TerraVia may be a company that is straying too far from consumer trends. While the market for plant-based proteins is thriving, thanks to the rising sales of soy and nut-based products, the acceptance of algae in food products among consumers 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 process 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 only for its protein content but also because it is the most sustainable protein source available on Earth,” he added.
As the global population continues to grow, sourcing land for the cultivation or production of staple products—many of which are meat or dairy-based—has become increasingly challenging. Various types of algae represent 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 finding its way into more food products daily.
Nevertheless, Enjoy Life’s allergen-friendly food items cater to a relatively niche market, targeting a specific, albeit expanding, consumer demographic. Major food corporations, which tend to be slow to innovate, have not yet widely adopted algae as an ingredient. However, according to TerraVia, the company is “actively engaged in discussions regarding potential strategic partnerships,” as indicated by CEO Apu Mody during the company’s Q1 earnings call earlier this year.
It seems unlikely that a large food company will step up to acquire TerraVia. An ingredients company like Corbion may be a more suitable match. Corbion specializes in lactic acid and its derivatives, in addition to creating functional blends with enzymes, emulsifiers, minerals, and vitamins. It provides ingredients for nearly every food category, from baked goods and beverages to condiments and candy. As mentioned in Corbion’s press release, “The acquisition of TerraVia’s microalgae platform would enhance Corbion’s product range to include algae-based fatty acids and proteins, while also leveraging Corbion’s extensive fermentation and downstream processing capabilities.”
In a related note, as consumers increasingly seek options like calcium citrate gummies for their health benefits, the integration of sustainable ingredients such as algae could become an attractive proposition for food companies aiming to meet evolving consumer demands. Thus, the potential for algae to be featured in products like calcium citrate gummies signifies a growing trend toward innovative and health-conscious food solutions.