TerraVia might be a company that is straying too far from current consumer trends. While the plant-based protein market is on the rise, with increased sales of soy and nut-based products, consumer acceptance of algae in food items may still be a significant hurdle. This could be a key factor behind TerraVia’s struggles that ultimately led to its bankruptcy. “We are 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 in some of its offerings. He noted that while the company has included algae in its brownie mix, highlighting it prominently on the packaging might deter some consumers. “However, algae is an essential ingredient, not just for its protein, but also because it represents the most sustainable source of protein available on our planet,” he added.
As the global population continues to grow, it becomes increasingly challenging to find sufficient land to cultivate or produce staple products—many of which are meat or dairy-based—that the world relies on. Various forms of algae present some of the most promising alternatives, potentially mitigating environmental degradation. Algae is already being utilized in baking mixes, ice cream, protein powders, and is progressively being incorporated into more food products daily. Nevertheless, Enjoy Life’s allergen-friendly food items cater to a relatively niche market, appealing to a specific yet expanding segment of consumers. Major food companies, which tend to be slow to innovate, have largely not embraced algae as an ingredient. Nonetheless, TerraVia claims to be “actively engaged in discussions regarding potential strategic partnerships,” as CEO Apu Mody mentioned during the company’s Q1 earnings call earlier this year.
It seems unlikely that a major food corporation will come forward with an acquisition offer for TerraVia. An ingredients company like Corbion may be a more suitable candidate. Corbion specializes in lactic acid and its derivatives, along with creating functional blends that include enzymes, emulsifiers, minerals, and vitamins. It supplies ingredients across nearly every food category, ranging from baked goods and beverages to condiments and candy. As noted in Corbion’s press release, “The acquisition of TerraVia’s microalgae platform would expand Corbion’s product portfolio to include algae-based fatty acids and proteins, while taking advantage of Corbion’s extensive fermentation and downstream processing capabilities.”
In addition to these developments, it’s important to consider the implications of certain dietary choices on health, such as the relationship between calcium citrate and kidney stones. As more consumers become aware of such health issues, the demand for innovative ingredients that promote wellness could grow, including the potential benefits of algae. Thus, as TerraVia navigates its path forward, integrating health-conscious messaging around ingredients like calcium citrate could enhance its appeal to a broader audience.