Who's who in the insect protein industry?
Marking the release of our latest video - The Argument for Eating Insects (Instead of Going Vegan) - in the first of a series on insect agriculture, Claire Hamlett gives us a breakdown of the big players who stand to make the most from farming invertebrates.
The nascent insect protein industry will soon get a big boost as the European Union prepares to allow bugs to be turned into feed for pigs and poultry. In 2019, the industry’s market value stood at more than $112 million and is forecast to grow 47 per cent to $7 billion by 2026, with the majority of demand expected to come from feed for farmed animals.
While a small number of companies producing insect protein for the livestock and pet food industries have been around for decades, such as Dutch company Kreca which was established in 1981, the majority have emerged in the past six years. So who are the big players and who is bankrolling the anticipated boom in insect farming?
Globally, more than 400 companies are producing insect protein. Research by start-up and tech analysts shows that many insect protein start-ups are located in European countries, especially the Netherlands where insect farming is well-established, the U.S., and southeast Asia. Some make only animal feed, while others make some products for human consumption or food for companion animals. Hey Planet, for example, is a Danish company started by two young entrepreneurs to sell powdered insect protein bars. British company Eat Grub, describes itself as “the most forward-thinking food brand in the UK right now”, selling snacks such as roasted crickets and edible mealworms for “sprinkling on soups and salads”. Another British company called Yora makes insect-based kibble and treats for dogs, sourcing black soldier flies from a farm in the Netherlands.
Major companies include Aspire Food Group, America’s largest producer of cricket protein in the form of food for companion animals, snacks and protein bars for humans, and fertiliser and ‘biopesticide’ for crops. French company Ynsect is a global leader in the industry and is expanding internationally with the recent acquisition of Dutch mealworm producers Protifarm.
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Major food companies have started making moves into insect protein. In 2019, meat producer Cargill announced a partnership with InnovaFeed to make fish feed from insects, while last year Nestle’s companion animal food brand Purina launched a new insect and plant protein line. Since 2018, McDonald’s has been investing in research into insect protein as an alternative to soy for chicken feed. Tesco has provided seed funding to UK company Entocycle and has helped start-up AgriGrub to source feedstock for its black soldier flies. Even Robert Downey Jr’s investment company Footprint Coalition has a stake in the industry, having invested in Ynsect to help them produce feed for farmed fish.
The industry is also receiving government support. Last year, the UK government provided £10 million to help build the country’s first large-scale insect farm. However, a new report by Tesco and WWF calls for the UK government to introduce legislation that permits the use of insect meal in pig and poultry feed, and broadens the range of feedstocks that can be used to farm insects as well as provide more public funding for the industry. By contrast, the South Korean government already has several frameworks and pieces of legislation to help develop the sector, and recently announced its ‘Third Comprehensive Plan for Nurturing the Insects and Sericulture [silkworm] Industry.’ The Australian government is also trying to promote the growth of its edible insect industry.
With insect protein projected to become a significant source of feed for farmed animals, and companies like Cargill and McDonald’s getting in on the industry at the ground floor, there are certainly reasons to be concerned about how it could help to entrench intensive animal farming practices while giving meat producers a new way to greenwash their products. With many questions still unanswered about how and what insects can feel, the prospect that they may come to replace other sources of animal feed such as soy and corn raises significant ethical concerns.
Watch our new video - The Argument for Eating Insects (Instead of Going Vegan) - to find out more about the environmental and ethical issues with insect farming.
OTHER ARTICLES IN THE INSECT FARMING SERIES:
Claire Hamlett is a freelance journalist, writer and regular contributor at Surge. Based in Oxford, UK, Claire tells stories that challenge systemic exploitation of and disregard for animals and the environment and that point to a better way of doing things.
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