Algae and seaweed, renowned for their unique flavors and potent nutritional benefits in eastern traditions, are making waves in the beverage industry across western cultures. As consumers increasingly seek natural, more health-forward beverage options, it is vital for businesses to understand and leverage the potential of algae and seaweed in their product formulations and supply chains.
This comprehensive B2B Buyers’ Guide explores five specific types of algae and seaweed ingredients and their roles in the beverage sector. Designed for product development professionals and procurement teams, this guide not only provides insights into nutritional highlights, potential applications, and current market trends, but also offers sourcing tips for companies looking to procure transparent and trustworthy algae and seaweed for their beverages. Our goal is for this buyers’ guide to help businesses confidently integrate algae and seaweed into their beverage lineup.
IMPORTANT: For clarity purposes, there are two general categories of algae - macro-algae and micro-algae. Macro-algae is commonly known as seaweed and predominantly grows in oceans and other marine environments. Micro-algaes are typically unicellular organisms that grow in both freshwater and the ocean. We use the words algae and seaweed interchangeably throughout the guide.
Best for All-Around Nutrition
Spirulina stands as a leading choice for adding an all-around nutritional boost as well as a visual appeal to beverages. It contains 60-70% protein by dry weight and contains all essential amino acids making it a complete protein source1. Moreover, spirulina is rich in various vitamins and minerals, enhancing its appeal as a multifaceted supplement in beverages. While it has been used for centuries across many cultures, its recent surge in popularity is attributed to a growing awareness of its nutrient-dense profile and versatile application in both food and beverages. Spirulina can be used in both dry and fresh form allowing businesses to cater to a wide consumer base ranging from health enthusiasts to the everyday consumer seeking a simple nutrient boost.
Spirulina can be integrated into a wide array of beverages, adding a rich source of protein, key vitamins and minerals, and a vibrant hue that can elevate a product's nutritional value and appeal. Here are some of the top applications:
Spirulina can serve as a replacement for many common beverage ingredients businesses use on a daily basis to boost the nutritional profile and health benefits of their products.
Spirulina’s nutritional and visual appeal offer businesses an opportunity to diversify their product lines with a superfood infusion, including:
Best for Detoxification
Chlorella has carved out its niche in the beverage sector as a prime ingredient for detox beverages. The high chlorophyll content in chlorella not only facilitates detoxification but also brings a vibrant green color to drinks, enhancing their visual appeal. Apart from detox beverages, it finds applications in smoothies and wellness drinks.
Chlorella can serve as a prime addition to beverages geared towards health and wellness, introducing detoxifying properties. Here are some of the top applications:
Chlorella can stand as a potent substitute for traditional greens and detox agents, enhancing the nutritional value and detoxification benefits of beverages.
Chlorella’s rich nutrient profile and detoxifying properties make it a popular choice for a wide range of beverage businesses:
Best Seaweed for Adding Texture
Irish Sea moss is a favorable choice for enhancing the texture and consistency of beverages, lending them a smooth and creamy quality. It has surged in popularity due to its unique gelling qualities, dense nutritional composition, and recent endorsements from celebrities and influencers like Kim Kardashian. It naturally thickens liquids without significantly altering the flavor, making it an excellent addition to a range of beverages, from smoothies to non-dairy drinks. It’s a great ingredient to incorporate into texture-rich beverage formulations.
For clarity - sea moss is a generic term used to describe different species of red algae, most notably Irish moss—formally known as Chondrus crispus—most commonly harvested along the Atlantic coasts in the Americas and Europe. Brands often use the term, “sea moss” to refer to other types of red algae sourced from the Caribbean called Gracilaria. It is important for businesses to understand this point as these species contain different properties and nutritional profiles. We will use the term, “sea moss,” but we are referring to the species Chondrus crispus.
Sea moss can play a role in improving the texture and consistency of various beverages, providing a smooth and rich mouthfeel that can enhance the consumer experience. Here are some of its top applications:
Sea moss can substitute several ingredients in beverages, naturally enhancing the texture and nutrition.
Best for Antioxidant Activity
Astaxanthin is an ingredient beverage companies are starting to pay attention to due to its potent antioxidant properties for functional beverages. Astaxanthin suppliers have recently come to market with odorless, tasteless powders that can be used for a variety of beverage applications. It not only contains proven health benefits, but can also add a visual appeal by imparting a vibrant red hue. This carotenoid is derived from algae and finds its place in wellness shots, juices, smoothies, and sports and energy drinks. It is well-designed to cater to consumers prioritizing wellness and functionality in their beverage choices.
Astaxanthin can serve as a key differentiator in beverage products due to its potent antioxidant properties and rich color profile. Here are some of the top applications:
Astaxanthin stands as a potent alternative to various common ingredients, enhancing the health profile of your beverage offerings.
Astaxanthin offers businesses in the world of beverages a way to create truly differentiated products.
Each type of algae and seaweed carries its own unique benefits relative to other species. Below are the nutritional highlights each species is most well-known for.
DISCLAIMER: The nutritional content of algae and seaweed can vary widely based on growing conditions, harvesting time, processing methods, and geographic location. When purchasing, businesses should have the product tested and verified by a third-party.
Below are top trends in the beverage market businesses should pay attention to when thinking about incorporating algae and seaweed into their products and overall strategy. Many of these trends are being driven by consumer preferences, which have major implications for the B2B world of functional beverages.
Although functional beverages and superfoods have become common in certain cities and geographies with more health-conscious populations, this trend is now starting to spread into larger consumer segments. Due to the explosion of independent media and health specialists educating the public on overall health and wellness, people are increasingly looking at food and drinks as medicine. Algae and seaweed are already branded as superfoods due to their rich nutrient profiles and proven functional benefits that include supporting immune function, promoting gut health, and potentially aiding in weight management. This makes them compelling ingredients for businesses to incorporate into their beverages to bring them into the functional category.
With an increased focus on mental wellbeing and cognitive function, there is a growing trend towards beverages that offer nootropic benefits, enhancing mental clarity and focus. Certain algae and seaweeds, rich in omega-3 fatty acids and other nutrients, can potentially offer cognitive health benefits. B2B operators have a promising opportunity to craft beverages targeting this space, promoting a blend of taste and cognition-enhancing properties derived from algae and seaweed.
As consumers become more conscious about the origins of their products, there's a growing demand for supply chain transparency for the products they consume. They want to know what is in the products they buy, where they come from, and who is involved in making the products. Algae and seaweed play well into this trend as the supply chains are in the formation stage allowing for businesses to demand transparency when purchasing.
With the push among consumers for natural and clean-label ingredients, algae is an attractive ingredient for natural beverage colorants. Spirulina has gained attention as a natural blue-green colorant to replace synthetic food and beverage dyes after the FDA's approval of its use as a food color in candy and gum. The is the most common way algae is being used to give beverages a natural blue or green color, but other forms of algae can provide red and orange color profiles.
Consumers are increasingly looking for products and companies that are dedicated to improving human and planetary health. Algae and seaweed are perfect candidates for this trend due to the nutritional benefits and low environmental impact of production. While consumers are getting serious about this point, they are not willing to compromise on the overall quality or taste of the product. Businesses will only see success using seaweed and algae as an ingredient if the product tastes extremely good and stands out from the competition.
Consumers are shifting towards more plant-based diets fueled by concerns surrounding the environment and ethical considerations. Algae and seaweeds seamlessly fit into this category as they are completely plant-based, rich in nutrients, and offer complete protein profiles. This trend provides a significant opportunity for B2B operators to integrate these ingredients into beverages, showcasing them as premium, health-enhancing ingredients that align with consumers' values and dietary choices.
Consumer awareness regarding the importance of gut health is on the rise, steering a trend towards beverages enriched with prebiotics and other gut health-enhancing ingredients. Algae and seaweed contain natutal fibers and compounds that can foster a healthy gut microbiome. This trend opens avenues for B2B entities to develop beverages with a focus on promoting gut health, leveraging the natural properties of algae and seaweed to support digestive health.
With endless options on the market for nearly everything, consumers are looking to buy products from companies that match their personal values. This trend of, “values-based consumerism” means people are choosing to buy things that reflect what they believe in and care about. A deep desire across every consumer is supporting local economies. Algae and seaweed are a perfect fit for this trend as businesses that purchase these ingredients have a direct effect on farmers, their families, and local communities where it is grown. Telling this story will be an important point of differentiation for businesses going forward.
With a growing consumer interest in non-alcoholic and low-alcohol beverages, there is an increasing scope for the incorporation of algae and seaweed to add depth of flavor and nutrient richness to such beverages. B2B companies can leverage this trend to create innovative non-alcoholic cocktails, mocktails, and low-alcohol beverages infused with the unique flavors and health benefits of algae and seaweed.
The premium tea and coffee market is seeing an inclination towards blends enriched with additional health-promoting ingredients. Incorporating algae and seaweed in tea and coffee blends can offer a distinct flavor profile along with enhanced nutritional benefits, presenting a novel avenue for B2B businesses to explore and cater to the premium beverage market.
There are two general categories of algae - macro-algae and micro-algae. Macro-algae is commonly known as seaweed and predominantly grows in the ocean and marine environments. Micro-algae is mainly a unicellular organism and grows in both freshwater and the ocean.
Both seaweed and micro-algae can be grown wild, through outdoor cultivation, or by controlled indoor agricultural methods by using bioreactors.
There are over 72,000 different species of algae, but less than 20 are commonly used across different industries.
They come in a variety of formats. Fresh, frozen, dried, powdered, and flakes. There are also a variety of extracts in both liquid and powdered form that are available. Your target application and nutritional profile will be the driving force on what format and species to purchase.
Certain micro-algae like spirulina have no flavor when used in fresh or frozen form. Ingredient providers are also coming to market with a variety of tasteless, odorless, algae-based powders that can be easily incorporated into beverages. Some algae can introduce a unique "oceanic" or umami aftertaste. This can be balanced by using sweeteners, acids, or other flavor agents. Each type of algae carries its own flavor profile so start with subtle incorporations, blending the flavors of seaweed with familiar tastes. Over time, as consumers become accustomed, you can gradually increase the proportion, ensuring both flavor and nutrition are balanced.
Absolutely! Spirulina, for instance, can provide a vivid blue-green color, while astaxanthin and other certain red seaweeds can offer a reddish hue. They offer a natural alternative to synthetic dyes and can also provide additional nutritional benefits.
Dried forms generally have a longer shelf life, often up to two years if stored in cool, dark conditions. Fresh or rehydrated forms might have a shelf life of a week to a month, depending on the specific ingredient and storage conditions.
It depends. For seaweed that is grown in the ocean, there are specific growing and harvesting seasons that vary by type of seaweed and region of the world. Availability can vary with the seasons. However, many suppliers might have storage facilities that allow them to offer products year-round. There are many types of algae that are grown in indoor controlled settings and are harvested year-round.
Inquire about their harvesting or cultivation cycles, production capacities, backup sourcing strategies, and how they handle demand surges. You should also require heavy metal testing and a certificate of analysis to be completed by a 3rd party. This will give you an idea of their reliability during market fluctuations.
Most established suppliers will be able to provide small samples for testing purposes. It’s crucial to conduct preliminary tests with these samples to ensure the ingredient aligns with the product's development goals before placing large orders.
There is a lack of standards and guidelines when it comes to procuring and using algae as a beverage ingredient. As a result of this and the variability in quality that exists, we recommend either: 1) Work directly with a seaweed/algae farmer or processor with deep knowledge of their products; or 2) Work with a strategic sourcing specialist with experience in algae. They can help save you a tremendous amount of time, ensure product quality, and help you navigate the waters in this emerging industry.
Aside from popular choices like spirulina and chlorella, other algae such as dulse and Aphanizomenon flos-aquae (AFA) can be used in beverages for their unique flavors and nutrient profiles. Additionally, sea lettuce, also known as Ulva, can add a marine flavor and a boost of vitamins and minerals to green smoothies.
Algae-derived compounds are also utilized in beverages, adding both texture and potential health benefits. Fucoidan, found in brown algae, is noted for supporting the immune system, while carrageenan, derived from red algae, serves as a thickener and stabilizer in various drinks. Lastly, alginate, also from brown algae, helps maintain the consistency in fruit juices. It is important to understand that some extracts like agar, carrageenan, and alginates may be made using a synthetic process and may not contain the health benefits associated with other forms of algae and seaweed.
There are no set industry standards or guidelines that have been established when sourcing algae and seaweed. As each species of algae and seaweed carry different properties and tastes, it is important for businesses to have a good idea of the end application and properties they are seeking. This will determine the best type of algae and format for any specific use case.
It is critical for businesses to take time to understand the supply chain when making a purchasing decision. Algae and seaweed have high variability when it comes to nutritional content and potential contaminants. It is important that when sourcing algae and seaweed that you can confirm nutritional content and that the supplier has the product tested for certain metals and contaminants by a verifiable 3rd party. It is also important to understand the cultivation method as it will help you determine what factors to take into account when purchasing. Algae and seaweed can be cultivated offshore or on-land, as well as through indoor controlled environments.
There are endless supplement options on the market today. A quick search on Google or Amazon will have you feeling overwhelmed. Many commercially-available supplement options contain low quality ingredients, unclear formulations, and no transparency around their supply chains. The supplement craze has turned more into a game of marketing vs being serious about improving human health and performance. If you dive deeper into the industry, the most successful supplements companies take the time upfront to research and source the highest quality ingredients and refine their formulations based on intended outcomes they are seeking. They also build trust with their customers on being more transparent around their ingredients, supply chain, and production process.
When issuing a purchase order or a longer-term supply contract, make sure to outline specific conditions and requirements around nutrition and product safety. This will ensure the supplier is meeting your quality standards before accepting the product.
Due to market fluctuations and seasonality of growing seasons for many types of algae and seaweeds, it is much better to set up longer-term supply contracts well ahead of time with suppliers. It will allow you to establish a consistent price and build a more robust supply chain. It will also allow the supplier to plan ahead and invest in their own growth so they can bring costs down.
If your business is just starting to purchase algae and seaweed, it is recommended to working with 3-4 suppliers to find the best fit. There are farmers and processors that have different goals on what customers they are set up to serve and growth they want to achieve. You want to find the options that are the best fit for your broader strategic goals. Lastly, by diversifying the supplier base upfront, it allows businesses to create resiliency in their supply chains.
When purchasing algae and seaweed, it is recommended that buyers use a 3rd party escrow service, especially when sourcing internationally. This is often something many folks overlook, but due to the variability of quality, using a third party escrow service allows the buyer to protect money and ensure the product meets their standards.
If you are looking for more information on sourcing or procuring algae and seaweed, feel free to contact Cultured Supply to talk with a procurement specialist to gain access to our network of dependable suppliers.
DISCLAIMER: Cultured Supply is focused on providing independent, unbiased market data around algae and seaweed that businesses can trust. Our goal is to help create more structure, standards, and transparency across the algae market so we can expand its use across many industries and applications, while maintaining a healthy balance with nature. Many of the health benefits associated with using algae have been scientifically-proven, while other nutritional and health claims may lack strong scientific data. While Cultured Supply has deep knowledge of algae and seaweed supply chains, we are not certified health professionals. We do our best to cite reputable sources throughout the buyers’ guide to back up any claims related to specific health-related benefits. These sources can be found below. We encourage all businesses to do their own independent research and analysis when it comes to making specific health and nutritional claims when using algae in their products.