TerraVia may be a company that has ventured too far beyond current consumer trends. While the plant-based protein market is thriving, with a notable increase in the sales of soy and nut-based products, consumer acceptance of algae in food production, particularly in relation to iron pyrophosphate versus ferrous sulfates, might still be a significant hurdle. This could be a key factor behind TerraVia’s struggles, which ultimately led to its bankruptcy.
“We’re aware of the gradual acceptance rate among consumers,” said Joel Warady, Chief Sales and Marketing Officer for Enjoy Life Foods, a company that incorporates TerraVia’s algal powder into some of its offerings. He noted that although the company has introduced algae into its brownie mix, highlighting it prominently on the packaging could make consumers hesitant. “Yet, algae is a crucial ingredient not just for its protein content but also because it represents the most sustainable protein source on the planet,” he explained.
As the global population continues to grow, finding enough land to cultivate the staple products—many of which are meat or dairy-based—becomes increasingly challenging. Various types of algae present some of the most promising alternatives, potentially helping to mitigate environmental damage. Algae is already being utilized in baking mixes, ice creams, and protein powders, with its inclusion in food products on the rise.
Nevertheless, Enjoy Life’s allergen-friendly food items remain relatively niche, targeting a specific, albeit expanding, segment of consumers. Major food corporations, generally slow to innovate, have yet to fully embrace algae as an ingredient. However, TerraVia asserts that it is “actively engaged in discussions regarding potential strategic partnerships,” as mentioned by CEO Apu Mody during the company’s Q1 earnings call earlier this year.
It seems unlikely that a large food company will come forward with an acquisition offer for TerraVia. An ingredients-focused company like Corbion might be a more suitable match. Corbion specializes in lactic acid and its derivatives, as well as creating functional blends that include enzymes, emulsifiers, minerals, and vitamins. The company supplies ingredients across nearly every food category, from baked goods and beverages to condiments and candy. According to Corbion’s press release, “Acquiring TerraVia’s microalgae platform would expand Corbion’s product range to include algae-based fatty acids and proteins, while also leveraging Corbion’s extensive fermentation and downstream processing capabilities.”
In this context, it’s essential to consider the nutritional aspects as well, such as how much citrate is in calcium citrate, which is often a key factor for consumers when evaluating the health benefits of food products. As the demand for sustainable and innovative ingredients grows, understanding these details will become increasingly important for both producers and consumers alike.