Lab-Grown Cheese: A Revolution in Dairy Alternatives Amid Declining Vegan Sales

In recent years, the alternative dairy landscape has been undergoing significant transformations, particularly with the emergence of lab-grown cheese. British start-up Better Dairy, located in Stratford, East London, is at the forefront of this innovation, claiming to produce cheese that mimics traditional dairy products without the use of animals. This novel approach comes at a time when sales of plant-based cheeses are reportedly declining, raising questions about the viability of lab-grown alternatives in a competitive market.

According to the Agriculture and Horticulture Development Board (AHDB), plant-based cheese sales in the UK fell by 25.6% in the first quarter of 2025, while traditional cow's cheese sales increased by 3%. The reasons for this decline are multifaceted. A recent survey conducted by the AHDB indicated that consumer concerns about ultra-processed foods and the higher costs associated with plant-based cheeses are driving factors behind the trend. Furthermore, the Vegan Society reports that only about 1% to 3% of the UK population identifies as vegan, a demographic that has remained relatively stable but is insufficient to support the growth of vegan cheese sales.

Jevan Nagarajah, CEO of Better Dairy, acknowledges the challenges ahead but remains optimistic about the potential for lab-grown cheese to fill a quality gap in the current market. "The aim is to make cheese that is not only comparable to dairy in taste but also accessible in terms of price," he stated, noting that current production costs are a barrier to immediate market entry. Better Dairy's innovative process involves genetically modifying yeast to produce casein, the key protein in milk, which is then blended with plant-based fats and undergoes a traditional cheese-making process.

Meanwhile, companies like Those Vegan Cowboys and Standing Ovation are also exploring the lab-grown cheese market. Hille van der Kaa, CEO of Those Vegan Cowboys, plans to introduce their products to the U.S. market later this year. She emphasizes a strategic approach, focusing on cheeses that consumers often overlook, such as those used in frozen pizzas. "If you buy frozen pizza, you don’t really think about what kind of cheese is on that," Van der Kaa noted, suggesting that this could facilitate consumer acceptance of lab-grown alternatives.

Standing Ovation, a French firm, anticipates launching their products in the U.S. by next year and expanding to the UK and Europe by 2027. CEO Yvan Chardonnens believes that the current decline in vegan cheese popularity is part of a natural evolution as quality improves. He argues that lab-grown cheese could meet consumer expectations for taste and texture, which are crucial for wider acceptance.

Despite the innovation, some industry experts remain skeptical about the future of lab-grown cheese. Judith Bryans, CEO of Dairy UK, asserts that there is no evidence to suggest that lab-grown products will significantly impact the existing dairy market. "The consumer perception and price point remain critical hurdles," she explained.

Furthermore, Damian Watson from the Vegan Society highlights the diverse preferences within the vegan community, stating that not all consumers desire a product that mimics dairy. "Some vegans want something completely different, while others seek the taste and texture of traditional cheese," he remarked.

As consumer preferences continue to evolve, lab-grown cheese producers must navigate the complex landscape of taste, quality, and price. With current production methods still in their infancy, companies like Better Dairy, Those Vegan Cowboys, and Standing Ovation are working to refine their products while emphasizing health benefits such as lower saturated fats and the absence of lactose and cholesterol.

The future of lab-grown cheese remains uncertain, but with ongoing research, strategic partnerships, and a focus on consumer education, there is potential for these innovative products to reshape the dairy aisle. As the industry adapts to changing consumer expectations, the success of lab-grown cheese will depend on its ability to resonate with both vegan and non-vegan consumers alike.