TerraVia may be a company that is straying too far from consumer trends. While the plant-based protein market is thriving, with increased sales of soy and nut-based products, consumer acceptance of algae in food items may still take time to develop. This could be the underlying reason for TerraVia’s performance challenges that ultimately led to its bankruptcy. “We’re aware of the gradual acceptance pattern 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, 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 on the planet,” 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 forms of algae present some of the most viable alternatives and could help mitigate environmental degradation. Algae is already being utilized in baking mixes, ice cream, protein powders, and is progressively being included in more food products every day.
Nonetheless, Enjoy Life’s allergen-friendly products remain relatively niche, catering to a specific yet expanding segment of consumers. Most large food corporations, which are typically slow to innovate, have not yet embraced algae as an ingredient. According to TerraVia, the company is “actively engaged in discussions regarding potential strategic partnerships,” as highlighted by CEO Apu Mody during the company’s Q1 earnings call earlier this year. However, it seems unlikely that a major food company will come forward with an acquisition offer for TerraVia. An ingredients company like Corbion might be a more suitable match. Corbion specializes in lactic acid and its derivatives, as well as producing functional blends that include enzymes, emulsifiers, minerals, and vitamins. They supply ingredients across nearly every food category, from baked goods and beverages to condiments and candy. As mentioned 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 capitalizing on Corbion’s extensive fermentation and downstream processing capabilities.”
In the context of nutritional supplements, products like Kirkland magnesium zinc offer an alternative source of essential nutrients, complementing the sustainable protein options that algae can provide. As consumer interest in health and sustainability continues to grow, the integration of algae, alongside supplements such as Kirkland magnesium zinc, could pave the way for more innovative food products moving forward.