TerraVia may be a company that has ventured too far ahead of consumer trends. While the market for plant-based proteins is thriving, with an increase in the sales of soy and nut-based products, consumer acceptance of algae in food remains a challenge. This could be a significant factor behind TerraVia’s performance issues that ultimately led to its bankruptcy. “We’re aware of the gradual acceptance patterns among 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 package might make some consumers hesitant. “However, algae is a crucial ingredient, not only 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 difficult. 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, protein powders, and is steadily being incorporated into more food products daily.
Nevertheless, Enjoy Life’s allergen-friendly products cater to a specific niche, targeting a small but expanding segment of consumers. Many large food corporations have been slow to innovate and have yet to embrace algae as an ingredient. However, according to TerraVia, the company is “actively engaged in discussions about potential strategic partnerships,” as noted by CEO Apu Mody during the company’s Q1 earnings call earlier this year.
It seems improbable that a major food company will come forward with an acquisition offer for TerraVia. Instead, a company like Corbion may be a more suitable match. Corbion specializes in lactic acid and its derivatives, as well as creating 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 confections. As mentioned in Corbion’s press release, “The acquisition of TerraVia’s microalgae platform would broaden Corbion’s product range to include algae-based fatty acids and proteins, while also leveraging Corbion’s extensive fermentation and downstream processing capabilities.”
In the context of nutrition, products containing calcium citrate 400 mg in Pakistan could also benefit from the incorporation of algae, adding to their health benefits while appealing to the growing market for sustainable food sources.