The edible insects market - Spain

1.2 World market

The edible insect market could grow tenfold over the decade. In fact, the market is expected to grow at a rate of **.*%. Also, total sales are estimated to grow from $*.* billion in **** to $*.* billion in ****. It should be noted that *.* billion people consume insects every day[***]

edible insects market revenue evolution Global, ****-****, billions of USD Source: ****

This could represent a production of * million tons of insects per year. The growth of this market is favored by consumer awareness of the environmental damage caused by excessive meat consumption. Insects are also a very good source of protein for the animal feed industry.

Asia-Pacific is the region with the highest human consumption of insects. According to estimates, the industry's turnover in this area will reach $*** million in ****. In Europe, the figure could rise to $*** million.

Edible insects market size by region World, ****-****, USD million Source: ****

The European market is characterized by significant regulatory barriers. These regulatory barriers limit the development of many national markets in Europe, but this is changing.

However, some countries stand out in terms of the number of entomoculture players on European territory. Thus the players are mainly concentrated in Northern Europe. France, the Netherlands and Belgium, then ...

1.3 Domestic market

As Europeans have a reluctance to eat insects, it is difficult to foresee an increase in human consumption of insects. It is likely to remain limited over the next decade. However, the growth of insects for animal feed is very promising. According to estimates, they could replace at least **% of the proteins currently used to feed livestock (***), and up to ***%[***].

evolution of feed production Spain, ****-****, million tons Source: ****

In ****, total production reached **.* million tonsof feed. However, the sector experienced a *% decrease in **** which was equivalent to a porduction of **.* million tons. Spain is the largest European producer, ahead of Germany (***).

The insect-based substitute industry is still in its infancy. The start-up Just Bugs plans to produce * tons per year in ****.[***]

In ****, the turnover of the Spanish feed production sector was €*.* billion and it was mostly products destined for pig farming. In percentage terms, most of those products were composed of cereals. The percentage of proteins is lower, but insects can be used as substitutes. However, these elements were more important in value. It corresponded to a total of *.*% of raw materials in tons:

*.*% of the raw materials used in tons are legumes; *.*% fodder; *.*% milk; *% land animal products and *.*% fish-based.

Share ...

2.1 Meat substitute

In the coming years, insects could become an important alternative to meat consumption. They are a very good source of protein and some species, such as the green grasshopper can provide up to ** grams of protein which is twice as much as beef (***).

Protein content by type of animal World, ****, grams Source: ****

In addition, more and more Spaniards are giving up meat, especially the younger ones. Some are becoming flexitarians or are paying attention to the ecological impact of what they consume, which could play in favor of the edible insect market. They were however **% of Spaniards who remained omnivorous in ****[***].

Distribution of Spaniards according to their diet Spain, ****, in % Source: ****

This awareness represents a real turning point in Spanish society, with **% of Spaniards saying that protecting the environment is the second most important reason for changing their consumption habits (***). However, **% of those surveyed regret that the supply of alternative products is not more accessible at the usual points of purchase. Finally, it is worth noting that the younger generations, led by Millennials and Generation Y, are the main drivers of demand, with **% turning to these alternatives.

Overview of changes in eating habits Spain, ****, % Source: ****

The graph below shows that beef ...

2.2 Reluctance to eat insects

A quarter of Spaniards have already consumed insects and half said they might do so again. Most pointed to the ecological argument to justify their decision. However, according to a survey conducted by Nestlé, the proportion of Spaniards willing to try insects(***).

Food preferences of Spaniards Spain, ****, % Source: ****

On the other hand, the majority of Spaniards would prefer insect meat to be disguised in food preparation, revealing the persistence of a certain aversion.

Preferences on the format of insect consumption Spain, ****, % Source: ****

2.3 Demand for feed

From INE data, the size of the meat production market in Spain can be estimated. Animals need protein products to grow, something that insects could replace, especially soybeans. The good health of that sector, which grew throughout the decade, bodes well for the insect feed sector. In ****, turnover was €** billion. The activity generated purchases of goods and services, including feed purchases, worth €**.* billion.

evolution of meat production turnover Spain, ****-****, billions of euros Source: ****

3.1 The insect food chain

The edible insect and derived products industry consists of four main stages: breeding, primary processing (***) and distribution. Market players operate in one or more of these stages.

Therefore, * types of agents can be identified: farmers, processors and distributors. However, many companies operate in several stages and are thus farmers-processors, processors-distributors or combine the three functions. Moreover, although the final consumers are private individuals, several of these companies also or even exclusively operate in B*B.

Among the distribution players, it is worth noting the restaurants and tapas bars that focus part of their communication on the sale of insects and contribute to popularizing this new mode of consumption. This is particularly the case of BCN Insectos in Valencia. However, some actors ceased their activity mainly because ofweak demand and lack of funding, such as the Mexican restaurant Punto MX awarded with a Michelin star that closed due to the Covid crisis.[***]

3.2 The insect food chain

The feed insect industry is similar to the food insect industry, but is more developed and has global players.

Source: ****

The use of insects for animal feed has several advantages, especially environmental, as insects can feed on organic waste.

As a result, many actors are innovating in insect feeding. The use of organic waste (***).

4.1 Award

In Spain, most large supermarket chains do not offer edible insects for sale. However, consumers can turn to specialized websites. Whole insects usually cost less than * euros for ** grams.

Source: ****

4.2 The supply of insect-based food products

The following two graphs illustrate the trends in the supply of insect-based products in Europe. It can be seen that the most popular products in Europe are also those whose market share will decrease in the coming years in favor of other products that are currently less widespread.

In ****, whole insects accounted for the largest market share (***).

Insect products expected to lose market share Europe, ****-*****, in % Source: ****

The growing demand for protein-rich foods for sports nutrition, diet foods or food supplements represents a significant opportunity for entomophagy players. They are therefore expected to increasingly invest in this niche, which then explains the expected increase in the market share of specialty food ingredients (***) from **.*% in **** to **.*% in ****. Thus, by ****, specialty food ingredients are expected to cover almost one-fifth of the market, while snacks and bars will continue to occupy the *nd and *rd positions in terms of market share. Thanks to a high growth rate, meat products and functional foods will occupy the *th and *th position in terms of market share by ****.

Although they account for only a small share of the current market, Paleo diet-specific products (***) are expected to have the highest growth rate.

Types of insect-based products expected ...

5.1 European Regulation

The marketing of insects for human consumption falls within the scope of European Commission Regulation (***). This regulation requires that any food considered "novel food" must be authorized by the Community before being placed on the market. A "novel food" is defined as "any food which was of negligible importance for human consumption within the Union before ** May ****".

However, the interpretation and application of this text varies from country to country. Some countries, such as the Netherlands and Belgium, have allowed producers, processors and distributors to continue marketing their products while waiting for the European Food Safety Authority (***) to issue its first risk assessments. France, on the other hand, has chosen to abide by the "absolute precautionary principle" and to consider the marketing illegal.

The "novel food" status is established on the basis of the absence of a history of consumption in Europe before ****. In ****/****, surveys were conducted in Europe to establish a possible history of insect consumption. They concluded that there was no history.

Thus, in France, official statements state that "the new Novel Food Regulation" adopted by the European Parliament and the Council of the European Union (***) which replaces EC Regulation n° ***/** from January *, ****, states that whole insects and insect ...

6.1 Segmentation

The companies in this segment are mostly start-ups in the growth phase. No data on turnover is available.

• Ynsect
• Accro (Nxtfood)
• Jimini's - Entoma
• Insectum
• BCN Insects