About this video

• Video Title: Is Insect Farming over?
• Channel: Flybox®
• Speakers: Speaker 1 (Narrator)
• Duration: 15:54

Overview

This video examines the recent downturn in the insect farming industry, explaining the reasons behind the collapse of many companies. It discusses the typical boom-and-bust cycle seen in agri-tech, highlighting the psychological and economic factors that led to the current "bust" phase for insect farming. The video proposes a new, more sustainable model called Insect Waste Management (IWM), focusing on waste processing and niche product markets, which it believes will lead to the industry's long-term health and success.

Key takeaways

• Industry Inflection Point: The insect farming industry has reached a critical juncture, with many companies failing due to unsustainable business models and a lack of product-market fit.
• The Agri-Tech Cycle: The sector has followed a predictable pattern of hype-driven investment, followed by a market correction when economic realities and scaling challenges emerge.
• Reasons for Failure: Key factors contributing to the collapse include focusing on premium protein instead of waste management, overspending on capital expenditure, lack of true product-market fit, and scaling too quickly before proving fundamentals.
• The Rise of IWM: A new model, Insect Waste Management (IWM), is emerging, characterized by lower costs, modularity, integration with waste sites, and a focus on the natural insect product market rather than processed derivatives.
• Future Outlook: While the era of massive VC funding for "mega factories" is likely over, the IWM model offers a more realistic and sustainable path forward, driven by corporates in waste, food, and agriculture, and supported by regulatory changes favoring waste management.