Swedish Algae Factory secures USD 3.3M to expand Algica production for sustainable personal care market

SWEDEN – Swedish Algae Factory has secured €3 million (US$3.3 million) in funding to expand the production of Algica, a versatile skincare ingredient derived from algae’s silica shells.

Used in over 60 products globally, Algica offers moisturizing, cleansing, anti-pollution, and SPF-boosting benefits. 

The company plans to commence commercial-scale production in 2025, supported by grants and loans from investors like Chalmers Ventures. 

Algica, made from diatom algae harvested from the Northern Sea and processed at the company’s facility in Kungshamn, Sweden, is currently featured in over 60 skincare products worldwide. 

The ingredient offers many benefits, including moisturization, cleansing, anti-pollution effects, and SPF enhancement. 

According to the company, it also acts as a sensory modifier, improving the texture of products, and efficiently absorbs oils, sweat, bacteria, and impurities three times faster than conventional silica.

The ingredient’s natural origin also supports marine safety, with the company stressing the importance of protecting ocean ecosystems from synthetic and harmful substances.

Sofie Allert, CEO and co-founder of Swedish Algae Factory, stated, “The company strives toward a production that is as environmentally friendly as possible, using recycled nutrients and carbon dioxide for algae growth.”

“Our organic by-product is used to produce biogas and eco-fertilizers, but in the future, it may be used in animal feeds, cosmetics, and food products.”

According to a report by MarketsandMarkets, the algae products market was valued at $5.3 billion in 2023 and is projected to exceed $7.3 billion by 2028, growing at a compound annual growth rate (CAGR) of 6.4% during the forecast period. 

This growth is driven by increasing consumer demand for sustainable and nutrient-rich products across industries such as food, pharmaceuticals, cosmetics, and biofuels.

Meanwhile, Givaudan Active Beauty introduced Evernityl, an algae-derived active ingredient.

This marine-sourced active ingredient is formulated to combat skin aging and enhance elasticity, tone, and overall skin health.

Evernityl is derived from Laminaria hyperborea, a macroalgae found in the rocky coastal areas of the North Atlantic.

This ingredient is developed through an innovative upcycling process, transforming byproducts from biostimulant production into a high-value cosmetic ingredient.

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