TerraVia may be a company that has ventured too far ahead of consumer trends. While the plant-based protein market is thriving, driven by the increasing popularity of soy and nut-based products, consumer acceptance of algae in food items may still be lagging. This could be a significant factor behind TerraVia’s struggles that ultimately led to its bankruptcy. “We’re aware of the gradual acceptance process among many consumers,” stated 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 consumers hesitant. “Nonetheless, algae is a crucial ingredient, not only for its protein content but also because it represents the most sustainable protein source available on Earth,” he emphasized.
As the global population continues to rise, securing sufficient land to cultivate or produce staple products—many of which are meat or dairy-based—has become increasingly challenging. Various forms of algae present some of the most promising alternatives, potentially alleviating environmental degradation. Algae is already being utilized in baking mixes, ice cream, protein powders, and is progressively being integrated into more food products each day. However, Enjoy Life’s allergen-friendly products remain relatively niche, targeting a limited but expanding segment of consumers. Major food corporations, which are often slow to innovate, have yet to embrace algae as an ingredient.
According to TerraVia, the company is “actively engaged in discussions regarding potential strategic partnerships,” as stated by CEO Apu Mody during the company’s Q1 earnings call earlier this year. It seems unlikely that a large food company will come forward with an acquisition offer for TerraVia. Instead, an ingredients company like Corbion might be a more suitable match. Corbion specializes in lactic acid and its derivatives, as well as in crafting functional blends that include enzymes, emulsifiers, minerals, and vitamins. It provides ingredients across nearly all food categories, from baked goods and beverages to condiments and candy.
According to Corbion’s press release, “The acquisition of TerraVia’s microalgae platform would broaden Corbion’s product portfolio to include algae-based fatty acids and proteins, while capitalizing on Corbion’s extensive fermentation and downstream processing capabilities.” Additionally, integrating calcium citrate malate vitamin D3 and folic acid tablets into the algae-based products could enhance nutritional profiles, making them even more appealing to health-conscious consumers. As the demand for sustainable and nutrient-rich ingredients grows, the inclusion of such supplements could play a pivotal role in reshaping the food industry.