Black Soldier Fly Market - 2023-2030

Overview

Global Black Soldier Fly Market reached US$ 251.2 million in 2022 and is expected to reach US$ 468.4 million by 2030, growing with a CAGR of 8.1% during the forecast period 2023-2030.

The BSF market is benefiting from the global emphasis on sustainability and circular economy principles. BSF larvae efficiently convert organic waste materials into valuable protein and fat, aligning with the goals of reducing food waste and promoting environmentally friendly agriculture. Hence sustainability and circular economy act as key trends for BSF market growth.

Collaboration between BSF farming companies and other stakeholders in the food and agriculture industries, including research institutions and universities, was facilitating technological advancements and driving black soldier fly market growth. In August 2023, Buhler, one of the top processing technology companies collaborated with Entocycle, a provider of insect technology, to promote the use of large-scale Black Soldier Fly (BSF) farms.

In the black soldier fly market, animal feed has a significant share indicating a crucial role as a major application. The Asia-Pacific holds 1/3 rd share due to its growing animal feed industry. According to Alltech Agri-Food Outlook 2023, China has the highest feed production with 260.739 million tonnes. This growing feed industry demands larger amounts of black soldier fly products and drives its market growth in that region.

Dynamics

Rising Demand for Sustainable and Protein-rich Animal Feed

There is a rising demand for meat, dairy, and eggs, as global populations grow and incomes rise. According to FAO, the consumption of animal proteins worldwide is anticipated to increase by 14% between 2018 and 2030. As a result, for proper growth of animals, there is an increasing demand for sustainable and protein-rich animal feed. Black soldier larvae can be used as feed for poultry, fish, and other livestock, improving their nutritional content and reducing the reliance on traditional feed ingredients.

Black soldier fly larvae are exceptionally rich in protein, with levels of 50% of their dry matter. This high protein content makes them a valuable ingredient for animal feed formulations. In July 2023, the Kerala University of Fisheries and Ocean Studies (Kufos), launched a project to create a fish feed from organic garbage. The project's objective is to use black soldier fly larvae to extract the necessary protein from organic waste for fish feed.

Circular Economy and Waste Reduction

The circular economy and waste reduction principles are significant drivers of the black soldier fly (BSF) market growth due to the integral role BSF larvae play in efficiently converting organic waste into valuable resources. BSF larvae are voracious eaters of organic waste materials, including food scraps, agricultural residues, and organic byproducts from various industries. By feeding on these waste streams, BSF larvae help divert organic waste away from landfills and incineration, thus reducing the environmental impact of waste disposal.

Black soldier flies transform organic matter into protein-rich larvae and nutrient-dense frass (larval waste). The larvae themselves can be harvested and used for various purposes, such as animal feed or as a source of valuable protein and fat, while the frass can serve as a nutrient-rich fertilizer. In May 2023, Nutrition Technologies, a leading Agtech company, introduced Dipita biofertilizer from insect frass. This fertilizer is an organic fertilizer and created by black soldier fly frass.

Competition with Other Protein Sources

Traditional protein sources like soybean meal, fishmeal, and other plant-based and animal-based proteins have well-established markets and supply chains. For instance, 15-30% of the diets of animals often consist of oilseed meals and legumes. Most frequently utilized as a source of protein is soybean meal, particularly in the diets of poultry. These sources are trusted and widely used in various industries, including animal feed and aquaculture. Convincing customers to switch to BSF larvae or insect-based proteins can be challenging.

BSF larvae, as a relatively new entrant, face difficulty in getting consumer acceptance. Whether used as animal feed or for fertilizer, BSF-based products need to gain consumer acceptance. Overcoming cultural and psychological barriers to insect consumption can be a significant challenge, especially when consumers are more accustomed to traditional protein sources.

Segment Analysis

The global black soldier fly market is segmented based on product, application and region.

Rising Demand For Animal Protein

The animal feed industry is growing due to the rising demand for animal protein among consumers. According to FAO, by 2030, per capita consumption of meat is projected to increase annually by 0.3%, reaching 35.4 kg in retail weight equivalent. Many animals, including poultry, fish, and livestock, require protein for growth and overall health. BSF larvae can supplement or replace traditional protein sources like soybean meal or fishmeal and diving its market growth

As concerns about the environmental impact of traditional protein sources mount, there is growing interest in sustainable alternatives. BSF larvae are cultivated using organic waste materials, making them an eco-friendly choice. This aligns with the trend of sustainability in animal agriculture. Increasing consumer awareness of the environmental impact of their food choices is driving demand for sustainably produced animal products. BSF-based animal feeds can help meet these consumer demands for eco-friendly and ethically sourced animal products.

Source: DataM Intelligence Analysis (2023)

Geographical Penetration

Asia-Pacific's Growing Animal Protein Consumption

The rising middle class and expanding population in the Asia-Pacific have led to higher consumption of meat, eggs, and seafood. For instance, 27% of the world's total beef consumption, or roughly 100 million tonnes, was consumed in China in 2021, according to McKinsey & Company. This growing demand for animal protein is making the black soldier fly market expand as BSF larva has high protein content, and can be used as a valuable ingredient in animal feeds.

The Asia Pacific region has been increasingly concerned about environmental sustainability and the ecological impact of traditional protein sources. As a sustainable and eco-friendly alternative, BSF larvae have gained attention from both the public and industry stakeholders. In January 2021, the ICAR-Central Institute of Brackishwater Aquaculture in Chennai, India signed a Memorandum of Understanding (MoU) with a group of young entrepreneurs to study the use of Black Soldier Fly Meal (BSF Meal) as a sustainable element in aquafeed.

Source: DataM Intelligence Analysis (2023)

Competitive Landscape

The major global players include PROTIX, Entofood Sdn Bhd, Nutrition Technologies, Enviroflight, SFly, HEXAFLY, Innovafeed, nextProtein, Entobel and Protenga

COVID-19 Impact Analysis

COVID Impact

The impact of COVID-19 on the black soldier fly (BSF) market has been multifaceted, with both positive and negative effects. The pandemic has heightened awareness of the importance of sustainable and resilient food systems. As people became more conscious of food security and the environmental impact of their diets, there was a growing interest in alternative protein sources like BSF larvae, which can be produced sustainably and efficiently.

However, the pandemic disrupted global supply chains, affecting the availability of inputs and resources necessary for BSF farming. This included disruptions in the supply of organic waste materials used as feedstock for BSF larvae. Lockdowns, travel restrictions, and disruptions in logistics made it difficult for BSF farming operations to access markets and deliver their products. This posed challenges for both existing BSF farms and those planning to enter the market.

Russia- Ukraine War Impact

The ongoing conflict can create economic instability and disruption in the supply chain in the region. BSF larvae farming relies on a stable and consistent supply of organic waste materials, such as food scraps and agricultural residues. Disruptions in the supply chain for these materials could affect BSF farming operations.

The BSF market involves international trade of BSF larvae, insect-based products, or related technologies. Trade disruptions or sanctions related to the conflict can affect the export and import of BSF-related products. Economic instability and changes in consumer behavior due to conflict can influence food consumption patterns. Consumers may prioritize more affordable protein sources over sustainable or novel options like BSF larvae.

By Product

• Protein Meal
• Biofertilizers
• Whole Dried Larvae
• Larvae Oil
• Others

By Application

• Animal Feed
• Agriculture
• Pet Food
• Pharmaceutical
• Cosmetics
• Biofuel
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In April 2023, FreezeM, a company specializing in the biology and genetics of insects, introduced BSF-Titan, a first-of-its-kind upgraded genetic line of black soldier flies to transform the insect farming sector.
• In February 2022, The Norwegian Agency for Development Cooperation (NORAD) launched the three-year Black Soldier Fly (BSF) project to promote urban sanitation and handle biowaste in Ghana, Mali, and Niger.
• In February 2022, Inseact, a Singapore-based alternative protein start-up, launched a pilot facility to transform waste into shrimp feed and fertilizers using black soldier files.

Why Purchase the Report?

• To visualize the global black soldier fly market segmentation based on product, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of black soldier fly market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global black soldier fly market report would provide approximately 58 tables,53 figures and 181 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies