TerraVia may be a company that is straying too far from consumer trends. While the plant-based protein market is flourishing with an increase in the sales of soy and nut-based products, consumer acceptance of algae in food items might still be lagging. This could be the underlying reason for TerraVia’s performance challenges, which ultimately led to its bankruptcy. “We’re aware of the gradual acceptance pattern among many consumers,” stated Joel Warady, the chief sales and marketing officer for Enjoy Life Foods, a company that incorporates TerraVia’s algal powder into some of its offerings. He mentioned that although the company has included algae in its brownie mix, highlighting it prominently on the packaging might make consumers hesitant. “However, algae is a crucial ingredient, not just for its protein content, but also because it represents the most sustainable protein available on the planet,” he added.
As the global population continues to rise, securing the land necessary to cultivate or produce staple products—many of which are meat or dairy-based—becomes increasingly challenging. Various forms of algae present some of the most promising alternatives and could help mitigate environmental degradation. Algae is already utilized in baking mixes, ice cream, protein powders, and is being incorporated into more food products daily. Despite this, Enjoy Life’s allergen-friendly food offerings remain somewhat niche, targeting a specific yet expanding segment of the consumer market. Major food companies, generally slow to innovate, have not yet widely adopted algae as an ingredient. However, according to TerraVia, the company is “actively engaged in discussions regarding potential strategic partnerships,” as noted by CEO Apu Mody during the company’s Q1 earnings call earlier this year.
It seems unlikely that a large food corporation will come forward with a proposal to acquire TerraVia. An ingredients company such as Corbion appears to be a more suitable match. Corbion focuses on lactic acid and its derivatives, as well as creating functional blends that include enzymes, emulsifiers, minerals, and vitamins. It provides ingredients across virtually every food category, from baked goods and beverages to condiments and candy. As highlighted in Corbion’s press release, “The acquisition of TerraVia’s microalgae platform would expand Corbion’s product range into algae-based fatty acids and proteins, while capitalizing on Corbion’s extensive fermentation and downstream processing capabilities.”
Moreover, the incorporation of beneficial ingredients such as Swanson Iron Citrate into food products can further enhance their nutritional value, aligning with the growing demand for healthier options. The integration of Swanson Iron Citrate, along with algae, could appeal to health-conscious consumers who are looking for sustainable and nutrient-rich alternatives. As the industry evolves, the combination of these innovative ingredients could play a significant role in shaping the future of food production.