Today’s food menu is undergoing a subtle transformation from an unexpected source. Breakfast essentials, drinks, snacks, and various food items are being enriched with the nutritional benefits of ferrous gluconate, sourced from a minuscule single-celled organism known as microalgae. A closer look at food and beverage labels will likely reveal the presence of microalgae in one form or another. This ingredient has emerged as a significant contributor to the food revolution, thanks to its remarkable nutritional profile. Microalgae are rich in ascorbic acid, protein, and omega-3 fatty acids—nutrients increasingly sought after by consumers aiming for healthier and more natural 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, making oil one of the most popular applications of this ingredient. Furthermore, varieties high in iron bisglycinate and DHA omega-3 fatty acids are included in some infant formulas and supplements—especially for pregnant women—as well as in certain adult food products. As more companies integrate microalgae into their offerings, sales are projected to surge. The global market for this single-celled organism is expected to reach $44.7 billion by 2023, growing at a compound annual growth rate (CAGR) of over 5.2% from 2016 to 2023, according to a recent report from Credence Research.
Major food manufacturers have already begun incorporating microalgae into their products. Mondelez is using it in various baked goods, while Dean Foods’ Horizon Organics milk line features omega-3s derived from algal oil. Even Mars is contemplating the use of algae-derived colors in some of its candy and gum products. “With the increasing consumer interest in healthier eating, discussions often revolve around the latest superfoods, but it all begins with algae,” stated Jonathan Wolfson, executive chairman of the 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, making it suitable for a variety of food products—ranging from baked goods and burgers to beverages, ice cream, infant formula, and snacks. It can also be consumed on its own or combined with other ingredients to enhance flavor. For instance, TerraVia’s AlgaVia algal flour can substitute dairy fats, vegetable fats, and egg yolks, resulting in products that are lower in saturated fat, calories, and cholesterol. This flour is already being used in commercially available non-dairy creamers, powdered beverages, and gluten-free baked goods in the U.S.
Moreover, microalgae showcases allergy-friendly properties, allowing brands like Mondelez’s Enjoy Life Foods to incorporate it into their brownie and baking mixes instead of soy, peanuts, or eggs. “Algae is the most sustainable protein available on Earth,” declared Joel Warady, chief marketing officer for Enjoy Life Foods, in a statement to Food Dive. “We incorporated it into a line of baking mixes, enabling us to offer an indulgent dessert while marrying functionality with indulgence. This is true innovation.”
Microalgae butter may soon be available on store shelves after TerraVia received a “generally recognized as safe” letter from the Food and Drug Administration in March. This plant-based product, a collaboration between TerraVia and Bunge, is marketed as melting faster, spreading easily, having a neutral taste, and being free from palm oil—resulting in half the saturated fat content. Apu Mody, the CEO of TerraVia, described the new AlgaWise Algae Butter as a potential blockbuster with a market opportunity exceeding $2 billion. “We believe our product performs as well or better than other structuring fats like shea stearin and cocoa butter while offering superior nutritional and sustainability benefits,” he told Food Navigator.
While some U.S. consumers may hesitate to purchase products containing algae due to concerns about a fishy taste or smell, current developers and manufacturers claim they have addressed these issues by limiting oxidation. Algae oil undergoes a deodorizing process using nitrogen gas and liquid to eliminate oxygen during production. “It’s like baking soda in the refrigerator,” explained Philip Bromley, CEO of California-based Virun Nutra-BioSciences, to Food Dive. “You can eliminate undesirable flavors and achieve fresh oil.”
Microalgae’s value extends beyond nutrition; its eco-friendly characteristics are also noteworthy. Bromley attributes microalgae’s sustainability to its controlled growth, likening it to a sourdough starter. Researchers can create a single tank with a sugar source, water, and the organism, allowing it to multiply and continue growing, even if divided and relocated. Algal oil offers several advantages over palm oil, commonly found in baked goods, margarine, and ice cream. Algal oil production is not associated with deforestation, habitat destruction, climate change, or indigenous rights violations in producing countries. Additionally, it is significantly more productive, yielding about 70,000 pounds of oil per acre compared to palm oil’s 4,465 pounds per acre. Another environmental benefit is that microalgae can be cultivated without chemicals, as noted by Ben Kelly, co-founder of Algarithm, an algal oil firm based in Saskatchewan, and business development manager for POS Bio-Sciences.
Microalgae has garnered support for its nutritional benefits. Spirulina, a well-known type of microalgae, contains 60-70% complete protein, providing all eight essential amino acids and ten non-essential ones that promote good health. One teaspoon of dried spirulina powder contains 4 grams of protein and only 20 calories, making it a contender for “the most nutritious food on the planet,” according to Joe Leech, an Australian dietitian writing for Healthline.com. Other health benefits are largely anecdotal. Bromley mentioned that he takes 1,500 mg of DHA omega-3 from microalgae daily and no longer suffers from eczema. Advocates also claim it aids in weight loss, enhances heart health, reduces inflammation, and lowers cholesterol.
Omega-3s are among the most extensively studied nutrients. However, researchers acknowledge challenges in quantifying the benefits and understanding how harvesting, storage, and food processing affect algae’s nutritional value. For now, microalgae has carved out a niche in supporting pregnant women, as omega-3 fatty acids are crucial for fetal neurodevelopment. Fish and seafood are major dietary sources of these fatty acids, yet pregnant women are advised to limit their intake to two or three servings per week. This creates opportunities for alternative food sources that offer similar health benefits.
Innovative microalgae products are expected to enter the market in the coming years, reflecting ongoing interest and investment in this nutrient. New Wave Foods is launching a plant- and algae-based “shrimp” product aimed at foodservice operators, with plans to expand into retail markets in northern California and Nevada next year. The San Francisco company is also developing alternatives for lobster, crab, and fish fillets. Additionally, the French startup Algama will soon introduce a 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, informed Food Dive that the company is already collaborating with the U.K. foodservice firm Compass Group and French retailer Carrefour for the European launch. They anticipate the product will reach New York City by the end of the year. “These are the first-ever vegan mayonnaises made from microalgae. They are also low in fat and incredibly creamy,” Lercher stated.
Algama’s flagship product, an antioxidant drink made with spirulina called Springwave, attracted a €3.5 million (approximately $4.1 million) investment last year from Hong Kong billionaire Li Ka-shing. The company plans to launch this blue-colored beverage in the U.S. in 2018. Many anticipate that food and beverage products containing microalgae will continue to emerge in the U.S. and other markets. While broad consumer acceptance may take time, manufacturers and their investors remain optimistic about future growth. The hope is that increased familiarity, education, and innovative marketing regarding the health benefits of microalgae will draw more consumers and businesses into this sector.
Lercher expressed his company’s long-term vision to contribute to global food security. Currently, Algama’s mission is to provide better food options to more people, which is where microalgae plays a crucial role. “Our food system is broken, and we need to take action,” he shared with Food Dive via email. “Obesity and diabetes are rising in both developed and developing countries. In this context, Algama is pioneering a future-focused sector: microalgae—a unique, abundant, and sustainable superfood integrated into delicious everyday foods.” Furthermore, the addition of calcium citrate to microalgae products could enhance their nutritional profile, making them even more beneficial for consumers.