Black Soldier Ply larvae (BSFL) are used to compost waste or convert the waste into animal feed. Fly larvae are among the most efficient animals at converting biomass into feed. The growing global demand for animal products, expanding aquaculture industry, increasing demand from the animal feed industry for alternative proteins due to rising prices of soymeal, and increasing government approvals of insect meal in livestock feed are some of the major driving factors that help to boost the demand for black soldier fly.
Black Soldier Fly needs four times less feed than sheep, 12 times less than cattle, and half as much as broiler chickens and pigs to produce the same amount of protein. It contains high-quality protein, amino acids, vitamins, calcium, zinc, and iron. Black Soldier Fly Market is expected to reach $3.4 billion by 2030 at a CAGR of 34.7%.
The increase in demand for alternative proteins in the feed business, as well as the expansion of the BSF market, is due to an increase in global meat demand, the development of the aquaculture sector, and increased government backing for the use of insect meal in animal feed, and growing investment by key players in the BSF industry are the factors driving the growth of black soldier fly market in upcoming years.
Top_KeyPlayers : AgriProtein (A Part of Insect Technology Group) (England), Protix B.V. (Netherlands), Enterra Feed Corporation (Canada), InnovaFeed (France), EnviroFlight LLC (U.S.), Bioflytech (Spain), Entobel Holding PTE. Ltd. (Singapore), Entofood (Malaysia), Sfly (France), Hexafly (Ireland), F4F (Chile), Nutrition Technologies Group (Malaysia), nextProtein (France), and Protenga Pte Ltd (Singapore)
The calculation above is calculated based on the production capacity of fresh BSF larvae of 1 ton per day or 30 tons per month. With a total investment (including Production costs) of around USD 700,000, the Return on Investment (ROI) is about 26%. And if production capacity is increased by 20% in the second year, the ROI will be more than double compared to the first year.
The feed or substrate used to rear BSF larvae is a mixture with the same ratio (50%:50%) between PKM (Palm Kernel Meal) and Solid (Palm Oil Decanter Cake). Both of these materials are waste from palm oil processing. The palm oil industry is widespread on the islands of Sumatra and Kalimantan. In many palm oil industries, decanter cake is a nuisance waste and is simply thrown away, although sometimes it is also used as a feed additive such as for cow/ cattle.
According to the Rabobank report 2021 at the Scale-up phase, the market potential of half a million metric tons for insect protein possible by 2030 is between EUR 3,500 – EUR 5,500/ metric ton.