Emerging Algae-Based Cosmetics Market Offers New Revenue Stream for This Company

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The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Algae has received a ton of media attention lately because of its potent nutritional profile and a natural ability to absorb carbon emissions and other harmful gases from the atmosphere. It’s poised to become a powerful ally both in the fight against climate change and the push for safer, healthier consumer products. 

Pond Technologies Inc. PNDHF, a leader in algae-based technology, is helping grow this young market with its innovative algae-growing platforms that companies across industries can use to tap into the plant’s potential to both combat carbon emissions and be manufactured into a range of profitable products. 

The latest in that line of potential profit-generating products: cosmetics. Although still relatively new, the potential of algae as a skincare product has generated a compound annual growth rate (CAGR) of 7% that is projected to push the algae cosmetics market to $15 billion by 2024.

Celebrities and Major Cosmetics Brands Drive New Algae Skincare Trends

From Reese Witherspoon’s favorite eye cream to Meghan Markle’s favorite skincare line to Alexis Ren’s favorite face mask, algae is popping up in celebrity skincare routines all over the globe. 

When you look at the growing list of research-backed benefits, algae’s popularity is no surprise. A 2010 study found that algae may help manage hyperpigmentation by inhibiting melanin-producing enzymes. A 2009 study found that red algae could help prevent skin damage from ultraviolet (UV) radiation — though it’s not a substitute for sunscreen. A 2015 study confirmed that algae’s high water absorption properties help it to lock in moisture and hydrate skin. A 2015 review of existing research found that algae has the potential to help combat skin aging, cleanse skin with its antimicrobial properties and provide a wide range of potent antioxidants. 

While these impressive benefits are only recently gaining attention, the cosmetic industry has already relied on algae as a nonactive ingredient in its skincare products. Its ability to lock in moisture and provide a thick yet spreadable texture to creams and lotions — all without the harsh side effects that some synthetic ingredients come with — have made it an attractive choice for major cosmetics brands.

L’Oréal S.A. LRLCY already offers a line of red algae-based products, including a face mask and cleanser. Gwyneth Paltrow’s premium wellness and lifestyle brand Goop offers a line of serums, eye creams and other skincare products featuring algae. Chantecaille even offers an algae-based mascara to create a volumizing effect without the crispiness or flakiness of other mascara formulas.

Pond Tech’s Algae Could Help Consumers Nourish Skin and the Planet at the Same Time

Pond Tech’s unique algae-based technology is already helping companies capture carbon before it reaches the atmosphere and work toward net zero emissions. That same technology can be equipped to grow any number of algae strains, including skin nourishing red algae or spirulina. 

As the algae grow, they filter out harmful gasses to produce clean, oxygen-rich air. Once harvested, they can be turned into face masks, serums, creams and other natural cosmetic products that are as great for skin as the star ingredient is for the environment.

Its astaxanthin-rich algae, in particular, is one of the most promising strains for use in cosmetics. As the world’s most potent antioxidant, astaxanthin is one of the best ingredients to use in both beauty and wellness products. For cosmetics, it can provide the anti-aging, skin brightening and hydrating benefits that consumers often look for in their skincare. 

With far-reaching uses that go beyond cosmetics, the total astaxanthin market is projected to hit $965 million by 2026. This growth, along with the projected $15 billion growth in the algae cosmetics market, is largely driven by a growing demand for more natural products, especially in beauty and wellness spaces. While not all synthetics are bad for you, natural ingredients are widely seen as safer and more sustainable to produce, making them a popular choice for an increasingly eco-conscious and informed consumer base.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.