The global population is expected to reach nearly 8 billion by 2025. The production of staples may not meet the demand of the population, which is likely to directly impact on the livestock ecosystem. With the population rise, land-use might be the key challenge as nearly one-third of the total land is used to feed the livestock.

Currently, about 3 billion people rely on fish for 20% of their animal protein intake. Fish consumption has increased by 100% over the last 50 years. Sustainable fishing can be a key aspect for meeting future demand of feeding supply. Fish oil, soybeans, fish meal, and grains are commonly used ingredients in animal feed. Procurement of these ingredients accounts to nearly 65% of the production cost in the manufacturing of animal feed.

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Increasing importance for alternative feeding is anticipated to boost the demand for alternative feeding sources and to add more cropland for future agricultural planning. Edible insects carry major nutritional value and can deliver higher protein levels per weight in a sustainable way. Insect derived feeds and insect harvesting have potential demand for commercial uses promising advantage of optimum resource utilization. Insect feeding market is currently in introduction phase and can create considerable growth opportunities for feed suppliers and insect farmers. Adoption of insect feed in the ecosystem is expected to increasing decline of the feed costs for both farms and suppliers. Early investors and adopters can create a platform for the market, thereby capturing a significant share of the market during the forecast period.

Stringent regulations regarding the usage of insects as aquaculture feeds is likely to hamper the insect feed market. Europe banned the utilization of insects as livestock feed after the outbreak of mad cow disease in British Isles. After 2013, Europe allowed the use of insect feed for aquaculture under rigid restrictions. The administrations across the globe are evaluating rulebooks and guidelines for insect feeds as an alternative as conventional feeds for commercial applications. Therefore, regulations regarding insect feed are anticipated to impact the global insect feed market over the forecast timeline.

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Based on end-use, the insect feed market can be segmented into poultry nutrition, pig nutrition, cattle and dairy nutrition, and aquaculture. The poultry nutrition segment accounted for a major share of the market in 2016. The poultry industry has expanded at a rapid pace in emerging economies. Crickets, grasshoppers, termites, cockroaches, stink bugs, lice, aphids, cicadas, scale insects, flies, caterpillars, ants, and bees are used as complementary food source in the poultry industry. Plant and animal proteins are primarily used as poultry feed as they rich in amino acids. Animal-based protein feed ingredients are comprised of blood meal or imported fishes while plant-based resources include leguminous grains and oil cakes. Termites are also used to feed guinea fowl and chickens in some regions.

The aquaculture industry is highly inclined towards Asia Pacific, particularly in China and countries in Southeast Asia. Majority of fish food production is consumed in countries in Southeast Asia. The insect feed production is not utilized at the optimum level despite Asia Pacific being a major producer of fish in the aquaculture industry.

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Some of the prominent vendors of the insect feed market are Nextprotein, Buhler AG, Hexafly, Entofood, Diptera Nutrition, Enviroflight, Coppens, and Agriprotein. These companies focusing engage in mergers and joint ventures with insect processing and rearing industries to gain market share. For instance, in January 2017, Buhler partnered with Protix to develop industrial scale solutions for larvae rearing, feedstock processing, and larvae processing for producing quality insect ingredients.

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