Global Insect-based Ingredients Market - 2022-2029

Global Insect-based Ingredients Market - 2022-2029

Market Overview

Insects such as grasshopper, locust, and cricket belong to the orthoptera family and are widely used as ingredients for insect-based human foods. Insects used as feed for livestock have less market penetration, as compared to regular feed. Fish meal, fish oil, soybeans, and several other grains (regular feed) are the most commonly used ingredients in animal feed. The market for insect-based ingredients is expected to expand significantly over the next few years. Demand is anticipated to rise in the upcoming years due to rising pet ownership and demand for animal-based protein in pet food. It is also anticipated that the market for insect-based ingredients will experience growth due to the rising demand for healthy pet food to lower the prevalence of heart disease, stress, and depression in animals.

The global insect-based ingredients market was valued at USD YY million in 2021. It is forecasted to reach USD YY million by 2029, growing at a CAGR of 9.10% during the forecast period (2022-2029)

Market Dynamics: Increasing health consciousness among the people drives the market expansion

According to FAO, ingredients made from insects are a significant source of minerals like iron, contain essential amino acids like omega 3 and 6, are high in proteins, vitamins B1, B2, and B3, and contain omega 3 and 6. Recent studies on mice have revealed a significant decrease in cholesterol in those who consumed foods made from processed insects like the Tenebrio Molitor. A high protein ingredient used in senior nutrition is also very easily digestible, which drives the market expansion in the forecast period.

On the other hand, insect farming uses less CO2, water, surface area, and raw materials than traditional farming. In addition, raising insects allows for a pollution reduction of nearly 99% compared to other animal farming methods, with 80 times fewer methane emissions than beef. Insects can also be bred using agricultural byproducts, such as products from crops that are not meant for human consumption, which can improve agricultural production by lowering waste. Lastly, limiting intensive overfishing and enhancing sea biodiversity are made possible by using the insect-based ingredient in aquaculture as a substitute for fishmeal fuels the market expansion.

However, issues like insufficient scale in insect production and strict regulations on insect-based feed hampers the market expansion in the forecast period.

Market Segmentation: The animal feed segment accounted for the highest share of the global insect-based ingredient market

Due to the growing use of insects in place of conventional livestock, the demand for animal feed is anticipated to grow at a rapid CAGR. Insects are regarded as a highly nutritious and healthy food source of vitamins, minerals, fat, fiber, and protein. According to Pet Food Manufacturing Association (APFMA), Insect proteins and lipids (fats) can be used to create complete pet foods that are nutrient-dense, tasty, and environmentally friendly. In comparison, there are a variety of pet food options available. These owners prefer to give their pets a diet made up of ingredients other than traditional livestock species have an excellent alternative to insect-based products, increasing the sales in the animal feed segment.

On the other hand, demand for the sector is also anticipated to increase due to the rising demand for pharmaceutical products derived from insects. Drugs made from some of these discovered substances and strains from various insect DNA structures are increasingly used to treat a range of medical conditions. For example, larvae are collected, boiled, and then ground into a paste to stimulate lactation, lower fever, and calm gastrointestinal tracts.

Geographical Penetration: Asia-Pacific is the dominating region during the forecast period

Asia Pacific insect-based ingredient market size is influenced by rising awareness of various health issues and changing dietary habits toward a protein-rich diet. The product increases demand by providing several health advantages, such as lowering obesity, and is healthy even for animals when used as fodder. Additionally, the aquaculture industry strongly prefers Asia, especially Southeast Asia and China. Most fish food created by the aquaculture sector is consumed by Southeast Asia alone. Therefore, insect feed is in great demand in this area to feed aquatic animals. Manufacturers will therefore need insect feed ingredients to produce a variety of insect feed portfolios.

On the other hand, as more Americans are inclined toward a healthy lifestyle, and consumer awareness of insect-based ingredients rises, the U.S. is currently dominating the market in North America. It is originally used in feed products and is also included in food and other products. Due to this demand, companies are now focusing more on putting products on the market.

Competitive Landscape

There are several established participants in the industry and local manufacturers; hence, the market is fragmented. Some major key players include Ynsect, Protix, AgriProtein, Proti-Farm, Enterra Feed Corporation, Entomo Farms Ltd., Enviro Flight LLC, Exo Inc., Nordic Insect Economy Ltd., and Ento Tech. These major players focus on organic growth strategies like product launches, product approvals, and other things like patents and events. Acquisitions, partnerships, and collaborations were inorganic growth strategies observed in the market. These actions have allowed market participants to grow their customer bases and businesses. With the increasing demand for insect ingredients in the global market, market participants from that sector should experience profitable growth opportunities. For instance, On May 16th, 2018, In Spain, Carrefour began selling a new line of food items based on insects. This new line aims to provide consumers with the most cutting-edge food products while incorporating environmentally friendly and sustainable alternatives into the product mix. Carrefour has introduced ten new products, including granola, pasta, energy bars, and snacks. These goods are produced in Europe using manual processes and organically grown ingredients to the highest quality standards.

COVID-19 Impact Positive impact on the global insect-based ingredient market

The Covid-19 pandemic affected almost every industry worldwide. The World Health Organization (WHO) guidelines and government restrictions have temporarily halted the operation of the manufacturing facilities. Additionally, the prolonged lockdown disrupted the supply chain and raised the price of raw materials across a number of nations. But the market for ingredients made from insects grew during this time. Most of the population became very interested in adopting healthy diets during the government-imposed lockdown meant to stop the spread of the coronavirus disease. Due to the growing number of medical complications, people use health supplements to boost their immunity. The increased emphasis on good health will continue to fuel market expansion in the post-pandemic environment.

The global insect-based ingredients market report would provide an access to approximately 61 market data tables, 57 figures and 170 pages