As consumer concerns about the health and environmental impacts of animal-based proteins rise, there is an urgent quest for sustainable and delicious alternatives — and the most promising options are likely green. Companies in the food, beverage, and nutritional supplement sectors are swiftly embracing plant-based solutions that can not only meet but often surpass the benefits of meat and seafood. The choice of ingredients is crucial, and to keep up with consumer demand, manufacturers are on the lookout for versatile, healthy, and allergen-free inputs that can adapt to the industry’s evolving needs. Algae has emerged as a key player in this developing market, providing more sustainable and nutrient-rich products for consumers. It delivers the same nutritional benefits as meat while maintaining sustainability, positioning itself for rapid growth similar to that of plant-based alternatives across various applications.
The demand for plant-based options is well-documented. From 2011 to 2015, the number of new product launches featuring plant-based innovations soared by over 60%. Companies like Beyond Meat and Impossible Foods, with its “Impossible Burger,” along with Memphis Meats and Just (formerly Hampton Creek), have significantly contributed to mainstreaming the potential of plants as protein sources. We are now entering a pivotal phase in the industry as the trend of plant-derived products evolves into a new food supply chain centered around plants and algae.
In line with the explosive growth seen in plant-based proteins, algae proteins are also projected to experience significant market expansion and widespread acceptance. Algae-based products are set to further reshape the future of the food and beverage industries by offering superior tasting proteins and enhancing functionality for specific applications. Essential to scaling this industry will be technologies that rapidly introduce more products to the market while addressing strong consumer demand for vegan and allergen-free alternatives.
Although algal fuels have encountered challenges in scaling, the industry’s shift towards nutritional segments targets a more lucrative market, with omega-3s anticipated to be valued at nearly $7 billion by 2020, representing a compound annual growth rate of almost 15% from 2016 to 2022. Early trailblazer TerraVia has showcased the versatile and functional properties of algae. Moreover, the company has played a significant role in transitioning food from its largely outdated, pastoral origins to a dynamic, high-tech sector, giving rise to more food companies than ever before in this wave of innovation.
As the health and functional advantages of algae gain recognition, the industry will inevitably face challenges like production shortages and reliance on technologies that have struggled to yield functionally flexible products tailored to consumer preferences. This is particularly evident in rapidly developing economies, such as China, where Research and Markets found that the demand for omega-3-enhanced baby formulas is surpassing production capabilities. Additionally, existing algal products have been limited by processing methods that compromise flavor or necessitate the addition of animal products.
Much like the bio-based energy sector, which has traditionally depended on chemicals or solvents for production, the bio-based nutritional sector has followed suit. Utilizing solvents is inherently inefficient, requiring extra energy alongside the cost of the solvents themselves. These techniques also often lead to an undesirable fishy taste. However, with the introduction of new processing methods, stemming from the same high-tech food movement that propelled TerraVia’s growth, companies can bring these products to market in a way that largely aligns with consumer preferences. By increasingly adopting hydrolysis technology instead of chemical solvents, these products can overcome both cost and taste limitations.
In many ways, 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 products for athletes. The functional foods market’s value rivals that of many countries, reportedly worth $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 introduced into a wider range of applications, ultimately benefiting a broader segment of the population. This trend isn’t limited to niche markets; major players across various industries are taking note. Notable companies like Tyson are supporting plant proteins, while multinational corporations are also investing in algae. For instance, Cargill announced its partnership with Algae Natural Food in late 2016, aiming to scale up algae production. Similarly, General Mills has integrated algae into its larger strategy for expanding sustainable healthy food options.
The convergence of consumer demands and industry shifts lends further credibility to algae as a future cornerstone of the food industry. As we anticipate the revitalization of the food and nutritional sectors, one need only look at the rapid growth of the plant-based protein market to grasp the vast opportunities present in the burgeoning algae sector. Ultimately, as the world grapples with the challenge of feeding a growing population while establishing a more sustainable system, algae is poised to play a crucial role in this new food paradigm, particularly in enhancing the absorption of calcium citrate and other essential nutrients for health-conscious consumers.