The production and demand for insect protein are gradually increasing

At the seminar on the development of new resources for future food, the Ministry of Health of China officially listed ants as a new resource development project. China has also proposed the establishment of a national resource insect industry promotion committee to promote the development and utilization of insect food and medicine. The insect protein industry has greatly expanded the impact of edible insects. Due to the development of insect food and medicine, can turn harm into treasure, killing multiple birds with one stone, in the 21st century, there is a boom in the establishment of insect food industry, and the corresponding insect food and medicine will continue to appear.

The number of edible insect species in China, Mexico and India exceeded 300, and 659 species of edible insects were recorded. The distribution area of insect protein can be divided into five geographical regions: tropical Africa, Oceania, neotropics, the East and the Near North.

Insect protein is a protein extracted from various growth stages of insects, such as eggs, larvae, adults, pupae, moths, etc. There are more than 1 million species of insects in the world, and more than 3,650 species are edible. Throughout the world, various foods that use insects as raw materials, such as mealworm biscuits, cricket protein bars, mixed insect snacks, insect protein balls, etc., are emerging in an endless stream.

From 2015 to 2020, China's insect protein output increased from 1,381,500 tons to 3,512,200 tons, and the demand increased from 1,200,400 tons to 3,221,700 tons. Insect protein has great potential in the aquaculture sector. The insect protein industry can solve the supply of some proteins, fats and chitin in feed at low cost, alleviating our urgent demand for marine and fish.

An additional $175 million

The expansion of insect protein company Ÿnsect paralleled layoffs

The Food and Agriculture Organization of the United Nations (FAO), in its report "How to Feed the World in 2050", notes that insects may be one of the solutions to the resource strain caused by population growth.

Insects are small, multiply quickly, and are rich in protein (many insects have 40-70% protein in their bodies) and have a tradition of eating them in most parts of the world, but they are far from being popular, and there are still problems with acceptance, eating habits, product forms, etc., from "feeding" humans.

However, this trend is changing. At a time when people are in full swing to obtain a variety of alternative proteins from plants, microorganisms and cells, insect protein has also quietly emerged, and related companies have repeatedly attracted financing in recent years. In April 2021, the European Food Safety Authority (EFSA) announced approval for mealworm consumption in the EU, further pushing the door for insect protein from animal feed to the human food market.

Ÿnsect is a representative of the industry: since its inception in 2011 in Paris, France, the company has raised more than $625 million, including the latest $175 million funding round first disclosed by Bloomberg on April 17, Beijing time, but undisclosed investors. The company is also currently in the process of negotiating another funding for a client deal worth about $1 billion, which is expected to close this year.

Ÿnsect mainly focuses on raising mealworms. Mealworms are rich in protein (72%), contain all essential amino acids, and are highly digestible. The company's insect farms are powered by advanced robotics, computer vision and cutting-edge artificial intelligence, and its plant in Amiens, northern France, is said to be the world's largest vertical farm and is expected to transport up to 160,000 tons of insects per year; Its product pipeline includes aquatic, poultry, pig and pet feed, as well as plant fertilizers and human food; Currently, its main products are focused on animal feed.

Animal feed is a good market

Since the industrialization of feed, global feed production has entered a new stage, and global feed production has been rising. According to Alltech's survey of global feed, from 2016 to 2020, global feed production increased year by year, and despite the impact of the epidemic in 2020, global feed production still increased by 1% to 1.188 billion tons.

At present, there are not many participants in the insect protein industry, and it is still in its infancy in China. Current industry leaders include Protix from the Netherlands, Ÿnsect from France, InnovaFeed from the United States, and Xinsheng Biotech from China. With the continuous upgrading of consumption, insect protein has once again attracted the attention of the industry, and even attracted research teams and food manufacturers around the world to invest in research and apply it to various fields such as baking, snacks, seasonings, nutrition and health care. According to the data, the global insect food market is valued at $143.6 million and is expected to grow at a CAGR of 45% to reach $1,336 million by 2025.

Experts predict that in the future, insects will become the third largest source of protein after microorganisms and cellular organisms. In 2019, China's domestic insect protein output was 297.99 tons, and the demand was 257.24 tons; China's domestic insect protein production is 351.22 tons, and the demand is 322.17 tons.

In addition, insect protein has great potential in the aquaculture sector. The insect protein industry can solve the supply of some proteins, fats and chitin in feed at low cost, alleviating our urgent demand for marine and fish.