(Food-Beverage-News.Com, July 14, 2022 ) According to a new market research report titled, 'Black Soldier Fly Market by Product (Protein Meals, Whole Dried Larvae, Biofertilizers {Frass}, Larvae Oil, Others {Cocoons, Pupa}), by Application (Animal Feed, Agriculture, Pet Food, Others), and Geography - Global Forecast to 2033,' in terms of value, the global black soldier fly market is expected to reach $3.96 billion by 2033, at a CAGR of 30.5% from 2022 to 2033. In terms of volume, this market is projected to reach 8,003.7 thousand tons by 2033, at a CAGR of 36.9% from 2022 to 2033.
Black soldier flies have high protein levels, excellent nutritional value, and are cheap to produce. This mass-reared insect species has received significant attention due to its ability to feed on different substrates, including organic waste streams. The black soldier fly's ability 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 than fishmeal or soybean meal for pig, poultry, and fish feeds. In addition, many government authorities have been mandated to coordinate in promoting the sustainable supply of safe, healthy feed in the global insect feed industry. This will create more market opportunities for black soldier fly protein meal producers to enter the huge animal feed market. Therefore, owing to factors such as the high growth performance of BSF meals, animal feed manufacturers have increasingly started incorporating BSF ingredients into their feed products as an alternative source of protein, thereby driving the growth of the global black soldier fly market.
The growth of this market is backed by the rising global meat demand, growing aquaculture industry, increasing demand from the animal feed industry for alternative proteins due to rising prices of soymeal and fishmeal, and increased government support for the application of insect meal in livestock feed. In addition, expansions in developed and emerging economies provide significant opportunities for the growth of the black soldier fly market.
However, factors such as a non-standardized regulatory framework across Europe and limited acceptance & approvals for black soldier fly larvae (BSFL) to be incorporated into the human diet hinder the black soldier fly market growth. Further, the availability of cheaper substitutes, high cost of skilled labor, and risk of disease transmission from BSF challenge the growth of this market.
Increasing Government Support for the Use of Insect Meal in Livestock Feed Drives the Global Black Soldier Fly Market
Many government authorities have been mandated to promote the sustainable supply of safe, healthy feed in the global insect feed industry. Some government authorities' support for consuming BSF-based products in animal feed is growing the demand for BSF-based products. For instance, in 2017, the European Government approved using ingredients derived from BSF larvae in aquaculture feed. In 2018, the Food and Drug Administration (FDA) and the Canadian Food Inspection Agency (CFIA) approved the use of insects as an ingredient in certain fish and poultry species.
Furthermore, in August 2021, Commission Regulation (EU) 2021/1372 authorized the use of processed animal proteins derived from insects in poultry and pig feed, with effect from September 2021. The European government legislation prohibits using dead insects or processed insects in feed for chickens and pigs. However, it is allowed to feed live insects, insect oil, or hydrolyzed protein. According to the International Platform of Insects for Food and Feed (IPIFF), the use of insect meals in pigs and poultry feed will be the main focus after the approval of its use in aqua feed. This will create more market opportunities for insect meal producers to enter the huge poultry feed market.
Thus, the growing government support to approve the use of insect meal in feed is expected to fuel the growth of the black soldier fly market in the coming years.
To provide efficient analysis, Meticulous Research® has segmented this market by product type (protein meals, whole dried larvae, biofertilizers {frass}, larvae oil, and others), application (animal feed, agriculture, pet food, and other), and geography (North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa). The global black soldier fly market study presents historical market data in terms of value and volume (2020 and 2021), estimated current data (2022), and forecasts for 2033.
Impact of COVID-19 on the Black Soldier Fly Market
According to WHO, the coronavirus might have originated in bats. In contrast, others say the virus was transmitted to humans in Wuhan, China, at a wet market, where animals like bats, snakes, rabbits, and birds are illegally sold. So, the fear of coronavirus transmission from animals and animal-based products has hit hard the consumption of animal proteins. The global export of chicken, beef, and pork meat trade has been reduced due to the emerging threats from the spread of the COVID-19 pandemic. This trend has plummeted the demand for animal-based products, including black soldier flies.
Furthermore, as the U.S. government implemented stay-at-home orders, many farmers resorted to panic-buying of animal feed in anticipation of potential shortages. Concerns such as truck shortages, reduced deliveries, and the fear of contracting the virus compelled farmers to stock their animal feed supplies. In addition, truncated air freight capacity, port congestion, roadblocks, and logistic disruptions in Southeast Asia are expected to escalate further as governments implement stricter measures. The consumption of fish, poultry, pork, and beef is expected to decline in Southeast Asian economies through the second quarter. Thus, the decline in fish consumption, poultry, pork, and beef is expected to decrease the demand for black soldier flies in the market.
However, in some regions, lockdowns have been announced to control the pandemic, impacting the movement of vehicles carrying livestock, feed, and feed ingredients. Due to the risk of animal feed, suppliers are slowing down or closing their production altogether. Farmers are concerned they may need to slow or stop slaughterhouse operations and keep their animals for longer due to lower demand, requiring them to use more feed than usual. These factors have led to livestock farms building up two-week supplies of feed when normally they might only keep enough for one or two days. For example, Purina Animal Nutrition LLC, which uses black soldier fly as a feed ingredient, has seen a slight increase in its livestock business sales. In addition, Cargill had seen its global feed sales volume grow by 10% or more in March 2020.
Based on product, the global black soldier fly market is segmented into protein meal, biofertilizer (frass), whole dried larvae, larvae oil, and others. In 2022, in terms of value, the protein meals segment is estimated to account for the largest share of the global black soldier fly market. The large market share of this segment is attributed to the increasing demand for protein meals from the animal feed industry, increased fish meal and soy meal prices, and government support and approval for an insect meal to be used in animal feed. However, in terms of volume, the biofertilizers segment is expected to command the largest share of the global black soldier fly market in 2022.
Based on application, the global black soldier fly market is segmented into animal feed, agriculture, pet food, and others. In 2022, the animal feed segment is estimated to command the largest share of the global black soldier fly market. The large market share of this segment is attributed to the growing demand for meat products and subsequent increase in the demand for protein-rich animal feed, rising soy meal prices, and government approval for the BSF to be used as a feed ingredient. However, this segment is also expected to grow at the fastest CAGR during the forecast period due to leading animal feed companies entering the edible insects' space and the expected rise in the number of product approvals in upcoming years.
Based on geography, this research report provides a comprehensive analysis of North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa black soldier fly markets. In 2022, Europe is estimated to account for the largest share of the global black soldier fly market. The large share of the Europe black soldier fly market is attributed to the growing aquaculture industry, raising awareness of an alternative protein source for use in animal feed, and an increase in the prices of fish meal. This region is also projected to grow at the fastest CAGR during the forecast period. The rapid growth of this region is attributed to the high demand for protein-rich animal feed; large supply of waste, including pre-consumer food waste from agriculture and food and beverage sectors; government approval for BSF products to be used in animal feed and pet food; and presence of supportive policies for BSF farming. Moreover, in terms of volume, this region is also expected to command the largest share of the global black soldier fly market in 2022.
The key players profiled in the global black soldier fly market report are Protix B.V. (Netherlands), Enterra Feed Corporation (Canada), InnovaFeed (France), EnviroFlight LLC (U.S.), Bioflytech (Spain), Entobel Holding PTE. Ltd. (Singapore), Entofood (Malaysia), Sfly (France), Hexafly (Ireland), F4F (Chile), Nutrition Technologies Group (Malaysia), nextProtein (France), and Protenga Pte Ltd (Singapore), among others.
