Global Black Soldier Fly Market – Forecast to 2033
By Product Type (Protein Meal, Biofertilizer, Whole Dried Larvae, Larvae Oil,
and Other BSF Products), Application (Animal Feed, Agriculture, Pet Food,
and Others) and Geography
The Black Soldier Fly Market is expected to grow 30.5% CAGR from 2022 to reach $3.96 billion by 2033. In terms of volume, this market is expected to grow 36.9% CAGR from 2022 to reach 8,003.7 thousand tons by 2033. 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 increasing government support for the application of insect meal in livestock feed are some of the major driving factors that help to boost the demand for black soldier flies.
Impact of COVID-19 on the Black Soldier Fly Market
The outbreak of COVID-19 significantly impacted public health, all stages of the supply chain, and various industries. Since the COVID-19 virus outbreak in December 2019, the disease has spread to almost 100 countries worldwide, with the World Health Organization declaring it a public health emergency. The global impacts of the COVID-19 significantly affected the black soldier fly market in 2020.
According to WHO, the COVID-19 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 and delusion of coronavirus transmission from the animals and the use of animal-based products have hit hard the consumption of animal proteins. The global export of chicken, beef, and pork meat trade was reduced due to the emerging threats from the spread of the COVID-19 pandemic. This trend 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. Several concerns, such as truck shortages, reduced deliveries, and employees contracting COVID-19, 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 as stricter measures are implemented by governments. 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 were announced to control the pandemic, impacting the movement of vehicles carrying livestock, feed, and feed ingredients. Due to the risk of animal feed, suppliers limited their production or closed 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. Even delivery trucks were difficult to procure. 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.
Increasing demand from the animal feed industry for alternative proteins due to rising prices of fish and soy meal
The developing geographies, such as Asia, Africa, and Latin America, will be experiencing a human population increase along with economic growth and changing dietary patterns. This will account for a 70% increase in the demand for livestock products by 2050. Further, the prices of livestock-based products have increased due to a rise in feed costs. The feed cost currently contributes ~60–70% 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, fishmeal availability has become limited due to the 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 feed ingredients.
Insects have high protein levels, and their production has a small footprint. Mass-reared insect species, such as the black soldier fly, have received significant attention mainly due to their ability to feed on different substrates, including organic waste streams. 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.
According to the FDA study, when soybean and fishmeal were replaced with BSF larvae meal in proportions of 10–56%, the broiler quails and chickens had a satisfactory taste, aroma, and nutritional composition meat. This experiment by Van Heugten, Martinez, McComb, and Koutsos (2019), showed that BSF oil is a valuable product for nursery pigs. It concluded that adding BSF oil at a maximum percentage of 6% to the diets of 21-day-old pigs, replacing corn oil (another replacer of soybean oil), has positive effects on the nursery pigs. In addition, BSF insects are also used as fish feed in Nile tilapia with different BSF meal levels, which results in similar growth performance and feed conversion.
Therefore, owing to factors such as the high growth performance of BSF meals and rising prices for fishmeal and soya 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.
Key Findings in the Black Soldier Fly Market Study:
The BSF Protein Meal Segment to Grow with the Highest CAGR During the Forecast Period
Based on product type, in terms of value and volume, the protein meals segment is expected to witness rapid growth during the forecast period. The growing demand for alternative protein meals from animal feed manufacturers, increased fish meal and soy meal prices, and government support and approval for an insect meal are some of the major drivers for this segment. Moreover, some fish feeding trials have successfully demonstrated the BSF meal as a better substitute for fish meal in aquafeeds.
The Animal Feed Segment is Expected to Dominate the Black Soldier Fly Market in 2022
Based on application, the animal feed segment is expected to account for the largest share of the global black soldier fly market in 2022. The large share of this market is mainly attributed to the growing population and the rapidly increasing demand for meat products. Also, the adoption of an alternative source of protein such as insects for animal feed offers a great opportunity during the forecasted period.
Europe: Growing at the fastest pace among all regions
In 2022, Europe is estimated to account for the largest share of the global black soldier fly market. The major share of this market is mainly attributed to the growing aquaculture industry, rising awareness of an alternative protein source for use in animal feed, and increased fish meal prices. This region is expected to grow at the fastest CAGR during the forecast period. The rapid growth of this region is mainly 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 report includes a competitive landscape based on an extensive assessment of the key strategic developments adopted by leading market participants in the industry over the past three years. 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.
Scope of the Report:
Black Soldier Fly Market, by Product Type
- Protein Meal
- Biofertilizers (Frass)
- Whole Dried Larvae
- Larvae Oil
- Others (Live, Larvae, Adult, Cocoon, & Pupa)
Black Soldier Fly Market, by Application
- Animal Feed
- Pet Food
Black Soldier Fly Market, by Geography
- North America
- Rest of Europe (RoE)
- Asia-Pacific (APAC)
- South Korea
- Rest of Asia-Pacific (RoAPAC)
- Latin America
- Middle East & Africa