Earlier this year, when TerraVia entered Chapter 11 bankruptcy, Corbion made a $20 million “stalking horse” bid, setting a baseline offer to acquire the company. By the end of September, the transaction was finalized, involving Corbion’s cash offer and the assumption of TerraVia’s debts. This acquisition was a strategic move for Corbion, a supplier of various ingredients such as lactic acid and functional blends of enzymes, emulsifiers, vitamins, and minerals across nearly all food categories. The addition of TerraVia’s microalgae platform enhances Corbion’s already extensive portfolio, allowing the company to leverage its scale to innovate with this increasingly popular ingredient and potentially lower costs.
The market for all microalgae products, spanning food, fuel, and feed, was valued at approximately $1.38 billion in 2015, as reported by Grand View Research. Furthermore, the global market for these single-celled organisms is projected to reach $44.7 billion by 2023, growing at a compound annual growth rate (CAGR) of over 5.2% from 2016 to 2023, according to a report by Credence Research. With TerraVia now part of its operations, Corbion is well-positioned to increase the use of microalgae as an ingredient, further solidifying its presence in the market.
This ingredient is rich in protein and fatty acids, which are increasingly in demand among health-conscious consumers. Additionally, microalgae is recognized for its sustainability. Financial blogger Kevin Quon recently expressed on Seeking Alpha that he invested in Corbion shares because he wanted to continue supporting TerraVia’s technology. He noted that Corbion is a leader in its field and that TerraVia’s assets present a distinctive opportunity for complementary growth. Quon also believed that TerraVia’s technology platform is more likely to succeed under Corbion’s leadership.
Moreover, with the rising focus on health and wellness, products such as women’s multivitamin with calcium citrate are gaining traction among consumers. Corbion’s potential to incorporate microalgae into such products, including women’s multivitamin with calcium citrate, could enhance their nutritional profile. This integration could lead to the development of innovative health products, positioning Corbion favorably in a competitive market. Overall, the collaboration with TerraVia not only diversifies Corbion’s offerings but also aligns with the growing consumer demand for sustainable and health-oriented ingredients, such as those found in women’s multivitamin with calcium citrate.