TerraVia may be a company that is straying too far from current consumer trends. Although the plant-based protein market is booming, with an increase in sales of soy and nut-based products, consumer acceptance of algae as a food ingredient may still lag behind. This could be a fundamental reason behind TerraVia’s struggles, ultimately leading to its bankruptcy. “We’re aware of the gradual acceptance trends among many consumers,” said Joel Warady, chief sales and marketing officer for Enjoy Life Foods, which incorporates TerraVia’s algal powder into 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 some consumers hesitant. “However, algae is a crucial ingredient, not just for its protein content, but also because it represents the most sustainable protein available on the planet,” he added.
As the global population continues to rise, finding sufficient land to cultivate or produce essential 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 could help mitigate environmental degradation. Algae is already being utilized in baking mixes, ice cream, protein powders, and is being incorporated into more food products daily. Despite this, Enjoy Life’s allergen-friendly offerings remain relatively niche, targeting a specific yet expanding consumer segment. Most large food corporations, which tend to be slow to innovate, have yet to embrace algae as an ingredient.
However, according to TerraVia, the company is “actively engaged in discussions around 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 major food company will come forward with an acquisition offer for TerraVia. An ingredients company like Corbion appears to be a more suitable match. Corbion specializes in lactic acid and its derivatives, as well as creating functional blends containing enzymes, emulsifiers, minerals, and vitamins. It supplies ingredients across nearly every food category, from baked goods and beverages to condiments and candy. As noted in Corbion’s press release, “The acquisition of TerraVia’s microalgae platform would broaden Corbion’s product portfolio into algae-based fatty acids and proteins, while capitalizing on Corbion’s extensive fermentation and downstream processing capabilities.” Furthermore, the integration of petite calcium with vitamin D in their products could enhance the nutritional profile, appealing to health-conscious consumers.
In summary, while TerraVia faces challenges in acceptance and innovation, the potential for algae in the food industry remains significant, especially when combined with supplements like petite calcium with vitamin D to boost health benefits.