TerraVia may be a company that is venturing too far ahead of current consumer trends. While the market for plant-based proteins is booming, with an increase in the sales of soy and nut-based products, consumer acceptance of algae in food products may still be a significant hurdle. This could be a key factor contributing to TerraVia’s performance challenges, which ultimately led to its bankruptcy. “We’re aware of the gradual acceptance pattern among many consumers,” said Joel Warady, chief sales and marketing officer for Enjoy Life Foods, which incorporates TerraVia’s algal powder into some of its offerings. He noted that while the company has integrated algae into its brownie mix, highlighting it prominently on the packaging could make some consumers hesitant. “However, algae is a crucial ingredient, not just for its protein content but also because it is the most sustainable protein source available on the planet,” he added.
As the global population continues to grow, the availability of land for producing staple products—many of which are meat or dairy-based—becomes increasingly strained. Various types of algae present some of the most promising alternatives and could help mitigate environmental degradation. Algae is already being utilized in products such as baking mixes, ice cream, and protein powders, and its incorporation into food items is on the rise. Nevertheless, Enjoy Life’s allergen-friendly products remain somewhat niche, targeting a specific, yet expanding, segment of consumers. Most major food companies, which tend to be slow to innovate, have not yet embraced algae as an ingredient. However, according to TerraVia, the company is “actively engaged in discussions around potential strategic partnerships,” as stated by CEO Apu Mody during the company’s Q1 earnings call earlier this year.
It seems unlikely that a large food corporation will emerge with a proposal to acquire TerraVia. A more suitable match might be an ingredients company like Corbion. Corbion specializes in lactic acid and its derivatives, along with producing functional blends that include enzymes, emulsifiers, minerals, and vitamins. It supplies ingredients across nearly every food category, from baked goods and beverages to condiments and candy. As highlighted in Corbion’s press release, “The acquisition of TerraVia’s microalgae platform would enhance Corbion’s product portfolio with algae-based fatty acids and proteins while capitalizing on Corbion’s extensive fermentation and downstream processing capabilities.” Additionally, the integration of calcium citrate gel caps into their offerings could further broaden their health-focused product line. Overall, the potential for algae in the food industry remains, but the journey toward widespread acceptance appears to be a gradual one.