Insect Processing Systems Market – Global Industry Size, Share, Trends, Opportunity, & Forecast, Segmented By Type (Liquid Handling System, Drying System, Others), By Application (Feed, Food, Others), By Region, Competition, 2020-2030F

Market Overview

The Global Insect Processing Systems Market, valued at USD 314.36 Million in 2024, is projected to experience a CAGR of 4.80% to reach USD 416.48 Million by 2030. Insect processing systems encompass the specialized machinery and technologies utilized for the comprehensive handling of insects, including rearing, harvesting, cleaning, sorting, drying, grinding, and packaging, for their application in food, feed, and industrial sectors. The market's expansion is primarily driven by the escalating global demand for sustainable protein sources, the increasing integration of insect-derived ingredients into animal feed formulations, and continuous technological advancements that enhance processing efficiency and scalability.

These systems are crucial for an evolving industry; according to IPIFF, in 2024, European insect-producing companies collectively attracted over EUR 1.5 billion in investments, underpinning growth in the sector that directly utilizes these processing technologies. Nevertheless, a significant challenge impeding broader market expansion is the substantial initial capital investment required for establishing and upgrading large-scale insect processing facilities.

Key Market Drivers

The escalating global demand for sustainable protein represents a primary catalyst for the insect processing systems market. Traditional protein sources face increasing scrutiny regarding their environmental footprint, prompting a widespread search for more ecologically sound alternatives. Insects offer a compelling solution due to their efficient resource conversion, requiring significantly less land, water, and feed compared to conventional livestock. This shift in consumer and industry preference directly drives the need for sophisticated processing technologies capable of transforming insects into high-quality protein ingredients. For instance, according to the International Food Information Council's 2024 survey, the number of consumers actively trying to consume more protein increased from 59% in 2022 to 71% in 2024, underscoring a broad societal move towards diverse protein sources.

Concurrently, advancements in insect rearing and processing technologies are fundamentally enabling the scalable and economically viable production of insect-derived products, expanding the market for specialized processing systems. Innovations span automated climate control, precision feeding, and efficient harvesting, collectively optimizing growth rates and minimizing operational costs. For example, according to Entobel, in December 2023, its advanced black soldier fly larvae production facility in Vietnam achieved an annual capacity of 10,000 tons of protein meal, demonstrating the tangible output possible with sophisticated processing. These technological strides are crucial for enhancing product quality and ensuring food safety, fostering greater industry acceptance. Furthermore, according to Feed & Additive Magazine, in June 2025, the European insect sector operates over 150 production sites across Europe, reflecting a growing infrastructure for insect processing.

Download Free Sample Report

Key Market Challenges

A significant challenge impeding broader market expansion for global insect processing systems is the substantial initial capital investment required for establishing and upgrading large-scale insect processing facilities. This high financial barrier directly restricts the entry of new producers and limits the scalability of existing operations within the insect farming industry. Consequently, the demand for specialized processing machinery and technologies is curtailed as fewer new facilities are constructed or expanded.

This formidable capital expenditure therefore directly delays the widespread adoption and advancement of insect processing systems globally. According to Rethink Priorities, publicly disclosed investments in insect farming firms declined to $306 million in 2023 and further decreased to $64 million in the first half of 2024. This reduction in capital inflow underscores the reluctance of investors to commit to large-scale projects, reflecting the economic uncertainties and long return on investment periods associated with high setup costs.

Key Market Trends

Two distinct trends are significantly shaping the Global Insect Processing Systems Market.

Automation and robotics integration constitutes a pivotal trend in global insect processing systems, markedly improving operational efficiency and scalability. The deployment of automated solutions across rearing, harvesting, and primary processing stages reduces manual labor and ensures consistent product quality. For example, the CoRoSect project is developing robotic systems to automate labor-intensive tasks such as larvae detection and feeding in insect production facilities. This advancement is crucial for meeting escalating demand; the International Platform of Insects for Food and Feed (IPIFF) projects European insect producers will generate over 120,000 tonnes of insect feed products in 2025, a volume supported by automation. This integration enhances throughput, reduces costs, and improves hygiene.

The adoption of circular economy principles is another significant trend in the insect processing market, focusing on maximizing resource utilization and minimizing waste through by-product valorization. This approach transforms residual materials like insect frass into valuable inputs for other sectors, increasing economic viability and environmental sustainability. Entomal Biotech, for instance, uses black soldier fly larvae technology to convert kitchen waste into fertilizer or animal feed, showcasing a practical circular economy model. This not only mitigates waste but also creates new revenue streams. The International Platform of Insects for Food and Feed (IPIFF) anticipates European insect producers will generate over 400,000 tonnes of insect frass in 2025, underscoring these co-products' growing importance. This trend firmly establishes insect processing within a resource-efficient bioeconomy.

Segmental Insights

The Feed segment is rapidly emerging as the fastest-growing area within the Global Insect Processing Systems Market, driven by a confluence of sustainability imperatives and nutritional benefits. This accelerated expansion is primarily due to the increasing demand for alternative, eco-friendly protein sources in animal nutrition, as insects offer a high protein content, essential amino acids, and vital nutrients comparable to traditional feed ingredients. Furthermore, progressive regulatory frameworks, such as those established by the EU Commission, have progressively authorized the use of processed insect proteins in feed for aquaculture, poultry, and pigs, significantly expanding market opportunities. Advancements in insect farming and processing technologies are also enhancing scalability and cost-efficiency, solidifying insects' role as a sustainable solution to global protein shortages.

Regional Insights

North America leads the global insect processing systems market, primarily driven by a robust agricultural framework and increasing consumer demand for sustainable protein alternatives. The region benefits from progressive regulatory landscapes, where governmental bodies such as the U. S. Food and Drug Administration (FDA) classify insects as food under the Food, Drug, and Cosmetic Act, requiring adherence to Good Manufacturing Practices for human consumption. Furthermore, the Association of American Feed Control Officials (AAFCO) has established ingredient definitions for insect species in animal feed, facilitating market expansion. This supportive environment, coupled with growing awareness of sustainability and significant investment in processing infrastructure, fosters the adoption of advanced insect processing technologies across both food and feed applications.

Recent Developments

• In October 2024, Nasekomo, a Bulgarian insect protein manufacturer, announced significant expansion plans after securing a capital injection of €8 million. The company aims to open a new factory in Bulgaria by 2026, which will substantially boost its processing capabilities. This expansion is designed to convert 100,000 metric tons of organic by-products into 25,000 metric tons of high-value insect protein annually. This investment in advanced processing infrastructure is poised to address the rising global demand for sustainable protein sources derived from insect farming.

• In August 2024, Ÿnsect achieved a significant regulatory milestone by becoming the first company authorized by the Association of American Feed Control Officials (AAFCO) for the use of defatted mealworm proteins in dog nutrition in the United States. This development marks a breakthrough for insect protein, broadening its applications within the global insect processing systems market. The authorization strengthens Ÿnsect's position as an innovator in sustainable protein solutions and facilitates wider acceptance of insect-based ingredients in animal feed formulations.

• In June 2024, Protix entered into a collaboration with Scottish aquaculture stakeholders to enable "Label Rouge" certified salmon to incorporate insect-derived ingredients during their juvenile stages. This partnership highlights Protix's commitment to advancing sustainable aquaculture practices through novel insect protein. The initiative aims to enhance the nutritional profiles of premium salmon products while reducing the environmental footprint associated with traditional feed ingredients, underscoring the growing role of insect processing systems in sustainable feed development.

• In April 2024, Innovafeed inaugurated its North American Insect Innovation Center in Decatur, Illinois, marking a significant expansion into the North American market. This pilot plant represents the initial phase of the French agtech company's industrial development in the region, aimed at scaling up the production and commercialization of insect protein in the USA. The facility operates adjacent to Archer Daniels Midland's (ADM) corn works, utilizing corn by-products as feedstock for black soldier fly larvae to produce insect meal, oil, and soil amendment under the brand name Hilucia. This strategic location enhances efficiency in insect processing systems through a circular economy model.

Key Market Players

• Alfa Laval AB
• Hosokawa Micron BV
• GEA Group AG
• Buhler Holding AG
• Abbott Laboratories Inc.
• ANDRITZ GROUP

Report Scope:

In this report, the Global Insect Processing Systems Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Insect Processing Systems Market, By Type:

o   Liquid Handling System

o   Drying System

o   Others

• Insect Processing Systems Market, By Application:

o   Feed

o   Food

o   Others

• Insect Processing Systems Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Insect Processing Systems Market.

Available Customizations:

Global Insect Processing Systems Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

Global Insect Processing Systems Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]