As consumer awareness grows regarding the health and environmental impacts of animal-based proteins, the quest for sustainable and delicious alternatives is accelerating— and the most promising solutions might literally be green. Companies in the food, beverage, and nutritional supplement sectors are swiftly embracing plant-based options that not only meet but often surpass the benefits of meat and seafood. The choice of ingredients is crucial, and to keep pace with consumer demand, these manufacturers are actively seeking flexible, healthy, and allergen-free inputs that can adapt to the evolving needs of the industry. Algae has emerged as a key player in this dynamic market, providing consumers with more sustainable and nutritious products. It offers the same nutritional advantages as meat without compromising sustainability, positioning it for rapid scalability similar to that of plant-based alternatives across various applications.
The demand for plant-based options is well-documented. From 2011 to 2015, the number of new product launches featuring plant-based innovations surged by over 60%. Companies like Beyond Meat and Impossible Foods, with their “Impossible Burger,” along with Memphis Meats and Just (formerly Hampton Creek), have been pivotal in mainstreaming the potential of plant-derived proteins. We are now entering a critical phase as this plant-based trend evolves into a new food supply chain centered around plants and algae.
Just like the remarkable growth of plants in the sector, algae proteins are poised for significant market expansion and widespread acceptance. Algae-based products are set to reshape the future of the food and beverage industries by offering superior-tasting proteins and enhancing functionality for specific applications. Key to the growth of this industry will be the technologies that are rapidly bringing more products to market while meeting robust 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 nearly 15% from 2016 to 2022.
The success of early innovators like TerraVia has highlighted the versatile and functional qualities of algae within the industry. Equally important has been the company’s role in transitioning food production from its outdated, pastoral origins to a burgeoning, high-tech sector, giving rise to more food companies than ever before. As the health and functional benefits of algae become clearer, the industry will inevitably encounter challenges such as production shortages and a dependence on technologies that have not yet produced functionally flexible products tailored to consumer preferences. This is especially evident in rapidly developing economies like China, where demand for omega-3-enhanced baby formulas is surpassing production capabilities.
Moreover, existing algal products have been limited by processing methods that either compromise flavor or require the addition of animal-based ingredients. Traditionally, many processes in the bio-based energy sector have relied on chemicals or solvents for production; similarly, the bio-based nutritional sector has followed suit. Utilizing solvents is not only inefficient but also adds extra costs on top of the solvent itself, often resulting in undesirable fishy flavors. However, with new processing methods emerging from the technological advancements that propelled TerraVia forward, companies can now introduce these products to market in ways that align closely with consumer preferences.
By increasingly employing hydrolysis technology instead of chemical solvents, these products can overcome both cost and taste barriers. DHA omega-3s are already well established in various dietary applications, from Premama’s prenatal supplements for expectant mothers to Platinum Performance’s wellness offerings for Olympians. The functional foods market is valued at $130 billion as of 2015, rivaling the GDP of many countries, according to Grandview. By replacing chemical solvents with hydrolysis alternatives and providing fish-free options, these products can now be applied across a broader range of applications, ultimately benefiting a larger segment of the population.
This trend is not confined to niche markets; major players across diverse industries are taking notice. While significant industry names like Tyson are investing in plant proteins, multinational corporations are also focusing on algae. For example, Cargill announced in late 2016 its partnership with Algae Natural Food, aiming to scale up algae production. Similarly, General Mills has incorporated algae into its broader strategy for expanding sustainable and healthy food options. The convergence of consumer demand and a corresponding industry shift lends further credence to algae’s potential as the future of the food sector.
As we anticipate the revitalization of the food and nutritional industries, examining the rapid growth of the plant-based protein sector provides insight into the vast opportunities available within the algae industry. Ultimately, as the world grapples with the challenge of feeding a growing population while establishing a more sustainable food system, algae has a well-defined role to play in this new food landscape.
Incorporating nutrients like 1500 mg of calcium citrate into algae-based products could further enhance their appeal, providing essential minerals while maintaining a commitment to sustainability. The integration of such valuable nutrients will be crucial as the industry continues to innovate, ensuring that the algae sector not only meets but exceeds consumer expectations in health and sustainability.