Trends from decades gone by may sometimes evoke nostalgia, but quite often they were just fads that had their 15 minutes of fame. A lot of attention in recent years is being given to what we eat, such as the provenance of the food, whether or not it’s fair-trade, organic, or free-range, for example. It only makes sense that the discussion has now turned to our pets and their diets, too.
To varying degrees of success, some dog owners have begun changing over to vegan diets, some have rediscovered the benefits of raw diets, but insect-based diets? We’re talking about our dogs’ diets, so do away with what you would personally consume yourself since chances are you won’t be eating cat food or dog kibble anytime soon.
But is it a fad that will die out like so many other fads before (e.g. fidget spinners)? Opinions may vary, but we’re confident that insect-based dog food is here to stay based on solid results and satisfied four-legged customers from our Bug Bakes products.
Insect-Based Protein Industry - By the Numbers
A 2019 report by MarketsandMarkets titled ‘Insect Protein Market by Insect Type’ forecasted the growth of the inset-based protein market to 2025 and the results are nothing short of incredibly promising for alternative pet food producers using insect protein.
As of 2019, the market cap of the insect-based protein market was estimated to be $144 million USD (about £100 million). The report estimates that the market cap will sit at around $1.3 billion USD (about £0.93 billion) by 2025, which yields an impressive compound annual growth rate (CAGR) of 45 per cent.
From an investor’s point of view, returns of 45 per cent over the next few years would be parabolic growth compared to the S&P 500’s nearly 9 per cent yields since 1871.
The insect-based protein market is growing fast, so much so that major manufacturers who were once reticent to the thought of insect protein are now getting on board. Nestle announced in 2020 that it had begun using insect protein in its Purina brand of dog food. Expect more major pet food manufacturers to adopt this excellent pet food alternative.
Are Consumers Catching Onto Bug Food?
Believe it or not, insect protein is catching on here in the UK and elsewhere for not only dogs but also for us humans. Matthew Mundroina of Brighton launched HOP, a start-up business selling protein bars containing cricket powder that simply couldn’t stay on shelves in 2020 as demand soared beyond expectations.
Perhaps one can attribute the growing acceptance of insect protein to the manner in which it’s prepared. Roasted or chocolate-covered grasshoppers are already a niche pub snack in Germany, but many simply cannot bear to eat the insect in its full form. Ground down to a powder and tossed into a recipe for protein bars? Perhaps more palatable for the average consumer.
The fact that consumers are starting to accept insect protein for their own diets is good news for pet owners since it can be expected that more and more dog owners will be willing to provide their dogs with the full benefits of insect-based protein.
Where is Most Growth Projected?
Most of the growth predicted in the 2019 report is expected to be in Europe and North America, two continents where insect protein has not historically been a culinary cultural feature as it is in many Asian and African countries.
Such high growth in Europe also underlies a growing desire for environmentally-sustainable dietary choices that are not as reliant on wasteful livestock farming, both for humans as well as their pets.
Companies to keep an eye on in the coming years, perhaps as an investor (not investment advice) or perhaps to see how the market evolves include EntomoFarms in Canada, Protifarm in the Netherlands, and Swarm Nutrition GmbH in Germany. Since this market is relatively new and is gradually being adopted by the average consumer, most insect proteins are currently centralised around a few key players.
Bug Bakes is Here to Stay
We believe that insect-based dog food is not simply a fad that will die out but rather it’s a growing trend that is rapidly becoming established in the UK and abroad. Insect-based protein is here to stay, and so is Bug Bakes. Try a free sample of our nutritious, high-quality dog food today and experience the benefits of insect-based dog food for the environment, your dog’s health, and his happiness.