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—potentially leading to options that are quite literally green. Manufacturers in the food, beverage, and nutritional supplement sectors are swiftly adopting plant-based solutions that not only meet but often surpass the benefits of traditional meat and seafood. Ingredients are crucial, and to keep up with consumer demand, these manufacturers are on the lookout for flexible, healthy, and allergen-free inputs capable of evolving with industry needs. Algae has emerged as a key player in this dynamic market, providing more sustainable and nutritious products for consumers. With nutritional profiles comparable to meat, while maintaining sustainability, algae is set to grow just as rapidly as plant-based options across various applications.
The significant demand for plant-based alternatives is well-documented. Between 2011 and 2015, new product launches featuring plant-based innovations surged by over 60%. Companies like Beyond Meat and Impossible Foods, with its “Impossible Burger,” Memphis Meats, and Just (formerly Hampton Creek), have been pivotal in popularizing the potential of plants as protein sources. Now, we are entering a new phase in the industry, as the plant-derived trend evolves into a fresh food supply chain grounded in plants and algae. Similar to the explosive growth of plant proteins, algae-based products are poised for substantial market expansion and widespread acceptance. These products are set to redefine the future of the food and beverage industries by offering tastier proteins and enhancing functionality for specific uses.
Central to the growth of this sector will be technologies that rapidly bring more products to market while satisfying consumer demand for vegan and allergen-free alternatives. Although algal fuels have faced challenges in scaling, the industry’s shift toward nutritional segments is tapping into a more lucrative market, with omega-3 products expected to be valued at nearly $7 billion by 2020, reflecting a compound annual growth rate of around 15% from 2016 to 2022. The success of early pioneers like TerraVia has showcased the versatile and functional properties of algae within the industry. Equally important has been the company’s role in modernizing food production, transitioning from traditional practices to a high-tech sector with more food companies emerging from this wave of innovation than ever.
As the health and functional benefits of algae become more apparent, the industry will undoubtedly face challenges, such as production shortages and a reliance on technologies that have not yet produced flexible products tailored to consumer preferences. This issue is especially pronounced in rapidly developing economies like China, where Research and Markets has found that demand for omega-3-enhanced baby formulas exceeds production capabilities. For these formulas and other mainstream products, existing algal offerings have been hindered by processing techniques that compromise flavor or require animal products.
Much like traditional processes in the bio-based energy sector, which have relied on chemicals or solvents, the bio-based nutritional field has also followed suit. These solvent-based methods are often not cost-effective as they require additional energy and incur extra costs. Moreover, these techniques can impart a fishy taste to the final products. However, with the advent of new processing methods—stemming from the same shift toward high-tech foods that propelled TerraVia’s rise—companies are now able to market these products in alignment with consumer preferences. By employing hydrolysis technology instead of chemical solvents, producers can eliminate both the price and taste limitations.
DHA omega-3s in functional foods are already established as important dietary components across various markets, ranging from Premama’s prenatal supplements to Platinum Performance’s wellness products for athletes. The functional foods market is substantial, valued at $130 billion in 2015, according to Grandview. By replacing chemical solvent technologies with hydrolysis alternatives and offering fish-free options, these products can now be integrated into a broader array of applications, ultimately benefiting a wider segment of the population. This trend is not confined to niche markets; major players across diverse sectors are taking notice. For instance, while industry giants like Tyson are investing in plant proteins, multinational corporations are also backing algae. Cargill’s announcement in late 2016 of its partnership with Algae Natural Food aims to bring algae to market at scale. Likewise, General Mills has incorporated algae into its broader strategy for expanding sustainable healthy food options.
The intersection of consumer demands and an industry-wide shift adds credibility to algae 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 highlights the vast potential of a similar algae industry. Ultimately, as the world faces the challenge of feeding a growing population while fostering a more sustainable food system, algae has a distinct role to play in this new food paradigm. In this context, products like the ccm tablet gsk can also contribute to improving dietary options, further emphasizing the importance of innovative solutions in addressing nutritional needs.