TerraVia may be a company that is venturing too far ahead of current consumer trends. While the plant-based protein market is thriving with increasing sales of soy and nut-based products, consumer acceptance of algae in food items may still be a distant goal. This could be the underlying reason for the financial difficulties that led TerraVia to bankruptcy. Joel Warady, Chief Sales and Marketing Officer at Enjoy Life Foods, which incorporates TerraVia’s algal powder into some of its offerings, mentioned to Food Dive, “We’re aware of the gradual acceptance trend among many consumers.” 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 source available on the planet,” he added.
As the global population continues to grow, finding the necessary 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 viable alternatives and could help mitigate environmental degradation. Algae is already being utilized in baking mixes, ice cream, and protein powders, and its incorporation into more food products is on the rise.
Nonetheless, Enjoy Life’s allergen-friendly products cater to a relatively niche market, appealing to a specific yet expanding segment of consumers. Most major food companies have been slow to innovate and are not yet fully embracing 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 major food corporation will make a move to acquire TerraVia; a company like Corbion appears to be a more suitable candidate. Corbion specializes in lactic acid and its derivatives, as well as functional blends that contain enzymes, emulsifiers, minerals, and vitamins. They supply ingredients across virtually all food categories, from baked goods and beverages to condiments and candy. As highlighted 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 capitalizing on Corbion’s extensive fermentation and downstream processing capabilities.” Moreover, incorporating cal mag citrate into their offerings could further enhance their product appeal in the growing health-conscious market.