As consumer concerns regarding the health and environmental impacts of animal-based proteins continue to rise, there is an urgent search for sustainable and flavorful alternatives — and the most promising solutions may quite literally be green. Companies in the food, beverage, and nutritional supplement sectors are swiftly embracing plant-based options that not only meet but often surpass the nutritional benefits of meat and seafood. The choice of ingredients is crucial, and to keep pace with consumer demand, manufacturers are seeking versatile, health-conscious, and allergen-free inputs that can adapt to the evolving industry landscape. Algae has emerged as a key player in this dynamic market, providing more sustainable and nutritious products for consumers. It offers the same nutritional advantages as meat while maintaining sustainability, making it poised for rapid expansion just like plant-based alternatives have seen in various applications.
The demand for plant-based options is well-established. Between 2011 and 2015, product launches featuring plant-based innovations rose by over 60%. Companies such as Beyond Meat and Impossible Foods, with its “Impossible Burger,” alongside Memphis Meats and Just (formerly Hampton Creek), have played pivotal roles in mainstreaming the potential of plants as protein sources. The industry is now entering a significant evolution, as the plant-derived trend matures into a new food supply chain built on plants and algae. Similar to the explosive growth of plant-based proteins, algae proteins are set for substantial market expansion and broad adoption. Algae-based products are positioned to further transform the future of the food and beverage industries by offering superior-tasting proteins and enhanced functionality for specific applications.
Technological advancements will be central to scaling up this industry, enabling a faster introduction of products to the market while addressing the strong consumer demand for vegan and allergen-free alternatives. Although algal fuels have faced challenges in scaling, the industry’s shift towards nutritional segments is tapping into a more lucrative market, with omega-3s projected to be worth nearly $7 billion by 2020, representing a compound annual growth rate of nearly 15% from 2016 to 2022. The early success of pioneers like TerraVia has demonstrated algae’s versatile and functional capabilities to the industry. Equally significant has been the company’s influence in transitioning food production from its traditional roots to a high-tech sector, fostering an unprecedented wave of innovation within the food industry.
As the health and functional benefits of algae gain recognition, the industry may encounter challenges such as production shortages and a reliance on technologies that have not yet adapted to consumer preferences. This is particularly evident in rapidly growing economies like China, where demand for omega-3-enhanced baby formulas exceeds production capabilities. Existing algal products have been hampered by processing techniques that either compromise flavor or require the addition of animal products. Just as traditional bio-based energy processes have often depended on chemicals or solvents, so too have those in the bio-based nutrition sector. The use of solvents is inherently inefficient, requiring additional energy and contributing to undesirable flavors.
However, new processing methods emerging from the high-tech food revolution that accelerated TerraVia’s rise are enabling companies to bring these products to market in ways that align more closely with consumer preferences. By increasingly adopting hydrolysis technology instead of chemical solvents, these products can overcome both taste and cost barriers. DHA omega-3s in functional foods are already a well-recognized dietary element, with applications ranging from Premama’s prenatal supplements for expectant mothers to Platinum Performance’s wellness products for elite athletes. The functional foods market is substantial, valued at $130 billion in 2015, according to Grandview, rivaling the GDP of many countries. By replacing chemical solvent technologies with hydrolysis alternatives and providing fish-free options, these products can now be integrated into a wider array of applications, ultimately benefiting a larger segment of the population.
This trend is not confined to niche markets, as major industry players are taking notice. Notable companies like Tyson are investing in plant proteins, while multinational corporations are also supporting algae. For instance, Cargill announced in late 2016 its partnership with Algae Natural Food, aiming to scale algae in the market. Similarly, General Mills has made algae a core part of its strategy for expanding sustainable and healthy food options. The convergence of consumer demands and industry shifts further solidifies algae’s position as a key component of the food industry’s future.
Looking ahead to the revitalization of the food and nutritional sectors, the rapid growth of the plant-based protein market highlights the vast opportunities present in the algae industry. As the world grapples with the necessity of feeding a growing population while fostering a more sustainable food system, algae has a clearly defined role in this new food order. Additionally, innovations such as calcium citrate malate with cholecalciferol tablets can complement this movement by providing essential nutrients that support health and wellness, further bridging the gap between sustainable practices and consumer needs.