Edible Insects Market Analysis

Edible Insects Market (Global, 2024)

Introduction

The edible insects market is experiencing a notable change, with consumers embracing sustainable and alternative sources of protein. The increasing awareness of the detrimental impact of the livestock sector on the environment has created a growing interest in edible insects. The market is characterized by a diversity of species of edible insects that are bred and processed for human consumption, such as crickets, mealworms and grasshoppers, each with their own nutritional value and culinary uses. Adding edible insects to food products, from snacks to bars, is a growing trend that is in line with the broader trend towards healthier and more sustainable lifestyles. The edible insects sector is a rapidly growing one, with opportunities for entrepreneurs and established food companies alike.

PESTLE Analysis

Political

By 2024, the edible insect market was influenced by various government policies aimed at promoting sustainable food sources. In the European Union, for example, under its Green Deal program, the European Union allocated approximately ten million euros to promote research and development in the field of edible insects. The purpose of this investment was to promote food security and reduce the environmental impact of traditional livestock production. In other countries, such as Mexico and Thailand, the government has taken steps to facilitate the farming and selling of edible insects, which further legitimizes the industry and encourages investment.

Economic

By 2024 the edible insect market is expected to reach $1.5 billion. In regions of the world facing food shortages, this growth is due to the growing demand for alternative sources of protein. In the United States the edible insect industry has led to a rise in employment. In 2024 alone more than 1,200 jobs were created in the production and processing of insects. This economic activity not only supports local economies but also helps diversify the agricultural sector.

Social

In the United States, for example, a third of consumers are said to be willing to try insect-based products in 2024. This trend is largely due to the growing awareness of the positive impact of insect consumption on the environment, such as a reduction in greenhouse gas emissions compared to livestock. The social media campaigns and educational initiatives are also changing people's minds, especially young people. They are more willing to include insects in their diet as a sustainable source of animal-free protein.

Technological

TECHNOLOGICAL ADVANCES HAVE HELPED CHANGE THE EDIBLE INSECTS MARKET DRASTICALLY, PARTICULARLY in the areas of production and processing. In 2024, the introduction of automation in the production of edible insects increased production by up to 40 percent. This allowed for larger operations with reduced labor costs. In addition, advances in food technology, such as freeze-drying and extraction methods, have increased the shelf life and palatability of insect-based products, making them more appealing to the mass market. These technological developments are essential to meeting the growing demand for insect-based foods.

Legal

The legal situation is being clarified, with several countries introducing specific regulations governing the production and sale of edible insects. In 2024, the American Food and Drug Administration (FDA) stipulates that all insect-derived products must be subject to a quality assessment and meet health standards. In the same year, the European Food Safety Authority (EFSA) approves the use of certain species of insect for human consumption. This has led to a surge in the market, with over fifty new insect-derived food products launched in the European Union.

Environmental

The favourable influence of edible insects on the environment is a key factor in the growth of their market. In 2024, it was calculated that a kilogram of crickets required only 1.7 kilograms of feed, whereas beef required eight. This economy of feed also meant that less land was needed and that the water consumption of insect-farming was about eighty per cent less than that of livestock-farming. Furthermore, crickets were estimated to produce eighty per cent less greenhouse gases than cattle. These favourable effects on the environment are increasingly attractive to consumers and to the business sector.

Porter's Five Forces

Threat of New Entrants

Medium - The edible insects market is experiencing growth, attracting new players. However, barriers such as regulatory compliance, consumer acceptance, and the need for specialized knowledge in insect farming can deter some potential entrants.

Bargaining Power of Suppliers

Low - The supply of edible insects is relatively abundant, with many suppliers available. This reduces the bargaining power of suppliers, as buyers can easily switch between different sources without significant cost implications.

Bargaining Power of Buyers

Medium - As consumer awareness and demand for edible insects increase, buyers are becoming more discerning. They have access to various products and brands, which gives them some leverage in negotiations, but the overall market is still developing.

Threat of Substitutes

Competition from traditional sources of animal and vegetable proteins is strong. These well-established and often preferred substitutes represent a constant threat to the market.

Competitive Rivalry

High - The market is becoming increasingly competitive as more companies enter the space, leading to aggressive marketing and innovation. Established players and new entrants are vying for market share, resulting in heightened rivalry.

SWOT Analysis

Strengths

• High nutritional value, rich in protein, vitamins, and minerals.
• Sustainable and environmentally friendly alternative to traditional livestock.
• Growing consumer acceptance and interest in alternative protein sources.

Weaknesses

• Cultural resistance and stigma associated with consuming insects in some regions.
• Limited processing and distribution infrastructure in many markets.
• Potential regulatory hurdles and food safety concerns.

Opportunities

• Expansion into new markets as awareness of sustainability increases.
• Innovation in product development, including snacks and protein bars.
• Partnerships with food companies and restaurants to promote edible insects.

Threats

• Competition from other alternative protein sources, such as plant-based proteins.
• Economic downturns affecting consumer spending on niche products.
• Potential backlash from consumer groups regarding food safety and ethical concerns.

Summary

The Edible Insects Market in 2024 will offer a unique combination of strengths and opportunities, especially in terms of its nutritional benefits and sustainable image. But challenges such as cultural resistance and regulatory issues will impede growth. In order to take advantage of this market, it is important for all players to focus on innovation and strategic alliances while avoiding competition and reluctance from consumers.