Insect feed market forecast to top $1bn by 2022
The report, compiled by Singapore-based research company Arcluster, sheds light on some of the key trends in the insect feed sector up until 2022, such as which parts of the world it will grow quickest.
The data was generated from conversations with farmers, agronomists, cultivators, harvesters, feed manufacturers, suppliers, agencies, and other entities.
According to Arcluster, the value (overall sales) of the insect feed market is to reach $1.07bn by 2022, which is compound annual growth of 101% from 2017.
Speaking to Feed Navigator, Arun Nirmal, the report’s author, said: “It [insect feed] is going to be a big part of the market."
He says insect feed could account for up to 3% of the global feed market within the next four years, which he argued would represent a “significant step” in terms of changing the mindset of farmers.
"When compared to traditional feeds, insect harvesting and insect derived feeds for commercial purposes promises sizeable environmental and resource utilization advantages. The current forecast period is a favorable cycle for insect farmers and feed suppliers. The upward trend in consumption, output per livestock and increased focus on sustainability and security are strong indicators for positive and exponential growth in revenues," noted the report.
A key driver or this growth is to be the European market, which Arcluster says will grow 102% between 2017 and 2022, reaching $404m.
The North American market will be valued at the $250m in 2022, the report says.
Hotbed of insect protein companies
The difference in size between the European and North American market is partly attributed to Europe representing more of a hotbed for companies looking to establish themselves in this field compared to the US, said Arcluster.
Nirmal said: “Insect feed companies are predominantly in the European region, and will target domestic markets first.”
He also pointed to a forthcoming key regulatory change, as helping sales.
From June this year, insects will be allowed to be used in fish feeds in Europe, after the EU voted to accept proposed amendments.
Within Europe, Nirmal earmarked the Netherlands, France and Belgium as key production markets.
The report covers feed for pig, poultry, dairy, cattle and aquaculture.
Within the sector, aquaculture will be the dominant player, contributing to over 30% of market share between 2017 and 2022, the report forecasts.
"With an improving regulatory environment for both insect feeds and edible insects, marketplace acceptance is around the corner. Insect based feed alternatives are at a key phase in market adoption. The results from the early adopters are positive and set to create the platform for mainstream market adoption," forecasts Arcluster.
