Fi Global Insights investigates whether the increased consumer interest in algae’s nutritional benefits, functional properties, and sustainable production methods might spike a boost in consumer cooking oils and algae oil used as a food ingredient.
‘Chef-grade’ algae
Algae Cooking Club’s “chef-grade” cooking oil made a big splash when it hit the US market in early February. Few consumer products are lucky enough to generate so much buzz – with feature-length articles and coverage from the Wall Street Journal to Bon Appetit and Forbes – and a cooking oil made from a fermented aquatic source seems even more unlikely to draw this much attention.
The Algae Cooking Club strongly positions its product as a unique culinary oil that is “better in the kitchen, for health, and for the planet” – emphasising the oil’s high smoke point, high amount of “good fats”, and low climate impact. But its exclusivity ($20 or $25 for a 473 ml bottle) and celebrity appeal have likely also helped to hype the brand. The endorsement of chef Daniel Humm from Eleven Madison Park, a New York restaurant with three Michelin stars, did not fail to impress a receptive audience looking for the next new oil.
The rise and fall and rise again of culinary algae oil
However, it is not the first algae oil to hit the shelves in the US. Biotechnology company Solazyme was founded with the mission of creating a microalgae-based renewable energy source, launched the Thrive Oil brand in 2015. (Solazyme later rebranded to TerraVia, which was subsequently acquired by Corbion in 2017.) The world’s first culinary algae oil was lauded shortly after it was launched as one of the most innovative products of the year by Mintel.
Leaning into its health and wellness credentials (“the highest levels of monounsaturated fat and 75% less saturated fat than olive oil”) and natural origins (“the earth's original source of oil”), the product gained a relatively small but dedicated following – until it was discontinued in 2020 by Corbion due to a lack of commercial success.
The world might not have been ready for the innovation; despite its culinary cult status, less than a quarter (23%) of respondents in a 2019 Mintel survey said they would “likely or definitely” buy the product, significantly underperforming its subcategory.
However, consumer tastes can shift over time. Another Mintel survey regarding the competing Algae Cooking Club product in May 2024 found a more than 50% higher proportion of consumers willing to buy the product, with 37% saying they would likely or definitely buy the product. Perhaps encouraged by the new brand’s initial success, the original founders of the brand reacquired the business, and Thrive oil was relaunched and hit the shelves again in mid-2024 – giving US consumers a choice between two brands of algae cooking oil for the first time.
Nutrient profile and functional properties of algae oil
Algae oil is produced by fermenting microalgae, such as crypthecodinium, nannochloropsis, schizochytrium, prototheca, and ulkenia. The resulting product is rich in omega-3 fatty acids, particularly docosahexaenoic acid (DHA) and eicosapentaenoic acid (EPA). These omega-3 fatty acids are essential nutrients known for their role in cardiovascular health, brain function, and reducing inflammation. With consumers’ rising concerns about high omega-6 content in certain seed oils, algae oil’s balanced fatty acid profile, with a favourable ratio of omega-3 to omega-6 fatty acids is another nutritional selling point.
The functional properties of algae oil make it versatile and useful for various culinary applications. It has a higher smoke point than olive oil, a more neutral taste than most cooking oils, it is less prone to oxidation than avocado oil, and its thin consistency enhances its emulsifying properties.
A study published in the Journal of Functional Foods found that the bioavailability of DHA from algae oil is superior to that from traditional fish oil, making it a viable alternative and a great option for vegans or vegetarians with fewer available food sources of DHA. Because it can be cultivated outside the ocean, unlike fish oils, algae oil is also free from the risk of oceanic pollutants such as mercury and heavy metals, making it a safer option for pregnant women, children, and individuals with compromised health.
Algal DHA: Coming to a supermarket near you?
Due to its clean, vegan, and sustainable credentials, algal DHA has also received more attention in recent years as an alternative to krill and fish oil-derived DHA. As Vitafoods Insights reported in late 2022, as the demand for new omega-3 sources continues to rise, there are increasing opportunities for indoor microalgae production.
Producers seem to have taken up the challenge. Norwegian krill oil supplier Aker BioMarine announced in late 2023 that it is expanding its algae oil production to meet growing demand, and Mintel’s Global New Products Database (GNPD) features a range of new products containing algae-derived DHA. These include supplements like German brand Nu3’s Vegan Omega-3 Oil, which uses the claim “saves fish and krill populations”.
But the range of food and beverage products that incorporate the ingredient is also growing. In July this year, UK company Kendal Nutricare’s released a range of baby formulas marketed as “the first ready-to-feed baby milk made with whole milk and free from palm oil and fish oil” with a “plant-based DHA” claim. And even non-vegan or vegetarian products have been enriched with algae oil; from June this year, consumers in Singapore can buy a carton of Clover Organic Whole Milk with 50 mg of DHA and omega-3 made with algae oil as the primary source.
Other algae oil-enriched products launched in recent months include Tesco’s premium Belgian Chocolate & Orange Pots dessert in the UK, Xiao Huang Xiang’s Chocolate Flavoured High Calcium Daily Cereal in China, and Ripple Kids’ Original Plant-Based Milk sold in the US.
