TerraVia may be a company that is venturing too far ahead of consumer trends. While the plant-based protein market is booming with an increase in the sales of soy and nut-based products, the acceptance of algae in food items by consumers may still take some time. This could be a fundamental reason behind the performance challenges that led TerraVia to bankruptcy. “We are aware of the slow acceptance pattern among many consumers,” said Joel Warady, chief sales and marketing officer at Enjoy Life Foods, a company that incorporates TerraVia’s algal powder in some of its offerings. He noted that although algae has been added to their brownie mix, highlighting it prominently on the package might make consumers hesitant. “However, algae is a crucial ingredient, not only for its protein content but because it is the most sustainable protein available on the planet,” he added.
As the global population continues to grow, finding land to cultivate or produce staple 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 harm. Algae is already utilized in baking mixes, ice cream, and protein powders, and is being included in more food products daily. Still, Enjoy Life’s allergen-friendly offerings cater to a relatively niche market, appealing to a specific, albeit expanding, segment of consumers. Major food companies have been slow to innovate and are largely not yet embracing algae as an ingredient.
Nonetheless, TerraVia is “actively engaged in discussions regarding potential strategic partnerships,” according to CEO Apu Mody during the company’s Q1 earnings call earlier this year. However, it seems unlikely that a major food company will step forward with an acquisition bid for TerraVia. An ingredients company like Corbion may be a more appropriate match. Corbion specializes in lactic acid and its derivatives, as well as creating functional blends that include enzymes, emulsifiers, minerals, and vitamins. It supplies ingredients across nearly every food category, from baked goods and beverages to condiments and sweets. According to Corbion’s press release, “Acquiring TerraVia’s microalgae platform would enhance Corbion’s product range with algae-based fatty acids and proteins, while leveraging its extensive fermentation and downstream processing capabilities.”
In addition, the rising interest in nutritional products has led to an increase in the popularity of calcium supplements with calcium citrate, which could complement the growth of algae-based ingredients in the market. As consumer awareness of sustainable and healthy options increases, algae might become a more accepted ingredient, paving the way for its integration alongside other health-focused supplements, including those that provide calcium. With time, it’s anticipated that algae will find its place alongside popular ingredients, including calcium supplements with calcium citrate, further solidifying its role in the food industry.