The alternative protein market has been a darling of investors the past few years, with most of the capital flowing into start-ups related to plant-based protein. However, a photosynthetic single cell cyanobacteria, commonly referred to as blue-green or microalgae, could drive the next wave of investments in alternative proteins.
One type of microalgae, Spirulina, is a popular additive in smoothies, and one of the most nutrient-dense foods on earth. One serving contains the same amount of micronutrients as two cups of greens, and two servings have the same amount of protein as an egg. A tablespoon (about 7 grams) of spirulina also includes about a gram of omega-6 and omega-3 fatty acids, and a variety of other essential vitamins, minerals, and antioxidants.
Spirulina has struggled to become popular with a wider consumer base because of its bitter flavor in dried powder form. Fresh Spirulina, however, has a more subtle flavor, and requires a fraction of the freshwater and land resources needed in meat or other plant-based protein production.
A Growing Market
Because it is flavorless, spirulina is particularly attractive as an additive to smoothies, yogurts, and other meals. According to the European Algae Biomass Association, the global spirulina market is expected to grow at a CAGR of 9.4% from 2019 to reach $629.6 million by 2025. Approximately 2.5 million Americans consume smoothies at least twice each week, seeking convenient, natural, and nutrient-dense ingredients. Globally, the smoothies market is projected to see a compound annual growth rate of 6.98% from 2020 - 2025.
The home smoothie market is a significant opportunity estimated to grow to $1.2 billion annually, with increases driven by more people working from home during the COVID pandemic. Moreover, chefs are beginning to incorporate microalgae on their menus and it has become an ingredient in top-rated restaurants, like Blue Hill and Noma.
Institutional investors are starting to take note in the potential benefits of algae for human consumption. Unilever PLC recently partnered with the biotech startup Algenuity to research microalgae as an ingredient in food and beverages.
The Future of Microalgae - Fresh & Convenient
Innovative companies, like Brooklyn-based We Are the New Farmers, are changing the way microalgae is produced and consumed. Their fresh Spirulina can be sold refrigerated or in frozen cubes, and is available by mail order and soon, in retail supermarkets. The company has developed systems to grow Spirulina 4.2 times faster than other cultivation methods and 20 times lower build out cost compared to similar systems. Their completely enclosed production system minimizes the risk of contamination by foreign objects and organisms, and environmental controls allow them to apply optimal growing conditions to maximize output in a similar fashion to traditional Controlled Environment Agriculture operations independent from surrounding environmental conditions.