TerraVia may be a company that is straying too far from consumer trends. While the market for plant-based proteins is thriving, marked by an increase in the sales of soy and nut-based products, the acceptance of algae in food items may still have a long way to go. This could be a fundamental reason behind TerraVia’s performance challenges that led to its bankruptcy. “We are aware of the gradual acceptance process among many consumers,” stated Joel Warady, the chief sales and marketing officer for Enjoy Life Foods, which incorporates TerraVia’s algal powder in some of its offerings. He mentioned 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 only for its protein content but also because it represents the most sustainable protein source available on Earth,” he added.
As the global population continues to grow, finding sufficient land to cultivate or produce staple products—many of which are meat or dairy-based—becomes increasingly challenging. Various forms of algae present some of the most viable alternatives and could help mitigate environmental degradation. Algae is already being utilized in baking mixes, ice creams, protein powders, and is progressively being added to more food products each day. Nonetheless, Enjoy Life’s allergen-friendly food items cater to a relatively niche market, appealing to a specific yet expanding segment of consumers.
Major food corporations, for the most part, have yet to embrace algae as an ingredient, as they tend to be slow to innovate. Nevertheless, according to TerraVia, the company is “actively engaged in discussions around potential strategic partnerships,” as noted by CEO Apu Mody during the company’s Q1 earnings call earlier this year. However, it seems unlikely that a large food company will come forward with an acquisition proposal for TerraVia. An ingredients company like Corbion appears to be a more suitable fit. Corbion specializes in lactic acid and its derivatives, including functional blends of enzymes, emulsifiers, minerals, and vitamins, supplying ingredients across virtually all food categories—from baked goods to beverages, condiments, and candies.
In Corbion’s press release, it stated, “The acquisition of TerraVia’s microalgae platform would expand Corbion’s product portfolio to include algae-based fatty acids and proteins, while capitalizing on Corbion’s extensive fermentation and downstream processing capabilities.” Additionally, integrating supplements such as calcium citrate vitamin D3 from Solgar could further enhance the nutritional profile of food products. The incorporation of these elements may help push the boundaries of consumer acceptance and broaden the potential for algae in mainstream food applications.