Why algae is the next big thing in food – overview
- Global algae market projected to grow from $5.3bn to $7.3bn
- Microalgae like spirulina offer up to 70% complete protein content
- Algae grows sustainably using CO₂ and non-arable land resources
- Used as emulsifiers, antioxidants, and natural colourants in foods
- Over half of consumers are curious to try algae-based ingredients
Algae holds great promise. Whether it’s macroalgae (think seaweed found on beaches) or microalgae (such as spirulina from freshwater ponds), these plant-like organisms are abundant, nutritious and sustainable.
Though often tiny in size, the algae market is growing fast. In 2023, it was valued at $5.3bn (€4.6bn) globally, and is projected to reach $7.3bn by 2028.
While food and drink makes up a part of this market, the bulk comes from supplements, feed, pharmaceuticals and personal care. But researchers believe algae could play a much bigger role in our diets.
Here are five ways seaweed and microalgae could transform the future of food and beverage.
1. High-protein for functional food wins
If protein’s not the trend of the moment, I don’t know what is. High-protein claims have entered almost every category, from bars to breakfast cereals and even bottled water products.
Algae, an alternative protein source with high nutritional value, fits the bill. Microalgae varieties like spirulina and chlorella vulgaris contain particularly high quantities, at 50-70% and 40-60% respectively – matching or even exceeding the protein content of conventional animal or soy-based proteins.
Also read → The functional ingredients powering the high-protein craze
What’s more, many algae contain all essential amino acids, plus vitamins, minerals and bioactive compounds – to the extent that new research out of Umeå University in Sweden and funded by the EU suggests varieties could serve to fortify or replace animal-based foods.
2. Algae’s green – in more ways than one
But if algae were to boast about anything, it would be its green credentials. We’re not just talking about its colour. You’d be hard-pressed to find an ingredient with a better sustainability profile.
Microalgae can grow on non-arable land, use nutrient-rich side streams for feed, and utilise CO2 in photosynthesis – all of which serve to reduce its environmental footprint.
Algae are essentially gifting the food and beverage industry an eco-friendly marketing strategy, enabling a narrative that weaves in low-land use, low-water use, and an all-round “nature positive” angle.
3. Functional ingredients: from emulsifiers to thickeners
We’ve mentioned that algae can be used in meat alternatives. But their potential in functional ingredient applications makes them even more versatile than that.
The plant-based organism’s biochemical diversity and textural/flavour versatility means they can be used in fish and egg alternatives as well.
Other uses include a natural colourant or antioxidant ingredient in beverages and snacks, and a texturizer or emulsifier. Algae-derived hydrocolloids such as carrageenan, agar and alginate are already used widely by the food industry as thickening, gelling and emulsifying agents.
4. Consumers trust algae – and understand enough about how it’s made
While few consumers will understand how algae is grown or cultivated, they don’t need to know everything. According to a survey of over 5,000 consumer in northern and eastern European countries, more than 50% of respondents recognise that algae-based foods hold economic value for farmers and producers, particularly via local sourcing and small-scale production, and that’s important for industry.
Trust is also key. In some countries, trust in algae is high – like in Norway and Germany. Over in Lithuania, more scepticism is observed. The researchers link trust to familiarity and transparency. If consumers know where algae comes from, they’re more likely to trust it.
Brands can lean into that, by emphasising “locally produced algae” or “coastal-based production” in their storytelling, and building consumer trust that way.
5. Shoppers open to trying new foods containing algae
And finally, there is a real market opportunity, albeit with some caveats.
Overall, consumer familiarity and usage of algae-based foods is low, but more than half (52%) are curious to try new foods containing algae. A good proportion (45%) said they would like to incorporate them into their regular diets.
But, there is a proviso: consumers prefer algae to be used as a complementary ingredient rather than the sole base for a new product. Tests revealed that consumers prefer products with low algae content – at less than 10%. Beyond that, they like it less.
What does that mean for industry? It’s a “cautious yet promising” market environment for algae-based foods – that should be enough of a green light to make a splash.