TerraVia may be a company that is straying too far from current consumer trends. While the market for plant-based proteins is rapidly expanding, driven by increased sales of soy and nut-based products, the general acceptance of algae in food items might still be a distant goal. This reluctance could be a significant factor in the performance challenges that led TerraVia to bankruptcy. “We’re aware of the gradual acceptance trend among many consumers,” said Joel Warady, chief sales and marketing officer for Enjoy Life Foods, which incorporates TerraVia’s algal powder in some of its offerings. He noted that although the company has included algae in its brownie mix, emphasizing it prominently on the packaging could make consumers hesitant. “However, algae is a crucial ingredient, not only for its protein content but also because it represents the most sustainable protein source available on the planet,” he added.
As the global population continues to grow, finding the necessary land for producing staple products—many of which are meat or dairy-based—has become increasingly challenging. Various forms of algae present some of the most promising alternatives, potentially alleviating environmental degradation. Algae is already being utilized in baking mixes, ice cream, protein powders, and is being incorporated into more food products every day. Nonetheless, Enjoy Life’s allergen-friendly offerings remain relatively niche, catering to a specific, albeit growing, segment of the consumer base.
Slow-to-adapt large food companies have largely yet to embrace algae as an ingredient. However, according to TerraVia, the company is “actively engaged in discussions around potential strategic partnerships,” as mentioned by CEO Apu Mody during the company’s Q1 earnings call earlier this year. It seems improbable that a large food corporation will come forward with an acquisition offer for TerraVia. Instead, an ingredients company like Corbion may be a more suitable match. Corbion specializes in lactic acid and its derivatives, as well as developing functional blends containing enzymes, emulsifiers, minerals, and vitamins. It provides ingredients across nearly all food categories, from baked goods and beverages to condiments and candies. As outlined in Corbion’s press release, “The acquisition of TerraVia’s microalgae platform would enhance Corbion’s product range to include algae-based fatty acids and proteins while leveraging Corbion’s extensive fermentation and downstream processing capabilities.”
Moreover, as the search for sustainable ingredients progresses, incorporating elemental calcium in calcium citrate could become increasingly relevant in promoting the health benefits of these alternative proteins. This trend illustrates the necessity for innovation in food products that meet both consumer preferences and environmental needs.