- Frutarom, a global company operating in the flavors and natural fine ingredients markets, will invest approximately $2.6 million in exchange for 50% of biotech startup Algalo.
- Algalo’s method will complement Frutarom’s existing activity in the field of algae cultivation.
- The investment spotlights the double-digit growth of the algae-based ingredient market.
Algalo’s technology will expand Frutarom’s internal R&D capabilities for producing active ingredients from algae. The technology will enable Frutarom to expand its product portfolio in the growing field of natural specialty ingredients. The active ingredients are used in the food, dietary, clinical nutrition supplements, and cosmetics industries.
Frutarom plans to build a new facility in order to continue advances in the development of the microalgae. Microalgae are considered to be among the hottest functional food ingredients, according to the report Functional Foods: Key Trends & Developments in Ingredients.
"The size of the algae-based ingredient market is estimated to be hundreds of millions of dollars and has enjoyed double-digit growth over recent years," says Ori Yehudai, president and CEO, Frutarom Group.
Frutarom’s investment is the latest component of its rapid growth strategy. In 2015, the company made more than 10 acquisitions.