to play a crucial role in addressing these challenges.
According to the report milk production costs in the European Union (EU) are projected to rise by 30% by 2040, driven by increasing pressures on the dairy industry to reduce its environmental impact.
In contrast, Rabobank anticipates a 20% decline in traditional dairy production in Northwest Europe over the same period. The decline is attributed to anticipated governmental measures designed to account for the environmental footprint of dairy production, including potential taxes and regulations.
Amid these developments, plant-based milk is expected to become significantly cheaper, with the report forecasting that it could be up to 10% less expensive than cow’s milk by 2040.
This price shift is attributed to the anticipated reduction in production costs for plant-based alternatives as technology improves and economies of scale are realized.
The study emphasized the need for dairy manufacturers to invest in enhancing the taste and nutritional profiles of plant-based dairy products to capture a larger market share.
Additionally, the report highlighted the growing potential of precision fermentation in dairy production. Precision fermentation uses microorganisms such as yeast to produce real dairy proteins, including whey and casein, without the need for dairy cows.
As advancements in this technology continue and production scales up, the costs associated with precision fermentation are expected to decrease, making it a more viable alternative to traditional dairy production.
Meanwhile, Bright Green Partners has identified two main opportunities for the dairy industry to adapt to these changes: reducing the environmental impact of current operations and leveraging existing infrastructure to develop plant-based and fermentation-made products.
The report argued that dairy companies can use their established supply chains and industry expertise to transition effectively into the growing alternative dairy market.
Helen Breewood, Research and Resource Manager at the Good Food Institute Europe, commented on the report’s findings, noting that it effectively outlines the “unique opportunities” available to dairy companies.
Breewood highlighted that the dairy sector is on the cusp of significant transformation and that plant-based milk and precision fermentation are crucial for creating a more sustainable dairy industry.
“Dairy companies have the chance to leverage their existing infrastructure and expertise to become leaders in the alternative dairy market,” Breewood stated.
“Those who innovate and invest in these areas will be well-positioned for success, while those who do not risk falling behind.”
In line with these trends, Vivici, a Netherlands-based company specializing in animal-free dairy proteins, earlier this year launched a commercially available nature-identical whey protein made using precision fermentation.
This product, which received Generally Recognized as Safe (GRAS) status in the US, offers a sustainable alternative to conventional whey protein. It features a neutral color and taste, making it suitable for use in protein beverages, powders, and bars.
According to GEA, precision fermentation is enabling the production of animal-free dairy products that closely mimic the taste and texture of traditional dairy.
“For food companies aiming to meet the growing global demand for dairy in a more sustainable manner, precision fermentation is becoming a critical component of the solution,” GEA noted.
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