Swedish Algae Factory scales up Algica production for multifunctional personal care

Swedish Algae Factory has raised €3 million (US$3.3 million) to accelerate its market expansion of Algica, a natural product made from algae’s high-tech silica shell. The multifunctional skin care ingredient is used globally in over 60 products.

Commercial-scale production capabilities are expected to kick off in 2025. New and old investors, including Chalmers Ventures, raised the funded amount from grants and loans. 

“Swedish Algae Factory has [been] scaling their production while generating revenue with existing clients, something that takes deep tech companies usually a lot longer,” says Jonas Bergman, investment director at Chalmers Ventures. 

“As green chemicals are something that we at Chalmers Ventures find especially interesting, we can’t wait to see what sort of solutions diatom shells can be used to replace harmful products,” he continues.

Oceanic skin care

Swedish Algae Factory says larger partnerships with the beauty and personal care industry are taking place this year, but does not specify the companies it will partner with.

The product consists of one ingredient with multiple benefits.The production technology has enabled Swedish Algae Factory to extract and cultivate the algae while preserving its properties and to use it in various personal care products. The natural product is called Diatoms and is collected from the Northern Sea before being taken to the plant in Kungshamn, on the Swedish west coast.

The company describes the product as one ingredient with multiple benefits. It functions to moisturize and cleanse, and it has anti-polluting and SPF-boosting properties. Its sensory modifier makes the product feel smooth.

Meanwhile, it can “carry other active substances” and efficiently absorb nutrients and vitamins. It also absorbs bacteria, sweat, oil, and impurities. When compared to other synthetic silica ingredients and diatomaceous earth, its absorption of oil and sweat is three times faster, according to the company. 

An external study found the product to be perceived to absorb into the skin faster than hyaluronic acid (HA), while its moisturizing properties are equivalent to HA.

“Algica also has several health and environmental benefits compared to competing solutions — microalgae group diatoms are responsible for up to one-fifth of the planet’s oxygen production, making them the ‘lungs of the ocean.’ The shell’s natural capabilities have made it the perfect solution for the personal care industry,” says the company.

Safe for the sea

The product is derived from the sea and is safe for sea life. “It is important to protect our oceans from harmful and unnatural chemical substances that endanger marine life,” notes the Swedish Algae Factory.

Personal Care Insights recently reported on harmful ingredients commonly used in sun-protecting creams, which have proven harmful to consumers, aquatic life, and corals.The company stresses the importance of protecting our oceans from harmful chemical substances.

Sofie Allert, CEO and co-founder of Swedish Algae Factory says that 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.”

“Now, with the scaled production and increased interest for Algica in existing and emerging markets, we can scale the impact of algae shells superpower. We are inviting new investors and industry partners to join our ride to make a big difference in what technologies and ingredients we use in our everyday lives,” Allert concludes.

Givaudan recently launched an algae-based product, also from the North Atlantic Sea, with anti-aging ingredients that improve the skin’s elasticity, tone, and overall appearance.