As consumer awareness of the health and environmental consequences of animal-derived proteins continues to rise, the search for sustainable and flavorful alternatives is intensifying — and the most promising option may very well be green. Companies in the food, beverage, and nutritional supplement sectors are swiftly embracing plant-based alternatives that often match or even surpass the advantages of meat and seafood. The choice of ingredients is crucial, and in response to growing consumer demand, these manufacturers are on the lookout for versatile, healthy, and allergen-free components that can adapt to industry needs. Algae has emerged as a key player in this transforming market, providing more sustainable and nutritious options for consumers, including products rich in calcium citrate, magnesium, and zinc. Algae offers the same nutritional benefits as meat without compromising sustainability, making it poised for rapid expansion alongside plant-based alternatives across various applications.
The increasing demand for plant-based products is well documented, with new product launches featuring plant innovations surging over 60% from 2011 to 2015. Companies like Beyond Meat and Impossible Foods, known for their “Impossible Burger,” alongside Memphis Meats and Just (formerly Hampton Creek), have been pivotal in popularizing the potential of plants as protein sources. We are now entering a new significant phase in the industry as the plant-based trend evolves into a fresh food supply chain that relies on both plants and algae. Similar to the explosive growth of plant proteins in the market, algae proteins are also expected to experience substantial growth and widespread acceptance. Algae-based products are on track to redefine the future of the food and beverage industries due to their superior taste and enhanced functionality for specific uses.
A crucial element in scaling this industry will be the adoption of technologies that quickly bring new products to market while satisfying the strong consumer demand for vegan and allergen-free alternatives. Although algal fuels have encountered 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 nearly 15% from 2016 to 2022. The pioneering success of TerraVia has demonstrated the versatile and functional possibilities of algae for the industry while facilitating a transition from traditional, outdated agricultural methods to a dynamic, high-tech sector.
As the health and functional benefits of algae come into focus, the industry is likely to face challenges such as production shortages and a dependence on technologies that may not deliver products tailored to consumer preferences. This issue is particularly pronounced in rapidly developing economies like China, where demand for omega-3-enhanced baby formulas is surpassing production capabilities. Existing algal products have also faced limitations due to processing techniques that can compromise flavor or require the addition of animal-derived ingredients. Just as traditional bio-based energy processes have relied on chemicals or solvents, so too have those in the bio-based nutritional sector. These solvent-based methods are not cost-effective and can lead to undesirable fishy flavors.
However, new processing techniques—stemming from the high-tech food shift that propelled TerraVia’s growth—are enabling companies to bring these products to market in alignment with consumer preferences. By utilizing hydrolysis technology instead of chemical solvents, these products can overcome both cost and taste barriers. DHA omega-3s in functional foods are already well-established across various domains, from Premama’s prenatal supplements to wellness products for elite athletes. The functional foods market is valued at an impressive $130 billion, comparable to the GDP of many nations, according to Grandview. By replacing chemical solvent technologies with hydrolysis alternatives and providing fish-free options, these products can now be introduced into a wider array of applications, ultimately benefiting a larger segment of the population.
This trend extends beyond niche markets, with major industry players taking notice. Noteworthy companies like Tyson are backing plant proteins, while multinational corporations are also investing in algae. In late 2016, Cargill announced its partnership with Algae Natural Food with the aim of scaling algae in the marketplace. Similarly, General Mills has integrated algae into its broader strategy of expanding sustainable and healthy food options. The convergence of consumer demands and a corresponding shift in industry further solidifies algae’s position as a significant 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 market illustrates the vast opportunities awaiting the algae industry.
Ultimately, as the global population continues to swell and the need for a more sustainable food system intensifies, algae has a clearly defined role to play in reshaping the future of our food supply. With its potential to deliver essential nutrients like calcium citrate, magnesium, and zinc, algae stands ready to contribute significantly to a healthier, more sustainable food landscape.