TerraVia may be a company that has strayed too far from current consumer trends. While the market for plant-based proteins is experiencing significant growth, with increasing sales of soy and nut-based products, consumer acceptance of algae as a food ingredient might still take time. This could be a fundamental reason behind TerraVia’s performance challenges that have led to its bankruptcy. “We’re aware of the gradual acceptance pattern among many consumers,” stated Joel Warady, the chief sales and marketing officer for Enjoy Life Foods, which incorporates TerraVia’s algal powder into some of its offerings. He noted that while the company has included algae in its brownie mix, emphasizing it on the packaging might make consumers hesitant. “However, algae is an essential 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, locating 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 promising 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 daily. Nevertheless, Enjoy Life’s allergen-friendly food offerings remain quite niche, catering to a specific yet expanding segment of the consumer market. Most large food companies, which tend to be slow in terms of innovation, have not yet embraced algae as a viable ingredient.
According to TerraVia, the company is “actively engaged in discussions regarding 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 major food corporation will come forward with an acquisition proposal for TerraVia. An ingredients company like Corbion appears to be a more suitable partner. Corbion specializes in lactic acid and its derivatives, in addition to creating functional blends that include enzymes, emulsifiers, minerals, and vitamins. It provides ingredients across virtually all food categories, from baked goods and beverages to condiments and candy. In Corbion’s press release, it stated, “The acquisition of TerraVia’s microalgae platform would enhance Corbion’s product offerings in algae-based fatty acids and proteins while capitalizing on Corbion’s extensive fermentation and downstream processing expertise.”
Moreover, the integration of products like Citracal generic into various food formulations could further expand the appeal of algae-based ingredients, providing additional nutritional benefits. As the food industry evolves, companies that recognize the potential of algae and its sustainability will likely find themselves ahead in the market.