Today’s food menu is undergoing a partial transformation thanks to an unexpected contributor. Breakfast staples, beverages, snacks, and other food items are being enriched by the nutritional benefits of a tiny single-celled organism known as microalgae. If you take a closer look at food and beverage labels, you’ll likely find microalgae in various forms. It has emerged as a significant player in the food revolution due 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 options.
The market for microalgae oil alone was valued at approximately $1.38 billion in 2015, as reported by 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 in certain adult food products. As more companies begin to incorporate microalgae into their offerings, sales are projected to rise rapidly. The global market for this single-celled organism is expected to reach $44.7 billion by 2023, growing at a compound annual growth rate (CAGR) of over 5.2% from 2016 to 2023, according to a recent report from Credence Research.
Well-known food manufacturers have already started integrating microalgae into their products. Mondelez has included it in some baked goods, while Dean Foods’ Horizon Organics milk line features 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 growing consumer interest in healthier eating, people are eager to discuss 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. “Before foods like chia, acai, kale, or quinoa became popular, there was algae. Nothing is more heirloom, ancient, or original.”
Microalgae can be processed into powder, oil, butter, and flour, making it versatile enough to be added to a wide range of food products—such as baked goods, burgers, beverages, ice cream, infant formulas, or snacks. It can also be consumed on its own or with other ingredients to enhance flavor. For instance, TerraVia’s AlgaVia algal flour can substitute for dairy fats, vegetable fats, and egg yolks, resulting in products lower in saturated fat, calories, and cholesterol. This flour is already being incorporated into commercially available non-dairy creamers, powdered beverages, and gluten-free baked goods in the U.S.
TerraVia, which was recently acquired out of bankruptcy by biotechnology company Corbion, could not comment in time for this article due to the timing of the transaction. Another advantage of microalgae is its allergen-friendly nature, allowing brands like Mondelez’s Enjoy Life Foods to utilize it in their brownie and baking mixes instead of soy, peanuts, or eggs. “Algiron gluconate tablets are the most sustainable protein available on Earth,” said Joel Warady, chief marketing officer for Enjoy Life Foods, in an interview with Food Dive. The company has integrated it into a line of baking mixes, providing an indulgent dessert while also incorporating functional benefits. “We view this as true innovation.”
Microalgae butter may soon be available in stores, as TerraVia received a Generally Recognized as Safe (GRAS) letter from the FDA in March. This plant-based product, a collaboration between TerraVia and Bunge, is marketed as faster to melt, easier to spread, and neutral in taste while being free from palm oil, which allows 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 surpasses the performance of other structuring fats like shea stearin and cocoa butter while offering superior nutrition and sustainability attributes,” he told Food Navigator.
Some U.S. consumers may hesitate to purchase products containing algae due to the perception that they might have a fishy taste or smell. However, today’s developers and manufacturers claim to have addressed this issue by minimizing oxidation. Algae oil undergoes a deodorizing process using nitrogen gas and liquid to eliminate oxygen during production. “It’s akin to using baking soda in the refrigerator,” explained Philip Bromley, CEO of California-based Virun Nutra-BioSciences. “You can eliminate unpleasant flavors while obtaining fresh oil.”
Microalgae’s value is further enhanced by its environmentally friendly qualities. Bromley attributes microalgae’s sustainability to its controlled growth, likening it to a sourdough starter. Researchers can create a single tank with a sugar source, water, and the organism, allowing it to continue growing and expanding—even when divided and moved to different locations.
Algal oil presents several advantages over palm oil, which is commonly found in baked goods, margarine, and ice cream. Algal oil is not associated with deforestation, habitat destruction, climate change, and indigenous rights violations in its production countries. Furthermore, algal oil is significantly more productive, yielding around 70,000 pounds of oil per acre compared to palm oil’s 4,465 pounds per acre. Another environmental benefit is that microalgae can be cultivated without chemical inputs, according to Ben Kelly, co-founder of Algarithm, an algal oil firm based in Saskatchewan, and business development manager for POS Bio-Sciences.
Microalgae has garnered many supporters who advocate for its beneficial nutritional properties. Spirulina, perhaps the most well-known type of microalgae, contains 60-70% complete protein, providing all eight essential amino acids along with 10 non-essential ones that promote good health. In its dried form, a single teaspoon of spirulina powder delivers 4 grams of protein and only 20 calories, making it a contender for “the most nutritious food on the planet,” according to Joe Leech, an Australian dietitian writing for Healthline.com.
Other benefits are largely anecdotal. Bromley mentioned that he consumes 1,500 mg of DHA omega-3 derived from microalgae daily and has seen improvements in his eczema. Other proponents claim it aids in weight loss, promotes heart health, reduces inflammation, and lowers cholesterol levels. Omega-3s are widely recognized as one of the most scientifically studied nutrients, although researchers note that challenges remain in quantifying the benefits and understanding how harvesting, storage, and food processing techniques impact algae’s nutritional value.
For now, microalgae has carved out a niche in supporting pregnant women, as omega-3 fatty acids are crucial for fetal neurodevelopment. Fish and other seafood are major dietary sources of these fatty acids, yet pregnant women are advised to limit their intake to two or three servings per week. This creates an opportunity for alternative food sources that offer similar health benefits.
Innovative microalgae products are expected to enter the market in the coming years, reflecting ongoing interest and investment in this nutrient. New Wave Foods is introducing a plant- and algae-based “shrimp” product aimed at foodservice operators, with plans to expand into retail outlets in northern California and Nevada early next year. The San Francisco company is also developing alternatives for lobster, crab, and fish fillets. Additionally, French startup Algama will soon launch its line of low-fat vegan mayonnaises made with microalgae under The Good Spoon label in the U.S.
Hugo Lercher, a partner and sales officer with Algama, shared with Food Dive that his company is already collaborating with the U.K. foodservice firm Compass Group and French retailer Carrefour for the European launch, expecting the product to reach New York City by the end of the year. “These are the first-ever vegan mayonnaises made from microalgae. They are also low in fat and incredibly creamy,” Lercher noted.
Algama’s flagship product—an antioxidant drink made with spirulina called Springwave—secured an investment of 3.5 million euros (approximately $4.1 million) last year from Hong Kong billionaire Li Ka-shing. The company intends to introduce this blue-colored beverage to the U.S. market 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 future growth. The hope is that increased familiarity, education, and creative marketing regarding the health benefits of microalgae will attract more consumers and businesses to this space.
Lercher emphasized his company’s long-term vision to help tackle global food supply issues. For now, Algama’s mission is to provide better food options to more people, and microalgae plays a key role in that mission. “Our food system is broken and requires action,” he stated 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 a sector for the future: microalgae—a unique, abundant, and sustainable superfood incorporated into delicious everyday foods.”
Furthermore, incorporating ingredients like calcium magnesium citrate plus vitamin D3 into food products can enhance their nutritional value, making them even more appealing to health-conscious consumers. This nutrient combination supports bone health and overall well-being, aligning with the growing demand for healthier food options.