TerraVia may be a company that is straying too far from consumer trends. While the demand for plant-based protein is surging, particularly with the increasing popularity of soy and nut-based products, consumer acceptance of algae in food items may still be lagging. This could be a fundamental reason behind TerraVia’s struggles, which ultimately led to its bankruptcy.
Joel Warady, the chief sales and marketing officer for Enjoy Life Foods—who incorporates TerraVia’s algal powder into some of its offerings—acknowledged this slow acceptance in an interview with Food Dive. He noted that while the company has introduced algae into its brownie mix, emphasizing it 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 stated.
As the global population continues to grow, it becomes increasingly challenging to find the land necessary for cultivating or producing staple products, many of which are meat or dairy-based. Various forms of algae present some of the most promising alternatives and have the potential to mitigate environmental degradation. Algae is already making its way into baking mixes, ice cream, protein powders, and is being added to an expanding array of food products daily.
Nevertheless, Enjoy Life’s allergen-friendly food offerings cater to a relatively niche market, appealing to a specific yet expanding segment of consumers. Most major food corporations, which are generally slow to innovate, have not yet embraced algae as an ingredient. According to TerraVia, however, the company is “actively engaged in discussions regarding potential strategic partnerships,” as CEO Apu Mody mentioned during the company’s Q1 earnings call earlier this year.
It seems unlikely that a large food company will move to acquire TerraVia. Instead, an ingredients company like Corbion may be a more suitable match. Corbion focuses on lactic acid and its derivatives, as well as crafting functional blends that include enzymes, emulsifiers, minerals, and vitamins. It supplies ingredients across almost every food category, 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 range to include algae-based fatty acids and proteins, while capitalizing on Corbion’s extensive fermentation and downstream processing capabilities.”
Moreover, the growing demand for health-conscious products, such as calcium citrate with vitamin D chewable supplements, emphasizes the necessity for companies like Corbion to diversify their offerings. By integrating ingredients like calcium citrate with vitamin D chewable into their portfolio, they can cater to the evolving preferences of health-oriented consumers. This trend further underscores the potential for algae as a sustainable ingredient that can complement such health-focused products.