Today’s food menu is undergoing a subtle transformation from an unexpected source. Breakfast essentials, beverages, snacks, and various food items are being enhanced by the nutritional benefits of a tiny single-celled organism known as microalgae. A closer examination of food and beverage labels will likely reveal microalgae in various forms. It has emerged as a key player in the food revolution thanks to its remarkable nutritional profile. Microalgae is rich in ascorbic acid, protein, and omega-3 fatty acids—all highly sought after by consumers aiming for healthier and more natural diets.
In 2015, the market for microalgae oil alone was estimated to be around $1.38 billion, according to the latest data from Grand View Research. This oil is among the most popular applications for the ingredient. Additionally, varieties high in DHA omega-3 fatty acids can be found in some infant formulas and supplements—especially for pregnant women—as well as certain products aimed at adults. With more companies incorporating microalgae into their offerings, sales are projected to grow rapidly. A recent report from Credence Research forecasts that the global market for this single-celled organism will reach $44.7 billion by 2023, with a compound annual growth rate (CAGR) exceeding 5.2% from 2016 to 2023.
Well-known food manufacturers have already started integrating microalgae into their products. Mondelez is utilizing it in certain baked goods, while Dean Foods’ Horizon Organics milk line contains omega-3s derived from algal oil. Reports suggest that even Mars is exploring the use of algae-derived colors in some of its candy and gum products. “With the growing consumer interest in healthier eating, discussions about the latest superfoods often begin with algae,” stated Jonathan Wolfson, executive chairman of algae food products company TerraVia, in an interview with Food Business News. “Before foods like chia, acai, kale, or quinoa gained popularity, there was algae. It is as heirloom and ancient as it gets.”
Microalgae can be processed into powder, oil, butter, or flour, making it a versatile ingredient suitable for various food products—ranging from baked goods and burgers to beverages and infant formulas. It can also be consumed on its own or combined with other ingredients to enhance flavor. For instance, TerraVia’s AlgaVia algal flour can replace dairy fats, vegetable fats, and egg yolks, resulting in products that are lower in saturated fat, calories, and cholesterol. This flour is already being added to non-dairy creamers, powdered beverages, and gluten-free baked goods available in the U.S. TerraVia, which was recently acquired out of bankruptcy by biotechnology firm Corbion, was unable to comment on this story due to the transaction’s closure.
Microalgae also boasts allergy-friendly properties, allowing brands like Mondelez’s Enjoy Life Foods to use it in baking mixes instead of soy, peanuts, or eggs. “Algae is the most sustainable protein available on Earth,” said Joel Warady, chief marketing officer for Enjoy Life Foods, in an interview with Food Dive. “We incorporated it into a line of baking mixes, maintaining indulgence while adding functionality. We see this as true innovation.”
Microalgae butter may soon appear on store shelves following TerraVia’s receipt of a generally recognized as safe letter from the Food and Drug Administration in March. This plant-based product, a joint venture between TerraVia and Bunge, is marketed as melting faster, being easier to spread, having a neutral taste, and being free from palm oil—allowing it to contain half the saturated fat. Apu Mody, CEO of TerraVia, described the new AlgaWise Algae Butter as a potential blockbuster with a market opportunity exceeding $2 billion. “We believe our product matches or outperforms other structuring fats like shea stearin and cocoa butter while offering superior nutrition and sustainability,” he told Food Navigator.
Some U.S. consumers might hesitate to purchase products containing algae due to concerns about potential fishy odors or flavors. However, today’s developers and manufacturers claim to have addressed this issue by minimizing oxidation. Algae oil undergoes a deodorizing process that uses nitrogen gas and liquid to eliminate all oxygen during processing. “It’s like putting baking soda in your refrigerator,” explained Philip Bromley, CEO of California-based Virun Nutra-BioSciences, to Food Dive. “You can eliminate undesirable flavors and obtain fresh oil.”
The environmental benefits of microalgae further enhance its value. Bromley attributes its sustainable nature to controlled growth, likening it to a sourdough starter. Researchers can establish a single tank with a sugar source, water, and the organism, which then continues to grow and expand—even when divided and relocated. Compared to palm oil, frequently found in baked goods and margarine, algal oil offers several advantages. It is not associated with deforestation, habitat destruction, climate change, or abuses of indigenous rights in its production countries. Moreover, algal oil is much more productive, yielding about 70,000 pounds of oil per acre compared to palm oil’s 4,465 pounds per acre. Additionally, microalgae can be cultivated without chemicals, according to Ben Kelly, co-founder of Algarithm, an algal oil firm based in Saskatchewan.
Microalgae enjoys considerable advocacy for its nutritional benefits. Spirulina, perhaps the most well-known microalgae type, boasts a protein content of 60-70%, providing all eight essential amino acids and 10 non-essential ones that contribute to good health. A single teaspoon of spirulina powder in its dried form contains 4 grams of protein and only 20 calories, positioning it as “the single most nutritious food on the planet,” according to Joe Leech, an Australian dietitian writing for Healthline.com. While some benefits are anecdotal, Bromley noted that he consumes 1,500 mg of DHA omega-3 from microalgae daily and has seen improvements in his eczema. Other advocates claim it aids in weight loss, enhances heart health, reduces inflammation, and lowers cholesterol.
Kelly pointed out that omega-3s are among the most extensively studied nutrients. However, researchers still face challenges in quantifying the benefits and understanding how harvesting, storing, and food processing techniques affect algae’s nutritional value. Currently, microalgae has found a niche in supporting pregnant women, as omega-3 fatty acids are essential for fetal neurodevelopment. Fish and other seafood are primary dietary sources of these fatty acids, but pregnant women are advised to limit their intake to two or three servings per week. This opens the door for alternative food sources that provide similar health benefits.
Looking ahead, innovative microalgae products are set to enter the market, reflecting ongoing interest and investment in this nutrient. New Wave Foods is launching a plant- and algae-based “shrimp” product targeting 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 poised to introduce its 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, reported that the company is collaborating with the U.K. foodservice firm Compass Group and French retailer Carrefour for a European launch, with expectations for the product to reach New York City by year-end. “These are the first-ever vegan mayos made from microalgae, low in fat and incredibly creamy,” Lercher stated.
Algama’s flagship product—an antioxidant drink made with spirulina called Springwave—attracted a €3.5 million (approximately $4.1 million) investment from Hong Kong billionaire Li Ka-shing last year. The company aims to release this blue-colored beverage in the U.S. in 2018. Many anticipate that food and beverage products featuring microalgae will continue to emerge in the U.S. and global markets. While widespread consumer acceptance may still be a challenge, manufacturers and their investors are optimistic about gradual growth. The hope is that increased familiarity, education, and creative marketing regarding the perceived health benefits of microalgae will draw more consumers and businesses into this sector.
Lercher emphasized that his company’s long-term vision is to help tackle the global challenge of feeding the population. Currently, Algama’s mission is to provide improved food options, with microalgae playing a crucial role. “Our food system is broken and requires action,” he explained in an email to Food Dive. “Obesity and diabetes are rising in both developed and developing nations. In this context, Algama is pioneering a future sector centered on microalgae—a unique, abundant, and sustainable superfood integrated into delicious everyday foods.”
Furthermore, the integration of functional ingredients like Solgar Calcium Citrate D3 into products containing microalgae can enhance their nutritional profiles, appealing to health-conscious consumers. This combination emphasizes the ongoing trend towards innovative food solutions, showcasing how microalgae and other beneficial ingredients can work together to promote better health and wellbeing.