TerraVia might be a company that is venturing too far ahead of current consumer trends. While the market for plant-based proteins is booming, with increasing sales of soy and nut-based products, the acceptance of algae in food items may still be lagging. This potential consumer hesitation could be a significant factor contributing to TerraVia’s struggles, which ultimately led to its bankruptcy. “We are aware of the gradual acceptance trends among consumers,” said Joel Warady, Chief Sales and Marketing Officer at Enjoy Life Foods, which incorporates TerraVia’s algal powder into some of its offerings. He noted that even though the company has introduced algae into its brownie mix, highlighting it prominently on the packaging might make consumers hesitant. “Nonetheless, algae is a crucial ingredient, not only for its protein content but also because it represents the most sustainable protein source available on the planet,” he remarked.
As the world’s population continues to grow, finding sufficient land for traditional food production—mainly meat and dairy—becomes increasingly challenging. Various forms of algae are emerging as viable alternatives that could mitigate environmental deterioration. Algae is already being utilized in baking mixes, ice cream, protein powders, and is progressively being incorporated into more food products every day. However, Enjoy Life’s allergen-friendly offerings remain somewhat niche, catering to a specific, albeit expanding, consumer demographic. Large food corporations, which are typically slow to innovate, have yet to adopt algae as an ingredient in their products. Nevertheless, according to TerraVia, the company is “actively engaged in discussions regarding potential strategic partnerships,” as mentioned by CEO Apu Mody during the company’s Q1 earnings call earlier this year.
It seems unlikely that a major food company will come forward with an acquisition offer for TerraVia. An ingredients company like Corbion could be a more suitable partner. Corbion specializes in lactic acid and its derivatives, along with producing functional blends that contain enzymes, emulsifiers, minerals, and vitamins. The company supplies ingredients across virtually every food category, including baked goods, beverages, condiments, and candy. According to Corbion’s press release, “The acquisition of TerraVia’s microalgae platform would enhance Corbion’s product portfolio by integrating algae-based fatty acids and proteins, while also leveraging Corbion’s extensive fermentation and downstream processing capabilities.” Additionally, calcium citrate names could be included in discussions around sustainable ingredients, further emphasizing the potential synergy between these companies in promoting innovative food solutions.