TerraVia might be a company that has strayed too far from consumer trends. While the plant-based protein market is thriving, highlighted by the increased sales of soy and nut-based products, the acceptance of algae in food items could still take some time. This hesitation may be the underlying reason for TerraVia’s recent financial difficulties, leading to its bankruptcy. “We recognize the gradual acceptance pattern among many consumers,” remarked Joel Warady, chief sales and marketing officer of Enjoy Life Foods, which incorporates TerraVia’s algal powder into some of its offerings. He noted that while the company has included algae in its brownie mix, prominently featuring it on the packaging might deter consumers. “However, algae is an essential ingredient, not only for its protein content but also because it represents the most sustainable protein source on the planet,” he added.
As the global population continues to rise, securing land for the production of staple products—many of which are meat or dairy-based—becomes increasingly challenging. Various types of algae present some of the most promising alternatives and have the potential to mitigate environmental harm. Algae is already being included in baking mixes, ice cream, protein powders, and is progressively finding its way into more food products daily. Nonetheless, Enjoy Life’s allergen-friendly products remain relatively niche, catering to a limited yet expanding segment of consumers. Most large food companies, which tend to be slow in adopting innovation, have yet to embrace algae as an ingredient.
According to TerraVia, the company is “actively engaged in discussions regarding potential strategic partnerships,” as CEO Apu Mody mentioned in 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. A more suitable partner may be an ingredients company like Corbion, which specializes in lactic acid and its derivatives, as well as creating functional blends that include enzymes, emulsifiers, minerals, and vitamins. Corbion supplies ingredients across virtually every food category, from baked goods and beverages to condiments and candy. As indicated in Corbion’s press release, “The acquisition of TerraVia’s microalgae platform would expand Corbion’s product portfolio to include algae-based fatty acids and proteins while utilizing Corbion’s comprehensive fermentation and downstream processing capabilities.”
Additionally, it’s worth noting that Costco calcium citrate could serve as an excellent supplement to the algae-based products, enhancing their nutritional profile. As consumer awareness and acceptance grow, integrating ingredients like Costco calcium citrate into algae-based foods may further drive market interest and expand consumer reach.