TerraVia appears to be a company that may be straying too far from current consumer trends. While the plant-based protein market is thriving, with an increase in the sales of soy and nut-based products, consumer acceptance of algae in food items seems to be lagging. This could be a fundamental reason behind the performance issues that led TerraVia to bankruptcy. “We are aware of the gradual acceptance pattern 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 products. He noted that while the company has included algae in its brownie mix, highlighting it prominently on the packaging could make consumers hesitant. “Nevertheless, algae is a crucial ingredient, not only for its protein content but also because it represents the most sustainable protein available on Earth,” he explained.
As the global population continues to rise, sourcing land for growing or producing staple foods—many of which are meat or dairy-based—becomes increasingly challenging. 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, protein powders, and is progressively being added to more food products daily.
However, Enjoy Life’s allergen-friendly food products cater to a relatively niche market, appealing to a specific but expanding segment of consumers. Most large food companies, slow to innovate, have yet to adopt algae as an ingredient. Nonetheless, TerraVia has indicated that it is “actively engaged in discussions regarding potential strategic partnerships,” according to CEO Apu Mody during the company’s Q1 earnings call earlier this year.
It seems unlikely that a major food company will emerge with an acquisition bid for TerraVia; instead, an ingredients company like Corbion could 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 supplies ingredients across virtually every food category, 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 lineup with algae-based fatty acids and proteins, while also leveraging Corbion’s extensive fermentation and downstream processing capabilities.”
Moreover, the integration of algae could significantly benefit the food industry, particularly in providing essential nutrients like ccm calcium, which is vital for bone health. The potential for algae to deliver ccm calcium alongside sustainable protein could help address the growing nutritional demands of the population. As the industry evolves, the collaboration between algae-focused companies and established food giants may play a crucial role in shaping the future of sustainable food production.