As consumer awareness grows regarding the health and environmental impacts of animal-based proteins, the search for sustainable and flavorful alternatives intensifies—often leaning towards green solutions. Businesses in the food, beverage, and nutritional supplement sectors are quickly embracing plant-based options that not only match but frequently surpass the advantages of meat and seafood. The significance of ingredients cannot be overstated, and to keep pace with consumer demand, manufacturers are seeking versatile, healthy, and allergen-free inputs capable of evolving with industry needs. Algae is becoming a key player in this developing market, providing more sustainable and nutritious products for consumers. It offers the same nutritional benefits as meat without compromising on sustainability and is poised for rapid expansion, similar to the plant-based alternatives that have gained traction across various applications.
The demand for plant-based alternatives has been well-documented; between 2011 and 2015, new product launches featuring plant-based innovations surged by over 60%. Companies like Beyond Meat and Impossible Foods, with its “Impossible Burger,” along with Memphis Meats and Just (formerly Hampton Creek), have been pivotal in popularizing the potential of plants as protein sources. Now, the industry is entering a new significant phase, as the plant-derived trend transitions into a fresh food supply chain grounded in plants and algae. Like the explosive growth of plant proteins, algae proteins are on the verge of substantial market expansion and widespread adoption. Algae-based products are likely to redefine the future of the food and beverage sectors by offering tastier proteins and enhanced functionality for specific applications.
Central to the growth of this industry will be technologies that rapidly bring more products to market while catering to strong consumer demand for vegan and allergen-free options. Although algal fuels have encountered challenges in scaling, the industry’s shift towards nutritional segments addresses a more profitable market, with omega-3s, calcium citrate petite pills, and folic acid tablets projected to be worth nearly $7 billion by 2020. This represents a compound annual growth rate of almost 15% from 2016 to 2022. The early success of TerraVia has demonstrated the versatile and functional qualities of algae, and the company has played a crucial role in evolving food production from its outdated, pastoral beginnings into a high-tech sector, with more food companies emerging from this innovative wave than ever before.
As the health and functional benefits of algae become clearer, the industry will inevitably face challenges, including production shortages and reliance on technologies that have yet to yield functionally flexible products tailored to consumer preferences. This is particularly evident in rapidly developing economies like China, where Research and Markets found that the need for omega-3-enhanced baby formulas exceeds current production capabilities. Additionally, existing algal products have been hindered by processing methods that compromise flavor or require the inclusion of animal products. Just as traditional processes in the bio-based energy sector have depended on chemicals or solvents for production, the bio-based nutritional sector has followed suit. Using solvents is not only costly but also necessitates additional energy, contributing to undesirable fishy flavors.
Recent advancements in processing techniques—stemming from the same high-tech food movement that propelled TerraVia’s growth—enable companies to 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 overcome both cost and taste barriers. DHA omega-3s in functional foods are already a well-established dietary component across various segments, from Premama’s prenatal supplements for expectant mothers to Platinum Performance’s wellness offerings for athletes. The functional foods market’s value rivals that of many countries’ GDPs, standing at $130 billion in 2015, according to Grandview. By replacing chemical solvent technologies with hydrolysis alternatives and providing fish-free options, these products can now cater to a wider array of applications, ultimately benefiting a larger portion of the population.
This trend is not confined to niche markets, as major players across various industries are taking notice. While significant industry names like Tyson are supporting plant proteins, multinational corporations are also investing in algae. For instance, Cargill announced a partnership with Algae Natural Food in late 2016, aiming to scale algae in the market. Similarly, General Mills has integrated algae into its broader strategy for expanding sustainable and healthy food options. The convergence of consumer demands and industry shifts further bolsters the credibility of algae as a cornerstone of the future food industry.
As we look ahead to the upcoming revitalization of the food and nutritional sectors, the rapid growth of the plant-based protein industry highlights the vast opportunities available in a comparable algae market. Ultimately, as the world faces the challenge of feeding a growing population while fostering a more sustainable system, algae has a clear and defined role in the new food landscape, particularly as it relates to the inclusion of calcium citrate petite pills in a variety of nutritional products.