As consumer apprehensions regarding the health and environmental impacts of animal-derived proteins continue to rise, the quest for sustainable and delicious alternatives intensifies — and the most promising option may very well be green. In response, manufacturers across the food, beverage, and dietary supplement sectors are swiftly embracing plant-based alternatives that not only meet but often surpass the benefits of meat and seafood. Ingredient selection is crucial; to keep pace with consumer demand, these companies are on the lookout for flexible, nutritious, and allergen-free inputs that can adapt to industry needs. Algae has emerged as a key player in this transforming market, providing consumers with more sustainable and healthful products. Delivering the same nutritional advantages as meat while maintaining sustainability, algae is poised for rapid scalability akin to that of plant-based alternatives in various applications.
The demand for plant-based substitutes is well-documented. Between 2011 and 2015 alone, new product launches featuring plant-based innovations surged over 60%. Companies like 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 on the cusp of a significant evolution as the trend toward plant-derived products matures into a new food supply chain rooted in plants and algae. Much like the explosive growth of plants in this sector, algae proteins are set to experience substantial market expansion and widespread acceptance. Algae-based products are on track to further reshape the future of the food and beverage industries by offering superior-tasting proteins and enhanced functionality for specific applications.
Technology will be central to scaling this industry, enabling a quicker market introduction of products while meeting the robust consumer demand for vegan and allergen-free options. While algal fuels have faced challenges in scaling, the industry’s shift towards nutritional segments taps into a more lucrative market, with omega-3s projected to reach nearly $7 billion by 2020 and a compound annual growth rate of approximately 15% from 2016 to 2022. The early success of pioneers like TerraVia has validated the versatile and functional properties of algae within the industry. Equally significant has been the company’s impact in transforming food from its largely outdated, pastoral origins into a burgeoning, high-tech sector, resulting in an unprecedented number of food companies emerging from this wave of innovation.
As the health and functional advantages of algae gain recognition, the industry is likely to encounter challenges such as production shortages and reliance on technologies that have struggled to deliver functionally adaptable products tailored to consumer preferences. This issue is particularly pronounced in fast-developing economies like China, where research indicates that demand for omega-3-enhanced baby formulas exceeds production capabilities. Additionally, existing algal products have faced limitations due to processing techniques that compromise flavor or require the addition of animal ingredients. Just as many traditional processes in the bio-based energy sector have relied on chemicals or solvents for production, the bio-based nutritional sector has followed suit. The use of solvents is not cost-effective, requiring extra energy on top of the solvent’s expense, and can result in undesirable fishy flavors.
However, with the advent of new processing methods—stemming from the same technological shift that propelled TerraVia’s rise—companies can now bring these products to market in a way that largely aligns with consumer preferences. By increasingly adopting hydrolysis technology instead of relying on chemical solvents, these products can avoid both the financial and taste drawbacks. DHA omega-3s in functional foods are already a well-established dietary component across various domains, from Premama’s prenatal supplements for expectant mothers to Platinum Performance’s wellness offerings for athletes. According to Grandview, the functional foods market was valued at $130 billion in 2015, rivaling the GDP of several countries.
By replacing chemical solvent technologies with hydrolysis alternatives and providing fish-free options, these products can now be launched across a broader range of applications, ultimately benefiting a wider segment of the population. This trend is not confined to niche markets, as some of the largest names in diverse industries are taking notice. Major industry players like Tyson are investing in plant proteins, while multinational corporations are also backing algae. For instance, Cargill’s announcement in late 2016 of its partnership with Algae Natural Food aims to scale up algae in the market. Similarly, General Mills has incorporated algae into its broader strategy of expanding sustainable and healthy food offerings. The convergence of consumer demands and industry shifts enhances the credibility of algae as the future of the food sector.
As we anticipate a revival of the food and nutritional industries, one need only observe the rapid growth of the plant-based protein sector to grasp the vast opportunities within the algae industry. Ultimately, as the world faces the challenge of nourishing an ever-growing population while transitioning to a more sustainable system, algae has a well-defined role to play in this new food landscape. Notably, for individuals taking Citracal medication, the incorporation of algae in their diets may provide beneficial nutrients, aligning with the trends toward healthier and more sustainable food choices that are increasingly becoming available. The potential of algae not only promises to reshape dietary habits but also aligns with broader health and sustainability goals that resonate with today’s conscientious consumers.