TerraVia may be a company that is straying too far from current consumer trends. While the plant-based protein sector is thriving, with increasing sales of soy and nut-based products, consumer acceptance of algae in food items may still require more time. This could be a fundamental reason behind the company’s performance issues that led to its bankruptcy. “We’re aware of the gradual acceptance trends among many consumers,” said Joel Warady, chief sales and marketing officer for Enjoy Life Foods, which incorporates TerraVia’s algal powder in some of its offerings. He noted that while algae has been added to their brownie mix, emphasizing it prominently on the packaging might make consumers hesitant. “However, algae is a crucial ingredient, not only for its protein content but also because it represents the most sustainable protein available on Earth,” he added.
As the global population continues to rise, finding sufficient land to cultivate or produce staple products—many of which are meat or dairy-based—has become 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 incorporated into more food products every day.
Nonetheless, Enjoy Life’s allergen-friendly food items cater to a relatively niche market, appealing to a specific, albeit growing, segment of consumers. Most large food corporations, which tend to be slow to innovate, have yet to adopt algae as an ingredient. However, according to TerraVia, the company is “actively engaged in discussions regarding potential strategic partnerships,” as CEO Apu Mody mentioned during the Q1 earnings call this year.
While it seems unlikely that a major food company will come forward with an acquisition proposal for TerraVia, an ingredients company like Corbion may prove to be a more suitable partner. Corbion specializes in lactic acid and its derivatives, as well as creating functional blends that include enzymes, emulsifiers, minerals, and vitamins. The company supplies ingredients across nearly all food categories, from baked goods and beverages to condiments and candy. As highlighted 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 leveraging Corbion’s extensive fermentation and downstream processing capabilities.” Additionally, incorporating algae into food products could offer consumers not only protein but also essential nutrients like calcium, citrate, magnesium, and zinc benefits, contributing to overall health and sustainability.