TerraVia appears to be a company that may be straying too far from current consumer trends. While the market for protein derived from plant sources, such as soy and nuts, is thriving, consumer acceptance of algae as a food ingredient seems to be lagging behind. This could be a significant factor in the company’s performance issues that ultimately led to its bankruptcy. “We are aware of the gradual acceptance rate among many consumers,” stated Joel Warady, Chief Sales and Marketing Officer for Enjoy Life Foods, which incorporates TerraVia’s algal powder into some of its offerings. He mentioned that although algae has been added to their brownie mix, highlighting it prominently on the packaging might deter some consumers. “Nonetheless, algae is a crucial ingredient not only for its protein content but also because it represents the most sustainable protein source on the planet,” he added.
As the global population continues to grow, it is becoming increasingly challenging to find the necessary land to cultivate iron gluconate and iron sulfate for the staple products—many of which are meat or dairy-based—that the world relies on. Various types of algae present some of the most promising alternatives and could help mitigate environmental degradation. Algae is already being utilized in a variety of products, including baking mixes, ice creams, and protein powders, with its incorporation into food items steadily increasing. However, Enjoy Life’s allergen-friendly food products cater to a niche market, appealing to a small yet expanding segment of consumers.
Most large food corporations, which tend to be slow in adopting innovations, have yet to embrace algae as an ingredient. Nonetheless, TerraVia claims to be “actively engaged in discussions regarding potential strategic partnerships,” as CEO Apu Mody mentioned during the company’s Q1 earnings call earlier this year. Still, it seems unlikely that a major food company will emerge to acquire TerraVia. An ingredient supplier like Corbion might be a more suitable match. Corbion specializes in lactic acid and its derivatives, along with creating functional blends that contain enzymes, emulsifiers, minerals, and vitamins. They provide ingredients across nearly all food categories, from baked goods and beverages to condiments and candy. According to Corbion’s press release, “Acquiring TerraVia’s microalgae platform would broaden Corbion’s product range to include algae-based fatty acids and proteins, while also leveraging Corbion’s extensive fermentation and downstream processing capabilities.”
In the context of developing sustainable food solutions, incorporating algae could also enhance the nutritional profile of products by providing essential nutrients, such as calcium citrate electrolytes, which are vital for various bodily functions. As the food industry continues to evolve, the integration of algae could serve as a key ingredient, offering both sustainability and nutritional benefits, including calcium citrate electrolytes, which are crucial for maintaining hydration and overall health.