Insect Feed Market

The global market size for insect feed was valued at $261.5 million in 2023 and is projected to reach $2.2 billion by 2030, exhibiting a CAGR of 24.5% from 2023 to 2030.

The COVID-19 pandemic had a negative impact on the insect feed industry due to increased consumer awareness about the potential transmission of diseases and viruses through unfamiliar food and feed sources. The closure of borders and implementation of restrictions to control the spread of the novel coronavirus severely affected the demand for insect feed. For example, InsectriPro, a manufacturer of insect feed, reported a significant reduction in production during the pandemic, with their daily larvae output decreasing by half. However, the border closures also disrupted the import business, leading to limited availability of traditional feeds and creating a higher demand for locally sourced and potentially new alternatives. The pandemic also prompted growers to explore more sustainable and cost-effective options in place of traditional meals.

The market for insect feed is segmented based on Product Type, End Use, and End User. Insect feed refers to protein-rich meals made from various additives and raw ingredients, specifically designed for use in aqua feed. These feeds are produced by feed compounders in the form of meal varieties, pellets, or crumbles. This report focuses solely on insect feed and extensively examines the market segments and factors influencing the growth of the commercial insect feed industry.

Meeting the increasing demands of a growing global population and limited agricultural land availability poses a challenge for food production. Currently, 30% of the world's land is used for agriculture, with 70% of that land dedicated to animal feed production. Intensive livestock farming, which negatively impacts biodiversity, soil health, air and water pollution, greenhouse gas emissions, and global warming, is a major driver of these challenges. However, the demand for animal-based products and animal farming is still growing rapidly. Alternative protein sources, such as insect feed, can help address these global issues and are expected to drive the demand for alternative protein sources in animal feed.

The insect feed industry faces operational challenges due to regulatory compliance. While 80% of the world's nations have a tradition of consuming insects, western countries still consider them as novel foods. This has created legal uncertainties and made it challenging (and sometimes illegal) to commercialize edible insects, thus hindering investment in the industry.

The global food and beverage industry has witnessed significant growth in recent years, driven by innovations in the food system, improved logistics, affordability, global trade, and increased consumer spending. The industry has been evolving to meet consumer requirements. Additionally, the expansion of the food processing industry is expected to drive the demand for fast food, which, in turn, will positively impact the demand for animal meat worldwide. The global demand for meat is projected to increase by 15% by 2027, creating growth opportunities for the feed market, including insect feed.

Furthermore, the increasing use of antibiotics in farmed animals is driving the growth of the insect feed market as growers seek more sustainable alternatives to protect the environment. Approximately 65% of antibiotics sold in the US are used in farmed animals, which can have negative effects on their health and the environment. By incorporating naturally occurring antibiotics through animal feed, their health can be improved while increasing productivity in the long run.

The scope of the insect feed market study includes product types (mealworms, fly larvae, silkworms, cicadas, and others), end uses (pet food, aquaculture, and livestock), end users (commercial and residential), and sales channels (online and offline). The market is categorized into North America, Europe, Asia-Pacific, and LAMEA regions.

Among the product types, mealworms held the largest market share in 2023, with a market size of $6.9 million. However, the fly larvae segment is expected to grow at the fastest CAGR due to increasing concerns over the environmental impact of fishmeal and the high protein and calcium content of fly larvae, making them a popular choice in poultry farming.

In terms of end use, the aquaculture segment dominated the market in 2023, driven by the increasing consumption of aquatic animals and the availability of a wide range of options. The residential use of insect feed is also expected to contribute to market growth, driven by higher awareness and acceptance of insect-based feeds among pet owners.

In the end-user segment, the commercial sector, including poultry and swine farmers, dominated the market in 2023. Insects have emerged as a sustainable protein source with lower environmental impact, making them attractive for animal feed. This segment is expected to maintain its dominance throughout the forecast period.

In terms of regional contribution, North America has been the highest revenue generator in the insect feed market and is projected to reach $704.8 million by 2030, with a CAGR of 22.3%. However, the LATAM region is expected to experience the fastest growth during the forecast period, while the Asia-Pacific region is expected to grow at a moderate pace. The presence of major manufacturers like Nutritio Technologies, JR Unique Foods Ltd., Endofood Sdn Bhd, and Protenga will drive the demand for insect feed in these regions. Factors such as high population and increasing demand for food and other basic necessities will also influence the growth of the insect feed market. Additionally, investment opportunities and favorable government policies supporting the establishment of insect feed production facilities will create market opportunities for players in the industry.

The key players in the global insect feed market include AgriProtein Holdings Ltd, Buhler AG, Protix, Enterra Feed, entofood, enviroflight, Nasekomo, InnovaFEED, Hexafly, Coppens, DeliBugs, Kreca Ento-Feed BV, Ynsect, Nusect, Protenga, Beta Hatch, and Entobel. These players are investing in research and development to expand their product offerings and launch innovative products to stay competitive. For example, in July 2020, Protenga raised $1.6 million in funding with the help of Roslin Technologies to develop highly productive genetic strains of black soldier flies for aquaculture, livestock, and pet food applications. Collaborations between key players and other manufacturers are also taking place to incorporate insect feed into various products. In May 2023, Nutrition Technologies and SPCA Selangor collaborated to introduce the first sustainable commercial dog food in Malaysia containing black soldier fly larvae protein. Similarly, Protix partnered with Agrifirm in June 2020 to launch initiatives using insect-based ingredients, aiming to create a sustainable and circular food system. Moreover, in March 2023, Evonik and Nutrition Technologies collaborated on research and development in insect feed, focusing on optimizing black soldier fly diets for livestock production to enhance sustainability and provide safe and healthy meat. These initiatives undertaken by different manufacturers will increase the visibility of insect feed among growers and drive its adoption in the market.

Key Benefits for Stakeholders:
• This report offers a quantitative analysis of the Insect Feed Industry, including current trends, estimations, and dynamics of the insect feed market from 2023 to 2030, providing insights into prevailing opportunities.
• The market research provides information on key drivers, restraints, and opportunities, enabling stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network using Porter's five forces analysis.
• In-depth analysis of the insect feed market segmentation helps identify prevailing market opportunities.
• Revenue contributions of major countries in each region are mapped, providing a comprehensive understanding of their impact on the global market.
• Market player positioning facilitates benchmarking and offers a clear understanding of the current position of market players.
• The report analyzes regional and global insect feed market trends, key players, market segments, application areas, and growth strategies.

Insect Feed Market Report Highlights
By Product Type
• Meal Worms
• Fly Larvae
• Silkworm
• Cicadas
• Other

By End Use
• Pet Food
• Aquaculture
• Livestock

By End User
• Residential
• Commerical

By Region
• North America  (U.S., Canada, Mexico)
• Europe  (Germany, UK, Italy, France, Spain, Russia, Rest Of Europe)
• Asia-Pacific  (China, Japan, India, South Korea, Australia, Singapore, New Zealand, Rest Of Asia-Pacific)
• LAMEA  (Brazil, Argentina, South Africa, Saudi Arabia, United Arab Emirates, Rest Of LAMEA)