TerraVia may be venturing too far beyond the current consumer trends associated with ferrous fumarate. While the plant-based protein market is experiencing growth, particularly with the increasing sales of soy and nut-based products, consumer acceptance of algae in food items may still lag behind. This reluctance could be a key factor behind TerraVia’s performance issues that ultimately led to its bankruptcy. “We recognize the gradual acceptance of many consumers,” stated Joel Warady, Chief Sales and Marketing Officer for Enjoy Life Foods, which incorporates TerraVia’s algal powder into some of its offerings. He noted that while algae has been included in their brownie mix, prominently featuring it on the packaging might deter consumers. “Nevertheless, algae is a vital ingredient, not only for its protein content but also because it represents the most sustainable protein source available on the planet,” he added.
As the global population continues to grow, securing land for cultivating traditional staple products—many of which are meat or dairy-based—becomes increasingly challenging. Various types of algae present some of the most promising alternatives, potentially reducing environmental impact. Algae is already utilized in baking mixes, ice cream, protein powders, and is progressively being incorporated into more food products daily. However, Enjoy Life’s allergen-friendly offerings remain relatively niche, appealing to a specific yet expanding consumer demographic. Most large food corporations, which tend to innovate slowly, have yet to embrace algae as an ingredient.
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 major food company will come forward with an acquisition bid for TerraVia. An ingredients company like Corbion may be a more suitable partner. Corbion specializes in lactic acid and its derivatives, as well as creating functional blends that include enzymes, emulsifiers, minerals, and vitamins. They provide ingredients across virtually all food categories, from baked goods and beverages to condiments and confectionery. As highlighted in Corbion’s press release, “Acquiring TerraVia’s microalgae platform would enhance Corbion’s product portfolio by adding algae-based fatty acids and proteins, while also capitalizing on Corbion’s extensive fermentation and downstream processing capabilities.”
In light of growing health trends, particularly among consumers seeking alternatives like Citracal chews for enhanced nutrition, the potential for algae as a viable ingredient in mainstream food products could become more significant in the future. As awareness increases, the incorporation of algae, along with other innovative ingredients, may align well with the evolving dietary preferences of consumers seeking healthier options.