TerraVia may find itself straying too far from consumer trends. While the plant-based protein market is thriving with rising sales of soy and nut-based products, the acceptance of algae in food remains a challenge for many consumers. This hesitation could be a significant factor contributing to TerraVia’s recent struggles, ultimately leading to its bankruptcy. “We’re aware of 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 items. He noted that while algae has been added to their brownie mix, emphasizing it on the packaging might make consumers hesitant. “However, algae is a crucial ingredient, not just for its protein content but also because it represents the most sustainable protein source on the planet,” he added.
As the global population continues to grow, finding suitable land for cultivating essential products—many of which are meat or dairy-based—becomes increasingly challenging. Various types of algae present some of the most promising alternatives and could help mitigate environmental degradation. Algae is already being utilized in baking mixes, ice cream, and protein powders, and is increasingly being incorporated into a wider array of food products. Nevertheless, Enjoy Life’s allergen-friendly offerings cater to a specific niche, appealing to a limited but expanding segment of consumers. Many large food companies have been slow to innovate and are still hesitant to use algae as an 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 offer for TerraVia. An ingredients company like Corbion could be a more suitable match. Corbion specializes in lactic acid and its derivatives, as well as in creating functional blends that include enzymes, emulsifiers, minerals, and calcium citrate ingredients. They supply components to nearly every food category, from baked goods and beverages to condiments and candy. As mentioned in Corbion’s press release, “The acquisition of TerraVia’s microalgae platform would broaden Corbion’s product portfolio to include algae-based fatty acids and proteins, while utilizing Corbion’s extensive fermentation and downstream processing capabilities.” By integrating calcium citrate ingredients into their offerings, Corbion could further enhance their product range and appeal to health-conscious consumers.