Alternative Proteins Magazine ISSUE FOCUS 34 October 2025 As a circular solution, SCPs are among the most advanced options available today. They already demonstrate how industrial by-products can be redirected into high-value ingredients, while offering clear scope for expansion as new substrates are approved and technologies mature. With supportive regulation, improved logistics, and ongoing cost reductions, SCPs are well placed to make a significant contribution to a more circular feed system. Protein hydrolysates Protein hydrolysates are produced by using enzymes to break down animal and plant by-products into functional feed ingredients. Protein hydrolysates help valorise trimmings from fish processing, poultry offcuts, and cereal processing residues. This process extends the utility of existing nutrient resources within the food system by improving the digestibility of by-products while increasing the bioavailability of peptides and amino acids. The circular production of hydrolysates is well established. Hydrolysates derived from fish trimmings are widely incorporated into salmon aquafeeds and early-life diets, where they improve palatability and growth. Poultry and fish by-products are also widely processed into protein hydrolysates for use in piglet and pet diets, while cereal residues can be converted into soluble proteins or functional protein extracts for livestock feed. The market for hydrolysates is concentrated in early-life and high-value feeds, where the nutritional and functional benefits justify their price premium. Although production is relatively small on a global scale, it is commercially stable and widely incorporated into aquafeeds. Constraints are mainly linked to feedstock availability and logistics, as suitable inputs for hydrolysis are finite and have other commercial uses. As a circular solution, protein hydrolysates illustrate how existing side streams can be upgraded into higher-value ingredients in a technically mature and commercially proven way. Their overall contribution remains limited by the finite availability of suitable feedstocks, but within these constraints, they remain a dependable pathway for making animal feed more sustainable. Insect proteins Insect proteins are mainly produced from the black soldier fly larvae or mealworms. They are reared on organic substrates and then processed into protein meals and oils for use in animal diets. By converting organic residues into protein and lipids, this process has the potential to revalue waste products into feed ingredients. The circularity potential of insect ingredients remains constrained by regulatory limits on approved feedstocks. In key markets such as the EU and US, the use of post-consumer waste and animal by-products is prohibited in insect farming due to food safety concerns. As a result, producers rely on cleaner inputs such as bakery waste, fruit and vegetable trimmings, and cereal by-products, as well as crops and feed materials that compete with other uses in livestock feed, pet food, and bioenergy. Despite these restrictions, several early commercial production facilities have been established, demonstrating some progress beyond the pilot stage. However, high capital costs and reliance on relatively expensive substrates continue to limit profitability and restrict the volume of commercially available product. Photo: TaraPatta | Shutterstock
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