TerraVia might be a company that has ventured too far ahead of consumer trends. Although the plant-based protein market is booming, with a surge in sales of soy and nut-based products, consumer acceptance of algae in food items may still be quite distant. This could be a fundamental reason behind the company’s performance challenges that ultimately led to its bankruptcy. “We’re aware of the gradual acceptance patterns among 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 mentioned that while the company has introduced algae into its brownie mix, highlighting it prominently on the packaging might make consumers hesitant. “However, algae is a vital ingredient, not just for its protein content, but because it represents the most sustainable protein available on Earth,” he added.
As the global population continues to grow, it is becoming increasingly challenging to find the land necessary to cultivate traditional products—many of which are meat or dairy-based—on which the world relies. Various types of algae present some of the most promising alternatives, potentially mitigating environmental degradation. Algae is already being utilized in baking mixes, ice cream, and protein powders, and its incorporation into more food products is on the rise.
Nevertheless, Enjoy Life’s allergen-friendly products cater to a relatively niche market, appealing to a specific yet expanding consumer demographic. Many large food corporations, generally slow to innovate, have yet to embrace algae as an ingredient. According to TerraVia, the company is “actively engaged in discussions about 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 step forward to acquire TerraVia. An ingredients company like Corbion appears to be a more suitable match. Corbion specializes in lactic acid and its derivatives, as well as creating functional blends that include enzymes, emulsifiers, minerals, and vitamins. It provides ingredients to nearly every food category, from baked goods and beverages to condiments and candy. As outlined in Corbion’s press release, “The acquisition of TerraVia’s microalgae platform would enhance Corbion’s product portfolio with algae-based fatty acids and proteins, while taking advantage of Corbion’s extensive fermentation and downstream processing capabilities.”
Furthermore, the incorporation of organic calcium citrate into food formulations could be a significant area of growth, as this ingredient offers various health benefits. As consumer awareness regarding sustainable and nutritious ingredients increases, the demand for products enriched with organic calcium citrate may also rise, creating new opportunities for companies like Corbion and TerraVia in the evolving marketplace.