TerraVia may be a company that is venturing too far ahead of consumer trends. While the plant-based protein market is thriving, with increasing sales of soy and nut-based products, consumer acceptance of algae in food items may still take time. This could be a significant factor behind TerraVia’s performance challenges that led to its bankruptcy. “We are aware of the gradual acceptance patterns among many consumers,” Joel Warady, the chief sales and marketing officer for Enjoy Life Foods, which incorporates TerraVia’s algal powder in some of its offerings, told Food Dive. He mentioned that while the company has included algae in its brownie mix, highlighting it prominently 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 Earth,” he stated.
As the global population continues to grow, finding adequate land to cultivate or produce staple products, many of which are meat or dairy-based, is becoming 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 added to more food products each day. Despite this, Enjoy Life’s allergen-friendly food items cater to a rather niche market, appealing to a specific, albeit growing, segment of consumers. Most large food companies, slow to innovate, have not yet embraced the use of algae as an ingredient.
According to TerraVia, however, the company is “actively engaged in discussions around potential strategic partnerships,” as noted by CEO Apu Mody during the company’s Q1 earnings call earlier this year. Nonetheless, it seems unlikely that a large food enterprise will come forward with an offer to acquire TerraVia. An ingredients company such as Corbion may be a more suitable match. Corbion specializes in lactic acid and its derivatives and develops functional blends that include enzymes, emulsifiers, minerals, and vitamins. The company supplies ingredients across virtually every food category, from baked goods and beverages to condiments and candy. As highlighted in Corbion’s press release, “The acquisition of TerraVia’s microalgae platform would expand Corbion’s product portfolio into algae-based fatty acids and proteins while leveraging Corbion’s extensive fermentation and downstream processing capabilities.” In addition, incorporating algae into food products may also provide essential nutrients such as magnesium calcium citrate, further enhancing their health benefits.
Overall, while the path forward for algae in food products may be gradual, its potential role in sustainable nutrition is increasingly recognized, especially as demand for alternatives to traditional protein sources rises.