MARKET REPORT 64 F&A Alternative Proteins Edition April 2023 Additionally, insects are a more useful source of protein compared to other plants and animals and rearing insect protein is less costly. Therefore, while the insect-based proteins were used only as an ingredient for animal feed in the initial stage, they are now used in many different industries. This also supports the market growth. Experts of Markets and Markets are of the opinion that Defined Regulations and Government Support provide support for market development. According to the experts, consumption and acceptance of insect protein products is highly associated to the key sensory factors such as texture, taste, and appearance. Various regulatory bodies are conducting studies and research to help provide consumers with appropriate guidelines regarding the use of insect protein and its benefits. These regulatory acceptance and approvals are projected to provide lucrative growth opportunities to the participants in the market. In its report, Research and Markets draws attention to another point that drives the growth in the market. According to the report, with an increased worldwide focus on achieving net-zero emissions, the shift to eco-friendly, sustainable products brings significant sales and financing opportunities. The shift is more prominent in the food and beverages industry in regions such as North America and Europe. Thus, insect protein-based products are a great alternative to conventional plant and animal-based food products. RESTRAINING FACTORS There are also factors restraining the growth of the insect protein market. Especially high costs are among the most important of these factors. According to the report of Research and Markets, insect protein is one of the unique, promising animal feed proteins, owing to its functional, environmental, and nutritional benefits. However, high costs, legislation, and limited production capacity remain the main restraining factors for growth. Insect-based proteins are still expensive to produce; the equipment and procedures required to make them need optimization for large-scale production. Few consumers are inclined to pay higher prices for the health and environmental benefits of protein derived from insects, but numerous are priced out of this market. Microbial risk and allergic reactions are also considered as another restraining factor. According to Research and Markets, consumption of insect protein is highly prone to various allergic risks both for human and animal consumption. Use of insect protein is still in the early phase of research for use in various applications and thus have high risk of various unknown allergic and associated diseases, that cannot be treated on an immediate basis. Risks associated with eating insects could be caused by probable chemical (e.g., heavy metal accumulation) and microbiological contaminations. In addition, the preferences of consumers affected by Covid-19 can be added to this. Experts of Research and Markets think that as a result of the Covid-19 pandemic, a potential shift in consumers' food choices might occur, particularly concerning food of animal origin. Therefore, it is projected that there will be a higher rejection to consume unusual foods of animal origin like insects. In the case of insects used for food and feed, there are also concerns about the risk of transmission of zoonotic infections to humans.
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