Economic Viability of Insect Production for Feed and Food in Europe

Summary

The production of insects for feed and food in Europe offers promising business opportunities, despite persistent challenges in this dynamic industry. Small-scale insect businesses struggle with profitability, while expanding requires substantial capital investments. Unfortunately, banks and investors remain hesitant due to the novelty of the sector and uncertain consumer demands, impeding sector growth. Thus, understanding the economic performance and viability of insect businesses in uncertain environments is crucial. This thesis aimed to evaluate the economic viability of insect production in Europe through three key aspects: (i) analysing the economic performance through literature and empirical data, (ii) assessing risks and uncertainties along the insect supply chain, and (iii) evaluating the robustness of potential business models. Gathering empirical economic data helped identify production profitability and cost components, while assessing perceived risks established a comprehensive risk profile. Insights into robust business models were vital for identifying economically viable options. These three concepts collectively enhance comprehension of the current and future economic viability of insect business models.