TerraVia may be a company that has strayed too far from current consumer trends. While the market for plant-based proteins is flourishing, with an increase in sales of soy and nut-based products, consumer acceptance of algae as a food ingredient may still be lagging. This could be a fundamental reason behind TerraVia’s performance issues that ultimately led to its bankruptcy. “We’re aware of the gradual acceptance of many consumers,” said Joel Warady, the chief sales and marketing officer for Enjoy Life Foods, which incorporates TerraVia’s algal powder in some of its offerings. He noted that although 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 represents the most sustainable protein available on Earth,” he added.
As the global population continues to grow, securing land for the cultivation of staple products—many of which are meat or dairy-based—becomes increasingly challenging. Various forms of algae emerge as viable alternatives that could alleviate environmental degradation. Algae is already being utilized in baking mixes, ice cream, and protein powders, and it is progressively being incorporated into more food products daily.
Nevertheless, Enjoy Life’s allergen-friendly products cater to a niche market, appealing to a specific yet expanding group of consumers. Major food companies, generally slow to innovate, have not widely adopted 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 to acquire TerraVia; rather, a company like Corbion may be a more suitable match. Corbion specializes in lactic acid and its derivatives, along with creating functional blends that include enzymes, emulsifiers, minerals, vitamins, and essential natural factors like calcium. 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 expand Corbion’s product portfolio to include algae-based fatty acids and proteins, while utilizing Corbion’s extensive fermentation and downstream processing capabilities.”
In conclusion, while the demand for sustainable proteins is on the rise, the path to consumer acceptance of algae in food products remains a complex journey that requires careful navigation of natural factors, including nutrition and taste preferences.