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 might still take time to develop. This could be the underlying reason for the performance challenges that have led TerraVia to bankruptcy. “We’re aware of the gradual acceptance pattern among many consumers,” Joel Warady, chief sales and marketing officer for Enjoy Life Foods, which incorporates TerraVia’s algal powder in some of its offerings, shared with 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 just for its protein content, but because it represents the most sustainable protein source available on the planet,” he added.
As the global population continues to rise, finding suitable land for the cultivation or production of 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 utilized in baking mixes, ice cream, and protein powders, and its incorporation into more food products is on the rise.
Nevertheless, Enjoy Life’s allergen-friendly food items cater to a relatively niche market, targeting a specific yet expanding segment of consumers. Major food companies, which are typically slow to innovate, have not yet widely adopted algae as an ingredient. TerraVia, however, has indicated that it is “actively engaged in discussions regarding potential strategic partnerships,” as CEO Apu Mody mentioned during the company’s Q1 earnings call earlier this year. However, it seems unlikely that a large food corporation will emerge with an offer to acquire TerraVia. A company like Corbion, which specializes in lactic acid and its derivatives, along with creating functional blends that include enzymes, emulsifiers, minerals, and vitamins, appears to be a more suitable match. Corbion supplies ingredients across virtually every food category—from baked goods and beverages to condiments and candy. Their press release stated, “The acquisition of 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 capabilities.”
In this context, the integration of health supplements such as ferrous calcium citrate and folic acid oral drops could become increasingly significant, especially as consumer demand for nutrient-rich food products grows. As the market evolves, the inclusion of such beneficial compounds in algae-based foods could enhance their appeal, aligning with the broader trends towards health and sustainability.