A scenario analysis of the microalgae value chain in Europe confirms the high growth potential of this sector, in an area of the ‘blue bioeconomy’ where the Old Continent is still far from its goals.
Consultation and interaction among stakeholders-in a study (Schrammel et al., 2023) conducted as part of the #ProFutureEU research project-provides useful insights into where to direct resources, in a network logic (1,2).
1) Europe, consumption and production of algae and microalgae.
Consumption of algae and microalgae in the European Union is marginal, essentially limited to the form of food supplements (e.g., Spirulina, Chlorella), some traditional Asian dishes in ethnic restaurants, and exceptional local dishes (e.g., ‘Mauru’ in Sardinia). The complex authorization procedure established by Novel Food Regulation (EU) No 2015/2285 is a serious obstacle to the use of a wider variety of species in the EU market. (2) Where other countries – i.e. U.S., China, Australia – are far ahead in the industrial and commercial development of algae and microalgae products. (3)
Total microalgae production in the EU is now estimated at 324 tons on a dry weight basis, with food/nutraceutical, feed and cosmetic fates. Production facilities can be located on the European Commission’s Bioeconomy country dashboard, which indicates:
– Treated algae and/or microalgae and cyanobacteria (i.e. Spirulina),
– production system used (photobioreactor, open ponds),
– Cultivated species,
– uses,
– turnover,
– employment (4.5).
2) Scenario construction
‘Scenario building’ is the method used to investigate the complexity of interactions of social and environmental systems to predict the possible effects of policies, measures and actions in the short and medium term. This is done by gathering the opinions of heterogeneous groups of individuals and stakeholders on specific topics, stimulating creative thinking about new opportunities and possible risks that might arise.
The microalgae value chain is developed at the stages of primary production (cultivation, harvesting), processing (drying, extraction), use of ingredients in other processing, and distribution of finished products. Packaging productions, waste and wastewater management, and their reuse within the supply chain also contribute. The researchers engaged actors in this supply chain and other stakeholders in two 1.5-day workshops.
2.1) Method
The researchers articulated the ‘multi-stakeholders scenario workshops’ in five stages:
1) Convening a working group for the microalgae value chain. Two dozen members including producers, processors, distributors, scientific researchers, consumers and policy makers spoke from several EU countries, along with Switzerland. Representatives of some environmental associations rejected the invitation, perhaps because of the lack of consideration for this area,
2) Identification of the state of the art and factors that may affect the industry,
3) Hypothesis of possible future development,
4) Evaluation of measures that could and/or should be taken,
5) Development of recommendations for the transformation of the microalgae system.
3) Scenarios identified. Values and opportunities of microalgae in foods
The interaction of the participants brought into focus four main values associated with the use of microalgae in food. Microalgae are in fact perceived as:
– Parts of a healthy diet,
– Meat substitutes and/or other sources of protein,
– safe, ‘whole grain’ and affordable foods for a daily diet,
– Foods usable by the general public.
ESG criteria to be applied to the microalgae value chain-as to all supply chains of other alternative sources of protein and other nutrients (6)-should therefore be declined in the following terms:
– Environmental. Low environmental impact by using only sustainable resources (substrates, and energy) and a ‘zero food loss’ policy. Integral reuse of biomass, for a true circular economy,
– Social, Governance. Economies of scale and profits belong in the geopolitical context of reference, but excessive speculation on food for the general public can undermine the very idea of sustainability.
4) Challenges to be faced
Processes must address the energy challenge with technologies to reduce consumption, in addition to the use of renewable energy sources. Production side streams deserve to be used to extract nutrients, micronutrients and bioactive compounds. Without neglecting the option, the writer adds, of converting the final waste into biogas.
Foods with microalgae still struggle to reach the mainstream, due to the fragmentation of the production chain, lack of investment on communication, and limited availability of products on the shelf. Consumers who even claim to be interested in buying and experiencing the ‘blue bioeconomy’ on their plates do not even get a chance.
Policy should encourage this promising sector both by reducing barriers to entry-through partial reform of Novel Food (EU) No 2015/2283-and by funding new research projects with high TRLs. Indeed, we need to stimulate technological evolution and process scaling up, as well as effectively promote the microalgae sector, which also plays a crucial role in combating climate change.
5) Stakeholders’ views
The opinions gathered in this study confirm needs that have already emerged in other research activities conducted as part of the ProFuture project. Next, the views of different stakeholders.
5.1) Producers, processors and researchers
Key players in the production chain converge on the need to cooperate to find useful solutions to optimize processes, reduce costs, and stimulate market demand. Research and development are considered to be the crucial activities to focus on.
The approach toward the circular economy must consider every possible fate of products, co-products and waste. Therefore, the valorization of microalgae and their metabolites-such as omega-3 fatty acids, proteins, peptides, and other functional molecules with high added value-should involve multiple supply chains in the food and feed, cosmetics, and pharmaceutical sectors.
The decision to adopt short supply chains and reduce the number of middlemen is seen as a useful strategy to sustain production and reduce final consumer prices, under the auspices of a fair market.
5.2) Policy makers and big industry
The ‘ defining stakeholders ‘ are those who have the most political and economic power to determine and/or influence the evolution of the industry in the EU:
– The European Commission, as part of its strategy on the ‘blue bioeconomy‘ (2018), adopted the communication ‘Towards a strong and sustainable algae sector in the EU‘ (2022). (8) Among the many initiatives-in addition to the various research projects co-funded in the Horizon 2020 and Horizon Europe programs-are the European Atlas of the Seas, Blue Invest funds, and the EU4Algae platform, (9)
– large players in industry and retail play an essential role in the development of the microalgae industry, as it is through them that these valuable ingredients can be incorporated into various food categories and thus made accessible to the generality of consumers. (10) An opportunity matched by a threat, speculation on microalgae-enriched products. As noted in previous study (Boukid et al., 2021) carried out as part of ProFuture on AltCheese and AltYoghurt, when prices of substitute foods exceed-or are otherwise not competitive with-those of traditional foods, a ‘boomerang effect’ can be realized. (11)
5.3) Consumers and end consumers
The consumer perspective was not highlighted in this study due to the failure of representatives of the respective trade associations to speak. A circumstance that confirms the need to promote public information campaigns on the ‘blue bioeconomy’ and its concrete applications in everyday living and consumption choices.
Consumers are the independent lever on which market developments depend, to the extent that they are enabled to choose and thus stimulate sales of certain products. Their focus-as revealed in the final conference of the #ProFuture project (2)-is markedly on foods with nutritional and health properties.
Consumer attention is also directed both toward the sustainability of products and their accessibility at ‘honest’ and competitive prices. And while it is true that the production costs of microalgae in Europe are still high, it is also true that they are added in minimal shares (1.5-3%, on average) in food formulas. And that raw material costs are a minor item in the total production costs of processed food.
6) Interim Conclusions
Microalgae are a renewable source of dietary protein and fiber, omega-3 fatty acids (EPA and DHA, of which they are the only alternative source to fish), micronutrients (including vitamin B12, which is especially essential for vegetarians and vegans), and bioactive compounds with beneficial functions, antioxidants first and foremost.
Europe is still lagging behind in this strategic sector for the ‘blue bioeconomy,’ which, it is pointed out, could make an important contribution to several sustainable development goals in UN Agenda 2030. Also taking into account the extraordinary ability of microalgae to sequester CO2 in the atmosphere.
Public and private investments are therefore indispensable, on both fronts of research and development-strictly under the banner of ‘open innovation,’ in the case of public funding-and promotion. Perhaps even with the support of tax breaks.
Dario Dongo and Andrea Adelmo Della Penna
Notes
(1) Schrammel et al. (2023). Actor groups influencing and shaping sustainable microalgae value chains in Europe. Front. Aquac. 2:1186325, https://doi.org/10.3389/faquc.2023.1186325
(2) Dario Dongo. The role of microalgae in food and feed, the state of the art. #ProFutureEU. GIFT (Great Italian Food Trade). 15.9.23
(3) Dario Dongo, Andrea Adelmo Della Penna. Algae and microalgae for food use in Europe, ABC. GIFT (Great Italian Food Trade). 14.11.22
(4) Araujo et al. (2021). Current Status of the Algae Production Industry in Europe: An Emerging Sector of the Blue Bioeconomy. Front. Mar. Sci. 7:626389 https://doi.org/10.3389/fmars.2020.626389
(5) The bioeconomy in different countries. Explore the Bioeconomy country dashboard https://tinyurl.com/bdfh2ema
(6) Dario Dongo, Isis Consuelo Sanlucar Chirinos. Alternative proteins are not enough to create sustainable food systems. IPES Food Report. GIFT (Great Italian Food Trade). 16.5.22
(7) Dario Dongo, Giulia Pietrollini. Algae and microalgae. Carbon farming and CO2 upcycling. GIFT (Great Italian Food Trade). 18.1.23
(8) Marta Strinati. European Commission proposes 23 actions for the algae industry. GIFT (Great Italian Food Trade). 23.11.22
(9) Dario Dongo, Andrea Adelmo Della Penna. EU4Algae, the EU platform to promote algae and microalgae. GIFT (Great Italian Food Trade). 19.2.22
(10) Fatma Boukid, Massimo Castellari. Food and Beverages Containing Algae and Derived Ingredients Launched in the Market from 2015 to 2019: A Front-of-Pack Labeling Perspective with a Special Focus on Spain. Foods 2021, 10(1), 173. https://doi.org/10.3390/foods10010173
(11) Dario Dongo, Andrea Adelmo Della Penna. Alt Yogurt and Alt Cheese, market and criticality. ProFuture research. GIFT (Great Italian Food Trade 28.12.21
Dario Dongo, lawyer and journalist, PhD in international food law, founder of WIISE (FARE - GIFT - Food Times) and Égalité.
Graduated in Food Technologies and Biotechnologies, qualified food technologist, he follows the research and development area. With particular regard to European research projects (in Horizon 2020, PRIMA) where the FARE division of WIISE Srl, a benefit company, participates.
