Algalif plans expansion as it celebrates tenth anniversary

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Icelandic natural astaxanthin products supplier Algalif has announced expansion plans as it marks its tenth anniversary.

The company, which was founded in May 2012, provides ingredients and finished products from Haematococcus pluvialis microalgae, which research has shown to boost eye and brain health, as well as skin health. Its portfolio includes astaxanthin oleoresins, bulk capsules, finished formulations and spray dried algal biomass.

Room to grow

In order to meet growing demand, Algalif plans to increase production by expanding its current 5,000sqm facility by 7,000sqm.

Svavar Halldorsson, Head of Sales and Marketing, says: “We are now producing about 1,500 kilos of pure astaxanthin every year, with the world market being somewhere between 25-27,000kg, so we are considerable player in the market.

“We are going to triple our output, so instead of producing 1,500kg we are going to be producing 5,000kg, and at the same time the world market is growing rapidly.”

According to Algalif estimations, the market is growing by about 15-20% every year, which means the world market will double every five to six years.

Halldorsson explains: “We are not worried that we can deal with demand. We can see prices are going up a little and we see the future as very bright.

“Astaxanthin is getting more and more popular because it actually works and the health benefits are actually there and people who are using it quite often become loyal customers, not to us but to our customers as we are a b2b company.”

Expanding the workforce

As well as expanding its facility, Algalif also intends to increase its workforce from 50 to 80-85 people.

By tripling its output and only doubling its workforce, the company expects to have a competitive edge, according to Halldorsson.

He adds: “People are looking to us because in this time period we have become very very good at what we do. We focus on this one thing, which is growing sustainable, natural astaxanthin.”

The company estimates that the work will be finished by the end of 2023, by which time it will also be fully operational.

Based in Reykjanesbaer in the southwest of the country, Algalif last year reported a turnover of $12 million.