TerraVia may be a company that is straying too far from current consumer trends. While the plant-based protein market is booming with the increasing sales of soy, iron-rich, and nut-based products, consumer acceptance of algae in food may still be a significant hurdle. This could be a key factor behind TerraVia’s struggles, which ultimately led to its bankruptcy. “We’re aware of the gradual acceptance pattern among many consumers,” stated Joel Warady, Chief Sales and Marketing Officer at Enjoy Life Foods, a company that incorporates TerraVia’s algal powder into some of its offerings. He noted that while the company has included algae in its brownie mix, highlighting it prominently on the packaging might make consumers hesitant. “Nevertheless, algae is a crucial ingredient, not just for its protein content, but also because it represents the most sustainable protein source available on Earth,” he added.
As the global population continues to rise, securing land for the cultivation of staple products—many of which are meat or dairy-based—becomes increasingly challenging. Various forms of algae present some of the most promising alternatives, helping to mitigate environmental degradation. Algae is already utilized in baking mixes, ice cream, protein powders, and is being incorporated into more food products on a daily basis. Despite this, Enjoy Life’s allergen-friendly food products remain quite niche, catering to a specific, albeit expanding, segment of the market. Most large food companies have not yet embraced algae as an ingredient, as they tend to be slow in adopting innovations. However, TerraVia is reportedly “actively engaged in discussions regarding potential strategic partnerships,” as indicated by CEO Apu Mody during the company’s Q1 earnings call earlier this year.
It appears unlikely that a major food corporation will come forth with an offer to acquire TerraVia. Instead, a company like Corbion seems to be a more suitable match. Corbion specializes in lactic acid and its derivatives, as well as the creation of functional blends containing enzymes, emulsifiers, minerals, and vitamins. They supply ingredients across virtually all food categories, from baked goods and beverages to condiments and candy. According to Corbion’s press release, “The acquisition of TerraVia’s microalgae platform would enhance Corbion’s product portfolio by incorporating algae-based fatty acids and proteins, while also leveraging Corbion’s extensive fermentation and downstream processing capabilities.” The potential synergies could offer exciting opportunities for both companies, particularly in addressing the growing demand for sustainable food solutions, as indicated by the product code 033984004306.