“Unlocking the Potential of Algae: A Sustainable Future for Food Innovation”
In 2016, when Mars Inc. announced its intention to eliminate all artificial colors from its food products within five years, Leonard Lerer recognized a significant opportunity. Lerer, a medical doctor and investor in food technology, had previously supported a startup that extracted natural blue color from spirulina algae. After crunching the numbers, he estimated that fulfilling Mars’s desire for a natural blue hue in M&Ms would require five to six times the total spirulina production available globally at that time. This posed a considerable challenge for the candy manufacturer. Nearly five years later, Mars Wrigley confirmed that M&Ms in the United States still did not incorporate natural blue coloring. “Not only was the supply insufficient, but the costs were prohibitively high,” Lerer noted, adding that there were numerous technical production challenges as well. Nevertheless, Lerer remained convinced of algae’s potential. In 2018, he founded Back of the Yards Algae Sciences in Chicago to enhance the extraction process for blue pigment from spirulina. His venture is bearing fruit, as he plans to launch a new company this year that will become one of the world’s top three producers of spirulina-based coloring.
Unexpectedly, the venture yielded additional benefits. During the extraction process, Lerer discovered that blue pigment constituted only 10% of the algae, while the remaining 90% represented a valuable high-protein superfood, suitable for plant-based meats, yogurt, cheese, and as a culture medium for cell-based meat applications. Research into algae is expanding beyond mere curiosity in food science; it’s evolving into a booming industry. Market Data Forecast anticipates that the global algae ingredients market will grow at a compound annual growth rate of 8.2% from 2020 to 2025, while Global Market Insights predicts the algae protein market could reach $1 billion by 2026. Major players like Unilever and Nestlé are collaborating with algae companies to develop novel ingredients and applications, while ingredient suppliers such as ADM and Bühler are also exploring this realm.
Sabina Vyas, senior director of strategic initiatives and communications for the Plant Based Foods Association, notes that more firms are now utilizing algae ingredients, both among PBFA members and beyond. Algae tick multiple boxes as an ingredient: it’s sustainable, environmentally friendly, and nutrient-rich, providing omega-3 fatty acids that are typically sourced from seafood. Algae ingredient companies are attuned to manufacturers’ needs. “From what I’ve observed, they genuinely want to collaborate with companies to tailor algae to meet their specific requirements,” Vyas explained. “We can expect to see more algae in egg and meat alternatives, as well as as a protein supplement in various products such as spirulina or chlorella.”
Algae is ubiquitous, thriving in freshwater, saltwater, and wastewater. It can flourish through photosynthesis in sunlight or grow in darkness, and it can be cultivated without significant land use or natural resources. Alexander Mathys, head of the Sustainable Food Processing Laboratory at ETH Zurich, estimates that over 200,000 microalgae species exist worldwide, yet only a few are currently cultivated for food. This indicates tremendous potential for future algae applications. “I believe algae can help address some of the planet’s pressing challenges,” Lerer remarked. “Algae and mycelium form the foundation of the food chain, which means they are essential for life on Earth.”
This fundamental perspective has inspired businesses and research efforts. Algenuity, a British ingredients company that partnered with Unilever last year, originated around a decade ago when a group of scientists began exploring algae’s potential in applications such as biofuels. This team dedicated resources to studying algae’s capabilities in energy and other fields. Algenuity’s founder, Andrew Spicer, a molecular and cell biologist, focused on algae’s potential in food. He stated that Algenuity essentially incubated within a larger company, receiving the funding and freedom to delve deeply into algae research. “As the demand for plant-based ingredients surged, we were well-prepared,” Spicer shared. “We identified which algae to target and recognized a significant opportunity awaiting exploitation.”
Despite algae’s global presence, its cost-effectiveness as an ingredient is not as promising as it may appear, primarily due to the substantial energy and water required for harvesting. Currently, microalgae is less economical than soy, according to Mathys. However, unlike soy cultivation, which often encroaches on natural habitats, microalgae can be grown almost anywhere. At ETH Zurich’s Sustainable Food Processing Laboratory, Mathys and his team are working on methods to enhance the cost-effectiveness and environmental efficiency of microalgae as a protein source. They are developing a technology called nanosecond pulsed electric field processing that can increase microalgae growth efficiency by up to 17%. This technique allows for extraction of protein components from the algae while keeping it alive, a process Mathys likens to “milking” the algae.
Mathys has also investigated microalgae applications. In a paper published last year, he discussed converting bright yellow microalgae protein into a meat alternative, believing such innovations could inspire more manufacturers to utilize this ingredient, thereby achieving economies of scale. “First, we need to optimize the process,” Mathys emphasized. “Second, we must scale it to meet the demands of a large market. For soy, that means millions of tons of production.”
Algenuity’s partnership with Unilever has opened numerous doors for the company and the algae industry as a whole. In 2019, Nestlé announced a similar collaboration with Corbion, the owner of AlgaVia, an algae ingredients firm. These partnerships signify that algae is gaining real traction after years of speculation, according to Spicer. “I often reference an Elvis song: ‘A little less conversation, a little more action.’ We’ve had extensive discussions over the past few decades, but not much has materialized. When big companies like Unilever commit to making it happen, it encourages smaller companies and new opportunities to emerge.”
Algae’s versatility extends to its applications in various cuisines. While many still perceive algae as a slimy green substance relegated to niche nutraceutical markets, Spicer has demonstrated its potential as a valuable nutritional component. Its high amino acid and fiber content meets growing consumer and manufacturer demands. Chlorella vulgaris, the species at the core of Algenuity’s offerings, is also non-allergenic. However, its green color and bitter taste have limited its appeal. To address this, Spicer developed a strain of chlorella vulgaris that is virtually free of chlorophyll, eliminating the green hue and bitterness, resulting in a neutral-tasting, nutritious ingredient with several functional properties.
“Our product has emulsifying and enriching properties that enhance the protein and nutritional profile of foods,” Spicer explained. “Its high fiber content also contributes to its functionality, and it can serve as a binding agent in vegan meats and pasta, opening up vast opportunities.” Algenuity’s ingredients can be incorporated into various products, including soups, dressings, smoothies, and they have been successfully used as an egg replacer in baked goods like vegan brownies.
While Spicer refrained from discussing specific projects with Unilever, he noted collaboration at the company’s main innovation center, The Hive, focusing on savory snacks and plant-based meats, with the agreement encompassing all facets of Unilever’s business. Algenuity’s ingredients could find their way into a wide range of products.
Back of the Yards Algae Sciences has been conducting research and development on diverse algae ingredient applications, testing them with Brytlife Foods, a small vegan food producer in New York City. Lerer stated that Back of the Yards does not aim to become a consumer packaged goods company but seeks to showcase the potential of algae ingredients, which is more effectively demonstrated through full products. “The challenge has been that major food companies have struggled to incorporate algae into their formulations, resulting in limited usage,” Lerer explained.
Recently, Back of the Yards developed an algae-based heme, the iron-containing molecule that imparts a meaty flavor. Impossible Foods has sourced its heme from genetically modified soy, but Lerer’s algae company has also experimented with a blue dairy-free yogurt and a yellow vegan cheese. He believes algae could play a crucial role in the future of cultured cell growth. Cultured meat, which aims to produce meat without raising or slaughtering animals, has been costly due to the reliance on fetal bovine serum for cell growth mediums. Developers of cultured meat are working with agricultural and nutritional firms to devise more affordable plant-based alternatives, and Lerer believes algae can serve effectively in this capacity.
Back of the Yards has successfully cultured pork, shrimp, and poultry cells using an algae-based growth medium, a notable achievement given that Chicago’s Back of the Yards neighborhood was historically the center of the city’s meatpacking industry, famously depicted in Upton Sinclair’s “The Jungle.” “To start this lab, we decided to culture pork as a way to purge the building of its past associations with animal cruelty,” Lerer remarked with a chuckle.
As an ingredient, Spicer acknowledges that algae still has work to do in becoming appealing to consumers. However, with effective messaging, it can achieve that goal. “The sustainability narrative surrounding algae is compelling,” he said. “It’s an entire protein source that generates zero waste, making it attractive to consumers. Yet, the term ‘algae’ is often met with preconceived notions that we need to address.”
While algae has been present in food for decades, Vyas from the Plant Based Foods Association believes that public education initiatives accompanying product rollouts could enhance its desirability. Teaching consumers about the sustainability and nutritional benefits of algae will likely encourage them to seek out algae-infused products, especially among millennials and Gen Z, who are increasingly interested in foods that align with these values.
Spicer envisions that through partnerships with major manufacturers and a renewed focus on healthy ingredients, consumers will not only desire products containing algae but will also integrate algae protein into their home-cooked meals. Algenuity plans to offer direct-to-consumer ingredients for home cooks later this year, starting with protein powders or blends of algae protein and commonly used ingredients.
Additionally, Algenuity is leveraging social media to promote algae. Their Twitter feed showcases a variety of dishes made with their ingredients, ranging from soups to pasta to ice cream and vegan chocolate tortes. Spicer is also preparing for more opportunities, as Algenuity sponsors London’s Future Food Tech conference this September, where they have been tasked with catering an entire lunch for attendees. “I hope we can deliver something that resonates positively with everyone,” he stated.
In summary, as the algae industry continues to evolve, it presents a multifaceted opportunity not only in food applications but also in addressing broader sustainability challenges. The potential of algae, particularly in areas such as cultured meat and high-protein ingredients, aligns well with emerging consumer trends, paving the way for innovative products that could reshape the future of food. The integration of algae, along with other ingredients like Solgar liquid calcium magnesium, can enhance nutritional profiles while promoting sustainability in food production.
