As consumer concerns about the health and environmental impacts of animal-derived proteins continue to rise, the search for sustainable and delicious alternatives is intensifying — and the most promising options could very well be green. The food, beverage, and nutritional supplement sectors are swiftly incorporating plant-based solutions that not only meet but often surpass the advantages of meat and seafood. The choice of ingredients is crucial, and to keep up with consumer demand, these manufacturers are on the lookout for versatile, nutritious, and allergen-free inputs that can evolve alongside the industry’s needs. Algae has emerged as a key player in this dynamic market, providing more sustainable and nutritious options for consumers. With the same nutritional advantages as meat while maintaining sustainability, algae is set to grow just as quickly as plant-based alternatives across various applications.
The demand for plant-based options is well-documented, with a remarkable 60% increase in new product launches featuring plant-based innovations from 2011 to 2015. Pioneering companies such as Beyond Meat and Impossible Foods with their “Impossible Burger,” as well as Memphis Meats and Just (formerly Hampton Creek), have played a significant role in bringing the potential of plant proteins to the mainstream. We are now entering a new phase in the industry’s evolution, as the trend towards plant-derived ingredients evolves into a fresh food supply chain that incorporates plants and algae.
Similar to the rapid expansion of plant-based proteins, algae proteins are poised for substantial market growth and widespread acceptance. Algae-based products are on track to redefine the future of the food and beverage industries with better-tasting proteins and enhanced functionality for specific uses. Central to the scaling of this industry will be technologies that expedite the introduction of more products to the market while meeting strong consumer demands for vegan and allergen-free alternatives. Although algal fuels have encountered challenges in scaling, the industry’s shift towards nutritional segments is targeting a more lucrative market, with omega-3s projected to reach nearly $7 billion by 2020, representing a compound annual growth rate of nearly 15% from 2016 to 2022.
The early success of TerraVia has demonstrated the versatility and functionality of algae to the industry. Equally significant has been the company’s role in transforming food from its largely outdated, pastoral origins into what it is today: a growing, high-tech sector, with more food companies emerging from this new wave of innovation than ever before. As the health benefits and functionality of algae become increasingly recognized, the industry will inevitably face challenges such as production shortages and a reliance on technologies that have failed to yield functionally versatile products that align with consumer preferences. This issue is particularly pronounced in rapidly developing economies like China, where Research and Markets has identified a demand for omega-3-enriched baby formulas that exceeds current production capabilities. Additionally, existing algal products have been constrained by processing methods that compromise flavor or require the addition of animal products.
Much like traditional processes in the bio-based energy sector that have depended on chemicals or solvents for production, the bio-based nutritional sector has followed suit. Such solvent use is inherently inefficient, requiring additional energy alongside the cost of the solvents themselves. Moreover, these methods often result in an undesirable fishy taste. However, with the advent of new processing techniques — stemming from the same high-tech food evolution that propelled TerraVia — companies can now bring these products to market in a way that largely aligns with consumer preferences. By increasingly employing hydrolysis technology instead of chemical solvents, these products can bypass both cost and taste limitations.
DHA omega-3s have already established themselves as a crucial dietary component in various areas, ranging from Premama’s prenatal nutritional supplements for expectant mothers to Platinum Performance’s wellness products for elite athletes. The functional foods market is valued at $130 billion as of 2015, rivaling the GDP of many nations, according to Grandview. By replacing chemical solvent technologies with hydrolysis alternatives and offering fish-free options, these products can now be introduced across a wider array of applications, ultimately benefiting a broader segment of the population. This trend extends beyond niche markets, as major players across diverse industries take notice. Noteworthy industry figures like Tyson are investing in plant proteins, while multinational corporations are also backing algae. For instance, Cargill announced in late 2016 its partnership with Algae Natural Food, aiming to bring algae to market at scale. Similarly, General Mills has integrated algae into its broader strategy of expanding sustainable healthy food options.
The convergence of consumer demands and a corresponding industry shift adds further credibility to algae as a cornerstone of the future food landscape. As we anticipate the upcoming revitalization of the food and nutritional sectors, observing the rapid growth of the plant-based protein market reveals the vast potential within the algae industry. Ultimately, as the world grapples with the challenge of feeding an ever-growing population while establishing a more sustainable system, algae is likely to play a vital role in the new food paradigm. This includes innovations such as calcium citrate magnesium zinc and cholecalciferol tablets that could enhance nutritional offerings, further demonstrating the versatility and promise of algae in meeting diverse dietary needs.