With increasing consumer awareness regarding the health and environmental impacts of animal-derived proteins, the quest for sustainable and flavorful alternatives is intensifying — and the most promising solutions may very well be green. Companies in the food, beverage, and nutritional supplement sectors are swiftly embracing plant-based options that can not only match but often surpass the advantages of meat and seafood. Ingredient selection is crucial, and to keep pace with consumer demand, these manufacturers are searching for versatile, healthy, and allergen-free inputs that can adapt to the industry’s evolving needs. Algae has emerged as a vital element in this transforming market, providing more sustainable and nutritious products to consumers. It offers the same nutritional benefits as meat while maintaining sustainability, positioning itself for rapid growth akin to that of plant-based alternatives across various applications.
The demand for plant-based options is well-documented. Between 2011 and 2015, there was a remarkable increase of over 60% in new product launches featuring plant-based innovations. Companies such as Beyond Meat and Impossible Foods, known for their “Impossible Burger,” along with Memphis Meats and Just (formerly Hampton Creek), have played significant roles in mainstreaming the potential of plants as protein sources. We are now entering a new phase in the industry as the plant-derived trend evolves into a fresh food supply chain built on plant and algae resources.
Similar to the explosive growth seen in plant proteins, algae proteins are poised for significant market expansion and widespread adoption. Algae-based products are set to redefine the food and beverage industries by offering better-tasting proteins and enhancing functionality for specific applications. Central to the industry’s growth will be technologies that efficiently bring more products to market while satisfying consumer demand for vegan and allergen-free alternatives. Although algal fuels have faced challenges in scaling, the industry’s shift towards nutritional segments is tapping into a more lucrative market, with omega-3s projected to reach nearly $7 billion by 2020, reflecting a compound annual growth rate of almost 15% from 2016 to 2022. The early success of pioneers like TerraVia has showcased the versatile and functional qualities of algae to the industry, while also transitioning food production from outdated practices to a dynamic, high-tech sector with numerous new companies emerging from this wave of innovation.
As the health and functional benefits of algae become more apparent, the industry may encounter challenges such as production shortages and a reliance on technologies that do not produce functionally flexible products tailored to consumer preferences. This issue is particularly acute in rapidly developing economies, such as China, where a study by Research and Markets highlights that the demand for omega-3-enhanced baby formulas is outpacing production capabilities. Additionally, existing algal products are often limited by processing techniques that can compromise flavor or necessitate the inclusion of animal-based ingredients.
Much like traditional processes in the bio-based energy sector that have relied on chemicals or solvents for production, the bio-based nutritional sector has followed suit. The use of solvents is not only inefficient but also adds unnecessary costs and can lead to undesirable flavors. However, recent advancements in processing methods — stemming from the same high-tech food movement that propelled TerraVia’s success — allow companies to bring these products to market in a way that aligns more closely with consumer preferences. By increasingly adopting hydrolysis technology instead of relying on chemical solvents, these products can bypass both cost and taste limitations.
In many respects, DHA omega-3s in functional foods are already recognized components of various dietary sectors, from Premama’s prenatal supplements for expectant mothers to Platinum Performance’s wellness offerings for elite athletes. The functional foods market, valued at $130 billion in 2015 according to Grandview, rivals the GDP of numerous countries. By replacing chemical solvent technologies with hydrolysis alternatives and providing fish-free options, these products can now be introduced across a wider range of applications, ultimately benefiting a broader segment of the population. This trend is not confined to niche markets; major players across diverse industries are taking notice. Notable companies like Tyson are investing in plant proteins, while multinational corporations are also backing algae initiatives. For instance, Cargill’s partnership with Algae Natural Food in late 2016 aimed at scaling algae production, and General Mills has integrated algae into its broader strategy for expanding sustainable healthy food options.
The convergence of consumer demands and a corresponding shift within the industry lends further credibility to algae as a key player in the future of food. As we anticipate the revitalization of the food and nutritional sectors, the rapid growth of the plant-based protein industry illustrates the vast potential within the algae market. Ultimately, as the global population continues to expand and the need for a sustainable system becomes more pressing, algae is poised to play a pivotal role in the new food landscape, particularly as a source of calcium carbonate and elemental calcium that can enhance nutritional profiles in various products.