Cheese without cows: Consumer demand for animal-free dairy cheese made from cellular agriculture in the United Kingdom

We examine consumer demand for animal-free dairy cheese produced using cellular agriculture. Our data is generated through a hypothetical choice experiment completed by 1249 UK residents. Using a mixed logit model, we predict that animal-free dairy cheese would have a conditional market share of 22% when priced at a 25% markup relative to premium conventional cheese. However, the market share is quite sensitive to price: only 2% of consumers would purchase animal-free dairy cheese if it were twice the price of premium conventional cheese. Three-quarters of consumers who purchase animal-free dairy cheese would have purchased conventional dairy cheese if animal-free dairy cheese were unavailable. We use our experimental results to examine the impact of higher conventional dairy cheese prices, such as those that might result from a tax on livestock products. We find that the introduction of animal-free dairy cheese reduces consumer losses from higher conventional dairy prices by about 20%.