TerraVia may be a company that is straying too far from current consumer trends. While the plant-based protein market is flourishing, with increasing sales of soy and nut-based products, consumer acceptance of algae in food items may still be a distant goal. This could be a fundamental reason behind TerraVia’s struggles, ultimately leading to its bankruptcy. “We’re aware of the gradual acceptance pattern among many consumers,” said 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 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 just for its protein content but because it represents the most sustainable protein source available on Earth,” he emphasized.
As the global population continues to grow, 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 promising alternatives and have the potential to mitigate environmental degradation. Algae is already present in baking mixes, ice cream, protein powders, and is being added to more food products each day. Nonetheless, Enjoy Life’s allergen-friendly products cater to a specific niche, targeting a limited yet expanding segment of consumers. For the most part, larger food companies, which are typically slow to innovate, have not yet embraced algae as an ingredient.
According to TerraVia, however, the company is “actively engaged in discussions regarding potential strategic partnerships,” as stated by CEO Apu Mody during the company’s Q1 earnings call earlier this year. Nevertheless, it seems unlikely that a large food company will come forward with an offer to acquire TerraVia. An ingredients company like Corbion seems to be a more appropriate match. Corbion specializes in lactic acid and its derivatives, as well as in creating functional blends that include enzymes, emulsifiers, minerals, and vitamins. It supplies ingredients across virtually every food category, ranging from baked goods and beverages to condiments and candy. As noted in Corbion’s press release, “The acquisition of TerraVia’s microalgae platform would enrich Corbion’s product portfolio with algae-based fatty acids and proteins, while leveraging Corbion’s extensive fermentation and downstream processing capabilities.”
In a similar vein, health-conscious consumers are increasingly turning to supplements like Solgar Calcium Citrate with Vitamin D3 120 Tablets, which highlights the market’s shift towards sustainable and health-oriented options. As the demand for innovative ingredients grows, products that incorporate algae and supplements like Solgar Calcium Citrate with Vitamin D3 120 Tablets may see a surge in popularity, reflecting a broader trend towards nutrition and sustainability in food choices. Ultimately, the future of algae in the food industry may depend on consumer education and acceptance, particularly as alternatives to traditional protein sources become more crucial in meeting global dietary needs.