In celebration of Seaweed Day, we're kicking off June with a special deep dive/obsession issue.
What’s seaweed got to do with business trends, you ask?
Since these versatile marine plants can be turned into pretty much anything, startups that work on them are getting serious traction (and cash).
They're also a key ingredient to us moving toward a greener future.
So today I'll be your designated seaweed analyst, and dive into the vast ocean of opportunities that they present to business builders.
Slightly more complicated than this. Only slightly. Source: Kingdom Hearts Insider
In today's email…
Deep dive: seaweed, the billion-dollar treasure trove that keeps on giving
What we’re surfin’, from YouTube's dominance over Netflix to the moral of making money
Let's dive in!
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🤿 DEEP DIVE
Seaweed: the $18.4B undersea treasure for business builders
Back in 2020, the Trends team discovered a type of seaweed that was trending like crazy — Irish moss.
“This superfood trend has gathered steam alongside the COVID-19 pandemic and will likely remain popular moving forward, as an age-old remedy for many ailments.”
Boy, were we right on the money. Interest in Irish moss (aka “sea moss”) has remained high since then, with 448k global searches/mo., per Ahrefs.
Called it. Source: Google Trends, six-month rolling average
But there’s somuch more to seaweed, the versatile marine plant that has taken the business (and tech) world by storm in recent years.
The US Department of Energy is granting ~$19m to algae-related projects
The global commercial seaweed market reached $18.4B in 2024
So why the obsession? Let’s get into it.
First, the basics
Seaweed. Algae. Kelp. Sea moss… I don’t know about y’all, but I was thrown for a loop by these names.
So with some basic research and a little help from AI, I whipped up a highly simplified explainer of the relationship among these organisms:
I’m only including the common names here. In reality, algae is a broad term that contains thousands of organisms, including seaweed, our protagonist today.
Seaweed refers to the kinds of algae (roughly 12k of them) that live in the ocean, and are large enough to be seen with the naked eye, aka “macroscopic.”
So why do businesses find algae, or seaweed, so valuable?
Versatile: They can be used in a variety of industries, like food, biofuels, bioplastics, cosmetics, and even fashion.
Easy: They grow fast, and require minimal resources to cultivate compared to land plants
New: They’re not widely adopted in the US yet, so there’s a ton of untapped potential for innovation
…and that’s all the science talk for today! 😮💨
Now let’s look at some cool businesses that are making millions by working seaweed’s magic.
Four kinds of companies making waves with seaweed
1. Food
Seaweed is a popular ingredient in Asian food culture, but its potential application in food goes beyond crunchy snacks (like nori) and fibrous supplements (like Irish moss) — it’s actually a rising star in the alternative protein space.
Umaro Foods
I’ve never tried seaweed bacon, but I imagine it’ll be extra crispy. That’s what Umaro Foods is working on — they raised $3.8m in March to turn seaweed into imitation bacon that preserves the fatty flavor and texture.
They previously went on Shark Tank and won a $1m deal for 7% equity from Mark Cuban.
Poseidona
Poseidona is a Barcelona-based startup that turns invasive algae into protein. It raised €1.1m (~$1.2m) of pre-seed funding in March. Their solution promises to protect the ocean from harmful invasive seaweeds, and provide a sustainable source of alt protein for consumers.
2. Packaging
The packaging sector generates 36% of all single-use plastics (SUP) in the world, and almost all SUP products are made from fossil fuel, which emits tons of greenhouse gas.
Enter seaweed, a biodegradable material with the potential to replace plastic packaging. Quite a few startups are working on this:
Sway
California-based Sway raised a $5m seed round in February. Its proprietary technology, called “TPSea™️, is a resin made from seaweed. It can be used in packaging for food, home goods, and clothing. Companies like J.Crew are already testing it out.
Notpla
Sway’s competitor, Notpla, put its own spin on seaweed packaging and developed an eye-catching water bubble called “Ooho,” among other things. They raised $14.4m in funding, and received a $1.1m grant last October.
But what really caught my eye was their team bio. I mean… cute.
The seaweed love is strong with this one. Source: Notpla
Other startups in this space include Uluu and Kelpy (not to be confused with Kelpi, which raised $5.5m three days ago to do the same thing, basically).
3. Carbon sink
Global carbon emissions have increased steadily each decade since the 1960s and hit 36.8B metric tons in 2023.
Guess what – that’s a problem seaweed can help with, too.
Carbonwave
Carbonwave collects sargassum – a type of brown seaweed that washes up on beaches with a foul smell – and refine it into useful materials like fertilizers, cosmetic emulsifiers, and bioplastics.
Another company that tackles the problematic sargassum…but with robots.
Using AlgaRay and AlgaVator, two Transformers-sounding robots, Seaweed Generation sinks invasive sargassum into the deep ocean (along with the carbon dioxide it absorbs), and increases automation to lower the cost of growing seaweed.
4. Biofeed
Did you know cow burps are bad for the environment? 🐄
Turns out, ruminants (mammals including cows, sheep, and their relatives) account for 27% of annual methane emissions in the US. And 32% of global human-induced methane emissions also come from livestock.
Companies are mixing up the diet for these creatures so they don’t burp out so much methane, which accelerates global warming. Once again, seaweed to the rescue.
Sea Forest
This Tasmania-based startup developed a feed supplement that reduces livestock’s methane production by up to 90%, using a type of red seaweed called asparagopsis. (It also made Fast Company’s most innovative list this year.)
Alga Biosciences
This YC-backed startup has a similar mission to Sea Forest – helping reduce methane emissions from cow burps. Their solution promises a higher ROI for farmers as well as good for the environment.
More opportunities for you
Seaweeds are so damn cool, these companies are only a small slice of the vast business opportunities they present.
We can keep going, but we know you want in on the action. So here are some ideas you could look into:
Source: World Bank
🐶 Pet food: Forget gassy cows – your own pet could use some seaweed feed. Studies show that seaweed-derived food and supplements can improve the digestive or skin health of 88% of dogs. The seaweed-based pet food industry is worth $1B+, per World Bank.
🌈 Dye: You could extract color pigments from seaweed and turn it into a natural dye. Partner with eco-conscious fashion brands, like SeaDyes, an up-and-coming Scottish startup. Or, create your own seaweed dyed clothing line and market on social media with eye-catching content.
👭 Community: 40% of seaweed startups are led by women, a much higher rate than other categories. You can build a community for female founders in the seaweed sector (or the blue economy in general), and offer them resources, education, and networking opportunities.
Finally, don’t overlook the more traditional, low-tech ways to make money from seaweed, such as selling white-labeled supplements, smoothie mixes, curated seaweed snack or culinary kits, or even monetize info products (like a seaweed research database or blog) through selling reports, ads, or affiliate income.
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