Sean Warner and Patrick Pittalga started with the Bugburger, their first attempt at making food from insects.
Their patties, which combine black beans and black soldier fly larvae, were made shortly after the United Nations released an influential report in 2013 touting insects as the future of food, a natural resource that could help fight global warming. Cooked in an apartment at Georgia Tech. Meat prices and climate concerns as the world's population grows.
But the bug burgers didn't taste very good, and the entrepreneurs eventually pivoted the Grubbly Farms brand to focus on insect-based food for dogs and chickens.
The shift from human food to furry and feathered creatures was a practical adaptation to what we've seen from many startups and established brands trying to build markets for these ingredients. No matter what is good for the environment, people are still not willing to eat insects. However, they are happy to feed living things to pets.
Demand for insect protein for animal feed is increasing, with demand for insect protein increasing by 4,900% from 2021 and could reach 500,000 tonnes by the end of this decade, according to a Rabobank report.
These prospects for growth are drawing venture capitalists to the emerging industry. Investors poured $76.77 million into insect-based food companies in 2022, and another $14.92 million last year, according to PitchBook data. Mark Cuban and Robert Downey Jr. are among the investors who put money into the insect protein company.
Startups face a difficult balance as they try to create demand for their products, which keeps them from catering to human diets.
“Too early is just as dangerous as being too late,” says Phil Poirier, co-founder of Montreal-based Wilder Harrier. The company's products include cricket dog snacks and black soldier fry dry food.
Health conscious appeal
Diners are proving to be a tough crowd for insect protein evangelists. Similar results were found in major European markets such as Germany and the UK, according to a 2021 YouGov survey. That's only a quarter of consumers.
This silence reflects the unease some people feel about the idea of eating bugs, but also reflects the challenge that insect proteins have not yet filled certain flavor or nutritional gaps. There is.
“Aside from sustainability, edible insects don't exactly solve a clear problem for human food applications,” says Alessandro Di Trapani, co-founder of insect dog food maker Grub Club Pets. says.
Therefore, the animal market became a more fertile area. Pet foods made with crickets and black soldier fly larvae are sold at major retailers such as Petco and Chewy.
In October, Tyson Foods announced a partnership with insect supplier Protix to build a facility in the United States to produce insect proteins and fats for use in pet food and livestock production. Mars sells dry cat food in the UK that uses black soldier fly larvae.
Insect-based foods are popular in pet aisles with product descriptions that appeal to health-conscious shoppers, such as not causing allergies in dogs and being good for sensitive stomachs.
Ann Carlson, founder of Jiminy cricket-based pet food, saw the potential for a stronger business model and a greater environmental impact by feeding dogs.
“Dogs eat the same thing every day, but if you replace it with sustainable alternatives, you basically have a full meal opportunity,” says the company, which makes dog food, treats and dental chews. says Carlson. “That's not the case with humans. Best case scenario, you might be able to eat breakfast at a bar every day.”
Goljan Nikolic, senior analyst at Rabobank and co-author of a report on the sector's potential, said pet food has so far driven volume growth in the insect protein market.
But he expects rapid change. If further research is carried out and large-scale production brings prices down, Nikolik believes aquaculture could become the largest purchaser of insect proteins, using them as feed for fish and other seafood. There is. However, pet food is still expected to account for about 30% of demand in 2030, he said.
Most livestock and farmed fish are still fed traditional soy and fishmeal, which are cheaper than insect feed. Researchers are assessing whether insects can gain “functional benefits” such as supporting faster growth or lower mortality, increasing demand from commercial farmers and their feed products. That could increase, Nikolic said.
“A process that spans decades”
The majority of insect-based pet foods in the United States are Black Soldier Fry products for dogs. That's because this ingredient was the first insect protein officially approved for use in adult dogs by the American Association of Feed Control Officials in 2022. Although the association does not regulate the product, this designation means the ingredient has been deemed safe and effective by the American Feed Control Officials Association. The association and the FDA Center for Veterinary Medicine, according to AAFCO Executive Director Austin Serrell.
Dried crickets were officially approved for use in adult dog food in January, and mealworms received interim approval the same month. Insects are not allowed in cats' diets, but there is some debate over black soldier fly larvae, Terrell said.
Meanwhile, the industry hasn't given up on feeding large numbers of people someday.
Grubbly Farms didn't move forward with the development of the Insect Burger patty, but co-founder Werner insists that “a chef could have added a little spice and made it good enough to sell on the market.” He still expects insects to become a mainstay of the human diet, but believes it will be a “decade-long process”.
Jarrod Goldin, who co-founded Ontario-based Entomo Farms in 2014, wishes human adoption of insect products 10 years later “would have made a lot more sense.” He said that he had done so. Currently, about 70% of the crickets it grows are used in pet food, although the company still believes it will.
At this point, people are more likely to buy insect-based foods if they see it as a way to “fight back” against a culture that feeds corn and soy to animals that don't naturally eat them, said communications director Allie Moore. Ta. Director of Chapple Farms, based in Oregon.
The company sells black soldier fly products, which are mainly used as animal feed and fertilizer. The company's human-grade cricket powder only accounts for 5% to 10% of sales.
“It makes too much sense to feed insects to animals that, like humans, don't care whether they eat insects or not,” Moore says.
