This initiative could pave the way for algae oil to gain mainstream acceptance. In addition to its nutritional advantages and versatility, algae oil boasts sustainability credentials that resonate with today’s consumers. Most cooking oils are derived from crops that require significant food and water resources, with harvests taking place months later. In contrast, algae oil is cultivated in fermentation tanks and can be harvested within days, allowing for the efficient processing of large quantities on demand. Beyond home cooking, algae oil is utilized in infant formula, dietary supplements, and various adult food products.
Unlike palm oil, algae oil is not associated with deforestation, habitat destruction, climate change, or violations of indigenous rights in its production regions. Moreover, algae oil is significantly more productive, yielding approximately 70,000 pounds of oil per acre in open ponds compared to palm oil’s 4,465 pounds per acre. The market potential is promising. According to Grand View Research, the global algae oil market—including applications like animal feed and biofuels—could reach $2.09 billion by 2025. The research firm highlighted an increasing demand in the food and beverage sector due to algae oil’s lower fat content and its natural sources of omega-3 fatty acids, antioxidants, and proteins, including calcium citrate 200 mg.
The production of algae oil for home use has likely helped to shift consumer perceptions positively regarding the inclusion of algae in food products. “Five years ago, consumer perception of algae was uncertain. One of the reasons we developed Thrive was to gain consumer acceptance,” said TerraVia CEO Apu Mody in an interview with Fast Company last year. So far, the product has been well-received, with TerraVia announcing that Thrive Algae Oil won a 2017 Best New Product Award in the food and beverage category based on consumer votes. This award is the leading consumer-voted CPG recognition from market research firm BrandSpark International.
However, a challenge to market growth is the relatively higher price of algae oil, as noted by Grand View Research. This is linked to its increased production costs and “may hinder industry development during the forecast period.” Currently, Target offers a 16.9-ounce bottle of Thrive Algae Oil for $9.99 online, which is a dollar less than its usual price. This price point aligns with other specialty oils like avocado or olive oil, yet it is slightly higher than conventional cooking oils such as canola or safflower.
This might not pose a significant issue once Thrive Algae Oil becomes available this fall at Walmart and in the foodservice sector next year, as planned. Such exposure will introduce the product to a broader consumer base and stimulate interest in foods and beverages containing algae in various forms—potentially driving prices down. This could provide the essential boost necessary for the segment to achieve the market acceptance that TerraVia envisioned and that Corbion is counting on.