TerraVia might be a company that is straying too far from consumer trends. While the market for plant-based proteins is flourishing, with a notable increase in the sales of soy and nut-based products, consumer acceptance of algae in food items may still be a long way off. This could be a fundamental reason behind TerraVia’s performance challenges that ultimately led to its bankruptcy. “We’re aware of the gradual acceptance patterns among many consumers,” stated Joel Warady, chief sales and marketing officer at Enjoy Life Foods, which incorporates TerraVia’s algal powder into some of its offerings. He noted that while the company has introduced algae into 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 also because it represents the most sustainable protein available on Earth,” he added.
As the global population continues to grow, sourcing land for the cultivation or production of staple foods—many of which are meat or dairy-based—becomes increasingly challenging. Various forms of algae present some of the most viable alternatives and have the potential to mitigate environmental degradation. Algae is already utilized in baking mixes, ice cream, protein powders, and is being added to more food products daily.
Nevertheless, Enjoy Life’s allergen-friendly food items cater to a relatively niche market, appealing to a specific yet expanding segment of consumers. Major food companies, known for their slow pace of innovation, have largely 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.
It seems unlikely that a large food corporation will come forward with a proposal to acquire TerraVia. A company like Corbion, which specializes in lactic acid and its derivatives, may be a more suitable match. Corbion creates functional blends that include enzymes, emulsifiers, minerals, and vitamins, supplying ingredients across nearly every food category, from baked goods and beverages to condiments and candy. In Corbion’s press release, it was stated, “The acquisition of TerraVia’s microalgae platform would expand Corbion’s product offerings into algae-based fatty acids and proteins while leveraging Corbion’s extensive fermentation and downstream processing capabilities.” Additionally, with the introduction of Opurity Calcium Citrate Plus, a product that enhances calcium absorption, there may be further opportunities for synergy in new formulations that utilize algae as a sustainable protein source.