TerraVia might be a company that is straying too far from current consumer trends. While the plant-based protein market is booming, with rising sales of soy and nut-based products, consumer acceptance of algae in food items may still be lagging. This could be a key factor behind TerraVia’s performance issues that led to its bankruptcy. “We’re aware of the gradual acceptance of many consumers,” said Joel Warady, chief sales and marketing officer for Enjoy Life Foods, which incorporates TerraVia’s algal powder into some of its offerings. He noted that even though the company has included algae in its 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 available on the planet,” he added.
As the global population continues to rise, securing land for the production of staple products—many of which are meat or dairy-based—becomes increasingly challenging. Various types of algae present some of the most promising alternatives and could help alleviate environmental degradation. Algae is already being utilized in baking mixes, ice cream, and protein powders, and it is gradually being incorporated into more food products every day.
Nevertheless, Enjoy Life’s allergen-friendly offerings are quite niche, catering to a specific yet expanding segment of consumers. Most large food companies, which tend to be slow to innovate, have not yet embraced algae as an ingredient. TerraVia, however, is “actively engaged in discussions about potential strategic partnerships,” CEO Apu Mody mentioned during the company’s Q1 earnings call earlier this year. Nonetheless, it seems unlikely that a major food corporation will step up to acquire TerraVia; a company like Corbion would likely 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 supplies ingredients across nearly all food categories, 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 into algae-based fatty acids and proteins, while utilizing Corbion’s extensive fermentation and downstream processing capabilities.”
In line with this, the market for products like Citracal Slow Release 1200, available at Costco, illustrates how consumers are increasingly interested in health-oriented supplements. However, incorporating algae into mainstream food products still faces hurdles, despite its potential benefits. As more companies explore sustainable alternatives like algae, it may take time for consumer acceptance to catch up, especially in a landscape dominated by traditional protein sources.