The global insect protein market was estimated to be at $342.87 million in 2021, which is expected to grow with a CAGR of 26.49% and reach $1,386.55 million by 2027. The growth in the global insect protein market is expected to be driven by increasing demand for protein-rich products, sustainable raw material, and their contribution to the circular economy.
Market Lifecycle Stage
The insect protein market is still in the growing phase. Increased research and development activities are underway to develop insect protein-based products, which are expected to increase due to the shift in consumer preference to plant-based meat and veganism.
Integration of different emerging technology is one of the major opportunities in the global insect market. Moreover, insect protein properties are such that they can be customized based on various applications leading to consumers adopting insect protein-based products in animal feed, human food, agriculture, cosmetics, and pharmaceutical industry.
Impact
With an increased worldwide focus on achieving net-zero emissions, the shift to eco-friendly, sustainable products brings significant sales and financing opportunities. The shift is more prominent in the food and beverages industry in regions such as North America and Europe. Thus, insect protein-based products are a great alternative to conventional plant and animal-based food products.
Impact of COVID-19
Since insect-based products are emerging in the market, the COVID-19 pandemic impact on the global insect protein market has been insignificant. Moreover, the rise in the trend of protein-rich products is expected to positively affect the growth of the market in the next upcoming years, as insect-protein-based products have more nutrition than traditional protein-rich products. Moreover, the products contain medicinal properties such as ants and are useful in anti-microbial chemicals. Therefore, the consumption and use of other insect protein-based products are expected to increase during and post-COVID-19 pandemic.
Demand - Drivers and Limitations
Following are the demand drivers for the insect protein market:
• Increasing Demand for Protein-Rich Products
• Surging Demand for Natural and Sustainable Raw Material
• Growing Demand for Insect Protein in the Animal Nutrition Industry
The market is expected to face some limitations too due to the following challenges:
• Lower Acceptance of Insect Protein Due to Limited Awareness
• Increasing Trend of Plant-Based Products
• Allergies Caused by Insect Protein
Recent Developments in Global Insect Protein Market
• In January 2022, after winning a national trade competition and signing a high-profile research partnership, French insect protein company Ynsect is looking to expand into the Japanese and Korean markets.
• In December 2021, Neo Bites, a sustainable pet food start-up founded to improve dog health and the pet food industry's relationship with the environment, has launched the first line of functional dog food toppers made from insect protein.
• In November 2021, Agronutris, a French insect protein producer, announced plans to invest approximately $116 million in the construction of two new factories in north-eastern France that would supply a significant portion of their output to the European pet food industry.
• In May 2018, Protix formed a joint venture with Buhler to create rearing and processing solutions for the global market. Also, to ensure the growth of the worldwide market for insect-based ingredients. 'Buhler Insect Technology Solutions' was formed by these two companies with set beliefs and goals in terms of quality and safety.
• In January 2020, Darling Ingredients announced the acquisition of Intrexon Corporation's 50% joint venture interest in EnviroFlight, LLC, making it the sole owner of the U.S. insect protein producer.
Analyst Thoughts
According to Rakhi Tanwar, Principal Analyst, BIS Research, "Currently, adoption of insect protein is rising gradually, since consumers are shifting their consumption pattern toward a more sustainable food source and also prefer to have supplements in their diet. Insect protein powder, hence, is gaining popularity among consumers globally. Some other trending products are insect protein powder, protein bars, cookies, pasta, insect flour, and others. The insect protein's adoption is further going to increase at a CAGR of 26.49% during the period 2021 to 2027, due to its low farming and processing costs along with an increased need for a sustainable protein source."
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Key Market Players and Competition Synopsis
The companies that are profiled have been selected based on inputs gathered from primary experts and analyzing company coverage, product portfolio, and market penetration.
Some of the prominent names operating in this market are:
• Aspire Food Group
• Chapul, LLC
• Entomo Farms
• Enviroflight
• Global Bugs
• Goterra
• Hexafly
• Innovafeed
• Jimini’s
• nextProtein
• Nutrition Technologies
• Protix
• Thailand Unique
• Ynsect (SAS)
Companies that are not a part of the above pool have been well represented across different sections of the report (wherever applicable).
