Asia Pacific Insect Protein Market Outlook to 2028

Asia Pacific Insect Protein Market Overview

The Asia Pacific Insect Protein Market was valued at USD 214.06 million in 2023. This growth is driven primarily by increasing awareness of sustainable protein sources, the rising demand for alternative proteins, and the environmental benefits of insect farming over traditional livestock.

The market is dominated by key players Ynsect, Protix, Aspire Food Group, Entomo Farms, and Hexafly. These companies have established a strong foothold in the market through extensive research and development, strategic partnerships, and expanding production capacities.

In October 2023, Tyson Foods invested in Protix, acquiring a minority stake and planning a joint venture to build a U.S. insect ingredients facility. This move will significantly scale up production, particularly for pet food and aquaculture industries, and marks a strategic shift towards sustainable protein sources. The facility, set to be the first of its kind in the U.S., will upcycle food byproducts into high-quality insect proteins

China emerged as a dominant player in the Market because the country's government has been proactive in supporting the development of the insect protein industry through favorable policies and funding initiatives, further solidifying the country's leadership position in the market.

Asia Pacific Insect Protein Market Segmentation

The market is segmented into various factors like product, application, and region.

By Product: The market is segmented by product into whole insects, insect powder, and insect-based protein bars. In 2023, insect powder held a dominant market share due to its versatility in various applications, including animal feed, pet food, and human nutrition.

By Application: The market is segmented by application into animal feed, human food, and pet food. In 2023, animal feed emerged as the leading segment, by the growing use of insect protein as a sustainable and cost-effective alternative to traditional animal feed ingredients such as soy and fishmeal.

By Region: The market is segmented by region into China, South Korea, Japan, India, Australia, and the Rest of APAC. In 2023, China held the largest market share by its large population, increasing health consciousness among consumers, and government support for the insect protein industry.

Asia Pacific Insect Protein Market Competitive

Company

Establishment Year

Headquarters

Protix

2009

Netherlands

Innova Feed

2016

France

Entomo Farms

2014

Canada

Aspire Food Group

2013

USA

Ynsect

2011

France

Ynsect: In December 2022, nsect announced plans to expand its insect protein production in the U.S., following the opening of its first mealworm farm in Nebraska. The company aims to begin construction of an additional site by the end of 2023, potentially collaborating with Ardent Mills to enhance sustainable food production.

Entobel: In November 2023, Entobel launched the largest insect protein production facility in Asia, located in Vietnam, with a capacity of producing 10,000 tons of protein meal annually. This facility, described as the world's most CAPEX-efficient BSF production site, aims to significantly impact the aquaculture industry by providing sustainable protein alternatives.

Asia Pacific Insect Protein Market Analysis

Market Growth Drivers

Sustainability Initiatives: Sustainable agriculture in the Asia Pacific region is projected to receive over $14 billion from the Asian Development Bank (ADB) between 2022 and 2025, addressing food security and climate resilience. This investment, alongside initiatives to reduce food wasteup to 33% globallypositions sustainable practices as key growth drivers in the agricultural sector.

Technological Advancements in Insect Farming: The introduction of automated farming technologies in 2024 has significantly increased the efficiency and scalability of insect farming in Asia Pacific. Companies like Protix and Entobel have implemented state-of-the-art systems, enabling them to produce large quantities of high-quality insect protein, which has attracted substantial investments and boosted market growth.

Increased Aquaculture Demand: The Asia Pacific region is witnessing a surge in aquaculture production, with fish and shrimp farming in 2024. This growth is driving the demand for sustainable protein sources like insect protein, which is increasingly used as a feed ingredient to meet the nutritional requirements of farmed species.

Market Challenges

Consumer Acceptance: Despite growing awareness, insect protein faces resistance in certain markets due to cultural and dietary preferences. Surveys in 2024 indicate that over 60% of consumers in some Asian countries are still hesitant to consume insect-based products, posing a challenge to market expansion.

Supply Chain Issues: The insect protein industry in the Asia Pacific has faced logistical challenges in 2024, particularly in transporting live insects and processed products to remote regions. The lack of cold chain infrastructure has led to spoilage and increased operational costs, affecting the overall profitability of companies in the market.

Government Initiatives

Vietnams Investment in Sustainable Feed: In 2024, Vietnam committed to promoting sustainable agriculture and food systems by advancing policies that support climate-resilient farming practices. The government pledged $50 million to initiatives focused on reducing greenhouse gas emissions, enhancing food security, and transitioning to organic and regenerative agricultural methods by 2030, aligning with COP28 objectives.

Indias Subsidy for Insect Farming: The 2024 Indian budget emphasized a reduction in subsidies for traditional fertilizers, reallocating resources towards sustainable agricultural practices. This shift includes a $100 million fund to promote insect protein production, aiming to enhance food security by supporting alternative protein sources in the agricultural sector. This initiative aligns with Indias broader goals of reducing dependency on conventional protein feeds and fostering innovation in sustainable farming.

Asia Pacific Insect Protein Market Future Outlook

The Asia Pacific insect protein industry is expected to see continued growth due to increasing adoption in aquaculture, government support, technological innovations, and growing consumer acceptance of insect-based products.

Future Market Trends

Expansion of Insect Protein in Aquaculture: Over the next five years, the Asia Pacific insect protein market is expected to witness significant growth in the aquaculture sector, with insect protein becoming a staple ingredient in fish and shrimp feed. By 2028, the demand for insect protein in aquaculture is projected to increase, driven by the sector's need for sustainable and high-quality feed options.

Technological Innovations in Insect Farming: The next five years will see significant technological advancements in insect farming, with the adoption of AI and Io T technologies to optimize production processes. These innovations are expected to increase the efficiency of insect farming by over 50%, reducing production costs and making insect protein more competitive with traditional feed ingredients.
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