The soaring demand for insect protein
As the many benefits of this source of protein are increasingly recognized, the insect production sector is stepping up.
2024 marks a significant turning point for the alternative protein sector. The surge of interest in insect-based pet food has fueled innovation and expansion on different fronts, from upgraded facilities to targeted artificial intelligence (AI) implementation and total digitization projects.
Companies scaling up
Nasekomo, a Bulgarian manufacturer in the insect protein market, is actively expanding its production capabilities after receiving a capital injection of €8 million ($8.9M) at the beginning of the year.
It plans to open a new factory in its home country by 2026. This will enable the company to achieve its goal of converting 100,000 metric tons of organic by-products into 25,000 metric tons of high-value insect protein each year.
Meanwhile, the South African company Maltento is making strides in the use of agro-processing waste for different industries, including pet food and aquaculture feed. It currently diverts over 500,000 kg of this waste from local landfills each month, aiming to increase that amount to 600,000 kg. Ongoing facility upgrades will give the firm the opportunity to boost its production capacity from approximately 120 to 300 metric tons by June 2025.
Spanish insect protein producer Bioflytech, which currently produces 12,000 metric tons of fresh black soldier fly (BSF) larvae per year, aims to reach 90,000 metric tons after the expansion of its facilities in the north-west region of Galicia. The company allocates 95% of its production to pet food and 5% to aquaculture feed.
Key growth drivers
Some reports forecast that the demand for insect protein will surge from 120,000 to 500,000 metric tons by 2030, with over half of the current production in Europe already being used in pet food.
Nasekomo co-founder Marc Bolard tells PETS International: “We’re seeing a significant rise in the global demand for sustainable protein sources, and insect protein – especially from BSF larvae – is at the forefront of this trend.”
Demand is also informing Bioflytech’s future business plans.
“There’s great demand for our products due to a shortage of protein and fat in the international market, which is very likely to continue or even increase. This has made us realize that it’s a good business to be in, so we’ve scaled up our production to a higher industrial level,” says CEO Jesús Rodríguez.
For French insect producer Ÿnsect, the sustainability aspect is significant too.
“More and more consumers are concerned about the impact of their purchases and are turning to alternatives that are both healthy and more sustainable. Insects are part of the solution,” the company states.
AI and robotics up efficiency
Rapid advances in the industry, plus the influx of new competitors, are pushing biotech companies to strive for ‘firsts’ in various areas, seeking market differentiation through patents and innovative technologies. Some players are harnessing the power of AI to revolutionize production processes.
Ÿnsect, for instance, utilizes AI alongside robotics and computer vision to enhance efficiency in its vertical farms.
This includes monitoring, feeding, sorting and managing the insects to streamline production and improve overall output. Technology is also helping the company to breed mealworms in stacked trays organized by life stages, significantly minimizing land use.
Similarly, Nasekomo has implemented an AI-assisted insect bioconversion expansion and partnered with Siemens for the digitization of its business.
According to Bolard, AI and data are streamlining the entire farming process. “These innovations are improving efficiency, reducing costs and making insect protein more competitive with traditional sources – a game changer for the market,” the co-founder of Nasekomo explains.
Milestones in market expansion
A positive sign for the development of the insect-based pet food industry is the growing recognition of alternative proteins by governing and authoritative bodies.
Real Pet Food, for example, has made the headlines as the first Australian pet food manufacturer to secure an exclusive import permit for pure BSF meal.
Australia’s Department of Agriculture, Fisheries and Forestry (DAFF) has seen a rise in interest from pet food manufacturers in importing insect meal.
PETS International has had confirmation from the government body that it is currently undertaking biosecurity assessments of “several” import permit applications for BSF products for various end uses, including pet food, signaling a promising future for this sector in Australia.
Earlier in the year, Ÿnsect obtained the first US authorization from the Association of American Feed Control Officials (AAFCO) for the use of defatted mealworm proteins in dog nutrition.
This safeguards its position, with the company holding over 440 patents across 70 countries.
In late 2023, Veolia Bioconversion Malaysia, one of the largest insect protein producers in Asia, received approval for its insect meal and oil exports to the European Union.
This summer, the Singapore Food Agency approved 16 insect species for both human and animal feed applications.
Investing in the future
Players in the insect pet food space agree that future category growth is poised to be driven by increasing recognition of the benefits of insect-derived components and broader global sustainability trends.
Maltento says that there needs to be significantly more investment and focus on the BSF larvae’s nutraceutical benefits – exoskeleton chitin, antimicrobial peptides and medium-chain fatty acids – to really unlock the potential of insects for the world today.
For Nasekomo’s Bolard, this influx of new companies in the insect space is a positive sign of the industry’s vitality, but it also raises the question of potential market saturation in certain regions, particularly where the category is growing rapidly.
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