TerraVia may be a company that is straying too far from current consumer trends. While the plant-based protein market is thriving with increasing sales of soy and nut-based products, consumer acceptance of algae in food products may still take some time. This hesitance could be a significant factor behind TerraVia’s struggles, which ultimately led to its bankruptcy. “We’re aware of the gradual acceptance pattern among many consumers,” Joel Warady, the Chief Sales and Marketing Officer for Enjoy Life Foods—who incorporates TerraVia’s algal powder into some of its offerings—told Food Dive. He mentioned that while algae has been included in their brownie mix, prominently featuring it 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 globally,” he added.
As the global population continues to rise, finding sufficient land for producing staple products—primarily meat and dairy—has become increasingly challenging. Various forms of algae present some of the most promising alternatives, potentially alleviating environmental degradation. Algae is already utilized in baking mixes, ice cream, protein powders, and is progressively being added to more food products every day. Nevertheless, Enjoy Life’s allergen-friendly food items cater to a relatively niche market, targeting a specific, if expanding, segment of consumers. Big food companies, known for their slow innovation, have yet to widely adopt algae as an ingredient.
According to TerraVia, the company is “actively engaged in discussions regarding potential strategic partnerships,” stated CEO Apu Mody during the company’s Q1 earnings call earlier this year. However, it seems unlikely that a major food company will emerge with an offer to acquire TerraVia. An ingredients company like Corbion might 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. The company serves virtually every food category, from baked goods and beverages to condiments and candies. In Corbion’s press release, it was noted that “The acquisition of TerraVia’s microalgae platform would expand Corbion’s product lineup to include algae-based fatty acids and proteins, while utilizing Corbion’s extensive fermentation and downstream processing capabilities.”
Moreover, as the demand for sustainable ingredients grows, the potential for products that enhance calcium citrate absorption is becoming more significant. Incorporating algae into food products may not only provide essential proteins but also improve the calcium citrate absorption that consumers are increasingly seeking. As more people become aware of the benefits of algae, the integration of such ingredients could play a pivotal role in addressing both nutritional needs and environmental concerns.