People in developed countries are going to be eating a lot more bugs in the near future.

In the midst of global environmental challenges and a burgeoning appetite for sustainable food solutions, Israeli startups are spearheading a transformative shift towards insect-based protein as an affordable and ecofriendly alternative to traditional protein sources.

The growing global demand for protein is propelled by factors such as population growth, increased incomes, and shifting dietary preferences. 

The insect protein market, estimated at $143.6 million in 2019, is forecasted to experience a staggering compound annual growth rate (CAGR) of 45 percent, reaching an estimated $1.336 billion by 2025.

Unlike conventional livestock farming, which exacts significant environmental tolls such as deforestation, greenhouse gas emissions, and water pollution, insect farming offers a promising solution that demands fewer resources and yields lower emissions.

Israel, renowned for its thriving tech ecosystem and agricultural innovations, has emerged as a frontrunner in this protein revolution. 

Overcoming the yuck factor

The Israeli Innovation Authority (IIA) allocated the equivalent of $4.8 million toward a consortium of eight companies dedicated to advancing black soldier fly farming, showcasing the nation’s substantial investment in promoting insects as a sustainable food source.

Despite the immense potential of the insect protein market, challenges remain, particularly in terms of regulatory approval and consumer acceptance.

Namely: overcoming what has become commonly known as the “yuck factor.” 

Turns out, it’s hard to get people into the idea of munching on creepy crawlies. That poses an enormous challenge for companies trying to turn bugs into food.

“There is a major question as to whether or not the Western world will accept insects as a major food source,” notes Yuval Gilad, CEO and cofounder of FreezeM.

FreezeM’s model involves creating a network of black soldier fly breeding hubs that provide ready-to-use suspended neonates. 

These “seeds” are distributed to insect farmers who then grow the larvae using organic waste. This approach lowers the barriers to entry, enabling more players to join the market and scale their operations.

The company, which is a member of the aforementioned IIA consortium thanks to its success in pushing black soldier fly protein’s viability forward, opts to circumvent the “yuck factor” issue by catering to a different market — animals.

“Our approach is to focus on feed for animals, because there you don’t have the yuck factor, right? Dogs and cats are easy to convince, and pet owners [are more willing] to buy dog food that contains insect protein, for example,” Gilad says.

“It’s healthier, it’s better for the animal; they’d even pay a premium price for it,” he adds. “There’s no question about it, and this [market] is growing rapidly.”

The company’s role in the “breeding as a service” niche could act as a universal accelerant for the insect protein market as a whole.

“By 2030, we believe that the ability to produce protein and insect protein at scale will be so commoditized that seeing it in snacks and other [human] foods can become a reality,” Gilad says.

Holy Locust

A heftier challenge is faced by companies like Hargol FoodTech — one of the few startups producing food-grade insect protein for human consumption.

Hargol’s latest product line, dubbed “Holy Locust,” relies on biblical consumption of a certain type of locust as a key selling point, targeting faith-based consumers in the United States.

The company’s CEO and cofounder, Dror Tamir, explains that this approach was a major breakthrough for the company.

“We are offering two things to Christians in the US market,” he says. “One is the experience: try and eat like John the Baptist. You can buy whole locusts, ready to eat, dipped in chocolate, in honey or plain.”

“But we also offer it to them in the form of modern snacks, which means we are actually providing them with products that can become part of their daily diet,” he continues.

“And this means that their beliefs will not only strengthen their spirit, it will — by eating food from the Bible — also strengthen their bodies.”

Tamir is optimistic about the future of insect protein in the human diet, though he acknowledges it will take time.

“If you compare alternative protein sources, insects have many advantages,” he says, citing a rich umami taste, nutritional benefits and environmental impact. 

However, consumer education is crucial, and changing dietary habits will be a gradual process.

Tamir drew a parallel with the rise of sushi: “It took sushi almost 40 years to become common food. Raw fish was a taboo in the 1980s, but now it’s everywhere.”

Accordingly, he predicts that “in the next 10, 20, 50 years, insect protein will absolutely be a part of our diet.”