Functional Ingredients

Algae ingredients category bursting with life

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Continued interest from consumers in omega-3 fatty acids and newly-kindled excitement about astaxanthin have boosted the fortunes of algae-ingredient suppliers.  These companies' sustainability stories help drive sales, too. And underlying the whole sector is the promise of algae as a source of renewable biofuels.

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Cyanotech's facility on the Big Island of Hawaii

There’s big news in the nutrition business being generated from the smallest of sources: algae, unicellular plants that inhabit dozens of different environmental niches.  Depending on the species and cultivation method, algae can yield potent carotenoids, nutrient-dense superfood-type powders, vegetarian sources of omega-3s and even biofuels that have been successfully tested by the U.S. military.

The longtime leader of the algae space, Martek, is in the process of full integration with parent company DSM Nutritional Products, which bought Market in a billion-dollar deal in  2010. Martek recently assumed its new name —Nuritional Lipids.  The new company will combine Martek’s strengths in algal oils with DSM’s existing nutritional lipids portfolio.

“The outlook is amazing for the whole space,” said Cassie France-Kelly, spokeswoman for Nutritional Lipids. “Most market research shows omega-3s is the fastest growing category of functional ingredients and nutrition.  Awareness is growing.  Even awareness for specific ingredients, like the one we make, DHA, is very high, particularly for health-conscious consumers.  DHA and EPA are among the few nutrients that have an enormous body of extremely credible science behind them.”

Martek had its first commercial application for its DHA in an infant formula in Europe in 1993 and launched in infant formula in the U.S. in 2002.  The DHA ingredient was rebranded as life’sDHA in 2008.   In March, Martek launched Ovega-3, an all-vegetarian omega-3s supplement that uses its life’sDHA plus EPA ingredient.  The company touts it as the “world’s first fish-free fish oil.”

“Consumers and retailers alike are becoming increasingly concerned with finding sustainable alternatives for in-demand products.  Certainly that is a big part of the brand proposition and part of why we think it’s successful,” said France-Kelly.  The product also avoids the fishy burps some consumers report with fish oil, she said.

As far as Nutritional Lipids is concerned, it’s too early to tell exactly what products might arise from this new collaboration, France-Kelly said. “DSM has huge strengths for premixes as well as powdered formats.  We’re pretty early in the integration; we have some great strengths they will be able to leverage, and they have some great strengths that we will be able to leverage,” she said.

Food and fuel

Another pairing in the space, the joint venture between  Roquette and Solazyme, has also produced recent news as it makes strides toward a January release of a new “flour” derived from algae.  Food formulators will be able to use the powdery yellow ingredient to mimic a full-fat mouthfeel in products like soy milk or shortbread cookies.

Solazyme has also leveraged its algae expertise into a series of research and demonstration contracts on algae biofuels for the U.S. Navy, which has successfully demonstrated the fuels in aircraft and patrol boats.  The latest contract runs through this year and calls for a delivery of 150,000 gallons of fuel.

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