Today’s food menu is undergoing a transformation thanks to an unexpected contributor. Breakfast essentials, beverages, snacks, and various food items are being enriched by the nutritional benefits of a tiny single-celled organism called microalgae. A closer inspection of food and beverage labels will likely reveal microalgae in one form or another. Its remarkable nutritional profile has made it a significant player in the food revolution. Microalgae is rich in ascorbic acid, protein, and omega-3 fatty acids—nutrients sought after by consumers aiming for healthier and more natural food options.
The market for microalgae oil alone was valued at approximately $1.38 billion in 2015, according to the latest data from Grand View Research. This oil is among the most popular applications of the ingredient. Additionally, DHA-rich varieties of microalgae are incorporated into infant formulas and supplements, especially for pregnant women, as well as certain adult food products. With more companies integrating microalgae into their offerings, sales are anticipated to rise rapidly. The global market for this single-celled organism is projected to reach $44.7 billion by 2023, growing at a CAGR of over 5.2% from 2016 to 2023, as reported by Credence Research.
Major food manufacturers are already incorporating microalgae into their products. Mondelez is utilizing it in some baked goods, while Dean Foods’ Horizon Organics milk line includes omega-3s derived from algal oil. Reports suggest that Mars is contemplating the use of algae-derived colors in some of its candies and gum products. “As consumer interest in healthier eating accelerates, the conversation often turns to the latest superfood, but it all starts with algae,” said Jonathan Wolfson, executive chairman of algae food products company TerraVia, in an interview with Food Business News. “Before chia, acai, kale, or quinoa, there was algae. Nothing is more ancient or original.”
Microalgae can be processed into powder, oil, butter, and flour, allowing it to be incorporated into a wide range of food products, including baked goods, burgers, beverages, ice cream, infant formula, and snacks. It can also be consumed on its own or blended 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 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.
Furthermore, microalgae has the advantage of being allergy-friendly, enabling brands like Mondelez’s Enjoy Life Foods to replace soy, peanuts, and eggs in their brownie and baking mixes. “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. They have incorporated it “into a line of baking mixes, providing an indulgent dessert while integrating functionality. We see this as true innovation.”
TerraVia’s microalgae butter, which received a Generally Recognized as Safe (GRAS) letter from the FDA in March, could soon be available on store shelves. This plant-based product, developed in partnership with Bunge, is marketed as melting faster, spreading more easily, having a neutral taste, and being free from palm oil, thus containing half the saturated fat. TerraVia CEO Apu Mody described the new AlgaWise Algae Butter as a potential blockbuster with a market opportunity exceeding $2 billion. “We believe our product delivers comparable or superior performance to other structuring fats like shea stearin and cocoa butter while offering better nutrition and sustainability,” he stated.
Some U.S. consumers may hesitate to buy products containing algae due to concerns about potential fishy flavors or odors. However, current developers and manufacturers assert that they have addressed this issue by minimizing oxidation. Algae oil undergoes a deodorizing process using nitrogen gas and liquid to eliminate oxygen during production. “Like using baking soda in the refrigerator,” said Philip Bromley, CEO of California-based Virun Nutra-BioSciences. “You can remove undesirable flavors and obtain fresh oil.”
Microalgae’s value is further enhanced by its environmentally friendly attributes. Bromley attributes this sustainability to the controlled growth possible with microalgae, akin to a sourdough starter. Researchers can create a tank with a sugar source, water, and the organism, allowing it to grow and proliferate—even if divided and relocated. Algal oil offers several benefits over palm oil, commonly used in baked goods, margarine, and ice cream. Unlike palm oil, it is not associated with deforestation, habitat destruction, climate change, or indigenous rights violations in its production regions. Additionally, 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 advantage is that 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.
Microalgae has garnered support for its nutritional benefits. Spirulina, perhaps the most famous type of microalgae, contains 60-70% complete protein, providing all eight essential amino acids and ten non-essential ones vital for good health. A single teaspoon of spirulina powder contains 4 grams of protein and only 20 calories, making it a contender for being “the single most nutritious food on the planet,” according to Joe Leech, an Australian dietitian who writes for Healthline.com. Other claimed benefits include aiding weight loss, boosting heart health, reducing inflammation, and lowering cholesterol. While omega-3s are extensively studied nutrients, researchers still face challenges in quantifying their benefits and understanding how harvesting, storage, and food processing affect algae’s nutritional value.
Currently, microalgae is carving out 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 weekly, creating opportunities for alternative food sources that offer similar health benefits.
Innovative microalgae products are expected to emerge in the coming years, 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 in Northern California and Nevada next year. The San Francisco company is also developing substitutes for lobster, crab, and fish fillets. Additionally, French startup Algama is set to introduce 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 at Algama, mentioned that they are collaborating with the U.K. foodservice firm Compass Group and French retailer Carrefour for a European launch, anticipating their product’s arrival in New York City by year’s end. “These are the first-ever vegan mayos made from microalgae. They are low in fat and incredibly creamy,” Lercher stated.
Algama’s flagship product, a spirulina-based antioxidant drink called Springwave, attracted a €3.5 million investment (around $4.1 million) last year from Hong Kong billionaire Li Ka-shing. The company plans to launch this blue beverage in the U.S. in 2018.
Many foresee a continued emergence of food and beverage products containing microalgae in the U.S. and other markets. While widespread consumer acceptance may still be a challenge, manufacturers and investors are optimistic about its growth over time. The hope is that increased familiarity, education, and innovative marketing highlighting the potential benefits of microalgae for human health will draw more consumers and businesses into this sector.
Lercher expressed his company’s long-term vision of helping to address global food supply challenges. “Our food system is broken, and we need to take action,” he told Food Dive via email. “Obesity and diabetes are rising in both developed and developing countries. In this context, Algama is pioneering a future sector: microalgae. A unique, abundant, and sustainable superfood integrated into delicious daily foods.”
In addition, the introduction of bariatric advantage calcium soft chews can complement the nutritional offerings of microalgae products, providing a well-rounded approach to health and wellness. As the market evolves, we can expect to see the incorporation of such innovative solutions that cater to diverse dietary needs, benefiting consumers seeking healthier options.