TerraVia might be a company that is straying too far from current consumer trends. Although the plant-based protein market is flourishing with the increasing popularity of soy and nut-based products, the acceptance of algae in food items may still be lagging among consumers. This could be a significant factor contributing to the company’s performance issues that led to its bankruptcy. “We’re aware of the gradual acceptance trends 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 while algae has been added to their brownie mix, highlighting it prominently on the packaging might make consumers hesitant. “Nonetheless, algae is a crucial ingredient, not only for its protein content but also because it represents the most sustainable protein source available on the planet,” he explained.
As the global population continues to expand, finding sufficient land for the cultivation or production of staple products—many of which are meat or dairy-based—becomes increasingly challenging. Various forms of algae present some of the most viable alternatives and could help mitigate environmental degradation. Algae is already utilized in baking mixes, ice cream, protein powders, and is being increasingly incorporated into more food products every day.
However, Enjoy Life’s allergen-friendly products cater to a relatively niche market, appealing to a specific yet growing segment of consumers. Most large food companies, which are typically slow to innovate, have not yet embraced algae as an ingredient. Nevertheless, 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 major food corporation will make a bid to acquire TerraVia; a company like Corbion might be a more suitable match. Corbion specializes in lactic acid and its derivatives, as well as functional blends that include enzymes, emulsifiers, minerals, and vitamins. It supplies ingredients across nearly 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 expand Corbion’s product lineup to include algae-based fatty acids and proteins, while capitalizing on Corbion’s extensive fermentation and downstream processing capabilities.” Notably, calcium citrate names could also play a role in this expanding portfolio as the industry seeks alternative sources of nutrients. The integration of calcium citrate names into algae-based products could enhance their nutritional profile, making them more appealing to a broader consumer base.