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Insect-Based Protein: Seeking a cost breakthrough
Chart of the Week – Leading companies, Insect-based protein
Insect-based protein has attracted some $2.5 billion of startup investment to date, and could play an important role in the future of food production, if it can capitalise on strong growth through 2022, close cost parity with conventional protein, and gain supportive regulations and consumer backing.
At New Food Finance, our focus is investment in a green transition in food production. We have classified more than 3,200 companies according to more than 1,700 sectors, sub-sectors, markets and technologies that mitigate pollution, greenhouse gases or biodiversity loss.
The environmental advantages of insect-based protein include a circular economy, recycling food waste into protein powders, via insects and especially the black soldier fly, thus creating a more sustainable alternative to soy and other conventional fish and animal feeds.
New Food Finance data show that company-level investment in insect-based protein startups has reached $2.5 billion cumulatively over the past decade, or about 10% of investment in plant-based protein, the leader in the alternative protein space.
Soybean feed currently costs around €460 per tonne, compared with €1,400 for insect-based feed, according to the European Science Media Hub.
Companies are working to incorporate AI-based automation, to lower costs: more than a third of the 105 insect-based protein producers in the New Food Finance database have this focus. For example, Full Circle Biotechnology is using AI to study past and present insect farming data, to cut costs, while Protenga uses IoT sensors and AI to create optimal culture conditions.
By cutting costs, such companies can more fully capitalise on the sector’s well-recognised sustainability advantages, and drive further growth.
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“Green Transition” Deals of the Week
SAN FRANCISCO, June 6, 2024 – Prolific Machines has raised $55 million in a series B1 round led by the Ki Tua Fund – Prolific Machines says it is focused on bringing down the cost of cultivated meat production, whether as a cultivated meat company, or by licensing its technology.
COLORADO, June 4, 2024 – Ahimsa Foundation holding company acquires Wicked Kitchen, a global plant-based food brand, along with its associated brands Good Catch and Current Foods – Ahimsa Foundation says it is working to accelerate the shift towards a more sustainable, and ethical future by actively investing to transition the food system away from animal proteins to healthier and more sustainable options.
What We’re Reading
June 10, 2024 – Testing DNA in the air may make food cheaper – A BBC story about using hi-tech, AI-supported integrated pest management to monitor fungal pores, and cut pesticide use.
June 6, 2024 – Landcatch to use insect protein in feed – Scotland-based salmon ova and smolt supplier Landcatch has become the first Label Rouge certified company to have signed an agreement to use insect-derived feed in its operations.
June 1, 2024 – China food security law comes into force, aims for absolute self-sufficiency – China’s first food security law aimed at achieving “absolute self-sufficiency” in staple grains came into effect on Saturday, reinforcing efforts by the world’s biggest agriculture importer to lower its reliance on overseas purchases.
March 2024 – Financing the Agri-Food Sector’s Transition to Net Zero – The agricultural sector is on the brink of a transformative journey towards net zero.