Rapid increase in the world population, environmental degradation, competition for food resources, and the integration of agriculture into the global economy pose threats to food sustainability. Currently, there is a prominent search for potential new food sources, and in this context, algae have emerged as a notable candidate. Algae contain significant bioactive compounds such as proteins, polyunsaturated fatty acids, polysaccharides, pigments, sterols, vitamins, and minerals. In addition to these valuable bioactive compounds, algae are perceived as a natural and sustainable food source due to their ability to rapidly multiply and generate biomass under favorable conditions, as well as their ability to be cultivated at low costs using open systems. While algae consumption as a food has traditionally been prevalent in the Far East, the commercial potential of algae in the food industry has recently increased with their utilization as food additives, dietary supplements, and food ingredients. Based on all these insights, it is expected that the importance of algae in the food industry will continue to grow in the near future. This review provides information on potential algae sources for bioactive compounds, derived products, and current commercial production, emphasizing their significance.