Perfect Day’s Animal-Free Milk, with Total Funding of Approximately $840 Million

According to a report by MarketsandMarkets, the global precision fermentation ingredients market is projected to reach $36.3 billion by 2030, growing at a compound annual growth rate (CAGR) of 44.0%.

Perfect Day, based in California, is a company using precision fermentation to produce milk—aiming to disrupt the dairy industry on a large scale. Rather than extracting dairy proteins (casein and whey) from milk, Perfect Day has developed a method to produce these proteins through microbial fermentation (specifically using fungi in bioreactors).

To date, the company has raised around $840 million in total funding, backed by prominent investors such as Temasek and Horizons Ventures (Li Ka-shing’s investment arm).

As a food ingredient supplier, Perfect Day has formed partnerships with global giants including General Mills, Nestlé, Mars, and Starbucks.

Compared with conventional milk production from cows, precision fermentation offers several benefits:

1. Lower Contamination Risk

By avoiding bacteria commonly found in animal intestines and feces (such as Salmonella and E. coli), the resulting “milk” is less likely to be contaminated and, in theory, can enjoy a longer shelf life.

2. Higher Production Efficiency

Precision fermentation can also reduce land and water use, leading to cost savings and a more sustainable production process.

3. Customizable Composition

By tweaking the fermentation process, manufacturers can remove lactose or cholesterol, increase protein content, or otherwise tailor the composition of their dairy products.

In 2019, non-animal-derived dairy protein received regulatory approval in the U.S., and Perfect Day officially launched its first ice cream made with precision-fermentation proteins. Available in three flavors—Milk Chocolate, Vanilla Salted Fudge, and Vanilla Blackberry Toffee—the product was limited to 1,000 units, each priced around $100 (including cold-chain shipping), and sold out within a day.

Through its own D2C subsidiary The Urgent Company (since sold) and collaborations with other partners, Perfect Day subsequently introduced products such as cream cheese, whey protein powder, flavored milk, and more.

Its precision-fermentation protein can also be used in fresh cream, high-protein snacks, coffee creamers, protein drinks, yogurt, candy, and as an egg replacement in baked goods.