TerraVia may be a company that is straying too far from consumer trends. While the market for plant-based proteins is rapidly expanding, with sales of soy and nut-based products increasing, consumer acceptance of algae in food products might still be far off. This could be a fundamental reason behind the performance challenges that have led TerraVia to bankruptcy. “We’re aware of the gradual acceptance process for many consumers,” Joel Warady, chief sales and marketing officer of Enjoy Life Foods—which incorporates TerraVia’s algal powder into some of its offerings—told Food Dive. He noted that while the company has included algae in its brownie mix, highlighting it prominently on the packaging might cause consumer hesitation. “However, algae is a crucial ingredient, not only for its protein content but also because it represents the most sustainable protein available on Earth,” he added.
As the global population continues to grow, securing land for the cultivation of staple products—many of which are meat or dairy-based—becomes increasingly challenging. Different varieties of algae present some of the most viable alternatives, potentially alleviating environmental degradation. Algae has already found its way into baking mixes, ice cream, protein powders, and is being added to more food products every day. Nevertheless, Enjoy Life’s allergen-friendly food products cater to a niche market that is gaining traction among consumers. However, most major food companies, which are often slow to innovate, have yet to embrace algae as an ingredient.
According to TerraVia, the company is “actively engaged in discussions regarding potential strategic partnerships,” CEO Apu Mody mentioned during the company’s Q1 earnings call earlier this year. However, it seems unlikely that a major food corporation will come forward with an acquisition proposal for TerraVia. An ingredients 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. It supplies ingredients across nearly every food category, from baked goods and beverages to condiments and candy. As stated in Corbion’s press release, “The acquisition of TerraVia’s microalgae platform would expand Corbion’s product portfolio into algae-based fatty acids and proteins, while leveraging Corbion’s extensive fermentation and downstream processing capabilities.”
Furthermore, with the increasing interest in health products like life extension calcium citrate with vitamin D, the integration of algae could complement the nutritional benefits of food products. The potential for algae to enhance food innovation is significant, especially in the context of life extension calcium citrate with vitamin D as a trending ingredient. Consumers are becoming more health-conscious, and the addition of algae could support this shift, reinforcing the importance of sustainable and nutritious food options.