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Today we are exploring the prominent world of protein supplements.

Could insect based protein become Australia’s dominant protein source?

Let’s find out!

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Insect Based Protein

In Australia, insect-based protein is emerging as a sustainable and innovative solution for addressing the growing demand for alternative protein sources. 

This technology involves farming insects, such as crickets and mealworms, which are rich in protein, amino acids, and essential nutrients. 

Insects are farmed in controlled environments, where they are fed organic waste, reducing food waste and the environmental impact of traditional livestock farming. 

This protein is being incorporated into various products, including protein powders, snacks, and even animal feed. 

Australian companies are exploring this technology as a way to provide eco-friendly and nutritionally valuable alternatives to traditional meat, addressing both food security and environmental challenges.

Potential Impact

The protein supplements market is currently worth $460 million AUD in Australia

Provided insect based protein supplements grow to become a significant segment within this market:

In a low growth scenario, where insect based protein only comes to account for 5% of this industry over the next 5 years, the market for insect based protein supplements would be worth about $23 million AUD by 2030.

In a high growth scenario, where insect based protein comes to account for 10% of this industry over the next 5 years, the market for insect based protein supplements could potentially be worth as much as $46 million AUD by 2030.

Why this WILL be disruptive:

• Sustainability: Insect farming is highly sustainable, using fewer resources like water, land, and feed, and emitting fewer greenhouse gases compared to traditional livestock farming. This appeals to environmentally conscious consumers looking for eco-friendly alternatives.

• Nutritional Value: Insects are packed with protein, omega-3 fatty acids, vitamins, and minerals, making them a highly nutritious protein source. Their profile offers an attractive alternative to traditional animal-based proteins.

• Regulatory Support: Government support, such as the Australian government's investment in insect farming research and the AgriFutures Australia plan, will likely help overcome challenges like regulation and scaling, fostering growth in the industry.

Why this WON’T be disruptive:

• Consumer Perception and Acceptance: Insect protein faces significant cultural barriers and consumer resistance, especially in Western countries like Australia, where insects are not traditionally consumed. Overcoming the "yuck" factor and convincing consumers to switch from familiar protein sources to insect-based alternatives could be a major challenge. Insect-based products may also need careful formulation to appeal to mainstream tastes and textures, which could otherwise be off-putting to consumers.

• Regulatory Hurdles: While there are some regulations for insects as food, guidelines for their use in supplements or animal feed are less clear or non-existent. This regulatory uncertainty, combined with food safety concerns, could slow the industry’s growth and market penetration. Strict food safety regulations may also pose significant challenges for the sector, particularly as the industry scales up.

• Production and Scalability: Currently, there is a lack of sufficient manufacturing capacity in Australia to meet market demands for insect-based protein products. Scaling up production efficiently and cost-effectively could be a significant challenge. Until production volumes increase, insect protein may struggle to compete on price with traditional protein supplements, limiting its market penetration.