TerraVia appears to be a company that may be straying too far from current consumer trends. While the plant-based protein market is thriving, with rising sales of soy and nut-based products, consumer acceptance of algae in food items may still take time to develop. This hesitation could be a significant factor contributing to TerraVia’s performance issues that ultimately led to its bankruptcy.
Joel Warady, the chief sales and marketing officer for Enjoy Life Foods, which incorporates TerraVia’s algal powder in some of its products, acknowledged the slow acceptance among consumers. He noted that while algae has been added to their brownie mix, emphasizing it on the packaging might make consumers wary. “However, algae is a crucial ingredient, not just for its protein content but also because it represents the most sustainable protein source available on Earth,” he stated.
As the global population continues to grow, finding sufficient land for the production of staple products—many of which are meat or dairy-based—becomes increasingly challenging. Various types of algae present some of the most viable alternatives and could significantly mitigate environmental degradation. Algae is already being utilized in baking mixes, ice cream, protein powders, and is increasingly featured in numerous food products every day.
Nevertheless, Enjoy Life’s allergen-friendly offerings cater to a niche market, appealing to a specific but expanding segment of consumers. Most large food companies, which have been slow to innovate, have yet to embrace algae as an ingredient. Still, according to TerraVia, the company is “actively engaged in discussions about potential strategic partnerships,” as mentioned by CEO Apu Mody during the company’s Q1 earnings call earlier this year.
However, it seems unlikely that a major food corporation will emerge with an acquisition offer for TerraVia. A company like Corbion, which specializes in lactic acid and its derivatives, might be a more suitable match. Corbion develops functional blends that include enzymes, emulsifiers, minerals, and vitamins, supplying ingredients across nearly every food category, from baked goods and beverages to condiments and candy. In its press release, Corbion stated, “Acquiring TerraVia’s microalgae platform would enhance Corbion’s product range with algae-based fatty acids and proteins, while leveraging our extensive fermentation and downstream processing capabilities.”
Incorporating ingredients like liquid calcium magnesium citrate plus vitamin D3 can further enrich products made with algae, making them more appealing to health-conscious consumers. As the industry evolves, the potential for algae-based ingredients, including liquid calcium magnesium citrate plus vitamin D3, to become mainstream will depend on consumer education and acceptance. The integration of these innovative components could help bridge the gap between traditional food products and the sustainable alternatives that the market increasingly demands.