Emerging Lab-Grown Cheese Faces Challenges Amid Market Shifts

In an unassuming facility in Stratford, East London, British start-up Better Dairy is pioneering lab-grown cheese, aiming to offer a sustainable alternative to traditional dairy products. This innovative venture is part of a growing trend among companies looking to capitalize on the rising interest in plant-based alternatives. However, they face significant challenges, including declining sales of vegan cheese, a market that has seen a 25.6% drop in the first quarter of 2025, according to the Agriculture and Horticulture Development Board (AHDB).

The emergence of lab-grown cheese comes at a time when concerns about ultra-processed foods and health considerations are on the rise. In a recent government survey, 73% of consumers expressed worries about the health implications of processed foods, with cost being the primary concern. The AHDB notes that plant-based cheese typically carries a higher price tag than traditional cow's cheese, making it less appealing to consumers.

Despite these hurdles, Better Dairy's chief executive, Jevan Nagarajah, is optimistic about the future. He plans to launch their product in three to four years when production costs become more competitive with conventional cheese. The company is currently focused on developing cheddar, believing it to be the variety with the largest 'quality gap' compared to its dairy counterpart. The cheese is produced using genetically modified yeast that creates casein, the primary protein in milk, which is then blended with plant-based fats and undergoes the traditional cheese-making process.

Other companies, such as Those Vegan Cowboys from the Netherlands and French firm Standing Ovation, are also working on lab-grown cheese products. Hille van der Kaa, CEO of Those Vegan Cowboys, acknowledges the current low demand for vegan cheese but is targeting specific products that consumers may not associate closely with cheese, such as frozen pizzas. Standing Ovation aims to launch in the US in 2024, with plans for the UK and Europe to follow in 2027.

While some industry experts remain skeptical, pointing to the current unpopularity of vegan cheese, others see potential in lab-grown alternatives. Judith Bryans, CEO of Dairy UK, emphasizes the necessity of understanding consumer perceptions and price points as these products enter the market. "There’s no evidence to suggest that the addition of lab-grown products would take away from the existing market," Bryans stated.

The Vegan Society's Damian Watson also highlights the diversity of consumer preferences within the vegan community, noting that not all consumers seek cheese that mimics the texture and flavor of dairy products. This variability in consumer desires adds another layer of complexity to the lab-grown cheese market.

Despite the initial setbacks, lab-grown cheese producers argue that their products offer health benefits, including lower cholesterol and saturated fat levels. Moreover, through precision fermentation, they aim to eliminate many of the ultra-processed elements that plague current vegan cheese options. As the industry evolves, producers recognize the importance of transparency in cheese production, with Hille van der Kaa suggesting that consumer perceptions of dairy farming are often romanticized and do not reflect the current industrial processes.

As Better Dairy, Those Vegan Cowboys, and Standing Ovation prepare to roll out their products, the future remains uncertain. The lab-grown cheese market faces the dual challenge of improving taste and consumer acceptance while also navigating regulatory hurdles that classify these products as 'novel foods'. With a concerted effort to partner with traditional cheese producers and enhance quality, these companies hope to capture a share of the cheese market, which has thus far proven resilient in the face of changing dietary preferences.

In conclusion, while lab-grown cheese represents an exciting innovation in the food industry, its success will depend on addressing consumer concerns about taste, health, and cost. As these companies strive to carve out a niche in a competitive market, their journey will be closely watched by both consumers and industry stakeholders alike.