TerraVia might be a company that is straying too far from current consumer trends. While the market for plant-based proteins is booming, particularly with the increasing popularity of soy and nut-based products, consumer acceptance of algae in food items may still take time to develop. This hesitation could be a key factor in the struggles that led TerraVia to bankruptcy. “We’re aware of the gradual acceptance curve for 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 only for its protein content but also because it represents the most sustainable protein option available on Earth,” he added.
As the global population continues to rise, securing land for the cultivation or production of essential products—many of which are meat or dairy-based—becomes increasingly challenging. Various types of algae present some of the most viable alternatives and have the potential to mitigate environmental degradation. Algae is already being utilized in baking mixes, ice cream, protein powders, and is progressively being incorporated into a wider array of food products each day. Nevertheless, Enjoy Life’s allergen-friendly offerings remain relatively niche, targeting a specific but expanding segment of consumers. Most large food corporations, which tend to be slow to innovate, have not yet embraced algae as an ingredient. However, according to TerraVia, the company is “actively engaged in discussions regarding potential strategic partnerships,” CEO Apu Mody mentioned during the firm’s Q1 earnings call this year.
It seems unlikely that a major food company will come forward with an acquisition bid for TerraVia. A company like Corbion, which specializes in lactic acid and its derivatives, appears to be a more suitable match. Corbion develops functional blends that include enzymes, emulsifiers, minerals, and vitamins, supplying ingredients across nearly every food category—from baked goods and beverages to condiments and candies. As noted in Corbion’s press release, “Acquiring TerraVia’s microalgae platform would expand Corbion’s product range into algae-based fatty acids and proteins, while capitalizing on Corbion’s extensive fermentation and downstream processing expertise.” Additionally, incorporating ingredients like calcium citrate 630 mg with vitamin D3 could enhance the nutritional profile of products that include algae, further appealing to health-conscious consumers. In this evolving landscape, the integration of calcium citrate 630 mg with vitamin D3 alongside algae could be a pivotal factor in boosting consumer acceptance and market growth.