Dynamics in the Bioeconomy: Markets for Amino Acids and Insect Biomass Dynamiques de la bioéconomie : marchés des acides aminés et de la biomasse d'insectes Dynamik in der Bioökonomie: Märkte für Aminosäuren und Insektenbiomasse

Abstract

While the bioeconomy permeates all sectors, respective markets are subject to different dynamics. Markets for bio-based amino acids and insect biomass illustrate this. The global and EU markets for bio-based amino acids are well-established and growing. However, the increase in production in the EU of some ‘new’ amino acids is much smaller than the decrease in production of well-established lysine and threonine that has resulted from the relocation of the production of these amino acids from the EU to Asia (an effect of higher production costs and stricter environmental standards in the EU). The result is that overall production of amino acids has decreased significantly.

The market for insect biomass is just emerging in the EU. Production is low, but companies are starting to upscale. The animal feed market is a major target market for free amino acids and insect biomass. Free amino acids are classified as feed additives and placing them on the feed market is costly. Insect meal is a feed material and placing it on the market is quite straightforward, although its use in feed for poultry and pigs was approved only in September 2021. Free amino acids are common ingredients of animal feed, but their use is prohibited in organic farming. The use of insect meal in organic farming is not prohibited, but a corresponding certification is not yet developed in the EU.