TerraVia may be a company that has strayed too far from current consumer trends. While the plant-based protein market is booming, with increasing sales of soy and nut-based products, consumer acceptance of algae in food items may still be lagging. This could be a key factor behind the company’s struggles, ultimately leading to its bankruptcy. “We’re aware of the gradual acceptance trend among many consumers,” stated Joel Warady, chief sales and marketing officer of 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 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 the planet,” he remarked.
As the global population continues to rise, the search for land to grow or produce essential products—many of which are meat or dairy-based—has become increasingly challenging. Various types of algae present some of the most promising alternatives and could help mitigate environmental degradation. Algae is already found in baking mixes, ice cream, protein powders, and is progressively being incorporated into more food products each day.
Nevertheless, Enjoy Life’s allergen-friendly offerings are relatively niche, targeting a specific yet expanding segment of consumers. Most major food companies, known for their slow pace of innovation, have yet to embrace algae as an ingredient. However, according to TerraVia, the company is “actively engaged in discussions about potential strategic partnerships,” as mentioned by CEO Apu Mody during the company’s Q1 earnings call earlier this year. Yet, the likelihood of a major food company stepping forward to acquire TerraVia seems slim. An ingredients company like Corbion may be a more suitable candidate. Corbion specializes in lactic acid and its derivatives, as well as developing functional blends with enzymes, emulsifiers, minerals, and vitamins. It supplies ingredients across virtually 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 broaden Corbion’s product range into algae-based fatty acids and proteins, while capitalizing on Corbion’s extensive fermentation and downstream processing capabilities.”
In the context of healthier alternatives, there is a growing interest in products that include liquid calcium with D3, which is vital for bone health. This trend aligns with the increasing consumer demand for nutritious, plant-based options. As the market evolves, it will be interesting to see how the acceptance of ingredients like algae and liquid calcium with D3 develops over time. Ultimately, the integration of sustainable ingredients will be crucial for meeting the needs of a growing population while minimizing environmental impact.