Can Seaweed Become a Scalable Industrial Input?

By ASCM CEO Abe Eshkenazi, CSCP, CPA, CAE

Unlocking value from marine environments isn’t new; it’s a centuries-old tradition of coastal resourcefulness. Ancient East Asian cultures harvested kelp as elite food, tax payment and even currency. In 1658, a Japanese innkeeper accidentally discovered agar by leaving seaweed jelly out in the freezing night air, revolutionizing food and medicine production. And 18th century Europeans burned algae into alkali-rich ash to supply early soap and glass makers. This legacy of ingenuity lives on today, as researchers tap seaweed for everything from cosmetics and livestock feed to cutting-edge bioplastics. 

Driven by ongoing resource scarcity and strict sustainability mandates, the global seaweed market is transitioning from a simple raw commodity — fresh kelp gathered for food or drying — into a sophisticated, versatile input for high-value manufacturing. Marine algae requires no freshwater or farmable land, and many innovations even turn troublesome coastal algae blooms into economic opportunity. Through thermal conversion, as much as 80% of the plant's natural carbon can be locked in when transforming seaweed into organic fertilizers, renewable fuel inputs and biochar. Unlike standard charcoal, biochar is engineered primarily for environmental and agricultural applications, including soil restoration and valuable carbon credits. As processing networks expand, biochar offers supply chain organizations a dual-benefit strategy to strengthen ecosystem resilience while supporting corporate net-zero targets.  

As another example, researchers at the UK's Aberystwyth University have developed a fully biodegradable plastic film using alginate, a natural compound extracted from seaweed. The flexible, transparent material offers a sustainable alternative to conventional fossil-fuel-based packaging, which currently accounts for nearly one-third of all plastics. With industry demand for eco-friendly materials accelerating, scaled production could significantly reduce single-use plastic waste across food manufacturing and distribution networks. 

Meanwhile, U.S. aquaculture projects are positioning native sugar kelp as a sustainable, locally sourced alternative to imported palm and coconut oils. Supported by a recent $1.875 million grant from the U.S. Department of Energy, researchers at the University of Connecticut are using a controlled fermentation process to transform the kelp into natural oils for personal care products, bio lubricants and plastics. By applying lactic acid bacteria to preserve wet kelp, the method also solves the rapid rotting that typically plagues seaweed harvests, ensuring a year-round supply. This ocean-farming approach can strengthen U.S. supply chain resilience by producing critical industrial inputs while reducing reliance on overseas imports and tropical deforestation. 

Master material innovation 

From local seaweed harvesting to high-tech bioplastics, scaling raw materials requires rigorous, end-to-end operational visibility — a task complicated by steep operational hurdles. High processing costs and fragmented midstream capacity continue to limit growth. Additionally, conflicts over harvesting rights are making headlines, with The New York Times reporting tension between multinational processors securing formal production licenses and local harvesters whose generational usage rights are threatened by an evolving regulatory landscape. 

As supply chains adapt to new inputs, success depends on bridging the gap between innovation and execution. The APICS Certified in Planning and Inventory Management (CPIM) program equips you with the strategic planning, inventory control and S&OP expertise needed to optimize the latest product flows and turn emerging material challenges into long-term competitive advantage. Start your CPIM journey today to set the standard for modern supply chain management.