In the previous blog post, we’ve looked at the durable trends that are driving consumer demand in the health and wellbeing space. Just to recap, these trends are:
Functional ingredients, food as medicine
Interconnectivity: a comprehensive approach
Healthy ageing
Personalisation
Sustainability
Gut health
Now, what is algae’s place in these trends? Where does algae have a competitive advantage in solving the problems that consumers care about? This blog post will aim at answering these questions by presenting an honest assessment of algae’s strengths and weaknesses.
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Common Themes & Key Takeaways
In writing this post, a few themes kept coming up. They stood out to us as important and universal, so we thought we should draw them out at the top, before diving into the details. As you read through the post, keep these overarching concepts in mind:
ALGAE’S ASSETS
Nutrient Density
The rich and diverse nutrient profile stands out as algae's biggest asset. Although different species will have different nutrient profiles, algae in general are rich in essential nutrients and bioactive compounds. These include a range of vitamins, minerals, dietary fibre, protein, omega-3 fatty acids, and antioxidants. This characteristic allows algae-based products to provide multiple health benefits. Algae's versatility in this regard positions it as a promising ingredient across various health and wellness applications.
Sustainability
There is a halo of positive environmental impact surrounding all things algae. This sustainability glow boosts the appeal of algae-based products, with consumers perceiving it as a nice differentiator. However, it is important to recognise that sustainability is currently not the main reason customers buy.
ALGAE’S LIABILITIES
Nutrient Fluctuation
Nutrient composition can fluctuate even within the same species due to factors such as geographic location, cultivation methods, and environmental variables. This variation leads to a moving target, which presents a significant complication for product developers and could leave customers confused. Microalgae are primarily cultivated in controlled environments, which offer a more reliable and consistent product. On the other hand, the supply chain of seaweed is currently extremely immature, with wild harvesting competing against cultivation, a general lack of standardisation, and insufficient data around nutritional profiles, product safety, and traceability. Nutrient fluctuation is not unique to algae. In fact, land agriculture also experiences variability in the nutrient profiles of fruit and vegetables due to factors such as soil quality, climate and weather conditions, agricultural practices (fertilisation, irrigation, etc.), harvesting time, storage and processing conditions. Additionally, the last sixty years have seen an alarming decline in the nutritional density of land crops, which highlights the importance of exploring alternative nutrient sources like algae.
Unfamiliarity
An issue that has emerged repeatedly is the unfamiliarity of Western consumers with algae, which may limit mainstream adoption. This is true both in terms of potential resistance to accepting the unusual characteristics of algae (e.g., taste and texture) and also in terms of a general lack of knowledge and awareness around algae’s benefits. A possible way around it is to use small quantities of algae as an additive rather than the star ingredient. Alternatively, conceal the ingredient in a format where the taste and texture are not detectable.
Iodine and Heavy Metal
High levels of iodine and the presence of heavy metals in seaweed can be a challenge due to their toxicity risk. First off, while iodine is an essential nutrient and can represent a great competitive advantage (more on this later), excessive iodine intake poses a serious health risk as it can disrupt thyroid function. A range of measures can be taken to mitigate this risk, including transparent labelling and clear information to help customers manage their iodine intake, developing product formulations that ensure safe limits are not exceeded, regular testing, and standardisation. With regards to heavy metals, it is crucial for manufacturers to source from clean waters, regularly test for contaminants, and adhere to regulatory requirements to ensure products are safe for human consumption.
These themes will recur throughout our discussion of the six health trends, highlighting both the significant potential and the key challenges that the algae industry faces in meeting evolving consumer health needs.
Functional Ingredients: Food as Medicine
As the lines between food, dietary supplements, and personal care are starting to blur, seaweed and microalgae can play a central role as functional ingredients at the intersection of these three areas.
Nutrient density is certainly one of algae’s core strengths as a functional ingredient, but beyond the presence of nutrients, algae's advantage lies in their bioavailability: how efficiently the body absorbs these nutrients and how long it retains them. Nutraceutical products using minimally processed algae are likely to have a competitive advantage in terms of nutrient bioavailability. For example, research conducted at the University of Glasgow and published in the British Journal of Nutrition found that participants taking iodine supplements in the form of seaweed capsules were benefiting from a lower level of iodine sustained over a longer period of time compared with the same amount of iodine from potassium iodine. The latter, a synthetic source of iodine, was released at a higher level and then rapidly excreted through urine and sweat.
An important element of the functional nutrition trend is the “clean label” movement, and algae shine here too. That’s because they can be used as minimally processed ingredients and offer a much more natural alternative to replace synthetic and petroleum-based substances. For instance, Scotland-based company Oceanium has developed a high-fibre mixture of alginates and cellulose that serves as a one-for-one replacement for methylcellulose, a synthetic ingredient commonly used in plant-based meats as a binder and emulsifier.
Algae can also be used in food products as a functional ingredient to reduce sodium content. Around 77% of our salt intake comes from industrially processed foods such as snacks and ready meals, which contain additives carrying high levels of sodium. These substances are commonly used as flavour enhancers and preservatives, with some very common examples being salt (sodium chloride) and monosodium glutamate (MSG). Consumers are now demanding healthier choices but refuse to compromise on taste. Algae, naturally rich in umami due to their high glutamate content, can mimic the savoury flavour of salt, allowing brands to reduce added sodium while maintaining the desired taste profile.
Although algae could be well-placed as a functional ingredient, incorporating algae into consumer products comes with its share of challenges, including nutrient fluctuation, customer unfamiliarity, and the need to manage the presence of iodine and heavy metals. We covered all of these in the “Common Themes & Key Takeaways” section earlier in this post.
Interconnectivity and comprehensive approach
As the perception of health and wellbeing widens to encompass physical, mental, and emotional aspects, algae are well suited to a holistic approach. That is mainly because of their rich nutrient profiles and multifunctional benefits, which span across various, and often interconnected, aspects of health:
Gut health
Cognitive function and mood
Immune system support
Energy boost
Anti-inflammatory properties
Antioxidant properties
Thyroid function
Skin health
Weight management
Blood sugar control
Cardiovascular health
Integrating algae into your food or nutraceutical product means you will likely be able to make multiple health claims. Your customers will be getting a comprehensive solution that looks at the bigger picture, conveniently packaged into a multi-performing product.
The benefits provided by iodine are a great case in point. Seaweed is naturally rich in iodine, a nutrient necessary for healthy thyroid function, which we often don’t get enough of through our diets. Fish and dairy products are the most common sources of iodine, but people shifting towards a more plant-based diet will have to either integrate with dietary supplements or consume food products that have been fortified with iodine. Seaweed is the best natural source of plant-based iodide. The supplement brand Doctor Seaweed is an interesting case study in this area. Their flagship product, Pure Organic Seaweed, is a 500mg capsule containing only one ingredient, Hebridean Ascophyllum nodosum, in dried powder form. Despite the simplicity of the formula, the product’s health claims include improved cognitive function, balanced metabolism, energy boost and support in the maintenance of healthy skin. All interconnected benefits linked to thyroid health.
Limited awareness and the need for customer education are the main obstacles here. Additionally, it doesn't help that there are currently no widely recognised certification and labelling schemes that all consumers would recognise. If you are bringing an algae-based product to the market, you will need to be laser-focused on understanding your customer and providing them with educational content and transparent information, including guides, comparisons, detailed benefits, and nutritional data. Make sure you research and address their concerns (e.g., “How much iodine is too much?" or “Is there a risk of heavy metal contamination?”). This will help in gaining the customer’s trust and reducing uncertainty, making them feel secure in their purchasing decisions.
Healthy Ageing
Consumers, particularly younger demographics, are significantly invested in healthy ageing. The primary focus is reducing inflammation, combating oxidative stress, and preventing cognitive decline to live healthier for longer. Algae are exceptionally well-placed to help with all three of these crucial aspects of health, thanks to their rich nutritional profile and unique bioactive compounds.
Let’s start with inflammation, which is at the root of most diseases. Emerging scientific evidence highlights the profound bioactivity of seaweed and microalgae, as they contain potent agents that mitigate chronic inflammation. The incorporation of these compounds into daily food products and dietary supplements represents a promising strategy to reduce inflammation and promote healthy ageing. For example, work carried out by the Algae4IBD consortium has confirmed the potential of algae as a solution for chronic diseases such as Inflammatory Bowel Disease (IBD). However, it also pointed out serious knowledge gaps: many of the promising algae remain understudied, and it is still unclear which specific compounds are providing the anti-inflammatory benefits. This poses challenges in making health claims and highlights the need for further research.
Algae are also a great source of antioxidants, which play a critical role in combating oxidative stress, a major contributor to ageing and age-related diseases. The high concentration of antioxidants helps neutralise free radicals, thereby protecting cells from damage and reducing signs of ageing. The research on the antioxidant properties of algae is robust and well-established. Some of the best understood algae-derived bioactive compounds are fucoidans, polysaccharides extracted from brown seaweed with multifunctional properties, and astaxanthin, a carotenoid pigment derived from microalgae known as one of the most powerful antioxidants that exist.
Omega 3 fatty acids also deserve a mention here, as they offer a range of benefits aligned with the healthy ageing trend, including anti-inflammatory properties and support for healthy brain function. Omega 3 fatty acids provide the substrate for some key building blocks of neurocells. Traditionally assimilated in the diet through consumption of fatty fish or supplementation via fish oil, omega-3 are actually produced by algae. So it makes sense that we go straight to the source and get these compounds from algae, which in turn offer an alternative that is less likely to contain harmful contaminants, more sustainable, and plant-based. The cost of sourcing omega-3 from algae is still higher than omega-3 from fish, but the gap is getting smaller.
Finally, Flinders University researchers have identified compounds in 3 species of South Australian brown seaweeds that can significantly increase collagen levels in the skin, essential for maintaining elasticity and reducing the appearance of wrinkles.
Personalisation
Personalisation is a significant trend in the food and nutraceutical industry, with consumers increasingly seeking products tailored to their unique health needs and preferences. Algae, with its diverse nutrient profile and adaptability, is well-positioned to capitalise on this trend.
One of algae's key strengths in personalised nutrition is, once again, its wide range of nutrients. This diversity allows for the creation of targeted nutrition solutions that cater to specific health goals, such as improving cognitive function, supporting heart health, or enhancing sports performance. For instance, a personalised algae-based supplement could be formulated with higher levels of DHA and EPA omega-3s for individuals looking to support brain health, while another formulation might focus on protein content for those seeking to build lean muscle mass. Algae's adaptability also opens the possibility of customised strains that can produce specific nutrients or compounds in higher quantities. By optimising algae strains for personalised nutrition, producers can offer more effective and efficient products that align with individual requirements.
However, the algae industry faces significant liabilities in personalised nutrition due to the lack of comprehensive data on algae composition and the variability in nutrient profiles, as explored in the “Common Theme & Key Takeaways” section. This inconsistency in algae composition makes it challenging to create standardised, reliable, personalised nutrition products. Without a thorough understanding of how different cultivation methods and environmental factors influence the nutrient profile of algae, it becomes difficult to ensure that consumers receive the targeted benefits they seek. Furthermore, the lack of comprehensive data on algae composition hinders the ability to create consistent, scalable, personalised nutrition solutions, as nutrient variability can lead to inconsistent results and challenges in quality control. To overcome these liabilities, algae entrepreneurs should invest in research and development to better understand the factors influencing algae composition and develop standardised cultivation methods to minimise nutrient variability. This could involve conducting comprehensive studies on the impact of different growing conditions on algae's nutritional profile and identifying optimal cultivation techniques to ensure consistent nutrient levels. By addressing these data gaps and establishing standardised production methods, the algae industry can create more reliable, effective personalised nutrition products that deliver targeted health benefits to consumers.
Sustainability
In our previous post, we discussed how sustainability in food encompasses various aspects, including organic production, low environmental impact, and a reduced carbon footprint. Consumers are increasingly interested in sustainable food options, with over 60% willing to pay a premium for sustainable products, according to a 2021 survey by Deloitte. This trend is particularly strong among Millennials and Gen Z, who prioritise brands aligning with their environmental values.
When it comes to sustainability, algae is a true superstar. Compared to traditional crops, algae cultivation requires minimal land and water resources, making it one of the most sustainable food production options available. For instance, spirulina can produce up to 20 times more protein per unit area than soybeans, while using significantly less water and land [0]. Algae can also be grown in a variety of settings, including indoor facilities and marginal lands, reducing competition with food crops and preserving biodiversity. Furthermore, algae cultivation can be combined with wastewater treatment and CO2 sequestration, providing additional environmental benefits beyond food production. However, it's important to recognise that while sustainability is a growing concern for many consumers, it may not be their top purchasing criterion. Factors such as taste, nutritional value, and price often take precedence when making purchasing decisions. Therefore, it's crucial for algae-based products to offer additional compelling features beyond sustainability. This could include unique health benefits, innovative flavours, or convenient packaging. To effectively capitalise on the sustainability trend, algae entrepreneurs should focus on developing products that combine eco-friendliness with other desirable attributes. For example, an algae-based protein powder that boasts a complete amino acid profile, great taste, and sustainable packaging could attract health-conscious consumers who also value environmental responsibility. By highlighting the multifaceted benefits of algae-based products, entrepreneurs can appeal to a broader range of consumers and drive the adoption of algae as a sustainable food source.
[0] While not scientifically classified as an algae, spirulina is commonly classified as an algae in market contexts.
Gut health
In our previous post, we discussed how gut health refers to the balance of microorganisms living in the digestive tract, particularly in the intestines. This balance is crucial for digestion, nutrient absorption, and immune function. Consumer interest in gut health has grown substantially in recent years, with nearly one in four adults in the US considering digestive health the most important aspect of their overall well-being, according to the International Food Information Council.
Algae, particularly seaweed, emerges as a promising player in the gut health arena due to its nutritional richness. Seaweed is a rich source of dietary fibre, which serves as a prebiotic, promoting the growth of beneficial gut bacteria and supporting overall digestive health. Moreover, some algae species contain polyphenols and other bioactive compounds that have been shown to positively influence gut microbiota composition and function. These attributes position algae as a valuable ingredient in the development of gut health-focused food and nutraceutical products.
However, limited research on the specific effects of algae consumption on human gut health remains a constraint. Compared to other well-studied prebiotic and probiotic sources, the scientific evidence supporting algae's role in gut health is still in its early stages. This lack of extensive research may impact consumers' willingness to trust algae as a beneficial ingredient for gut health. It also poses challenges for product developers seeking to create evidence-based, algae-centric gut health solutions.
To move the industry forward, entrepreneurs and researchers should collaborate to bridge this research gap. Entrepreneurs can partner with academic institutions to fund and conduct rigorous clinical studies investigating the effects of algae consumption on human gut microbiota and digestive health. Researchers, in turn, should focus on elucidating the mechanisms by which algae-derived prebiotics, polyphenols, and other bioactive compounds interact with the gut microbiome. By investing in research and generating a strong evidence base, the algae industry can build consumer trust, inform product development, and unlock the full potential of algae as a gut health powerhouse.
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