$372m to build the world’s largest insect farm. Is this the future of protein?
With $372m backing, French ag-tech startup Ÿnsect are poised to build the world’s largest insect farm. Are insects about to become all the rage? Let’s enter the wormhole…
Trigger warning: the article may creep you out. And, if insect puns bug you, you may want to buzz off now.
Insect farms - but Ÿ tho??
Every school had that strange kid who would eat worms in the playground. Some would do it as a bet, others by their own volition. One thing was certain, however: hanging out with them was social suicide.
But what if they were on to something after all? Should we all be eating creepy-crawlies?
Let’s look at the nutrition. Compared to beef, for example, the average insect contains:
2-3x more protein per 100g (gainz, gainz, gainz)
5x more calcium
3x more iron
5x more magnesium
The environmental impact stacks up even more favourably. Again, comparing to beef, insects:
Require just 1% of the water
Emit 1/2000th of the greenhouse gases
Need just a tiny fraction of the land (45% of the world’s land is currently used for livestock)
So -- like the nerds at school who would go on to found Silicon Valley’s next hot startup -- the playground insect eaters may yet prove themselves prescient.
Is the world ready to stomach insect edibles?
Eating insects – or entomophagy if we’re showing off – is nothing new. On the contrary, insects are already popular in most corners of the globe.
Whilst Western society is yet to fully embrace insect-based food, elsewhere they are devoured with relish. From lime and garlic grasshoppers in Mexico to wasp crackers in Japan, over 2000 species of insect are eaten worldwide by over 2 billion people according to UN estimates.
As for the stigma around edible insects in the ‘developed’ world? Lobster was once similarly maligned, considered a poor man’s food. Now Kim Jong-Un throws a hissy fit when he can’t get his fix.
Besides, whole insects won’t be consumed en masse. Bug flour and protein powder have gained significant traction owing to their ability to disguise the ‘ickiness’ of eating insects.
Price the deciding factor
Whilst Ÿnsect primarily supplies animal feed and pet food, the huge investment in insect farms is an indicator of what lies ahead for human food.
But this can only happen if insects are affordable.
The price of insects is currently a drag on market growth. Cricket powder, for example, costs a lofty ~£80 per kilo (roughly $50/lb), which is preventing mass consumption.
The expectation is that with further investment in bug farms the price will fall -- which is why many are keeping a keen eye on Ÿnsect’s developments.
How to grab a piece of the action
As price falls, expect to see more companies springing up and existing companies launching new product lines.
The edible insect market is forecast to grow at a 25% CAGR over the next decade, meaning the market will be worth $8bn by 2030 (give or take a few pennies).
There are many ideas here, but the one that stands out for me is protein bars. Demand is high; around 50% of Americans and Brits want to add more protein to their diet (regardless of the fact that most already consume more than the recommended daily intake).
A few companies already exist in this space -- notably Exo and Chapul who make cricket-based goods -- but none have established a clear stronghold.
Branding-wise, I’d go bold, embracing insect protein as your USP. It may alienate some customers, but you’re more likely to stand out amongst the panoply of protein bars out there already. Plus, it’s a good way to build brand loyalty and be able to charge a premium.
One company that has done this well is Liquid Death with their ‘Murder your thirst’ tagline. Whilst canned water doesn’t lend itself to product differentiation, the edgy branding means that consumers are making a statement when they pick a can off the shelf. If executed well, the same can be done with insect protein bars.
And if consumers really just don’t take to insects?
Well, that can of worms is best left unopened.
Weekly snippets:
Back by popular demand
Guilt-free deliveries: Ford unveils new electric E-Transit.
The name’s Bond. Green Bond. He may not have a licence to kill but UK Chancellor Rishi Sunak is still trying to save the world from peril by issuing the UK’s first green bond
KPMG joins PwC and BCG in setting a 2030 net zero target. My opinion? Too many acronyms
EU approves a €1tr ‘Climate Bank’ plan. The money will finance climate, biodiversity, and sustainability-focused projects over the next decade – a much-needed investment if the bloc is to achieve its long-term goal of carbon neutrality by 2050
Like what you read? Hit subscribe below for weekly articles direct to your inbox