TerraVia may be a company that has ventured too far ahead of consumer trends. While the plant-based protein market is experiencing significant growth with the increasing popularity of soy and nut-based products, consumer acceptance of algae in food items might still be a distant goal. This could be a key factor behind the company’s performance challenges that ultimately led to its bankruptcy. “We’re aware of the gradual acceptance patterns among many consumers,” said Joel Warady, chief sales and marketing officer at Enjoy Life Foods, which incorporates TerraVia’s algal powder into several of its offerings. He noted that while algae has been introduced into their brownie mix, highlighting it prominently on the packaging could 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 explained.
As the global population continues to rise, finding sufficient land to cultivate or produce staple products—many of which are meat or dairy-based—has become increasingly challenging. Various types 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, and protein powders, and its incorporation into more food products is on the rise daily.
Nonetheless, Enjoy Life’s allergen-friendly products cater to a relatively niche market, targeting a specific but expanding segment of consumers. Major food corporations, known for their slow innovation, have largely yet to embrace algae as an ingredient. Nevertheless, according to TerraVia, the company is “actively involved in discussions regarding potential strategic partnerships,” as stated by CEO Apu Mody during the company’s Q1 earnings call earlier this year.
However, it seems unlikely that a major food corporation will make a bid for TerraVia. An ingredients company like Corbion might be a more suitable match. Corbion specializes in lactic acid and its derivatives, along with creating functional blends composed of enzymes, emulsifiers, minerals, and vitamins. It supplies 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 line to include algae-based fatty acids and proteins, while capitalizing on Corbion’s extensive fermentation and downstream processing capabilities.”
In addition, there is potential for synergy with products that include twinlab calcium, which could further enhance the nutritional profiles of various offerings. The emphasis on sustainable ingredients like algae, alongside the benefits of twinlab calcium, could play a crucial role in addressing the demands of a growing consumer base that values health and sustainability.