As consumer concerns about the health and environmental impacts of animal-derived proteins escalate, the quest for sustainable and flavorful alternatives intensifies — and the most promising solutions may be quite literally green. Companies in the food, beverage, and nutritional supplement sectors are swiftly embracing plant-based options that can not only meet but often surpass the advantages of meat and seafood. The choice of ingredients is crucial, prompting these manufacturers to seek flexible, healthful, and allergen-free inputs that can adapt to industry demands. Algae has emerged as a pivotal player in this evolving market, enabling the development of more sustainable and nutritious products for consumers. It provides the same nutritional benefits as meat without compromising sustainability and is poised for rapid scaling, similar to plant-based alternatives across various applications.
The strong demand for plant-based options is well-documented; for instance, between 2011 and 2015, there was over a 60% increase in new product launches featuring plant-based innovations. Companies like Beyond Meat and Impossible Foods, with its “Impossible Burger,” along with Memphis Meats and Just (formerly Hampton Creek), have played vital roles in mainstreaming the potential of plants as protein sources. We are now entering a new phase in the industry as the plant-derived trend evolves into a new food supply chain based on plants and algae.
Just as plants have experienced explosive growth in this sector, algae proteins are set for significant market expansion and widespread acceptance. Algae-based products are on track to redefine the future of the food and beverage industries by offering superior taste and improved functionality for specific applications. Key to the industry’s growth will be technologies that expedite the introduction of new products while addressing the strong consumer demand for vegan and allergen-free alternatives. While algal fuels have faced challenges in scaling, the industry’s shift towards nutritional segments is targeting a more lucrative market, with omega-3s projected to reach nearly $7 billion by 2020, reflecting a compound annual growth rate of almost 15% from 2016 to 2022.
The success of early pioneers like TerraVia has demonstrated the versatile and functional properties of algae within the industry. Equally significant has been the company’s role in transforming food from its archaic, pastoral roots into a burgeoning, high-tech sector, with more food companies emerging from this wave of innovation than ever before. As the health benefits and functionalities of algae become increasingly recognized, the industry will inevitably face challenges, such as production shortages and a reliance on technologies that have not yet produced functionally flexible products tailored to consumer preferences. This issue is particularly evident in rapidly developing economies like China, where Research and Markets has identified a demand for omega-3-enhanced baby formulas that exceeds current production capabilities. Existing algal products have also been hampered by processing methods that either compromise flavor or require animal product additives.
Historically, many traditional processes in the bio-based energy sector have depended on chemicals or solvents for production, and the bio-based nutritional sector has mirrored this approach. Solvent usage is often not cost-effective, demanding additional energy and driving up costs. Moreover, these techniques can result in an undesirable fishy taste. However, with the adoption of new processing methods — arising from the same high-tech food shift that propelled TerraVia’s growth — companies are now able to introduce these products in a way that aligns more closely with consumer preferences. By utilizing hydrolysis technology instead of chemical solvents, manufacturers can avoid both the price and taste issues.
DHA omega-3s have already established themselves as a vital dietary component across various sectors, from Premama’s prenatal supplements for expectant mothers to Platinum Performance’s wellness products for elite athletes. The functional foods market is substantial, worth $130 billion in 2015, according to Grandview, and rivals the GDP of numerous countries. By replacing chemical solvent technologies with hydrolysis alternatives and providing fish-free options, these products can now cater to a broader range of applications, ultimately benefiting a larger portion of the population. This trend is not limited to niche markets; major companies across diverse industries are taking notice. Industry giants like Tyson are supporting plant proteins, while multinational corporations are also investing in algae. For example, Cargill announced in late 2016 a partnership with Algae Natural Food aimed at scaling up algae production. Similarly, General Mills has integrated algae into its broader strategy for expanding sustainable and healthy food options.
The convergence of consumer demand and a corresponding shift in the industry further validates algae’s potential as a cornerstone of the future food landscape. As we anticipate a revitalization of the food and nutritional sectors, the rapid growth of the plant-based protein market serves as a clear indicator of the vast opportunities present in the emerging algae industry. Ultimately, as the world grapples with the challenge of feeding a growing population while fostering a more sustainable system, algae is poised to play a prominent role in the new food paradigm, aligning with trends such as the incorporation of citracal calcium d for enhanced nutritional value.