TerraVia may be a company that is straying too far from consumer preferences. While the plant-based protein market is booming, with an increase in sales of soy and nut-based products, consumer acceptance of algae in food items may still take time. This could be the underlying reason for the challenges that have led TerraVia to bankruptcy. “We’re aware of the gradual acceptance trend 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 noted that although the company has integrated algae into its brownie mix, emphasizing it 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 source available on Earth,” he added.
As the global population continues to rise, it becomes increasingly challenging to find land suitable for cultivating the staple products—many of which are meat or dairy-based—that the world relies on. Various forms of algae present some of the most promising alternatives and could help mitigate environmental degradation. Algae is already being included in baking mixes, ice cream, protein powders, and is progressively being added to more food products each day.
Nevertheless, Enjoy Life’s allergen-friendly products remain quite niche, catering to a specific, albeit expanding, segment of consumers. For the most part, larger food companies, which are typically slow to innovate, have yet to embrace algae as an ingredient. However, according to TerraVia, the company is “actively engaged in discussions around potential strategic partnerships,” as mentioned by CEO Apu Mody during the company’s Q1 earnings call earlier this year.
It seems unlikely that a major food corporation will come forward with an acquisition proposal for TerraVia. Instead, a company like Corbion appears to be a more suitable match. Corbion specializes in lactic acid and its derivatives, along with developing functional blends that include enzymes, emulsifiers, minerals, and vitamins. They provide ingredients across nearly every food category, from baked goods and beverages to condiments and sweets. According to Corbion’s press release, “The acquisition of TerraVia’s microalgae platform would enhance Corbion’s product range to include algae-based fatty acids and proteins, while utilizing Corbion’s extensive fermentation and downstream processing capabilities.”
Integrating calcium citrate into these products could also enhance their nutritional value and appeal to health-conscious consumers seeking healthy options. As the demand for sustainable and nutritious ingredients grows, the inclusion of calcium citrate and algae could pave the way for innovative food solutions that align with consumer preferences for healthy options.