Insect Protein Market

Global Insect Protein Market is valued at US$ 397.7 Million in 2022 and it is expected to reach US$ 2142.7 Million by 2029 with a CAGR of 27.2% over the forecast period.

Global Insect Protein Market: Global Size, Trends, Competitive, and Historical & Forecast Analysis, 2023-2029- The market will expand due to the growing sustainability and environmental concerns, increasing global population and food demand, and the rising number of innovations in product development.

Scope of Global Insect Protein Market Report-

Insect protein refers to the protein derived from insects, which has gained significant attention in recent years as a potential alternative to conventional protein sources such as meat, fish, and soy. Insects are rich in essential amino acids, healthy fats, vitamins, and minerals, making them a valuable nutritional resource. The history of insect protein dates back centuries, with many cultures around the world incorporating insects into their diets.

In recent years, the application of insect protein has expanded beyond traditional consumption practices. Insect protein is now being used as an ingredient in various food products, including protein bars, snacks, pasta, and even insect-based burgers. Additionally, it is utilized in animal feed, especially for poultry and fish, due to its high nutritional content.

The end-users of the insect protein market are diverse. On the consumer side, health-conscious individuals, athletes, and those seeking sustainable food options are driving the demand for insect protein products. Additionally, the animal feed industry is a significant consumer of insect protein, as it offers a sustainable and cost-effective alternative to traditional protein sources.

Covid-19 Impact on the Global Insect Protein Market:

The Covid-19 pandemic has had a significant impact on the insect protein market. On one hand, the pandemic has increased the demand for sustainable and alternative protein sources, including insect protein. As people became more conscious about their health and the environment, there has been a growing interest in finding nutritious and eco-friendly food options. Insect protein, with its high nutritional value and low environmental footprint, has gained attention as a viable solution.

However, the pandemic also brought challenges to the insect protein market. Disruptions in the global supply chains, restrictions on movement and trade, and shifts in consumer behavior affected the production, distribution, and consumption of insect protein products. Some insect farms faced operational difficulties, and the availability of raw materials for feedstock was affected.

Furthermore, the closure of restaurants, reduced travel, and changes in purchasing patterns impacted the food industry as a whole, including the insect protein market. While the demand for insect protein products increased in some areas, the overall market growth was hindered by the pandemic-related uncertainties.

Despite the challenges, the long-term prospects for the insect protein market remain positive. The focus on sustainable and alternative food sources is expected to persist, and as economies recover from the pandemic, the demand for insect protein is likely to rebound. With innovative approaches to farming, processing, and product development, the insect protein market can continue to contribute to a more sustainable and resilient food system.

Key Players of Global Insect Protein Market Report-

• Protix
• Ynsect
• AgriProtein
• Entomo Farms
• Aspire Food Group
• EnviroFlight
• Innovafeed
• Beta Hatch
• Enterra Feed Corporation
• Hexafly
• Proti-Farm
• Ÿnsect
• Protifarm
• Jimini's
• Hargol FoodTech
• Entobel
• Entocycle
• Kreca Ento-Food BV
• Entomo Agro-Industrial Complex
• Chapul
• others

Global Insect Protein Market Segmentation:-

By Insect Species:

• Crickets
• Mealworms
• Black soldier flies
• Silkworms
• Grasshoppers
• Others

By Source:

• Coleoptera
• Lepidoptera
• Hymenoptera
• Orthoptera
• Hemiptera
• Diptera
• Others

By Forms:

• Whole Insects
• Powders

By Application:

• Food & Beverages

  • Bakery

  • Beverages

  • Condiments/Sauces

  • Confectionery

  • RTE/RTC Food Products

  • Snacks

• Animal Nutrition
  • Aqua feed
  • Poultry feed
  • Pet food
  • Others
• Pharmaceutical & Supplements
• Personal Care and Cosmetics

By Distribution channel:

• Online
• Offline

Revenue Generation Model:

The revenue generation model for the insect protein market primarily revolves around the production and sale of insect-based products. Companies involved in insect farming and processing sell insect protein to food manufacturers, retailers, and animal feed producers. Additionally, some companies offer direct-to-consumer sales of insect protein products through online platforms or specialized retail outlets.

Supply Chain Analysis:

The supply chain model for the insect protein market typically involves multiple stages. It starts with insect farming, where companies breed and rear insects on specialized farms. Once the insects reach the desired stage, they are harvested, processed, and transformed into protein-rich products. These products then go through distribution channels, which may include wholesalers, distributors, and retailers, before reaching the end consumers.

Value Chain Analysis:

The value chain model for the insect protein market encompasses the entire process from insect production to the consumption of insect protein products. It includes activities such as insect farming, processing, packaging, marketing, distribution, and retail. Each step adds value to the final product, allowing companies to capture revenue and provide consumers with high-quality insect protein products.

Market Drivers:

Increasing global population and food demand: The increasing global population and food demand are significant drivers for the insect protein market. With the world's population continuously growing, there is a rising need for sustainable and efficient protein sources to meet the increasing demand for food.

According to the United Nations, the world's population was estimated to be around 7.9 billion in 2021, and it is projected to reach 9.7 billion by 2050. Insect protein offers a solution as it can be produced at a higher rate and with fewer resources compared to traditional livestock farming.

Its efficient production processes and high nutritional value make it an attractive option to address the protein needs of a growing population. Additionally, as the demand for protein-rich diets expands globally, insect protein provides a viable and sustainable alternative to alleviate the pressure on conventional protein sources.

Nutritional benefits: Insect protein is rich in essential amino acids, healthy fats, vitamins, and minerals. It offers a complete and high-quality protein profile, making it an attractive choice for health-conscious consumers. For example; insects are rich in proteins (37–63%) and fats (20–40%), with well-balanced amino acid and fatty acid profiles, respectively, and these are good sources of minerals and vitamins.

Market Restraints:

Perception and cultural barriers act as restraints to the insect protein market due to the deep-rooted cultural norms and societal perceptions surrounding the consumption of insects. In many societies, insects are viewed as pests or are culturally considered unfit for human consumption.

Overcoming these ingrained perceptions requires significant efforts in education, awareness campaigns, and cultural acceptance to change consumer attitudes and foster a more positive perception of insect protein. Additionally, addressing the cultural barriers involves understanding and respecting cultural preferences and finding ways to incorporate insect protein into local cuisines and food practices.

Market Opportunities:

Rising popularity of plant-based diets: The shift towards plant-based diets presents an opportunity for insect protein to cater to consumers looking for alternative and diverse protein sources beyond plant-based options like soy and pea protein.

Expansion in food and beverage industry applications: Insect protein can be incorporated into a wide range of food and beverage products, such as protein bars, snacks, pasta, and baked goods. The versatility of insect protein offers opportunities for product innovation and market expansion in the food industry.

Market Trend Analysis:

Product and Technology Development Trends:

Product diversification: The market is witnessing the development of a wide range of insect protein-based products, including protein powders, protein bars, insect-based burgers, and snacks. This diversification caters to different consumer preferences and dietary needs.

Improved taste and texture: Companies are investing in research and development to enhance the taste and texture of insect protein products. Advancements in processing techniques and formulation allow for the creation of more palatable and appealing insect protein-based food items.

Customer Trends:

Increasing demand for convenience: Consumers are seeking convenient and ready-to-eat insect protein products that can fit into their busy lifestyles. This has led to the emergence of grab-and-go insect protein snacks and on-the-go protein solutions.

Focus on clean label and natural ingredients: Customers are becoming more conscious of the ingredients used in food products. There is a trend towards clean label and natural formulations, leading to the development of insect protein products with minimal additives and recognizable, natural ingredients.

Demand for transparency and traceability: Customers are increasingly interested in knowing the origin and production process of their food. Companies are responding to this trend by providing transparency and traceability information, showcasing the sustainable and ethical practices involved in insect farming and processing.

Market Competition Nature:

Competition in the insect protein market has been increasing as more companies recognize the potential of this emerging industry. Key players are employing various strategies to establish their market presence and gain a competitive edge. Here are some past strategies with examples and potential future strategies:

Past Strategies:

Product differentiation: Companies have focused on developing unique and innovative insect protein products to differentiate themselves in the market. For instance, Aspire Food Group introduced cricket-based protein bars and snacks with flavors and packaging appealing to health-conscious consumers.

Partnerships and collaborations: Collaborations between insect protein companies and food manufacturers or retailers have helped expand market reach and distribution channels. For instance, Ynsect partnered with the French grocery retailer Carrefour to introduce insect-based products in their stores, leveraging Carrefour's extensive retail network.

Future Strategies:

Scalability and production optimization: As the market grows, companies will focus on scaling up production to meet increasing demand. Investments in research and technology will aim to optimize insect farming methods, enhance production efficiency, and reduce costs.

Marketing and consumer education: Increasing consumer awareness and education about the benefits of insect protein will be crucial. Companies will invest in marketing campaigns, social media engagement, and partnerships with influencers or nutrition experts to promote the advantages of insect protein and overcome cultural barriers.

Research and development: Continued research and development efforts will focus on improving taste, texture, and formulation of insect protein products to enhance consumer acceptance. Innovations in processing techniques, ingredient combinations, and flavor profiles will drive product innovation and market growth.

Geography Analysis:

North America, in Particular, has Shown Significant Potential for the Insect Protein Market:

The region has witnessed a rise in consumer awareness about the environmental impact of conventional protein sources and the benefits of sustainable alternatives. This growing awareness, coupled with an increasing demand for alternative protein options, has fueled the adoption of insect protein products in North America.

The United States and Canada are leading the way in terms of insect protein production, innovation, and market development in North America. Numerous companies in these countries have invested in insect farming infrastructure, processing technologies, and product development to cater to the rising demand for sustainable protein sources.

For example; in May 2020, Beta Hatch, a U.S. based insect rearing technology company, secured $3 million in a Series A1 funding round. The funding came from investors including Cavallo Ventures, Innova Memphis, Klein Private Equity Investment, and Brighton Jones Investment Partners. With this investment, Beta Hatch plans to establish a mealworm production facility in North America specifically for animal feed purposes.

Moreover, North America has seen a surge in insect protein-based food startups and entrepreneurial ventures. These companies are actively developing insect protein products such as protein bars, snacks, and food ingredients, capitalizing on the consumer trend towards healthier, eco-friendly, and ethically sourced food options.

The regulatory environment in North America has also been relatively supportive of the insect protein market. In the United States, the Food and Drug Administration (FDA) has approved certain insects for human consumption, which has facilitated the entry of insect-based products into the market. However, regulations may vary across states, and ongoing efforts are being made to establish clear guidelines and standards for insect protein production and marketing.

The Insect Protein Market in Europe is also Witnessing Significant Growth:

Europe, in particular, has emerged as a significant player in the insect protein market, driven by a combination of factors including sustainability initiatives, changing dietary preferences, and regulatory support for alternative protein sources. The region has seen a rise in insect protein consumption and production, with several key players and innovative startups operating in this space.

For instance; on January 3^rd, 2023, The European Commission has authorised the use of powder obtained from Acheta domesticus (house cricket) as a ‘novel food’ in multigrain bread, crackers and breadsticks, cereal bars, dry pre-mixes for baked products, biscuits, pasta-based products, sauces, processed potato products, legume- and vegetable- based dishes, flaky pastry, whey powder, meat analogues, soups, maize flour-based and other snacks, beverages, confectionary, nuts and oilseeds and meat preparations, intended for the general population.

Additionally, according to a news published on February 23^rd, 2022; In November, the European Commission authorized categorizing frozen, dried, and power forms of Locusta migratoria as novel foods. Previously, the EU only approved mealworms and crickets for human consumption.

In Europe, sustainability and environmental concerns have gained substantial traction, leading to increased interest in alternative protein sources like insect protein. The European Union (EU) has actively promoted the use of insects for food and feed, recognizing their potential as a sustainable protein source. This has resulted in supportive regulations and frameworks that facilitate the growth of the insect protein industry.

By Regional & Country Level:

• North America
  • US.
  • Canada
• Europe
  • UK.
  • France
  • Germany
  • Italy
• Asia Pacific
  • China
  • Japan
  • India
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • GCC
  • Africa
  • Rest of Middle East and Africa

Key Benefits of Global Insect Protein Market Report–

• Global Insect Protein Market report covers in-depth historical and forecast analysis.
• Global Insect Protein Market research report provides detailed information about Market Introduction, Market Summary, Global market Revenue (Revenue USD), Market Drivers, Market Restraints, Market Opportunities, Competitive Analysis, and Regional and Country Level.
• Global Insect Protein Market report helps to identify opportunities in the marketplace.
• Global Insect Protein Market report covers extensive analysis of emerging trends and competitive landscape.