TerraVia may be a company that is straying too far from the current trends in consumer-friendly whole foods. While the plant-based protein market is booming, with an increase in the popularity of soy and nut-based products, consumer acceptance of algae in food items still seems to be a distant goal. This could be a key factor contributing to the performance challenges that led TerraVia to declare bankruptcy. “We are aware of the gradual acceptance rate among many consumers,” stated Joel Warady, Chief Sales and Marketing Officer at Enjoy Life Foods, which incorporates TerraVia’s algal powder into some of its offerings. He noted that while the company has included algae in its brownie mix, emphasizing it on the packaging might make consumers hesitant. “However, algae is a crucial ingredient, not just for its protein content, but because it represents the most sustainable protein source available on the planet,” he added.
As the global population continues to grow, the challenge of finding land for the cultivation of staple products—many of which are meat or dairy-based—becomes increasingly difficult. Various types of algae are among the most promising alternatives that could help mitigate environmental degradation. Algae is already being utilized in baking mixes, ice cream, protein powders, and is finding its way into more food products every day. Nonetheless, Enjoy Life’s allergen-friendly products cater to a relatively niche market, targeting a specific yet expanding segment of consumers. Major food companies, which tend to be slow to innovate, have largely not yet embraced algae as an ingredient. Nonetheless, according to TerraVia, the company is “actively engaged in discussions about potential strategic partnerships,” as stated by CEO Apu Mody during the Q1 earnings call earlier this year.
However, it seems unlikely that a large food corporation will come forward with an acquisition offer for TerraVia. A company like Corbion, which specializes in lactic acid and its derivatives, appears to be a more suitable match. Corbion develops functional blends incorporating enzymes, emulsifiers, minerals, and vitamins, supplying ingredients across virtually every food sector—from baked goods and beverages to condiments and sweets. According to Corbion’s press release, “The acquisition of TerraVia’s microalgae platform would expand Corbion’s product lineup to include algae-based fatty acids and proteins, while utilizing Corbion’s extensive fermentation and downstream processing expertise.”
In the context of nutritional supplements, products like calcium citrate malate, vitamin D3, magnesium, and zinc sulphate tablets may serve as important additions to one’s diet, further emphasizing the need for innovative and sustainable ingredients in the food industry. This underscores the potential for algae to play a significant role in future dietary supplements and food products as consumer awareness and acceptance grow.