Today’s food menu is undergoing a partial transformation, driven by an unexpected source: microalgae, a tiny single-celled organism brimming with nutritional benefits. As you examine food and beverage labels, you may frequently encounter microalgae in various forms. Its impressive nutritional profile has positioned it as a significant component in the food revolution. Microalgae is rich in ascorbic acid, protein, and omega-3 fatty acids, all of which are increasingly sought after by consumers aiming for healthier, more natural diets.
The market for microalgae oil was valued at approximately $1.38 billion in 2015, according to recent data from Grand View Research, making it one of the most prominent uses of this ingredient. Varieties high in DHA omega-3 fatty acids are found in infant formulas and prenatal supplements, as well as select products for adults. As more companies begin to incorporate microalgae into their offerings, rapid sales growth is anticipated. A recent report from Credence Research predicts that the global market for microalgae will reach $44.7 billion by 2023, growing at a CAGR of over 5.2% from 2016 to 2023.
Major food manufacturers have already started integrating microalgae into their products. Mondelez includes it in certain baked goods, 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 the rising consumer interest in healthier eating, everyone talks about 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. “Long before foods like chia, acai, kale, or quinoa existed, there was algae. It represents a truly ancient and original food source.”
Microalgae can be processed into various forms, including powder, oil, butter, and flour, making it versatile for a range of food products such as baked goods, burgers, beverages, ice cream, infant formula, and snacks. It can also be consumed independently or combined with other ingredients to enhance flavor. TerraVia’s AlgaVia algal flour, for instance, can replace dairy fats, vegetable fats, and egg yolks, resulting in products lower in saturated fat, calories, and cholesterol. This flour is already being used in non-dairy creamers, powdered drinks, and gluten-free baked goods available in the U.S.
The company, which was recently acquired by biotechnology firm Corbion after emerging from bankruptcy, could not provide comments for this article due to the transaction’s timing. Microalgae also boasts allergy-friendly properties, allowing companies like Mondelez’s Enjoy Life Foods to utilize it in brownie mixes and other baking products as a substitute for soy, peanuts, or eggs. “Algae is the most sustainable protein source on Earth,” remarked Joel Warady, chief marketing officer for Enjoy Life Foods. “We’ve incorporated it into a line of baking mixes, maintaining indulgence while adding functionality. We see this as true innovation.”
In March, TerraVia received a Generally Recognized As Safe (GRAS) letter from the FDA for its microalgae butter, which is marketed as melting faster, spreading more easily, having a neutral taste, and being free from palm oil, thus containing half the saturated fat. Apu Mody, CEO of TerraVia, described the new AlgaWise Algae Butter as a potential blockbuster, representing a market opportunity exceeding $2 billion. “We believe our product matches or surpasses the performance of other structuring fats like shea stearin and cocoa butter while offering superior nutritional and sustainability benefits,” he told Food Navigator.
Some consumers in the U.S. may be hesitant to purchase algae-containing products due to perceptions of a fishy smell or taste. However, developers and manufacturers claim to have addressed this issue by minimizing oxidation. Algae oil undergoes a deodorizing process using nitrogen gas and liquid, effectively eliminating oxygen during processing. “It’s akin to baking soda in the refrigerator,” explained Philip Bromley, CEO of California-based Virun Nutra-BioSciences. “You can eliminate undesirable flavors and obtain fresh oil.”
Microalgae’s value is further accentuated by its eco-friendly properties. Bromley attributes its sustainability to controlled growth, comparing it to a sourdough starter. Researchers can create a tank with a sugar source, water, and the organism, allowing for continuous growth, even when moved to different locations. Algal oil offers several advantages over palm oil, which is often found in baked goods, margarine, and ice cream. This ingredient is not associated with deforestation, habitat destruction, climate change, or abuses of indigenous rights in its production areas. Additionally, algal oil is significantly more productive, yielding around 70,000 pounds of oil per acre compared to palm oil’s 4,465 pounds.
Moreover, microalgae can be cultivated without chemicals, according to Ben Kelly, co-founder of Algarithm, an algal oil company based in Saskatchewan, and business development manager for POS Bio-Sciences. Many advocates tout its beneficial nutritional properties. Spirulina, the most well-known type of microalgae, contains 60-70% complete protein, encompassing all eight essential amino acids along with ten non-essential ones vital for good health. A mere teaspoon of dried spirulina powder packs 4 grams of protein and only 20 calories, positioning it as potentially “the single most nutritious food on the planet,” as noted by Joe Leech, an Australian dietitian writing for Healthline.com.
Some benefits associated with microalgae are largely anecdotal. Bromley mentioned he takes 1,500 mg of DHA omega-3 derived from microalgae daily and has seen his eczema disappear. Others assert that it aids weight loss, enhances heart health, reduces inflammation, and lowers cholesterol. Omega-3s are arguably among the most extensively researched nutrients, according to Kelly. However, researchers acknowledge that challenges remain in quantifying the benefits and understanding how harvesting, storage, and food processing techniques impact algae’s nutritional value.
Currently, microalgae has carved a niche in supporting pregnant women, as omega-3 fatty acids are crucial for fetal neurodevelopment. While fish and seafood are primary dietary sources of these fatty acids, pregnant women are advised to limit their intake to two or three servings per week. This opens the door for alternative food sources that deliver similar health benefits.
In the coming years, more innovative microalgae products are expected to hit the market, reflecting ongoing 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 outlets in Northern California and Nevada next year. The San Francisco company is also developing alternatives for lobster, crab, and fish fillets. Additionally, French startup Algama is preparing to introduce its line of low-fat vegan mayos made with microalgae under The Good Spoon label in the U.S.
Hugo Lercher, a partner and sales officer at Algama, informed Food Dive that his company has partnered with the U.K. foodservice firm Compass Group and French retailer Carrefour for a European launch. They anticipate the product will reach New York City by year-end. “These are the first vegan mayos made from microalgae, low in fat and incredibly rich,” Lercher stated. Algama’s flagship product, Springwave, an antioxidant drink made with spirulina, attracted an investment of €3.5 million (approximately $4.1 million) last year from Hong Kong billionaire Li Ka-shing. The company plans to launch the blue beverage in the U.S. in 2018.
Many anticipate that food and beverage products containing microalgae will continue to emerge in the U.S. and other markets. While widespread consumer acceptance may still be a challenge, manufacturers and their investors are optimistic about growth over time. The hope is that increased familiarity, education, and creative marketing regarding the health benefits of microalgae will draw more consumers and businesses into this sector. Lercher emphasized his company’s long-term vision to address the global food crisis. “Our food system is broken, and we must act,” he conveyed 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 the future sector of microalgae— a unique, abundant, and sustainable superfood integrated into delicious everyday foods.”
To enhance nutrition, products containing calcium citrate 300 mg elemental may also be introduced, as they can complement the benefits of microalgae, making them an even more appealing choice for health-conscious consumers.