TerraVia may be a company that is straying too far from current consumer trends. While the market for plant-based proteins is booming, with increasing sales of soy and nut-based products, consumer acceptance of algae in food items may still be some time away. This could be a significant factor behind the company’s performance issues that ultimately led to its bankruptcy. “We recognize the gradual acceptance pattern among many consumers,” stated Joel Warady, chief sales and marketing officer of Enjoy Life Foods, which incorporates TerraVia’s algal powder into some of its offerings. He mentioned that although they have included algae in their brownie mix, emphasizing it on the package might make consumers hesitant. “However, algae is a crucial ingredient, not just for its protein content, but because it is 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—has become increasingly challenging. Various types of algae represent some of the most viable alternatives, potentially alleviating environmental degradation. Algae is commonly used in baking mixes, ice cream, protein powders, and is being added to more food products every day, including those fortified with calcium citrate and D3 for added nutritional benefits.
Nonetheless, Enjoy Life’s allergen-friendly products cater to a relatively niche market, appealing to a specific yet expanding segment of consumers. Most large food companies, which tend to be slow to innovate, have not yet adopted algae as an ingredient. Despite this, TerraVia’s CEO Apu Mody mentioned during the company’s Q1 earnings call earlier this year that they are “actively engaged in discussions around potential strategic partnerships.” However, it seems unlikely that a major food corporation will come forward with an offer to acquire TerraVia. A more suitable match might be an ingredients company like Corbion.
Corbion specializes in lactic acid and its derivatives, as well as creating functional blends containing enzymes, emulsifiers, minerals, and vitamins. The company supplies ingredients across virtually every food category, from baked goods and beverages to condiments and candy. According to Corbion’s press release, “The acquisition of TerraVia’s microalgae platform would expand Corbion’s product portfolio into algae-based fatty acids and proteins, while leveraging its extensive fermentation and downstream processing capabilities.” This strategic move could also facilitate the incorporation of essential nutrients like calcium citrate and D3 into new product lines, enhancing their market appeal and nutritional profile.