Microalgae Market – The Future of Functional Nutrition and Omega-3 Fatty Acid Production

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As global demand for natural and health-focused products intensifies, the food and nutrition industry is undergoing a transformative shift. Consumer preferences are now focused on wellness and sustainable ingredients, driving innovations in product development. One of the most promising advancements has emerged from the exploration of microalgae, a nutrient-rich and eco-friendly source of bioactive compounds with substantial health benefits.

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Microalgae, such as spirulina and chlorella, have garnered attention for their unparalleled composition of functional ingredients, including polyunsaturated fatty acids (PUFAs), polysaccharides, natural pigments, essential minerals, vitamins, enzymes, and bioactive peptides. These potent compounds have been linked to a host of health benefits, solidifying microalgae as a key ingredient in the evolving market of functional foods, dietary supplements, and sustainable animal feed.

Rising Demand for Omega-3 Fatty Acids from Microalgae

At the heart of this growing trend is the increasing awareness of the health advantages offered by omega-3 fatty acids. Known for their anti-aging properties, cardiovascular health benefits, and ability to aid in the healing of atherosclerosis, omega-3 fatty acids are an essential component of a healthy diet. Traditionally sourced from fish oil, omega-3s include crucial fatty acids like linolenic acid, alpha-linolenic acid, eicosapentaenoic acid (EPA), and docosahexaenoic acid (DHA). However, research suggests that the omega-3 fatty acids found in fish actually originate from their consumption of zooplankton, which in turn feeds on microalgae such as spirulina.

This discovery has shifted the focus toward microalgae as a primary source of omega-3 fatty acids. Spirulina, in particular, stands out due to its rich composition of long-chain polyunsaturated fatty acids, phenolic compounds, volatile compounds, sterols, proteins, peptides, vitamins, and natural pigments. Notably, spirulina contains approximately 15.8% lipids, with omega-3 fatty acids comprising 4.9%, making it one of the most potent plant-based sources of these essential nutrients.

Challenges with Fish-Derived Omega-3 and the Rise of Microalgae

While fish oil has long been a dominant source of omega-3 fatty acids, there are growing concerns about the sustainability and safety of fish-derived omega-3s. Several factors, including the undesirable taste and odor associated with fish oil, declining fish populations, and the environmental impact of overfishing, have prompted the industry to seek alternative sources.

Moreover, fish oil is often subjected to extensive chemical processing and has been linked to contamination with mercury, dioxins, and polychlorinated biphenyls (PCBs), which pose significant health risks. In contrast, microalgae-based omega-3 production offers a cleaner and more sustainable alternative. Algae-derived omega-3s are not only free from pollutants and contaminants, but they also provide a plant-based option for consumers seeking vegan or vegetarian alternatives.

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Industry Shifts Toward Algae-Based Production

As the cost-effectiveness of microalgae cultivation improves, the industry is seeing a pronounced shift from biofuel production to the large-scale manufacturing of nutritional products, particularly PUFAs. This transition is fueled by the rising demand for health-conscious, plant-based, and eco-friendly products. Leading players in the microalgae sector are seizing this opportunity to expand their production capacities and explore new market applications.

Several recent developments highlight the growing momentum behind algae-based product innovation:

• Brevel, Ltd. made headlines in June 2024 with the launch of its 27,000-square-foot commercial facility in Israel. The company, known for its expertise in microalgae protein, is positioning itself to meet the increasing global demand for alternative protein sources, further supporting the rise of plant-based diets and sustainable food solutions.
• In July 2023, Zivo Bioscience, Inc. (U.S.) took a significant step forward by commercializing its proprietary algal biomass. Zivo’s algal biomass is intended for use as a food ingredient, adding to the growing list of microalgae applications in mainstream food products. Zivo also announced a contract manufacturing agreement with Alimenta Algae SAC, leveraging facilities in Peru to enhance its production capabilities.
• Aliga ApS, a key player in the algae industry, expanded its market presence in August 2022 with the acquisition of Duplaco B.V., a Netherlands-based microalgae producer. This strategic acquisition is expected to bolster Aliga’s production portfolio and market penetration, particularly in the dietary supplements, food ingredients, and animal feed sectors.
• Allmicroalgae – Natural Products, S.A., a Portugal-based producer, formed a partnership with Portugal Foods in June 2021 to strengthen its international commercial and industrial network. This collaboration aims to enhance the company’s reach in global markets and further stimulate the demand for spirulina and other microalgae-based products.

Expansion of Microalgae Applications in the Food and Beverage Industry

The versatility of microalgae has unlocked a range of innovative applications in food and beverage production. Spirulina and chlorella, two of the most widely cultivated microalgae species, are increasingly being used as ingredients in functional foods, dairy alternatives, and even plant-based ice creams.

For example, Sophie’s BioNutrients, a Singapore-based company, partnered with the Danish Technological Institute (DTI) in June 2023 to introduce a chlorella-based ice cream with higher levels of B12 and iron compared to traditional dairy or plant-based alternatives. This unique product underscores the potential for microalgae to revolutionize plant-based nutrition and enhance the nutritional profile of everyday food items.

Additionally, MiAlgae Ltd, based in the U.K., introduced its NaturAlgae product in April 2023. Designed specifically for the aqua feed and pet food markets, NaturAlgae provides a rich source of omega-3 fatty acids, further demonstrating the expanding use of algae-based ingredients beyond human nutrition.

Microalgae Market Research Summary

Market Growth and Future Outlook

The market for microalgae-based products is on a steep upward trajectory. According to Meticulous Research®, the global microalgae market is expected to reach $2.26 billion by 2031, growing at a compound annual growth rate (CAGR) of 8.6% from 2024 to 2031. In terms of volume, the global market is projected to reach 162,263 tons by 2031, reflecting a CAGR of 7.8%.

The expanding demand for microalgae is being driven by several key factors, including the growing consumer preference for plant-based alternatives, the rising awareness of the health benefits of omega-3 fatty acids, and the environmental sustainability of algae-based production methods. As global populations seek healthier and more sustainable food sources, microalgae are poised to play an increasingly important role in shaping the future of functional foods, dietary supplements, and animal nutrition.

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Conclusion

The potential for microalgae to revolutionize the nutrition industry is becoming increasingly evident. With their rich nutrient profiles and environmentally sustainable production methods, microalgae offer a compelling solution to the challenges of sourcing omega-3 fatty acids and other functional ingredients. As more companies invest in microalgae research and commercialization, the market is expected to experience rapid growth, with innovative products making their way into mainstream consumer markets.

Microalgae are not only the future of nutrition but also a testament to the power of natural, sustainable, and scientifically backed solutions to meet the world’s growing demand for healthier and more responsible food production.

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