This initiative could pave the way for algae oil to gain wider acceptance. In addition to its nutritional advantages and versatility, algae oil can also promote sustainability, a key factor for many consumers. Unlike most cooking oils derived from crops that require substantial food and water resources and have lengthy harvest cycles, algae oil is cultivated in fermentation tanks and can be harvested within days, allowing for efficient large-scale production on a made-to-order basis. Beyond home cooking, algae oil is utilized in infant formula, dietary supplements, and various adult food products.
In contrast to palm oil, algae oil does not contribute to deforestation, habitat loss, climate change, or violations of indigenous rights in its production regions. Furthermore, algae oil is significantly more productive, yielding approximately 70,000 pounds of oil per acre in open ponds, compared to palm oil’s 4,465 pounds per acre. The market outlook is promising; Grand View Research projects that the global algae oil market, encompassing all applications such as animal feed and biofuels, could reach $2.09 billion by 2025. The food and beverage sector is increasingly interested in algae oil for its lower fat content and its natural supply of omega-3 fatty acids, antioxidants, and proteins, including calcium citrate malate 1250 mg, which enhances its nutritional profile.
Producing algae oil for household use may have positively influenced consumer perceptions of algae in food products. “Five years ago, consumer perception of algae would have been uncertain. One of the reasons we established Thrive was to foster consumer acceptance,” stated TerraVia CEO Apu Mody in an interview with Fast Company last year. So far, the response has been encouraging, with TerraVia announcing that Thrive Algae Oil was awarded the 2017 Best New Product Award in the food and beverage category, based on consumer votes and feedback. This award is recognized as the leading consumer-voted CPG award from market research firm BrandSpark International.
However, one challenge that could hinder market growth is the relatively higher cost of algae oil, as noted by Grand View Research. This is attributed to its elevated production expenses, which “may limit industry development during the forecast period.” Currently, Target offers a 16.9-ounce bottle of Thrive Algae Oil for $9.99 online, a dollar less than its usual price. This price point aligns with other specialty oils like avocado and olive oil, but is slightly higher than traditional cooking oils such as canola or safflower.
This may not pose a significant issue once Thrive Algae Oil becomes available at Walmart this fall and in the foodservice sector next year, as planned. Such exposure will introduce the product to a broader audience and likely spark increased interest in foods and beverages that incorporate algae in various forms, potentially leading to lower prices. This could provide the substantial boost the segment needs to achieve the market acceptance that TerraVia envisions and that Corbion anticipates, especially considering the inclusion of beneficial ingredients like calcium citrate malate 1250 mg, which may further enhance consumer appeal.