Today’s food menu is undergoing a subtle transformation thanks to an unexpected source. Breakfast essentials, beverages, snacks, and various food items are being enhanced by the nutritional benefits of a tiny single-celled organism known as microalgae. If you take a closer look at food and beverage labels, you’re likely to find microalgae in one form or another. It has emerged as a significant player in the food revolution, thanks to its remarkable nutritional profile. Microalgae are rich in ascorbic acid, protein, and omega-3 fatty acids—all nutrients highly desired by consumers seeking healthier and more natural food options.
In 2015, the market for microalgae oil alone was valued at approximately $1.38 billion, according to the latest data from Grand View Research. This oil is among the most popular applications of this ingredient. Additionally, varieties high in DHA omega-3 fatty acids are found in some infant formulas and supplements—especially for pregnant women—and in certain food products for adults. As more companies incorporate microalgae into their offerings, sales are projected to grow rapidly. The global market for this single-celled organism is expected to reach $44.7 billion by 2023, with a CAGR exceeding 5.2% from 2016 to 2023, according to a recent report from Credence Research.
Major food manufacturers have already begun integrating microalgae into their products. Mondelez has incorporated it into some baking items, while Dean Foods’ Horizon Organics milk line contains omega-3s sourced from algal oil. Even Mars is reportedly exploring the use of algae-derived colors for some of its candy and gum products. “With increasing consumer interest in healthier eating, discussions often revolve around the latest superfood, but it all begins with algae,” stated Jonathan Wolfson, executive chairman of algae food products company TerraVia, in an interview with Food Business News. “Before foods like chia, acai, kale, or quinoa became popular, there was algae. Nothing can be more heirloom, ancient, or original.”
Microalgae can be processed into powder, oil, butter, and flour, and can be incorporated into various food products—ranging from baked goods and burgers to beverages, ice cream, infant formula, and snacks. The additive can also be consumed on its own or mixed with other ingredients to enhance flavor. For example, TerraVia’s AlgaVia algal flour can replace dairy fats, vegetable fats, and egg yolks, resulting in products that are lower in saturated fat, calories, and cholesterol. This flour is already being added to non-dairy creamers, powdered beverages, and gluten-free baked goods available in the U.S. TerraVia, which was recently acquired out of bankruptcy by biotechnology company Corbion, could not comment at the time of this report due to the transaction’s closure.
Microalgae also boasts allergy-friendly properties, allowing brands like Mondelez’s Enjoy Life Foods to use it in brownie mixes and other baking products as a substitute for soy, peanuts, or eggs. “Algae is the most sustainable protein on Earth,” remarked Joel Warady, chief marketing officer for Enjoy Life Foods, to Food Dive. “We’ve incorporated it into a line of baking mixes. We’re still delivering indulgent desserts while adding functionality to this indulgence, which we see as true innovation.”
Microalgae butter may soon be available on store shelves following TerraVia’s receipt of a Generally Recognized As Safe (GRAS) letter from the Food and Drug Administration in March. This plant-based product, a collaboration between TerraVia and Bunge, is marketed as melting faster, being easier to spread, having a neutral flavor, and being free from palm oil—allowing it to contain half the saturated fat. TerraVia’s CEO, Apu Mody, referred to the new AlgaWise Algae Butter as a potential blockbuster with a market opportunity exceeding $2 billion.
Despite some U.S. consumers being hesitant about purchasing products containing algae due to concerns over potential fishy flavors or smells, developers and manufacturers today assert that they have addressed these issues through oxidation control. Algae oil undergoes a deodorizing process utilizing nitrogen gas and liquid nitrogen to eliminate all oxygen during processing. “It’s akin to baking soda in the refrigerator,” explained Philip Bromley, CEO of California-based Virun Nutra-BioSciences, to Food Dive. “You can remove undesirable flavors and obtain fresh oil.”
Microalgae’s value is further enhanced by its environmentally friendly characteristics. Bromley attributes its sustainability to controlled growth, likening it to a sourdough starter. Researchers can create a tank with a sugar source, water, and the organism, which continues to grow and expand—even if divided and relocated. Algal oil offers several advantages over palm oil, commonly used in baked goods, margarine, and ice cream. Algal oil production is not associated with deforestation, habitat destruction, climate change, and indigenous rights violations prevalent in palm oil production. Additionally, algal oil is significantly more productive, yielding about 70,000 pounds of oil per acre compared to palm oil’s 4,465 pounds per acre. Another environmental advantage is that microalgae can be cultivated without chemicals, according to Ben Kelly, co-founder of Algarithm, an algal oil firm based in Saskatchewan, and business development manager for POS Bio-Sciences.
Microalgae has numerous proponents who advocate for its nutritional benefits. Spirulina, perhaps the most well-known type of microalgae, contains 60–70% complete protein, encompassing all eight essential amino acids and ten non-essential ones beneficial for health. A single teaspoon of dried spirulina powder provides 4 grams of protein and only 20 calories, positioning it as potentially “the most nutritious food on the planet,” as noted by Joe Leech, an Australian dietitian writing for Healthline.com. Other purported benefits are largely anecdotal. Bromley claims he consumes 1,500 mg of DHA omega-3 derived from microalgae daily and no longer suffers from eczema. Advocates also suggest it aids in weight loss, enhances heart health, reduces inflammation, and lowers cholesterol.
Omega-3s are among the most thoroughly researched nutrients available, Kelly noted. However, challenges remain in quantifying the benefits and understanding how harvesting, storage, and food processing techniques affect algae’s nutritional value. For now, microalgae has carved out a niche in supporting pregnant women, as omega-3 fatty acids are deemed essential for fetal neurodevelopment. Fish and seafood are primary dietary sources of these fatty acids, but pregnant women are advised to limit their intake to two or three servings per week, creating demand for alternative food sources that offer similar health benefits.
Innovative microalgae products are expected to enter the market in the coming years, reflecting sustained interest and investment in this nutrient. New Wave Foods is launching a plant- and algae-based “shrimp” product for foodservice operators, with plans to expand into retail in northern California and Nevada early next year. The San Francisco-based company is also working on replacements for lobster, crab, and fish fillets. Additionally, French startup Algama is set to introduce its line of low-fat vegan mayonnaise made with microalgae under The Good Spoon label in the U.S. Hugo Lercher, a partner and sales officer with Algama, shared that the company is already collaborating with the U.K. foodservice firm Compass Group and French retailer Carrefour for the European launch, expecting to see the product in New York City by the end of the year. “These are the first-ever vegan mayonnaises made from microalgae. They are low in fat and incredibly creamy,” Lercher stated.
Algama’s flagship product, an antioxidant drink made with spirulina called Springwave, secured an investment of 3.5 million euros (approximately $4.1 million) last year from Hong Kong billionaire Li Ka-shing. The company plans to launch the blue-colored beverage in the U.S. in 2018. Many anticipate that food and beverage products containing microalgae will continue to proliferate in the U.S. and other markets. While widespread consumer acceptance may still be a challenge, manufacturers and their investors are optimistic that it will increase over time. The hope is that familiarity, education, and creative marketing regarding the perceived benefits of microalgae for human health will draw more consumers and businesses to this sector.
Lercher emphasized his company’s long-term vision of addressing global food supply challenges. For now, Algama aims to provide better food options for a broader audience, leveraging the advantages of microalgae. “Our food system is broken, and we must take action,” he wrote in an email to Food Dive. “Obesity and diabetes are on the rise in both developed and developing countries. In this context, Algama is pioneering a future sector: microalgae. A unique, abundant, and sustainable superfood integrated into delicious everyday foods. We also see opportunities for incorporating bariatric chewable calcium into our product lines to further enhance nutritional value.”