Introduction
As the world population grows, so does the demand for animal protein. However, the traditional sources of animal protein such as beef, pork, and poultry are facing numerous challenges, including the high cost of production, environmental issues, and ethical concerns. As a result, the search for alternative sources of animal protein has intensified, and one promising area of exploration is the use of insect protein in animal feed.
Insects have a high protein content, are easy to farm, and have a smaller environmental footprint compared to traditional sources of animal protein. This has led to a growing trend of using insect protein in animal feed, and the market for insect-based animal feed is expected to grow significantly in the coming years.
Market Analysis
The global market for animal feed insect proteins was valued at $144.97 million in 2020 and is projected to reach $1.44 billion by 2027, growing at a compound annual growth rate (CAGR) of 32.9% from 2021 to 2027.
The demand for insect protein is being driven by the increasing global demand for animal protein, coupled with the need for sustainable and environmentally friendly sources of animal feed. Additionally, the increasing number of regulations on the use of antibiotics and growth hormones in animal feed has led to a shift towards natural and organic feed sources, including insect protein.
In terms of insect type, the market is dominated by the black soldier fly, which accounted for over 50% of the market share in 2020. The black soldier fly is a fast-growing insect that is easy to farm and has a high protein content. Other insects used in animal feed include mealworms, crickets, and grasshoppers.
The poultry segment dominates the market for insect-based animal feed, accounting for over 40% of the market share in 2020. This is followed by swine and aquaculture, with each segment accounting for around 20% of the market share.
Geographically, Europe dominates the market for insect-based animal feed, accounting for over 40% of the market share in 2020. This is due to the high demand for sustainable and environmentally friendly sources of animal feed, as well as the favorable regulations governing the use of insect protein in animal feed.
North America is the second-largest market for insect-based animal feed, with a market share of around 30% in 2020. The market in North America is being driven by the increasing demand for organic and natural sources of animal feed, as well as the favorable regulations governing the use of insect protein in animal feed.
Asia-Pacific is the fastest-growing market for insect-based animal feed, with a CAGR of over 35% from 2021 to 2027. This is due to the increasing demand for animal protein in the region, as well as the favorable regulations governing the use of insect protein in animal feed.
Challenges
Despite the promising outlook for the market for insect-based animal feed, there are several challenges that need to be addressed. One of the major challenges is the lack of awareness and education about the benefits of using insect protein in animal feed. Many farmers and producers are still hesitant to adopt insect-based feed due to a lack of knowledge about the benefits and how to incorporate it into their operations.
Another challenge is the high cost of production. While insects are relatively easy to farm, the infrastructure required to farm insects on a large scale can be expensive. Additionally, the processing of insect protein into animal feed can also be costly, and this cost is often passed on to the end consumer.
Finally, there is a lack of standardization and regulation governing the use of insect protein in animal feed. This has led to concerns about the safety and quality of insect-based feed, particularly in regions where regulations are lax or nonexistent.
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Everest Market Insights journalist was involved in the writing and production of this article.
