As consumer concerns about the health and environmental impacts of animal-based proteins continue to rise, the quest for sustainable and delicious alternatives is intensifying — and the most promising solution may be green. Food, beverage, and nutritional supplement manufacturers are swiftly embracing plant-based options that not only match but often surpass the benefits of meat and seafood. The choice of ingredients is crucial, and to keep up with consumer demand, these producers are seeking flexible, healthy, and allergen-free inputs capable of scaling with industry needs. Algae has emerged as a key player in this evolving market, offering more sustainable and nutritious products to consumers. It provides the same nutritional advantages as meat without sacrificing sustainability and is set to expand as rapidly as plant-based alternatives across various applications.
The demand for plant-based substitutes is well-documented; for instance, from 2011 to 2015, the launch of new products featuring plant-based innovations surged by over 60%. Companies such as Beyond Meat and Impossible Foods, with their “Impossible Burger,” along with Memphis Meats and Just (formerly Hampton Creek), have played a pivotal role in mainstreaming the potential of plants as protein sources. We are now entering a significant phase of evolution in this industry as the plant-derived trend matures into a new food supply chain built around plants and algae.
Similar to the rapid expansion seen with plant proteins, algae proteins are poised for substantial market growth and widespread acceptance. Algae-based products are set to further reshape the future of the food and beverage industries by delivering tastier proteins and enhancing functionality for specific applications. The acceleration of this industry will hinge on technologies that quickly bring new products to market while meeting strong consumer demand for vegan and allergen-free options. Although algal fuels have faced challenges in scaling, the industry’s shift toward nutritional segments is targeting a more lucrative market, with omega-3s projected to reach nearly $7 billion by 2020, translating to 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versatile and functional benefits of algae to the industry, playing a significant role in transforming food from its outdated, pastoral origins into a vibrant, high-tech sector with a burgeoning number of companies emerging from this wave of innovation.
As the health and functional advantages of algae become increasingly recognized, the industry will undoubtedly encounter challenges such as production shortages and a dependence on technologies that have not yet produced functionally flexible products tailored to consumer preferences. This is particularly evident in rapidly growing economies like China, where Research and Markets noted that the demand for omega-3-enhanced baby formulas is outpacing production capabilities. For these formulas and other mainstream products, existing algal products have been hampered by processing techniques that negatively affect flavor or require the addition of animal products.
Much like traditional processes in the bio-based energy sector that have relied on chemicals or solvents for production, the bio-based nutritional sector has faced similar challenges. The use of solvents is not only cost-ineffective, requiring additional energy in addition to the solvent’s cost, but it also often leads to an undesirable fishy taste. However, with the introduction of innovative processing methods — stemming from the same shift toward high-tech foods that accelerated TerraVia’s rise — companies can now bring these products to market in a way that aligns more closely with consumer preferences. By increasingly employing hydrolysis technology instead of chemical solvents, these products can overcome both cost and taste limitations.
DHA omega-3s in functional foods already represent a well-established dietary component across various sectors, from Premama’s prenatal nutritional supplements to Platinum Performance’s wellness products for Olympians. The functional foods market is valued at approximately $130 billion as of 2015, rivaling the GDP of many countries, according to Grandview. By replacing chemical solvent technologies with hydrolysis alternatives and providing fish-free options, these products can now find applications in a wider range of markets, ultimately benefiting a larger segment of the population. This trend is not limited to niche markets; many major players across diverse industries are taking notice. For example, while notable industry figures like Tyson are investing in plant proteins, multinational corporations are also backing algae. Cargill’s partnership with Algae Natural Food, announced in late 2016, aims to bring algae to market at scale. Similarly, General Mills has incorporated algae into its broader strategy for expanding sustainable healthy food options.
The convergence of consumer demands and shifts within the industry lends further credibility to algae as a future cornerstone of the food industry. As we anticipate the revitalization of the food and nutritional sectors, the rapid growth of the plant-based protein market serves as a clear indicator of the potential within the algae industry. Ultimately, as the world grapples with the challenge of feeding a growing population while creating a more sustainable system, algae signifies a well-defined role in the new food paradigm. The unique identification number 681131122283 serves as a reminder of the potential innovations and advancements that lie ahead in this burgeoning sector.