Black Soldier fly Market outlook for 2020-2030
According to the United Nations rapidly growing human population cause a growing demand for food and feed worldwide. Food and Agriculture Organization (FAO) projects that by the end of 2030 demand for agricultural products will be sixty percent higher, compared to the demand in 2013. Environmental changes are another factor that is putting pressure on the current global good supply chain. These developments cause global growth in demand for (sustainable) meat proteins and other high-value ingredients for as well as humans as animals.
To fulfill this growing meat demand, meat producers are focusing on improving the production and quality of meat with the help of high-quality protein containing feed in the diet of livestock. Moreover, an increasing number of health-conscious consumers are demanding environmentally safe and chemical-residue-free meat. Such factors are leading meat producers to adopt insect-derived feed.
Insects are a good source of high-value components like proteins and oils, and they can be used as the best possible alternative to traditional plant based protein and oil sources. Insects have the ability to grow on the waste streams and have high feed conversion efficiency and insect rearing is not land-based, so does not require a lot of lands. Currently, almost 2 billion peoples all around the world include insects as a part of their diet.
Currently, the black soldier flies larvae, also called BSF, as an insect is very popular. One of the main advantages of the BSF compared to other insects is that it is the most efficient insect in bio converting low-quality organic waste. The BSF consists of proteins and oils and can be used for multiple purposes, including food, pet food, and animal feed. Besides, it can also be applied in products for industrial and pharmaceutical purposes.
Eventually, leftover byproducts and substrates of the BSF can also be used as fertilizer or as biogas currently, it is allowed to use BSF proteins as pet food, fish feed, and human food when reared on organic waste streams.
Growing BSFL Industry
The high growth of the black soldier fly market is mainly attributed to the increasing global meat demand, growing aquaculture industry, increasing demand from the animal feed industry for alternative proteins due to rising prices of soy meal, growing government support for the use of insect meal in livestock feed, and growing investments by the key players operating in the BSF industry.
The global black soldier fly market is expected to reach $2.57 billion by 2030 with a CAGR of 33.3% during the forecast period of 2019 to 2030. Based on the product, in terms of value, protein meal commanded the largest share of the overall black soldier fly market in 2019. The large share of this market is mainly attributed to increasing demand for protein meal from animal feed manufacturers; rising soy meal prices; and government support and approval for an insect meal to be used in animal feed and pet food.
Market Insight for BSF
The global black soldier fly market is expected to grow at a CAGR of 30.6% to reach $539.4 million by 2025 from $108.7 million in 2019. This market is mainly driven by increasing global meat demand, growing aquaculture industry, increasing demand from the animal feed industry for alternative proteins due to rising prices of soy meal, growing government support for the use of insect meal in livestock feed, and growing investment by the key players in the BSF industry.
Below are a few important factors, which are deriving the BSF industry.
Global Meat Demand
To fulfill this growing meat demand, meat producers are focusing on improving the production and quality of meat with the help of high-quality protein containing feed in the diet of livestock.
Such factors are leading meat producers to adopt insect-derived feed such as BSFL protein meals.
BSFL is a cheaper alternative protein source as compared to fish meal and soy meal for animal feed.
Increasing demand for alternative Protein source from Animal Feed Industry
At present, the feed cost contributes 60 to 70% of the total livestock production cost. Fish and soybean meal are the major acting protein sources for the feed. However, these sources compete with food production for humans. Moreover, the availability of fishmeal has become limited due to over-exploitation of marine, causing a rapid increase in the cost of these feed ingredients. As a result, the search for sustainable alternatives has led to a growing interest in insects as a feed ingredient.
BFSL has high levels of protein and its production has a small footprint. The ability of BSF to convert organic waste into high-quality nutrients has rapidly opened commercial opportunities with the development of products such as protein meal, which is a cheaper alternative protein source as compared to fishmeal or soybean meal for pig, poultry, and fish feeds.
Growing Aquaculture Industry
In fish farming, nutrition is critical because feed represents 40-50% of the production costs. Fish nutrition has advanced dramatically in recent years with the development of new balanced commercial diets that promote optimal fish growth and health. The essential nutrients for fish growth are amino acids, fatty acids, vitamins, minerals, and energy-yielding macronutrients (protein, lipid, and carbohydrate).
BSF larvae contain high amounts of protein (40%) and have a well-balanced profile of essential amino acids. Therefore, it can be used as an alternative source of protein for fish feed. Owing to these factors, some countries have approved the insect-based meals such as BSFL for aquafeed applications. For instance, the European Commission (EC) has officially approved the use of insect protein as a new form of aquaculture feed in 2017. Further, in 2018, the Food and Drug Administration (FDA) and the Canadian Food Inspection Agency (CFIA) have approved the use of insects as an ingredient in certain fish.
The need to find alternative protein sources is bringing growth opportunities for the edible insects and animal feed market. The use of edible insects for animal feed across diverse end-users such as pet food, livestock, and aquaculture may serve as a promising growth generator. BFSL comprise more than 55 percent protein and up to 36 percent fat. Therefore, this factor makes this insect a preferential source as an addition to animal feeds for providing the necessary nutrients to the livestock and poultry.