The Canada Black Soldier Fly Market is expected to grow at a CAGR of 18.2% from 2021 to 2028 to reach $18.4 million by 2028. Some of the major factors driving the growth of this market include the growing aquaculture industry, rising demand for alternative proteins in the animal feed industry, and increasing government and support for the Canadian BSF industry.
However, limited acceptance and approvals for Black Soldier Fly Larvae (BSFL) to be incorporated into the human diet hinder the growth of Canada's black soldier fly market. Additionally, the potential use of chitin and chitosan in industrial applications is expected to create opportunities for the players operating in this market, and the availability of cheaper substitutes is a major challenge for market growth.
COVID-19 Effects on the BSF Product Supply Chain in Canada
The COVID-19 disease caused by the novel coronavirus SARS-nCoV-2 has created a severe public health emergency globally, with its quick spread in more than 215 countries. According to the World Health Organization, the number of cases of COVID-19 continues to climb, with more than 1,782,171 confirmed cases and 29,618 deaths in Canada as of November 30th, 2021. Like other manufacturing industries, the COVID-19 outbreak poses numerous challenges to the feedstock sector in Canada.
The feedstock such as soymeal, fishmeal, and others manufacturing industries has faced major challenges, including the risk of continuing production, distribution, transportation, and other supply chain activities; lack of workforce; delays in development activities; and raw material sourcing. The rescheduling of private investment financing and public funding initiatives towards developing the sector has further restricted its development. These factors are expected to impact the animal feed industry, driving the demand for alternative protein substitutes, including black soldier fly products.
However, the lockdown has been announced to control the pandemic, impacting the movement of vehicles carrying livestock, feed, and feed ingredients. Due to the risk of animal feed, suppliers are slowing their production or closing altogether. Farmers are concerned they may need to slow or stop slaughterhouse operations and keep their animals for longer due to lower demand, requiring them to use more feed than usual. Even delivery trucks are difficult to procure. These factors have led to livestock farms building up two-week feed supplies when normally they might only keep enough for one or two days. For example, Purina Animal Nutrition LLC, which uses black soldier fly as a feed ingredient, has slightly increased its livestock business sales. In addition, Cargill had seen its global feed sales volume grow by 10% or more in March 2020. Thus, the rising preference for BSF over traditional feedstock as a rich source of protein & immunity booster during the current outbreak of COVID-19 has created a new wave of interest in the BSF market in Canada.
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Increasing Government Support for the Canadian BSF Industry Drives the Growth of Black Soldier Fly Market
Government authorities across the globe are taking steps to ensure the sustainable supply of safe and healthy feed from the insect feed industry. Support from government authorities to increase the use of BSF-based products in animal feed has led to a rise in demand. In Canada, the Canadian Food Inspection Agency (CFIA) has approved the use of insects as an ingredient in feeds for certain fish and poultry species. For instance, in September 2019, the CFIA approved the use of Oreka Solutions’ black soldier fly larvae as a protein ingredient in feed for salmonids, trout, tilapia, and poultry. Further, in January 2021, Enterra Feed Corporation received a CAD 6 million investment from Canada’s agriculture and agri-food sector under the AgriInnovate Program to help increase the production of sustainable and nutritious animal feed products. This funding allowed the company to construct a full-scale commercial facility and adopt innovative equipment & processes to increase its production capacity and improve efficiency.
Thus, increasing government support to boost the production of BSF-based animal feed and growing approvals for the use of insect meal in animal feed are expected to fuel the growth of the BSF market in Canada.
Limited Acceptance and Approvals for BSFL to be Incorporated into the Human Diet Hinders the Growth of this Market
There is a growing interest in using black soldier fly larvae for human consumption among specific groups. At present, black soldier fly products have not been approved for use in human food. Nutritionally, BSFL is acceptable for human feeding as they contain 42% crude protein and 29% fat, although they have higher saturated fats. Further, according to the Canadian Community Health Survey, in Canada, the percentage of the daily energy intake from protein increased by 1.2% (from 14.6% in 2004 to 15.8% in 2019) for children and teenagers. For adults, it increased from 16.5% in 2005 to 17.2% in 2019. Thus, the growing consumption of protein in Canada is expected to drive the demand for BSFL protein.
BSFL are edible, nutritious (especially when defatted), and can theoretically be reared more sustainably than insects being farmed currently, making them a potential protein source for both humans and animals. However, the primary usage of BSF in human food systems is to reduce and recycle the waste biomass generated from food. Moreover, legal prohibitions already limit the use of feces-fed BSFL exclusively to animal feed. Other challenges to making BSFL palatable for humans are sensory and cultural. Although processing BSFL into human food is possible, there is no assurance that it is the best solution for food insecurity. These factors restrict the approval of BSFL for use in human food, thereby restraining the growth of the black soldier fly market in Canada.
Key Findings in the Canada Black Soldier Fly Market Study:
The protein meal segment is estimated to account for the largest share of the Canada black soldier fly market
Based on product, the Canada BSF market is segmented into whole insect, protein meal, oil, frass, and other BSF products. In terms of value, the protein meal segment is expected to command the largest share of the Canada black soldier fly market in 2021. The growth of this segment is mainly attributed to the increasing demand for protein meal in the animal feed industry, increased fish meal prices, and government support and approval for insect meal to be used in animal feed. This segment is also expected to record the highest CAGR during the forecast period. Further, in terms of volume, the frass segment is estimated to command the largest share of the Canada black soldier fly market. BSF fertilizer made from frass is a microbially activated organic fertilizer made from insect frass and decomposed organic biomass. It acts as a nutrient-rich fertilizer for organic farming and horticulture and promotes plant growth. The large share of this market is mainly attributed to the high efficiency of black soldier fly frass fertilizers in agriculture and its large production compared than other BSF products at cheaper prices. However, the protein meal segment is expected to record the highest CAGR during the forecast period.
The pet food segment to grow at the highest CAGR during the forecast period
Based on application, the Canada BSF market is segmented into poultry, aquaculture, pet food, livestock, and other applications. The aquaculture segment is expected to command the largest share of the Canada black soldier fly market in 2021. The segment’s large share is mainly attributed to early regulatory approval of BSF for this application, the increasing adoption of fish meal, and volatile fish meal prices. However, the pet food segment is expected to record the highest CAGR during the forecast period due to the emergence of leading pet food companies in the edible insects’ space, an expected increase in the number of product approvals in upcoming years, increasing customer willingness to provide high-quality food to pets, increased demand for premium pet food products, and a rise in the pet population with a significant increase in pet expenditures.
The key players operating in the Canada black soldier fly market are Enterra Feed Corporation (Canada), Oreka Solutions (Canada), Snackyard BSF (Canada), Entosystem (Canada), Oberland Agriscience Inc. (Canada), InnovaFeed (France), Protix (The Netherlands), and EnviroFlight LLC. (U.S.).
Scope of the Report
Black Soldier Fly Market, by Product
- Whole Insect
- Protein Meal
Black Soldier Fly Market, by Application
- Pet Food
- Other Applications
Key questions answered in the report: