North America Insect Protein Market Outlook to 2030

North America Insect Protein Market Overview

• The North America Insect Protein Market was valued at USD 48.21 billion in 2023. The growth is driven by the increasing consumer shift towards sustainable and eco-friendly protein sources. The market's growth is also supported by the rising awareness of the nutritional benefits of insect protein, which is rich in essential amino acids, vitamins, and minerals.
• Key players dominate the market are Protix (Netherlands), Aspire Food Group (Canada), Entomo Farms (Canada), Ynsect (France), and EnviroFlight LLC (USA). These companies have established themselves as pioneers in the insect protein industry, leveraging their expertise in insect farming and processing to meet the growing demand for alternative proteins.
• Aspire Food Group's new cricket protein facility in London, Ontario, is the world's largest, covering 150,000 square feet. It aims to produce9,000 metric tonsof cricket protein annually, equivalent to20 million pounds. The facility is expected to reach full capacity by early2024, supporting the growing$8 billionalternative protein market.
• Canada has emerged as a dominant player in the market, driven by strong government support and a well-established insect farming infrastructure. The province's dominance is attributed to its favorable regulatory environment, availability of funding for sustainable protein initiatives, and proximity to major markets in the U.S.

North America 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 Oil. In 2023, Insect Powder held the dominant market share due to its versatility and ease of incorporation into various food and feed products.

By Application: The market is segmented by application into Food & Beverages, Animal Feed, and Pharmaceuticals & Cosmetics. In 2023, the Animal Feed segment dominated the market the high demand for sustainable and nutrient-rich feed ingredients in the aquaculture and pet food industries has driven the growth of this segment.

By Region: The market is segmented by region into the United States and Canada. In 2023, Canada led the market driven by strong government support, favorable regulations, and significant investment in insect farming infrastructure also with increased consumer acceptance and expansion of insect-based product offerings contributing to its market position.

North America Insect Protein Market Competitive Landscape

• Protix: In December 2023, Protix secured a strategic collaboration with Tyson Foods, including a 55 million equity investment and a joint venture to build a U.S. insect protein facility. The facility is expected to produce up to 70,000 tons of larvae annually, significantly scaling up Protix's production capacity and advancing sustainable protein production.
• Ynsect: In January 2024, nsect became the first company authorized by the AAFCO to commercialize mealworm proteins for dog food in the U.S. This approval opens significant market opportunities, especially as the U.S. pet food market exceeded $42 billion in 2022. nsect's mealworm protein, shown to be highly nutritious and environmentally friendly, is set to revolutionize pet nutrition in North America.

North America Insect Protein Market Analysis

Market Growth Drivers

• Nutritional Benefits Driving Consumer Adoption: The high nutritional value of insect protein, particularly its rich amino acid profile, is a key growth driver. In 2024, over 5 million consumers in the U.S. purchased insect protein-based products, reflecting a growing awareness of its health benefits, especially among fitness enthusiasts and health-conscious individuals.
• Increased Demand in the Pet Food Industry: The North American pet food market is seeing a surge in demand for insect protein due to its high digestibility and sustainability. In 2023, over 500,000 metric tons of insect protein were used in pet food formulations, driven by growing consumer preference for eco-friendly and nutritious pet food options.
• Expansion of Retail Distribution Channels: Major retailers in North America have started stocking insect protein-based products, making them more accessible to consumers. In 2024, over 2,500 retail outlets across the U.S. and Canada began offering insect protein products, which significantly increased market penetration.

Market Challenges

• Consumer Acceptance and Perception: Despite the nutritional benefits, consumer acceptance of insect protein remains a significant challenge. In a 2024 survey, 6 million consumers in North America expressed reluctance to consume insect-based products due to cultural perceptions and concerns about taste, indicating that overcoming these barriers is crucial for market expansion.
• Supply Chain Constraints: The insect protein market faces supply chain challenges, particularly in scaling up production to meet growing demand. In 2024, over 50% of insect farms reported difficulties in sourcing raw materials and managing production costs, which could hinder the market's growth potential if not addressed.

Government Initiatives

• Canadas Sustainable Protein Strategy: In its 2023-2027 Departmental Sustainable Development Strategy, the National Research Council of Canada (NRC) committed CAD 25 million to advancing sustainable protein sources, including insect protein. This initiative is part of Canada's broader strategy to reduce greenhouse gas emissions and support innovative food production methods, promoting environmental sustainability in the agriculture sector.
• U.S. Department of Agriculture (USDA) Grants: In 2021, the USAID and USDA initiated a global research call to enhance insect production, focusing on sustainable protein sources. This initiative allocated USD 28 million for research into improving insect farming practices, aiming to boost food security and reduce the environmental impact of traditional protein sources.

North America Insect Protein Future Outlook

The future trends in the North America insect protein include increased adoption in human food products, expansion in animal feed, technological advancements in farming, and more favorable regulatory environments.

Future Market Trends

• Expansion of Insect Protein in Animal Feed: The use of insect protein in animal feed is projected to expand rapidly, particularly in the aquaculture and pet food sectors. By 2028, the total volume of insect protein used in animal feed in North America is expected to reach 150,000 metric tons, supported by growing demand for sustainable and nutritious feed ingredients.
• Technological Advancements in Insect Farming: Technological advancements in insect farming and processing are anticipated to play a crucial role in the market's future growth. By 2028, new farming technologies are expected to reduce production costs, making insect protein more competitive with traditional protein sources and driving wider adoption.