US-based biotech company Jellatech is tapping into the growing demand for collagen and gelatin ingredients without the use of animals. Amid the COVID-19 pandemic, the start-up says there is a significant demand for healthier and more sustainable ingredients.

Animal-based collagen and gelatin ingredients are commonly found in confectionery, cakes and ice cream applications. With a boom in demand for plant-based foods, there is an increasing demand for innovation without the use of animals.

Last month, the North Carolina-headquartered company raised US$2 million in its pre-seed funding round, which will be used to further develop cell-based, animal-free collagen and gelatin across industries, including the F&B and nutrition sectors, and for applications such as gummies and supplements.

Investors in this round include Iron Grey, YellowDog, Seven Hound Ventures, Capital V, Sentient Investments, Bluestein Ventures, Sustainable Food Ventures and Big Idea Ventures.

Speaking to FoodIngredientsFirst, Walker Graham, business development associate at Jellatech, says the collagen and gelatin market is huge and it’s on-track for significant expansion. 

“Consumers are becoming more aware of the ingredients in the products they use daily especially given the circumstances around COVID-19,” he notes.

Investors in this round include Iron Grey, YellowDog, Seven Hound Ventures, Capital V, Sentient Investments, Bluestein Ventures, Sustainable Food Ventures and Big Idea Ventures.

Humane and sustainable ingredients 
While the motivation to create animal-free collagen and gelatin is clear, it remains a complex and challenging protein to make outside an animal. 

Current alternatives, such as animal-free collagen peptides and plant-based pectin or agar, can occasionally substitute conventional collagen and gelatin. These alternatives, however, lack the functionality of native collagen, which limits the applications. 

Jellatech’s collagen is biologically identical to native collagen, making it a true replacement for animal-derived collagen.

According to Graham, the company’s technology produces native collagen by using animal cells in a more humane and sustainable way. “This allows our collagen to have more functionality than other alternatives such as pectin or agar.”

“There are other companies on similar missions to produce animal-free collagen, but they use fermentation technology, which only creates part of the protein (collagen peptides) and not functional, native collagen,” he outlines. 

Rather than isolating collagen from inedible leftovers from animals in the meat industry, Jellatech uses cellular agriculture to manufacture real animal-free collagen and gelatin ingredients.

Graham also flags opportunities for various applications. “There are many possibilities for using animal-free collagen and gelatin. Right now, we are looking at applications within industries such as food and beverage, cosmetics and skincare and medical and pharmaceutical spaces,” he notes.  

“In F&B applications specifically, nutritional supplements, candy and other health foods all use collagen and gelatin. There are many applications since our ingredients can be used for flavor or as a texturizer.”

Scaling up
The company recently raised US$2 million in pre-seed funding, which Graham says will be used for the scale-up that the company anticipates will happen over the next few months in the US. 

“Right now, with us being a very early-stage company, we are looking to scale up quickly so that we can begin producing more collagen at a larger scale. The demand for animal-free ingredients will only continue to grow, which is why we would like to grow as well and satisfy this demand,” he continues.

“There are other possibilities to expand our portfolio of sources of collagen and gelatin. We currently have marine, bovine, porcine and human. But, there are other options we may look into to continue our R&D. There are also other animal proteins that we can produce with our technology.”

Graham also highlights the company’s plans to tap into the F&B and nutraceuticals sectors. “There are endless possibilities within these two areas, but before we can tap into these, we have to understand the regulations within these areas further,” he adds. 

“Our R&D team is busy getting samples at a small scale ready to send out, but the next step is to begin scaling up in the US so we can increase the production amount to reach more potential customers that are interested.”

“We are excited to have the support of our investors who believe in our company and the future we are building,” adds Stephanie Michelsen, co-founder and CEO of Jellatech. “We know that the demand and the need is there, and now we have the fuel to realize it.”

“For those consumers who love collagen and love animals, we want to offer an option wher you don’t have to choose one or the other,” she concludes.

Animal-free collagen space heats up
As the market for plant-based products evolves, relevant solutions continue to proliferate. With this, the expanding demand for collagen alongside the global plant-based movement is prompting innovation surrounding vegan alternatives to this animal-derived protein. 

Last August, FoodIngredientsFirst spoke to bio-design start-up Geltor about the market dynamics driving up consumer appetite for animal-free collagens, which the company produces using its unique fermentation technology.

Meanwhile, in an interview with FoodIngredientsFirst, Synergy Flavours’ Category Manager Chris Whiting predicted that the next wave of plant proteins will include bases such as collagen, alongside sunflower and quinoa.

Last July, collagen and lactose-free A2/A2 dairy proteins featured in Re:THINK Ice Cream’s “tummy-friendly” products, as the company reconsidered both its formulation and branding in light of its two year anniversary. The iteration was touted as the first and only dairy ice cream completely free from lactose and A1 protein, both of which may lead to digestive discomfort in millions of consumers who respond adversely to dairy.

In the same month, fermented collagen was pegged as “the key to increased bioavailability,” according to US-based supplement brand Ancient Nutrition, which released four new encapsulated versions of its Multi Collagen Protein Powder for the nutrition sector.