Key Takeaways:
- Insect farming offers a sustainable alternative to traditional protein sources, addressing global food security and environmental concerns.
- The industry faces challenges such as regulatory hurdles, cultural perceptions, and the need for more research and development.
- Significant growth is noted in the market, with projections showing a compound annual growth rate of 27.4% from 2021 to 2028.
- Europe, North America, and Asia Pacific are key markets, with notable growth in the livestock and pet food segments.
- Consumer acceptance and efficient production scaling remain critical challenges for the industry’s future.
Introduction
Imagine a future where our protein doesn’t come from the vast fields and barns rearing cattle and poultry but from compact, sustainable farms buzzing with the activity of insects. This future is not as far-fetched as it might sound. As the global population edges towards 9 billion by 2050, our insatiable demand for protein pushes traditional sources to their environmental limits. Enter the world of insect farming, an innovative solution quietly revolutionizing how we think about food and sustainability.
Insect farming stands at the crossroads of necessity and innovation, offering a beacon of hope for addressing global food security while significantly reducing our environmental footprint. This burgeoning industry not only promises a high-yield, low-impact source of protein but also challenges our cultural perceptions of what constitutes food. As we navigate regulatory hurdles, consumer skepticism, and the technical challenges of scaling up, the question remains: can insects truly be the future of food?
In the following exploration, we delve into the growth, challenges, and potential of insect farming as a sustainable alternative to conventional protein sources. From reducing greenhouse gas emissions to providing a lifeline in the fight against malnutrition, the tale of insect farming is not just about the food of tomorrow but a testament to human ingenuity in the face of pressing global challenges.
The Rise of Insect Farming
As the global population continues to grow, the demand for protein is increasing. However, traditional protein sources, such as cattle and poultry, are considered to contribute to global carbon emissions. Nonetheless, the actual figures vary from one study to another. For example, livestock farming is responsible for approximately 14.5% of global greenhouse gas emissions, according to a report by the United Nations Food and Agriculture Organization (FAO) 2013. Still, the Breakthrough Institute showed that depending on the study, the number varied from as low as 11% to as high as 19%. This is due to the large amount of land, water, and feed required to rear animals for human consumption. In addition, livestock farming is a leading cause of deforestation, soil degradation, and water pollution, according to a study published in Science in 2018. Therefore, finding alternative protein sources for humans, livestock, and pets can be one potential solution to the challenges experienced by this industry and our food production supply chain.
One of the reasons we need to find alternative protein sources is the need to address food insecurity. Many parts of the world still suffer from malnutrition and hunger, and traditional livestock farming is not a viable solution to address this issue. Alternative protein sources, such as insect-based proteins, are considered a more sustainable and accessible solution to providing food for those in need. Insects are easy to rear, require minimal space and resources, and have a low environmental impact. This makes them a viable solution for sustainable food production, especially in developing countries with challenging access to resources.
The use of insect-based protein as a substitute for traditional whey protein is gaining attention in the nutrition and sustainability industries. Unlike whey, which requires extensive dairy farming and has a negative impact on the environment, insect-based protein is a more sustainable and eco-friendly option. Insects like crickets are rich in high-quality protein, essential amino acids, vitamins, and minerals, making them a complete and healthy source of nutrition. Their production requires less land, water, and feed than traditional livestock, and they emit fewer greenhouse gases, which is beneficial for the environment. Insect-based proteins are an excellent alternative for people who want to consume lactose-free, gluten-free, and more environmentally friendly protein sources. Furthermore, some studies have shown that certain insect-based proteins, such as crickets, are more easily digestible than traditional whey protein, meaning that the body can absorb more protein. Additionally, these proteins offer a more complete nutritional profile.
Insect Farming Market: Growth, Perspectives, Players, and Key Markets
The insect farming market has experienced significant growth in recent years, driven by the increasing demand for sustainable protein sources and the growing awareness of the environmental impact of traditional livestock farming. As a result, the global insect protein market size is estimated, according to Mordor Intelligence, at USD 3.80 billion in 2024 and is expected to reach USD 9.04 billion by 2029, growing at a CAGR of 18.89% during the forecast period (2024-2029).
The perspectives for the insect farming market are promising, as more companies and entrepreneurs are exploring innovative ways to integrate insect farming into the food supply chain and tackle global food insecurity and sustainability challenges. Insect farming offers various opportunities, including food production, animal feed, and pet food, as well as the production of insect-based products such as fertilizers, cosmetics, and pharmaceuticals, as we covered in the previous part. In addition, the use of insects as a source of protein is gaining acceptance, and regulatory support for the insect farming industry is growing in some countries. The European Union has approved (towards the end of 2022) the sale of cricket larvae in various forms, including powder, paste, frozen, and dried. Partially defatted powder is one of the ways crickets can be sold.
Key insect farming market players include Protifarm, Ynsect, Aspire Food Group, Beta Hatch, and Entomo Farms. These companies are leveraging technology and innovation to improve farming practices and scale production, making insect farming more efficient and cost-effective. They are also exploring new markets and applications for insect-based products, such as using insect protein in plant-based foods and developing new insect-based ingredients for the cosmetics and pharmaceutical industries.
The insect farming market is currently concentrated in Europe, North America, and Asia Pacific, with the Netherlands, France, Canada, and China being some of the most important markets. The Netherlands is a leading producer of insects for human consumption, with several insect farming companies and research institutions based in the country. France is also a significant player in the insect farming market, focusing on using insects as animal feed. In North America, Canada and the United States are emerging as key markets, with a growing demand for insect-based protein and a supportive regulatory environment. Finally, in Asia Pacific, China is leading the way in insect farming, focusing on using insects as a source of animal feed and pet food.
The insect farming market’s livestock and pet food segments are expected to experience significant growth in the coming years. This is because insects offer a sustainable and cost-effective alternative to traditional protein sources for animal feed. As a result, the demand for insect-based feed is growing in the livestock and pet food industries.
The Insect Feed Market size is estimated at USD 1.23 billion in 2024, according to Mordor Intelligence, and is expected to reach USD 2.13 billion by 2029, growing at a CAGR of 11.70% during the forecast period (2024-2029). Insects such as black soldier flies, crickets, and mealworms are becoming increasingly popular as a source of protein and other essential nutrients for livestock and aquaculture.
Similarly, the global market for insect-based pet food is also expected to grow significantly in the coming years. Insects such as crickets, mealworms, and black soldier fly used in pet food products as a sustainable and protein-rich alternative to traditional animal-based ingredients.
The growth in the insect farming market’s livestock and pet food segments is driven by several factors, including the increasing demand for sustainable protein sources, the growing awareness of the environmental impact of traditional livestock farming, and the need to address food insecurity. In addition, insects are an excellent source of protein, vitamins, and minerals accessible to the rear, requiring minimal space and resources and having a low environmental impact. As more companies and entrepreneurs explore innovative ways to integrate insect farming into the food supply chain, the insect farming market’s livestock and pet food segments are expected to grow.
Recent Developments in Insect-Based Protein Sector
NAIC Launches to Optimize Insect Protein Production in North America
The North American Insect Center (NAIC) is a collaborative venture between Bühler and NRGene Canada, with its focus on optimizing insect protein production in North America. Situated in Saskatoon, the facility serves as a testing ground for Black Soldier Fly (BSF) larvae strains and the evaluation of the economic feasibility of larger insect protein plants. Equipped with state-of-the-art technology, NAIC is dedicated to supporting the development of sustainable protein sources that are essential for global food security. The center is committed to fostering industry collaboration by conducting customer trials, workshops, and training sessions, all aimed at promoting best practices in insect protein production. NAIC’s establishment is expected to enhance Saskatchewan’s standing as a leader in agricultural biotechnology and alternative protein research.
Joint Investment Boosts Latin American Biotech Firm
Sumitomo Corporation, via its Brazilian subsidiary, alongside Lambarin Investimentos, a local family office, has made a significant Seed investment in Cyns, a biotech leader in Latin America known for its black soldier fly (BSF) farming. Cyns, headquartered in Sao Paulo, Brazil, stands at the forefront of BSF-based animal nutrition innovation in the region, championing sustainable and efficient insect-based feed solutions. This financial injection is earmarked for Cyns’ operational scale-up and broader market penetration efforts in America, including the establishment of a new BSF breeding facility and exploring international expansion avenues. Moreover, this collaboration is further strengthened by a strategic commercial partnership between Sumitomo Corporation do Brasil and Cyns, focusing on application development, R&D, and marketing efforts across the Americas.
Milestone Approval for Mealworm-Based Pet Nutrition in the USA
In a landmark decision, Ÿnsect has received approval from the AAFCO for incorporating defatted mealworm proteins in dog diets, marking the first-ever U.S. sanctioning of mealworm-derived components for pet foods. This approval follows an exhaustive two-year AAFCO evaluation process, underscored by a 6-month dog trial that vouched for the safety and nutritional adequacy of mealworm ingredients. Research spearheaded by Professor Kelly Swanson has validated the high-quality protein content of defatted mealworm flour, rivaling that of conventional animal proteins in pet nutrition. Ÿnsect’s mealworm-based pet food, particularly its Sprÿng brand, showcases significant environmental benefits, notably in CO2 emission reductions compared to traditional protein sources, potentially revolutionizing the American pet food market.
Nasekomo’s Strategic Expansion through Series A Funding
European scale-up Nasekomo has successfully closed its Series A financing round, amassing €8 million in growth capital, primarily led by Invenio Partners and supported by affluent individuals. Following a strategic alliance with Siemens, Nasekomo plans to deploy an extensive array of insect bioconversion facilities across Europe and beyond, with its inaugural franchised factory slated to commence operations in Bulgaria by 2025. This initiative aims to propel insect farming to the forefront of sustainable protein production, marking a significant stride in the industry’s evolution.
North America’s Largest Insect Production Facility Opens
Entosystem, based in Québec, has recently inaugurated its new 100,000-square-foot production site, the largest of its kind in North America. This milestone was achieved with over $60 million garnered last year from public and private sources, underscoring Entosystem’s dedication to scaling its operations and achieving its ambitious objectives within the insect farming industry.
Insectta’s Funding Success and Expansion Plans
Singapore’s Insectta has announced a successful $1.4 million funding round, led by The Trendlines Group and supported by Glocalink SG, Paragon Ventures I, and SEEDS Capital. This financial boost is set to enhance Insectta’s operational capabilities, increasing its production capacity thirtyfold through a new pilot facility, signaling robust growth and innovation in the sustainable protein production domain.
Some Limitations Identified On Insect Farming
While the insect farming market is growing, it also faces some limitations that could hinder its growth in the coming months and years. Here are some fundamental limitations:
- Regulatory and cultural barriers: Despite the growing acceptance of insect-based protein as a sustainable alternative to traditional protein sources, the insect farming market still faces regulatory and cultural barriers in some countries. In some regions, insects are not yet classified as a food source, which can limit their use in food products. Additionally, some consumers may be hesitant to try insect-based products due to cultural taboos or a lack of familiarity with these products.
- Consumer perception: Consumer perception remains a significant challenge for the insect farming market. While insects are an excellent source of protein and nutrients, many consumers may hesitate to consume or feed insects to their pets due to the stigma associated with eating insects. Therefore, the insect farming industry must find ways to educate consumers on the benefits of insect-based protein and address their concerns about safety, taste, and quality.
- Research and development: Another limitation of the insect farming market is the need for further research and development to improve farming practices and scale production. While insects are relatively easy to rear, there are still challenges in optimizing the efficiency and productivity of insect farming. Additionally, more research is needed to explore new markets and applications for insect-based products, such as developing new insect-based ingredients for the cosmetics and pharmaceutical industries.
- One limitation of using insects in livestock feed is the industry’s acceptance and willingness to adopt this new practice. Traditional livestock feed such as soybean meal, corn, and alfalfa have been the go-to feed sources for many years. Convincing farmers and industry leaders to shift their practices and invest in insect farming may be challenging.
- Scaling the production of insect-based feed to meet the demand of the livestock industry may prove to be a challenge. As demand for insect-based protein increases, producing enough insects to meet the growing demand may become difficult. In addition, insects require specific conditions to thrive, such as temperature, humidity, and light, which can be costly and difficult to maintain on a large scale.
Despite these limitations, the insect farming market continues to grow and innovate. Companies and entrepreneurs are exploring new ways to overcome these challenges and bring insect-based products to a broader audience. As the world continues to face sustainability and food security challenges, the insect farming market has the potential to play a significant role in providing sustainable protein sources for both humans and animals.
Future Reading & References To Insect Farming
References Used For This Article On Insect Farming
The Breakthrough Institute. (2023). Livestock Don’t Contribute 14.5% of Global Greenhouse Gas Emissions. [online] Available at: https://thebreakthrough.org/issues/food-agriculture-environment/livestock-dont-contribute-14-5-of-global-greenhouse-gas-emissions [Accessed 11 Feb. 2024].
Scanes, C.G. (2018). Impact of Agricultural Animals on the Environment. Elsevier eBooks, [online] pp.427–449. doi: https://doi.org/10.1016/b978-0-12-805247-1.00025-3.
Cynthia, H. (2021). Edible insects: Alternative protein for sustainable food and nutritional security. [online] ResearchGate. Available at: https://www.researchgate.net/publication/355769764_Edible_insects_Alternative_protein_for_sustainable_food_and_nutritional_security [Accessed 11 Feb. 2024].
Mordor Intelligence (2024). Edible Insects Market – Size, Growth, Industry Share & Report. [online] Mordorintelligence.com. Available at: https://www.mordorintelligence.com/industry-reports/edible-insects-market [Accessed 11 Feb. 2024].
Niranjan, A. (2023). Insects on the menu as EU approves two for human consumption. [online] dw.com. Available at: https://www.dw.com/en/eu-insects-climate-change/a-64503440 [Accessed 11 Feb. 2024].
Pells, R. (2023). How France became the unlikely home of the insect-farming industry. Nature. [online] doi:https://doi.org/10.1038/d41586-023-00290-z.‌
Kiran Pulidindi and Ahuja, K. (2023). Animal Feed Insect Proteins Market Size – By Insect Type (Black soldier fly, Housefly, Crickets, Mealworms, Beetles, Caterpillars, Grasshopper, Locusts, Bees), By Livestock (Poultry Feed, Swine, Aquaculture, Pet Food) & Forecast, 2023 – 2032. [online] Global Market Insights Inc. Available at: https://www.gminsights.com/industry-analysis/animal-feed-insect-proteins-market [Accessed 11 Feb. 2024].
Mordor Intelligence (2024). Insect Feed Market – Growth, Forecast & Share. [online] Mordorintelligence.com. Available at: https://www.mordorintelligence.com/industry-reports/insect-feed-market [Accessed 11 Feb. 2024].
Marc Lev Shulman (2024). Sumitomo and Lambarin Invest in Cyns for Insect-Based Agriculture. [online] iGrow News. Available at: https://igrownews.com/sumitomo-and-lambarin-invest-in-cyns-for-insect-based-agriculture/ [Accessed 11 Feb. 2024].
Sepehr Achard (2024). Ÿnsect Latest News: Mealworm-Based Pet Food Approved in US. [online] iGrow News. Available at: https://igrownews.com/ynsect-latest-news/ [Accessed 11 Feb. 2024].‌
Sepehr Achard (2024). Nasekomo Latest News: Secures 8M Euro In Series A Funding. [online] iGrow News. Available at: https://igrownews.com/nasekomo-latest-news/ [Accessed 11 Feb. 2024].
Sepehr Achard (2023). Entosystem Inaugurates Its Insect Production Facility. [online] iGrow News. Available at: https://igrownews.com/entosystem-inaugurates-north-americas-largest-insect-production-facility-in-quebec/ [Accessed 11 Feb. 2024].
Sepehr Achard (2023). Insectta Bags $1.4M to Expand Insect Biomaterial Extraction Tech. [online] iGrow News. Available at: https://igrownews.com/insectta-bags-1-4m-to-expand-insect-biomaterial-extraction-tech/ [Accessed 11 Feb. 2024].
1 Comment