Protein Nutrition & Flavor Technology Center - Li Zhigang

Part 1: Global Plant-Based Cheese Market Landscape

According to data from Allied Market Research, the global plant-based cheese market was valued at approximately 2.4 billion in 2022, and is projected to exceed 7.6 billion by 2031, with a compound annual growth rate (CAGR) of 12.5%. Several key factors are driving this expansion:

· Health Consciousness: Addressing both lactose intolerance among specific populations and the expanding vegan and vegetarian demographics.

· Global Emission Reduction Initiatives: Recognizing that livestock farming contributes significantly to global carbon emissions (14.5% according to FAO data), plant-based alternatives offer a lower carbon footprint.

· Government and Organizational Policy Support: Multiple European governments incentivize plant-based industries through subsidies and tax benefits.

The development of plant-based cheese is closely linked to regional economies and dietary habits, with significant growth occurring in three main regions:

· North America: Dominates with >40% market share, led by innovators like Miyoko’s Creamery and Violife.

· Europe: Germany and UK spearhead adoption due to high consumer acceptance.

· Asia-Pacific: Emerging as the fastest-growing region (20%+ CAGR), driven by China and Japan.

Two enterprise types propel market evolution: traditional dairy giants (e.g., Danone’s "Silk") and tech-driven startups (e.g., New Culture). Notably, 2023 saw a 35% year on year increase in sector funding, with synthetic biology ventures attracting significant investor interest.

Part 2: Increasingly Diversified Innovation

Diverse Raw Materials

Early plant-based cheeses were primarily developed using ingredients such as soy, almonds, cashews, and chickpeas. Recent advances in synthetic biology enable precision fermentation for superior functional proteins. For instance, New Culture utilizes precision fermentation to produce casein without animal-derived milk proteins. However, high production costs hinder scalability, necessitating cost-nutrition-performance balanced solutions.

New Culture company's plant-based cheese

Texture and Flavor Upgrades

· New Technologies Improving Texture

Utilizing 3D printing technology to enhance the texture of plant-based cheese: By accurately controlling the melting characteristics and stretchability of the cheese, the common issues of brittleness and poor melting in plant-based cheese can be addressed.

Plant-based cheese made with 3D printing technology

· Biotechnological Flavor Breakthroughs

Traditional plant-based cheese production mainly involves two methods: blending and fermentation. Regardless of the method, synthetic flavor enhancers are often needed to mimic the flavor of traditional cheese. Recently, with the advancement of processing technologies, there has been a gradual shift towards using natural flavors (such as smoked nut powders) or obtaining "cheese-like flavors" through enzymatic and thermal reactions. For example, yeast extracts not only impart a savory flavor to plant-based cheese but can also provide a taste profile that closely resembles that of natural cheese, achieving cleaner labels.

Clean Labels and Nutritional Diversification

With the development of the concept of precision nutrition, plant-based cheese has also begun to carry out differentiated nutritional design according to the nutritional needs of different groups, such as strengthening B vitamins, adding probiotics, omega-3, etc.

Part 3: Challenges in Plant-Based Cheese

Difficulty Replicating Traditional Cheese Texture

Traditional plant proteins cannot form a gel structure similar to casein, nor can they form a brushed structure when hot melted. Furthermore, plant-based ingredients often contain starch or rely on starch to increase hardness and elasticity. Over time, starch retrogradation can lead to significant structural breakdown, resulting in issues such as a noticeable powdery mouthfeel and brittleness.

Raw Material Costs and Supply Issues

Crop production is subject to factors such as geographical origin, climate, and planting scale, leading to high prices and unstable supply for certain ingredients like cashews and almonds. While precision fermentation can address supply and structural issues, its production costs are significantly higher than those of traditional proteins, hindering market adoption.

Consumer Perception and Acceptance

Regulatory delays in some regions prohibit the use of the term "cheese" for plant-based products, impacting consumer decision-making. Additionally, plant-based cheeses are typically 30-50% more expensive than traditional cheese, posing challenges to product penetration.

Lagging Regulations and Standards

Inconsistent nutritional standards, additive usage regulations, and labeling specifications for plant-based products across different countries create compliance risks for companies. For example, the US FDA has yet to clearly define "plant-based dairy products," potentially leading to legal disputes.

Part 4: Angel Yeast Provides High-Quality Natural Ingredients for Plant-Based Cheese with Biotechnology

Based on its technical accumulation in the fields of biological fermentation and food flavoring, Angel Yeast brings high-quality natural food ingredients to the industry: microbial protein and yeast extract.

Innovative microbial source proteins: Saccharomyces cerevisiae protein and Aspergillus oryzae protein. Yeast protein provides a new protein option for plant-based cheese with its high protein, high nutrition and more friendly price. Aspergillus oryzae can break through the texture defects of traditional plant-based proteins, making plant-based cheese easier to form, with a smooth and elastic cut surface.

Natural flavoring agent yeast extract: Through technological innovation, cheese-specific yeast extract can impart natural salty and umami flavors to plant-based cheese, while masking bad odors, making plant-based cheese have a stronger natural cheese flavor.

Plant-based cheese samples made with Angel Yeast protein and extracts

Plant-based cheese base made with Angel Aspergillus oryzae protein

Part 5: Future Outlook

Despite various challenges, the growth logic of the plant-based cheese market remains solid. Technological breakthroughs (such as precision fermentation and cell-cultured milk proteins) combined with consumer development efforts (through experiential stores and tasting activities) will be pivotal for overcoming existing barriers. Additionally, the improvement of regulations is equally important for fostering the healthy growth of the plant-based cheese sector. In the future, products that offer a balance of taste, nutrition, and sustainability are expected to reshape the cheese industry landscape, potentially accelerating the transformation of traditional dairy companies. The ultimate goal in this sector might not solely be to replace animal cheese but to create an entirely new category of food.

References

Allied Market Research, FAO, PitchBook, corporate reports

Case Studies: Violife, Miyoko’s Creamery, New Culture, Willicroft

About Angel Yeast

Founded in 1986, Angel Yeast Co., Ltd specializes in the production of yeast and yeast derivatives. Its product range includes baker's yeast and ingredients, Chinese dim sum and seasoning, savory yeast extract, human health, animal nutrition, plant nutrition, distilled spirits and biofuels, microbial nutrition and enzymes. At present, Angel Yeast has 11 international advanced production bases in China, Egypt and Russia, and provides products and services for more than 150 countries and regions globally.

About Angel Yeast Extract-Savoury

Angel YE (yeast extract) made from edible yeast, by degradation the protein and nucleic acid in the yeast cells into nutritional seasonings with the application of modern biotechnology, has the advantages of increasing the fresh flavor, reducing salt, balancing the odor, strong tolerance and food properties, which promotes the global healthy operation of salt reduction and "clean label ".

Press Contact
ANGEL YEAST CO.,LTD
Address: 168 Chengdong Avenue, Yichang, Hubei 443003, P. R. China

Tel: +86-717-6369520, 6369558

Fax: +86-717-6370680

Email: yefood@angelyeast. com