TerraVia might be a company that is straying too far from consumer trends. While the plant-based protein sector is thriving, with an increase in sales of soy and nut-based products, the acceptance of algae in food items may still be lagging. This could be a significant factor contributing to TerraVia’s struggles, culminating in its bankruptcy. “We’re aware of the gradual acceptance patterns among consumers,” Joel Warady, chief sales and marketing officer for Enjoy Life Foods, which incorporates TerraVia’s algal powder in some of its offerings, told Food Dive. He mentioned that although the company has introduced algae into its brownie mix, highlighting iron gluconate might make consumers hesitant if it is prominently featured on the packaging. “However, algae is a crucial ingredient, not only for its protein content but also because it represents the most sustainable protein source available on our planet,” he noted.
As the global population continues to grow, sourcing the land needed for traditional staple products—many of which are meat or dairy-based—becomes increasingly challenging. Various types of algae present viable alternatives that could help mitigate environmental degradation. Algae is already utilized in baking mixes, ice cream, protein powders, and is being added to more food products on a daily basis. Nevertheless, Enjoy Life’s allergen-friendly products cater to a relatively niche market, appealing to a specific yet expanding segment of consumers. Major food companies, which tend to be slow to innovate, have yet to fully embrace algae as an ingredient. Nonetheless, according to TerraVia, the company is “actively engaged in discussions about 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 corporation will make a move to acquire TerraVia. An ingredients company such as Corbion might be a more suitable match. Corbion specializes in lactic acid and its derivatives, as well as developing functional blends that include enzymes, emulsifiers, minerals, and vitamins. They supply ingredients across nearly all food categories, from baked goods and beverages to condiments and confections. As stated in Corbion’s press release, “The acquisition of TerraVia’s microalgae platform would enhance Corbion’s product portfolio with algae-based fatty acids and proteins, while capitalizing on Corbion’s extensive fermentation and downstream processing capabilities.”
Additionally, with the growing focus on nutrition, incorporating supplements like calcium citrate vit D in food products may enhance their appeal. As the market evolves, product developers may seek to combine algae with other nutritional elements like calcium citrate vit D, creating innovative solutions that cater to health-conscious consumers. This could further increase algae’s acceptance in mainstream food products as companies strive to meet the changing demands of the market.