Two companies are working to bring cow-free cheese to market maturity. Their innovative approach, which promises to taste just like the original, has attracted investments from retail giant Rewe and media company ProSieben.
A dairy-free cheese revolution
Raffael Wohlgensinger and Hille van der Kaa, founders of startups Formo and Those Vegan Cowboys respectively, are developing a range of cheese products including Camembert, Brie, Gouda, and cream cheese. Unlike traditional cheese, their creations are made without milk. Instead, they use custom-designed microorganisms to produce casein, the key ingredient in cheese production, through a process called precision fermentation. As van der Kaa succinctly puts it, “We’re building a cow out of stainless steel.”
Environmental impact and market potential
This innovative approach aims to reinvent one of humanity’s oldest manufactured foods, creating an animal-free alternative similar to plant-based meat substitutes. The environmental impact of traditional dairy farming is significant, with dairy cows emitting methane, a potent greenhouse gas. According to United Nations figures, livestock farming accounts for 14.5% of global climate emissions – surpassing the combined emissions of all cars, trains, planes, and ships worldwide. “We love the taste of cheese, but it’s simply not a very sustainable product,” says van der Kaa.
In contrast, cheese produced through biofermentation could potentially cause only a fraction of the CO2 emissions. To bring this idea to the mass market, Wohlgensinger and van der Kaa have formed an alliance. “We want to share research progress, overcome regulatory hurdles together, and work on scaling our technology,” says Formo CEO Wohlgensinger.
Market size and challenges
The global cheese market is projected to reach $240 billion this year and grow to $315 billion by 2028, according to Statista Market Insights. While plant-based milk alternatives have gained popularity, capturing a 13% market share in Germany in 2022, vegan cheese remains a niche product. “Cheese is the most difficult part of the journey to an animal-free diet,” explains van der Kaa. “So far, there are simply no very good cheese alternatives.”
The unique structure of casein makes it challenging to replicate the taste and texture of traditional cheese. “The structure and functionality of casein are so unique that no equivalent substitute has been found in the plant world,” says Wohlgensinger. Casein forms long strands that stick together in a particular way due to molecular forces, partially separating when heated. This gives cheese its soft consistency and allows it to form strings when melted.
Product development and market entry
Formo launched its first cheese alternative in September, produced from koji proteins known from miso or sake. By 2025, the startup aims to introduce cheese with caseins from precision fermentation. Those Vegan Cowboys have also developed numerous prototypes. “The first tasting was fantastic,” recalls van der Kaa. “It was Camembert, without ifs and buts.”
Management consultancy Munich Strategy sees potential for this new product category, noting that precision fermentation has the potential to improve taste, consistency, and mouthfeel compared to plant-based alternatives.
Investment and future prospects
In September, Formo raised $61 million in a new financing round – a considerable sum for a food technology startup. ProSiebenSat.1 subsidiary SevenVentures invested, planning to run advertisements on its own channels, while Rewe made a significant investment, intending to stock the vegan cheese in its stores.
Both companies expect cost advantages over traditional cheese production: “We don’t have to raise cows and process milk.” Instead, the founders aim to make their biotechnology increasingly efficient. “In five to ten years, our cheese could even be cheaper than milk-based cheese,” says Wohlgensinger. “Then we’ll have a real game-changer.” Additionally, van der Kaa suggests that biotech cheese could be healthier as it doesn’t contain animal fats.
Regulatory hurdles and competition
The novel food must first be approved before it can enter the market. “We want to launch our first casein product in 2025,” says Wohlgensinger, “but not in the EU.” Countries like Singapore are quicker to approve novel foods than authorities in Brussels. The partnership between the two startups aims to accelerate the process, with the EU Commission indicating that joint approval applications are processed faster.
Nevertheless, the founders expect at least 18 months, but more likely three and a half years, before receiving approval from Brussels. Competitors such as Standing Ovation from Paris, Change Foods from the USA, and Remilk from Israel are also working on next-generation cheese. All must first demonstrate that their technology works, and on a larger scale.
