What does the future hold for the insect protein industry?

Those that succeed will have well-developed business models, strategic partnerships, and the ability to weather economic challenges.

The path to profitability in insect farming is fraught with risks, as evidenced by the financial struggles faced by several prominent producers in recent times.

In the past week, French mealworm producer, Ÿnsect, which had raised over $600m to date, revealed significant financial challenges​​, entering a safeguarding procedure to avoid insolvency. That process is intended to give the company time to restructure and negotiate further funding, as it looks to stabilize operations amid financial strain.

This development follows the closure of US-based mealworm producer, Beta Hatch, a year ago. Mealworm production is allegedly proving harder to predict and control compared to Black Soldier Fly (BSF) farming; regardless, many are now wondering if other insect companies are in trouble.

We invite industry leaders to share their insights on the state of the market.

Steady growth, but no industry explosion​

Keiran Whitaker, founder of UK-based Entocycle​​, finds the insect industry is expanding, and that company’s own growth curve in terms of investment, revenue, and experience has been strong. “But the industry overall is experiencing steady growth rather than the explosive trajectory some may have hoped for."

He notes that forecasts consistently estimate a 30% CAGR for the insect sector until 2030​​. "And we see no reason to dispute that. It’s becoming more widely accepted now that society needs to switch to more reliable and sustainable sources of protein feed that don’t come at the expense of the natural world. We’ll see rapid growth in several alternative proteins as policy and investment move away from traditional protein, and insects will lead that transition."

Liz Koutsos, president of US located EnviroFlight​​, emphasizes the sustainable benefits of BSF larvae production, though she acknowledges the industry's challenges: "The path to full commercialization has not been easy, nor is the journey over."

Gaetan Crielaard, cofounder of Vietnam-based Entobel​​, highlights the difficulty of building the insect sector: "We are creating the technology, the market, and training the talent. It’s a long-term game and building resilience through partnerships and piloting has been key for us."

Operational complexity and narrow focus​

Lars-Henrik Lau Heckmann, head of business development, at Denmark’s Better Insect Solutions​​ (BIS), stresses that insect farming requires a diverse skill set and focus to succeed: “You need to gather expertise from across animal farming, supply chains, and sales. Most importantly, focusing on just a few key areas is critical to survival in the early years.”

A recognized protein industry has emerged, believes Cédric Provost, president of Canada’s Entosystem​​, when reflecting on the evolution of companies in the sector: “By 2024, we are no longer just startups. We are now a legitimate industry, but with that comes the responsibility to aim for profitability and higher production volumes.”

Dean Smorenburg, CEO of South African-based Maltento​​, is optimistic: “An increasing focus on environmental impact, the UN Sustainable Development Goals (SDGs), and food security is driving the integration of insect proteins into mainstream feed, pet food, and aquaculture markets. Both consumers and businesses are becoming more aware of the benefits, contributing to the rapid growth of the industry. The key to unlocking further growth in this emerging sector lies in the industry's ability to manage and deliver production volumes at competitive prices.”

'Era of easy money is over'​

The financial landscape for insect producers has shifted though. Heckmann points to a need for solid business cases, realistic production targets, and strategic partnerships. Rising interest rates and cautious investors have made securing funding more difficult.

Provost notes that the ‘era of easy money’ ended two years ago. Investors now demand clear paths to profitability. However, companies that can demonstrate scalability and sustainability continue to attract significant interest.

Hubert also serves as vice-president of the EU industry organisation, the International Platform of Insects for Food and Feed​​ (IPIFF), and it is with his IPIFF hat on that he delves into the economic challenges for the industry.

“Financing remains a significant challenge for the insect protein sector today. Many of the major players are in the final push toward profitability, but securing the last round of funding needed to bridge this gap will be difficult. Unlike software companies, which can reach profitability within five to eight years—the typical timeframe for venture capital funds—manufacturing startups often take 10 to 15 years to become profitable. This disconnect makes it harder for VCs to understand and support capital-intensive (CapEx) manufacturing businesses." 

Corporate investments and partnerships with agribusiness groups, particularly in pet food and aquafeed, can help. While these collaborations provide some support to investors, many companies hesitate to commit to long-term offtake contracts because they lack sufficient incentives, says Hubert.

Entocycle recently raised $2.6m in a tough economic climate, which Whitaker credits to educating investors on the complexity and potential of insect farming. He stresses the need for transparency and alignment with investors on project risks.

According to Crielaard: "Some insect producers have struggled to meet critical milestones, leading to increased skepticism among investors when it comes to this industry."

He adds that the economic pressures are forcing the industry to focus on the most critical metrics, filtering out weaker players. He sees this as a positive development for long-term growth.

Although the economic landscape poses challenges, the industry’s focus on sustainability continues to draw interest, believes Marc Bolard, the co-founder and executive MD at Nasekomo​​. Earlier this year, that Bulgarian startup successfully closed its Series A financing round, securing €8m in growth capital.

The pioneer’s perspective: Kees Aarts, founder and CEO of Protix​

The insect industry is currently on the downslope of the Gartner Hype Curve, meaning it has yet to fully mature. However, this is a positive development because reaching this stage allows the industry to transition towards becoming performance driven, says Aarts. 

“The opportunity is vast, with numerous applications and great promise. But has the industry truly come of age? Not quite. While there are multiple suppliers now, profitability remains a challenge. It's not an easy industry for investors, nor is it simple to predict its trajectory. There's still no standardization of technology platforms, which adds to the uncertainty.

“Is the current pressure on the industry normal? Yes, it is. We've moved beyond the ‘PowerPoint promise’ stage—many companies now have production assets, whether large-scale, small-scale, or in development. Soon, we’ll see the selection of the right technology platforms and further advancement by industry leaders. 

“From our own progress—whether in operations, financial performance, or year-over-year improvements in gross margins—I believe we’re getting very close to the tipping point of maturity.”

Protix, a Netherlands-based company, spent years perfecting its technology before launching a large-scale facility in Bergen op Zoom in 2019. The facility now processes the equivalent of 14,000 tons of live larvae annually.

On Protix’s journey to date…​

“We haven’t raised the most capital, nor are we the company announcing the most global objectives. However, our step-by-step approach has allowed us to achieve leadership in revenue, capacity, and intellectual property, despite having a smaller organization. There are companies with at least twice our staff.”

As an entrepreneur, it's essential to understand the nature of the industry, says Aarts.

“While we are undoubtedly ambitious, a few years ago, I was criticized for not being ambitious enough. But just because we pursue expansion cautiously and build confidence gradually doesn't mean we lack ambition. Some might point to competitors who have raised more capital or set billion-dollar revenue targets, but ambition isn’t about flashy PowerPoint slides. It’s deeply personal and cultural, reflected in our ability to establish a business with long-term potential, stable financials, and meaningful impact.”

Protix, he continues, has created a company that contributes through its products and services, while also building a strong community around it.

“I've always been ambitious in achieving that, as have all the entrepreneurs at Protix. We take a step-by-step approach because each stage of growth demands something different from the team.

“We’re currently in phase five. Initially, it was about testing biology, then developing technology, and now we're operating in a 24/7 environment. That requires a different mindset—following standard operating procedures, managing shifts, and responding to customer audits. Growth isn’t about throwing more money at the business and expecting things to fall into place. You have to transform the company constantly, and that can be challenging.”

“Sometimes, as a founder, you must recognize that after raising a certain amount of capital, the focus needs to shift. You set new goals, allow for a period of preparation, and sometimes even slow down to plan strategically. It’s not about doing more for the sake of doing more, but about ensuring that each step forward is solid and well-prepared.”

When asked about the ease of attracting capital today, Aarts acknowledges that the last couple of years have been challenging. High interest rates and more expensive capital have led to a contraction, making certain KPIs more critical.

“These are the changes that every entrepreneur must navigate. However, our step-by-step approach has given us the breathing room we need.

“While we didn’t capitalize on the era of cheap funding or chase unicorn status with hundreds of millions in investments, we’re also not panicking now that capital markets have tightened. The step-by-step strategy allows us to better control costs, prioritize projects, and stay focused even when financing becomes more difficult.”

Despite the current challenges in accessing variable capital, quality companies will still attract investment, he says. “Money always finds its way to solid, well-managed businesses.”

On industry casualties...​

Reflecting on some of the insect companies that shut up shop in recent years, the Protix CEO says it’s clear that the bigger the promise, the harder the fall when things go wrong. “It’s like an oil spill—it spreads anxiety among investors and customers. Entrepreneurs should always strive to win, but they also need to understand that others will claim their space in the market. Different players can succeed in diverse ways.”

The key is to compete harder, collaborate smarter, and commercialize better, he adds.

“It's not a zero-sum game where one company’s success means another’s failure. Just because I launch a product first doesn’t mean you lose. In industries like this, the focus should be on improving commercialization with every step. I might launch something and want to succeed, but when I see you launch something, I want you to succeed too. I’ll learn from it, then use that knowledge to compete even more effectively.”

The industry should foster an environment where players push each other to improve, benefiting everyone eventually, he remarks.

On building the right partnerships...​

With every step forward, such as financing a large factory, it's crucial to have offtake agreements in place, he maintains.

“These agreements provide security, but to secure them, you need to engage closely with your customers and partners​​. Building the right partnerships is essential so that they are ready to support you when the factory comes online.

“It's important to have open conversations with them—discuss the benefits, ensure alignment, and create a partnership that adds value for both sides. This way, when the factory is operational, you have a solid foundation of committed customers ready to move forward with you.”

When asked about the role of governments in the insect sector, he explained that insect ingredients have the potential to reduce dependency on land and water-based resources and significantly lower the food system's CO2 footprint. “These goals align with what both governments and businesses are striving for: reducing environmental impact, mitigating resource pollution, and addressing the depletion of natural resources in the food system.”

While the insect industry isn't fully bankable yet, governments could unlock massive capital with just a stroke of the pen, argues Aarts. “By mandating the inclusion of circular, low-footprint ingredients or offering tax incentives, they could encourage the adoption of these ingredients in feed and food—much like how tax breaks were given for solar panels and other green energy solutions during the energy transition.”

This approach makes perfect sense, he stresses. “The products are proven to work, and there’s overwhelming scientific evidence supporting them.”

Stimulating this shift would be straightforward, as feed companies and agricultural producers already recognize the benefits. “If Europe, for example, decided to reduce its import dependency and environmental footprint by mandating a certain percentage of insect protein inclusion, the industry’s capacity could grow a hundredfold within just a few years. That would instantly transform it into a bankable sector.”

Target markets​

In aquaculture, the demand for high-quality animal proteins is consistently rising as more people globally consume seafood. The industry requires sustainable and nutritious protein inputs. However, with expectations of 5-20% growth in the aquaculture market over the next five years, traditional sources like fishmeal are nearing their production limits, claims Bolard. In this context, insect-based proteins present a promising solution, he adds. “Factors such as fishmeal quotas, quality concerns related to microplastic contamination, and pressures on biodiversity make insect-based proteins an attractive alternative.” 

Similarly, the pet food market, which heavily relies on animal proteins, continues to expand as pet owners increasingly seek sustainable, high-quality protein sources for their dogs, cats, and other pets, he maintains. 

As these markets grow, the role of insect-based proteins is likely to become more prominent, offering a scalable and eco-friendly alternative to traditional protein sources, he remarks.

When asked about the differences in market adoption and acceptance of insect protein among the US, Asian, and European markets, Crielaard notes that, from a regulatory perspective, Europe has been at the forefront of accepting insect ingredients.

“The US is closely following the EU, while Asia has a more fragmented regulatory landscape, with some countries lacking adequate regulations despite having a historical tradition of insect farming. But we do see enormous potential for the use of insect meal in Asian markets, particularly in aquafeed.” 

Whitaker notes: "Aquafeed looks most promising in the near term with fishmeal demand growing fast and prices remaining volatile. Technological improvements and increased automation in insect farms is closing the gap on fishmeal and once it is broadly in competitive range, which it's edging towards, insect protein will start to increase its foothold within the segment."

Strong collaboration between insect companies, feed manufacturers and seafood brands plays a critical role in communicating these benefits to customers and why they might expect to pay a little more at the checkout for insect-fed products, he remarks.

"Poultry is a really exciting segment and we’re seeing plenty of interest across the food industry from leading brands and companies in insects as an alternative to soy. The challenge of course is on price as it's some way off being competitive and again it will be increased consumer awareness and demand for more sustainable products bringing insect-fed products to the table," adds Whitaker. 

Scaling sustainably ​

One of the primary challenges in scaling insect farming is achieving cost efficiency. “The key lies in reducing the two biggest cost drivers: feed and energy,” emphasizes Bolard.

Feed expenses account for a substantial portion of production costs, making improvements in feed conversion efficiency critical. Additionally, managing energy consumption presents a significant hurdle, he says.

“Innovative solutions are being explored to harness energy generated by the insects themselves to power the process. Developing smart, competitive industrial processes is vital for the industry's growth,” reflects Bolard. "At Nasekomo, we are focused on creating technology that addresses both feed and energy efficiency, ensuring the long-term sustainability of our operations." 

Provost emphasizes that this is still a very new industry, and as such, the challenges are multifaceted. “Technology for insect rearing is now much more accessible, but it remains critical for successful operations. However, the core challenge is that this is still a biology-based operation. Like traditional farming, precise control over environmental factors like temperature and humidity along with feedstocks is essential to ensure optimal conversion rates. Moreover, effective knowledge transfer across the entire team is crucial for successful scaling.”

Koutsos adds, “Pioneers in this industry had to develop systems from the ground up, which presented many challenges and learning opportunities, particularly as equipment is customized or developed for novel applications. As support from allied industries strengthens and companies begin to specialize in equipment and technology solutions, many engineering and operational challenges become surmountable. Research on BSFL biology is ongoing, presenting tremendous opportunities to improve production efficiencies.”

In the UK, legislation represents the greatest challenge to scaling up, explains Whitaker. “We are optimistic that this will change soon, bringing us more in line with the EU. Additionally, it is essential to expand waste streams to include post-consumer, household, and farm waste. This is key to unlocking growth in the sector, as it would increase available inputs tenfold and allow producers to generate significant revenue through gate fees for processing waste.”

Whitaker maintains that globally, technology remains a challenge. “Some insect companies are still operating in a manual and labor-intensive manner, with workers moving and weighing crates by hand. To use an internet analogy, we’re still in the ‘dial-up’ age; however, we can now apply AI, automation, and data-driven decision-making to streamline processes and make them more efficient for operators.

“Production needs to be based upon control and data. You can’t improve what you can’t measure and there’s still a high degree of variability in production outcomes at many farms," says the Entocycle lead.

For Heckmann, the key obstacles to growth are securing investor backing and implementing insect-oriented legislation that allows for broader applications of frass, such as for use as fertilizer or biofuel.

Crielaard identifies the availability of a continuous stream of feedstocks for the larvae as the first challenge that needs to be addressed before considering large-scale industrial production. “Additionally, scaling up is a significant operational undertaking, and its complexity is often underestimated. When this happens, there are few experts available to solve your problems, given that this is still a very nascent industry. Progressing through distinct stages of scaling will help validate the technology and manufacturing processes being applied.”

Smorenburg adds: “The primary challenges lie in cost reduction and scaling the infrastructure required for a sustainable business model, where there is a deliberate focus on vertical integration. Current production models can be capital-intensive, and achieving the necessary economies of scale to reduce costs are critical. It should also be noted that consumer perception and regulatory approvals in certain regions still need to catch up to enable widespread adoption of insect proteins.”

Leveraging technological advances ​

Technology is, without a doubt, one of the most crucial factors for ensuring the scalability of insect protein production, argues Heckmann. “Current technological developments are driving down costs, enabling insect producers to create profitable businesses.”

For Crielaard, technology and automation are essential to achieve economies of scale, to optimize cost of production and to achieve operational excellence by keeping track of critical parameters.

“Over-automation on the other hand can also impact production, especially when controlling operations that are usually still performed manually, such as egg handling. It is important to find the right balance.”

Technology is not the key by itself—companies need to employ skilled operators that can master the fundamentals of insect rearing before automating processes, says Provost.

“Once these basics are mastered, automation can have an enormous impact, enabling large-scale production and reducing costs. However, without strong control over the fundamentals, automation alone won't magically lower costs. Mastering the basics of biology and operation is crucial before leveraging technology to optimize efficiency and scale.”

Specialization to take hold ​

When considering the most viable business models for insect farming in the coming years, Koutsos emphasizes that “At EnviroFlight, we see potential for a variety of models—from large-scale operations focused on specific food or feed manufacturing by-products to smaller local and regional facilities that can operate with lower input volumes and collaborate with smaller by-product producers. Additionally, customizing insect-based ingredients for specific end uses is an option that some producers may want to explore.”

Whitaker notes, “We’re entering an era of specialization in the insect industry. The first wave of companies like Protix, Ÿnsect, and Innovafeed were vertically integrated, developing their own technology while producing products. As the industry matures, we’ve seen established global brands like Tyson Foods, Tesco​​, and Veolia exploring this space. The next few years will see specialists emerge, unlocking greater efficiency and growth, whether through insect farming technology or genetics.”

According to Heckmann, the optimal business model for insect production depends on factors like geography, culture, and economic incentives. “Currently, there are three core business models in insect farming: full-liners, growers, and breeders. Full-liners and growers can particularly benefit from integration with other commercial operations, such as sourcing by-products or excess heat from neighboring companies (co-location). Alternatively, produced larvae and frass can be used on-site for existing animal farming, plant production, or energy production (co-production). Both centralized (full liners) and decentralized operations are viable, each with its own pros and cons.”

Crielaard adds, “At Entobel, we strongly advocate for a circular economy model by forging strategic alliances with local food and agricultural producers to upcycle low-value by-products into high-value insect products. We also collaborate with local feed producers to reduce their dependence on imported raw materials, leading to a more resilient and sustainable food production future. Currently, this model requires scale and for all steps to occur under one roof, but this may change as technology and the sector mature.”

Breed what you need​

Evaluating the critical role of breeding, Provost explains: “Without a steady supply of neonates, it’s impossible to effectively raise insects or transform the food waste we receive. For us, breeding remains a top priority, and we keep it in-house to ensure reliability. Over time, as breeding technology advances and becomes better understood, we will see specialization in the market, like in traditional livestock industries, where companies can reliably purchase neonates directly from dedicated suppliers.”

Smorenburg emphasizes that breeding is the most challenging aspect of scaling a BSF farm. “Effective breeding programs not only improve yield but also enable the development of BSF strains better suited for specific market needs, such as high-fat or high-protein content for various feeds."

Bolard agrees that breeding is a critical and complex stage of insect farming. "A deep understanding of each phase of insect biology and the ability to accurately predict industrial processes are essential before scaling up."

Breeding is the part of the lifecycle where the risk of complications is highest—mating and laying need to occur quickly and efficiently to maintain a consistent supply of young larvae for the new cycle, says Whitaker. “Breeding can also represent a significant cost in an operator’s facility, so it’s essential to find an optimal balance between providing just enough neonates to achieve reliable yields in a short timeframe while minimizing costs."

Heckmann believes that within the next five years or less, we will start to see major benefits from applying the right genetics ​​in insect farming operations, such as higher egg production, larval growth, and survival rates.

‘There is still much to learn’​

Market participants also reflected on key areas of research and development expected to shape the future of the insect protein sector:

Provost highlights that there is still much to learn about the added value of insect-based products—not just as a protein source but also as potential health-promoting ingredients. “We see immense potential in other by-products, such as insect oil, which could offer health benefits, and frass (insect manure), which has the potential to become a highly effective organic fertilizer that could compete with traditional fertilizers. Research in these areas could significantly expand the applications and value of insect farming in the future.”

Whitaker notes that waste streams for farms may not always be consistent, fluctuating with seasonality and material inputs. However, market demand requires reliable and consistent end products. “Much of our focus—and that of the sector’s technology—will be on developing adjustable conditions and processes based on the feedstock recipe to ensure that whatever comes in still leads to high-quality, consistent products.”

Koutsos emphasizes that a deeper understanding of how insect rearing affects their potential value in animal feeds will shape the future of the insect protein sector.

“Not all insect ingredients are the same. It’s essential to identify the right market opportunities for products derived from various production systems. Additionally, understanding genetics and its role in enhancing quality, efficiency, and animal health benefits will be key.”

According to Heckmann, two focus areas for R&D include improving the understanding of insects as farmed animals—along with the innovation and development of technology (hardware, software, genetics) to ensure their performance and welfare—and further documentation of the nutritional and specific health benefits of insect-based products for livestock, pets, and humans. There is also a need for an improved understanding of frass in plant production and health.

Bolard concurs: "We still need to invest heavily in research, communication, and marketing to clearly define our products, explain their value, and educate the feed industry on how to use them effectively. This is where market growth happens—by demonstrating the value our products bring; we can open new opportunities."

For Crielaard, key growth areas involve optimizing diets, enhancing production efficiency, improving product quality, and advancing breeding and genetics. “At Entobel, we are concentrating on targeted R&D programs to refine production processes, develop new applications, and fully maximize the value extracted from insect biomass.”

Smorenburg believes that R&D focused on the functional benefits of insect proteins, fats, and chitin will elevate this remarkable ingredient beyond its traditional role as a protein source.

“Once the science is validated, the industry will recognize insect-based ingredients and additives in a completely new light. Demonstrating that insect derivatives can enhance FCR, reduce mortality, and boost overall immunity in target species should be the immediate priority. Insects have the potential to replace artificial immune boosters without incurring additional costs, and more manufacturers should seriously consider the positive impact these innovations could have on their businesses and the environment.”

Regulatory push 

Hubert, in his IPIFF representative capacity, emphasizes the need for insect farming to be recognized as a strategic priority in key EU policies during the next EU Commission mandate (2024-2029). This recognition would help maximize the sector's contribution to a decarbonized economy and increase domestic protein production within the EU, he maintains.

The other players also weighed in on that topic.

Governments and organizations can play a crucial role in supporting the standardization of insect-based products by establishing consistent regulations and standards for their use across various regions and industries, argues Bolard.

“While groups like the IPIFF are already contributing to this effort, there is still much to be done. Expanding new markets and facilitating the smooth cross-border movement of these products—through standardized customs processes, live animal transport regulations, and other related standards—are key areas where governments can help eliminate barriers that currently hinder industry growth.”

Provost agrees with Aarts that insect farming aligns perfectly with government goals. “It serves as an effective tool for revalorizing food waste, significantly reduces GHG emissions, and enhances food security by producing feed and fertilizers locally. We believe that governments should leverage this potential to help meet their sustainability targets. Trade groups also play a vital role, as there remain many grey areas concerning insects, particularly around import/export regulations and other regulatory aspects. Such organizations can help clarify these issues and foster a more supportive environment for the insect protein industry, enabling it to thrive.”

Heckman adds that governments and trade associations should prioritize developing science-based, customized legislation that allows the insect sector to fully capitalize on its unique characteristics, distinct from mammals, birds, and fish. “Governments should also facilitate investments by providing various economic incentives for investors and operators.”

Smorenburg also advocates for a more proactive government role in establishing regulatory frameworks and incentives to promote insect farming and Crielaard agrees that regulators can assist the insect industry by providing clear, reliable guidelines and formulating policies that encourage the use of novel ingredients with lower environmental impacts.

The pioneer’s perspective: Maye Walraven, North America general manager and chief impact officer at Innovafeed​

On economical challenges...​

“The alternative protein sector overall, like many other industries, is currently going through a challenging phase. The broader inflationary environment is hindering innovation, making it difficult to access capital,” comments Walraven.

Perhaps this environment is healthier for building a sustainable business, rather than focusing solely on growth at all costs, she maintains.

“Five years ago, there was a strong push to scale rapidly, with profitability often being an afterthought. However, that mindset has shifted. Now, investors are encouraging us to prove profitability at the scale of a single site before expanding to new locations, which I believe is a more balanced approach to growth. It's a return to the fundamentals, and eventually, growing in a more challenging context could lead to more resilient companies.”

On Innovafeed’s journey to date...​

Innovafeed has always believed in a modular approach​​ to growth and is similar to Protix in that respect, she says.

“In 2017, we started with a pilot site that produced a few hundred tons of protein annually. From there, we moved to a larger site, but we built it in three phases, knowing we’d make mistakes and learn along the way. This was intentional. In July of this year, we launched the final phase, which will allow us to bring significant volumes to market and reach profitability.”

Innovafeed, she continues, always recognized that to collaborate with major companies—like Mars and Purina—there's a minimum volume requirement just to start discussions, and the same applies to consolidated aquaculture players.

“To earn a seat at the table, we needed to hit a certain volume threshold, which has been our goal with this first plant in northern France. So far, the factory's economics are where we want them to be, but we need to scale up this third phase to reach profitability at the site. As we grow, we're continuously learning, improving operations, reducing OpEx, and enhancing the value proposition of our ingredients.”

In terms of moving into different markets, the company has realized that it's not as straightforward as it initially thought.

“We had planned to develop the technology in northern France and then replicate it across North America and Asia. However, we've found that different feedstocks significantly impact insect yields and performance, and the markets in Europe and North America vary greatly—especially in terms of consumer acceptance. Expanding into new regions requires extensive de-risking and finding the right local partners to adapt the technology.”

Another key factor is optimizing infrastructure costs: “For instance, while buildings in Europe are typically made of concrete, in the US, steel is more common. Constructing a concrete building in the US would be prohibitively expensive.”

Such considerations inform building design, air circulation, and automation systems. “Each location requires tailored engineering and design.”

On sectoral growth prospects...​

Innovafeed sees aquaculture as a sector with innovative players who are eager to make their supply chains more sustainable.

“Recently, the Norwegian government announced a goal to make 100% of the salmon supply chain sustainable by 2034, which is fast approaching. This is driving demand for increased sustainability in the aquaculture industry, and insect ingredients are seen as a key part of that effort. Similarly, in the pet food sector, to even begin discussions with major players, you need a solid life cycle analysis proving that your ingredients are more sustainable than conventional ones. We're collaborating closely with these companies on the carbon aspect of sustainability.”

The decarbonization aspect is more critical in the US market than the alternative protein focus.

“The insect industry is still far from achieving standardization in terms of technology. Different companies have made various technology choices, and we're now learning which of those decisions were beneficial and which were not. While we haven’t reached full standardization yet, there has been a natural elimination of less effective solutions.”

There’s still a lot of progress to be made across many dimensions, she claims.

“For example, on the feedstock front, we’ve evaluated around 200 types, but there’s significant potential for improvement when it comes to things like supplementation with vitamins and minerals or incorporating fermentation processes to break down fibers."

There's also room for improvement in genetics, she remarks.

“We've been working on creating ‘super families’, and we've already seen impressive yield improvements. However, we know we can further enhance aspects like reducing the life cycle and increasing resilience to numerous factors. Environmental condition management is another area with growth potential, especially given that we're operating in an indoor farming environment."

On collaboration...​

“The exciting part is that we’re seeing more cross-industry collaboration. It's becoming clearer to each player where they can build a competitive advantage and where it makes sense to collaborate. For instance, the Center for Environmental Sustainability through Insect Farming (CEIF)​​ brings together industry and academic experts to advance insects as a sustainable alternative for feed and food production. This collaborative effort helps the industry recognize where standardization is beneficial and where it makes sense to focus on individual competitive strengths.”