News
The financial struggles of Ÿnsect, one of Europe’s largest insect protein producers, have raised concerns about the viability of large-scale mealworm farming. The company, which had positioned itself as a leader in the sector, now requires €130 million to continue operating its facility. Its difficulties reflect broader challenges in the industry, including slow consumer adoption, high production costs, and regulatory hurdles.Ÿnsect operates mealworm farming sites in Dole and Amiens and has raised nearly €600 million since its launch in 2011. However, its 2023 revenue was just €5.8 million, while third-party liabilities stand at approximately €104 million.On LinkedIn, food industry strategist Peter Kürti argued that consumer demand remains too low to justify large-scale production. “Nobody wants insect protein in the food chain, customers do not, regardless of whether they are vegan or not,” he said.Others believe the sector is still adjusting. Adrián Odio, a bioeconomy and biotechnology expert, suggested that companies may need to shift their focus from alternative protein to waste upcycling and biorefining.Ÿnsect is not alone in its financial struggles. Agronutris, another well-financed insect farming startup, has also entered safeguarding proceedings, a voluntary legal procedure for companies facing insolvency. The cowhen to take iron gluconatempany, which operates a black soldier fly farm in Toulouse and focuses on protein production for aquaculture feed and pet food, raised €100 million in 2021 but said that an uncertain economic context had made further investment more difficult.“Access to funding has become harder due to an uncertain economic context and investments that have been curbed by the latest news in the industry, and the announcements made recently by other industrial actors,” Agronutris said in a statement.The setbacks for these two companies mark a major challenge for the insect farming sector, which raised an impressive $68 million in funding in 2024 but is now struggling to maintain investor confidence.While insect-based food products are widely consumed in parts of Asia and Africa, European acceptance remains limited. Surveys suggest that younger consumersferrous fumarate how long to work and those concerned with sustainability are more open to trying insect protein, but widespread adoption has yet to materialise.Dr Alexia Nectoux, post-doctoral researcher at Haute École Libre Mosane (HELMo) and INSECTA researcher, told Ingredients Network that there is a vicious cycle where low public acceptance limits investment, hindering product development and availability. Cultural perceptions remain a major barrier. “People are not used to this ideaferro f tab iron tablets because it is still uncommon to have such products in our Western diet and might see it as something sudden, but it’s actually nothing new… The cultural resistance really is the only obstacle in consumer acceptance,” she said. “And without more accessible choices, people don’t get the chance to normalise insects as a protein source.” However, research indicates that attitudes may be shifting. In a 2024 study, 55.7% of consumers surveyed said they would consider purchasing yoghurt enriched with insect protein and were willing to pay an average of 24% more than the conventional price. Acceptance was highest among younger adults, men, rural residents, and families with children.Several companies are iron and glycine suspension uses in hindicontinuing to develop and release insect-based food products. French company Micronutris has developed protein bars and crackers incorporating mealworm powder and crickets. Italian company Small Giants sells cricket protein pasta – marketing it as a rich source of vitamin B12, fibre, and omega-3 – online throughout the EU and in stores in several European countries. And Innovafeed, also based in France, has focused on producing insect-based protein for both food and animal feed, highlighting the environmental benefits of insect farming.Regulatory barriers have also made commercial expansion difficult. Although the European Food Safety Authority (EFSA) approved yellow mealworms as a novel food in 2021, further approvals remain a slow process.Dr Matthias Gosselin, a scientific co-ordinator of the ongoing Entomological Innovations for Food Supplements (INSECTA) project, told Ingredients Network that long regulatory timelines discourage investment. “It can take five or six years for an application to be approved,” he said. “This delays market entry and makes it harder to attract funding.”Discussions around humane insect processing, including freezing methods, could lead to additional regulatory changes that require process adjustmiron bisglycinate 30 mgents. Securing funding for research has also proven difficult, particularly in regions where edible insects are not yet seen as a priority.“Here in Wallonia, it’s very difficult to get funding for insect projects because they do not fully believe [in their potential] yet,” said Dr Birgit Quinting, another INSECTA scientific co-ordinator.Advocates of insect protein highlight its low environmental impact compared with livestock farming. Studies indicate that insects can produce the same amount of protein while requiring just 10% of the land and producing as little as 1% of the greenhouse gas emissions. They can also be reared on organic by-products, creating a circular economy model that reduces food waste while producing high-quality protein.A Foodvalley industry innovation report projects that by 2030, Europe’s edible insect industry will produce 1 million tons of insect-based feed annually, with 390 million Europeans consuming insect-based products.For insect protein companies, the next few years will be critical in determining whether regulatory changes, shifting perceptions, and new technological developments can push mealworm protein into the mainstream.While the INSECTA project has explored ways to optimise mealworm protein production , the future of the industry likely mainly depends on shifting consumer attitudes and lower production costs.“Right now, insect protein is more expensive than soy or dairy on a small scale, but with investment and larger-scale production, costs could drop significantly,” said Nectoux. “Meanwhile, animal proteins are likely to grow more expensive in the future, making alternatives like insects increasingly viable.”
Mealworm protein faces commercial roadblocks as producers struggle
