Insect Oil Market to Reach USD 690 Million by 2035 with 5.8% CAGR Driven by Sustainable Protein Demand

The global insect oil market is on the cusp of significant growth, with its valuation projected at USD 390 million in 2025 and forecasted to reach USD 690 million by 2035. This trajectory, supported by a healthy compound annual growth rate (CAGR) of 5.8%, signals a dynamic decade ahead for both established leaders and emerging innovators in the space. As aquaculture, poultry nutrition, cosmetics, and industrial applications adopt insect-derived oils on a larger scale, the industry is poised for transformation.

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A Market in Rapid Expansion

The first half of the forecast period (2025–2030) is expected to see revenues rise from USD 390 million to USD 515.4 million, making up nearly 42% of total growth for the decade. Much of this expansion will be fueled by aquaculture and poultry feed sectors, where insect oil is emerging as a credible alternative to fish oil due to its omega-rich composition and sustainable production practices.

From 2030 to 2035, the market is projected to accelerate further, generating nearly USD 170.4 million in new value – about 58% of overall decade growth. Momentum during this phase will come from premium pet nutrition, cosmetics, and expanding industrial uses, such as bio-lubricants, surfactants, and biofuel blends.

Established Leaders and New Innovators

The insect oil market is moderately fragmented, featuring global pioneers alongside emerging specialists. Leading manufacturers such as InnovaFeed, Protix, and Ÿnsect dominate with vertically integrated farming systems, advanced oil extraction technologies, and diversified applications across feed and cosmetics. InnovaFeed leads the market with a global share of 24%, closely followed by Protix at 18% and Ÿnsect at 15%.

Rising startups, including Entobel and NextProtein, are carving out unique positions by targeting regional markets and niche applications with cost-efficient processing and local partnerships. Together, these entrants are scaling insect oils into new geographies and expanding their potential in categories like personal care and functional pet nutrition.

Key Market Drivers

• Sustainability Imperatives: Traditional fish oil faces rising costs and environmental scrutiny. Insect oils, with their low carbon footprint and circular farming models, align strongly with global sustainability goals.
• Nutritional Advantages: High levels of omega fatty acids and functional properties are making insect oils attractive in aquaculture, poultry, and premium pet food.
• Regulatory Acceptance: Growing alignment of regulatory frameworks in Europe, North America, and Asia-Pacific is driving faster adoption of insect-derived ingredients.
• Diverse Applications: Beyond feed, insect oils are gaining recognition in cosmetics for their emollient and stabilizing properties, and in industrial applications for bio-based lubricants and surfactants.

Segmental Insights

By insect type, Black Soldier Fly (BSF) oil stands as the dominant force, expected to account for 45% of market share in 2025. Its scalability, favorable fatty acid profile, and high yield make it the most preferred choice for aquafeed and cosmetics. Mealworm oil follows at 23%, with cricket and locust oils playing more niche roles.

In terms of extraction methods, mechanical pressing will continue to dominate with a 43% share in 2025 due to cost efficiency. However, supercritical CO₂ extraction, with its ability to produce premium solvent-free oils, is projected to grow at the fastest CAGR (8.1%) over the decade.

End-use applications remain anchored in feed. Aquafeed leads the charge at 25% market share, followed by poultry feed (21%). Pet food, while at 10% today, represents a high-growth niche as consumers seek clean, allergen-friendly, and sustainable protein and oil sources for pets. Cosmetics and personal care are projected to expand rapidly, with insect oils marketed as natural, biodegradable alternatives in skin creams, soaps, and hair care formulations.

Regional Outlook

By geography, North America, Europe, and Asia-Pacific are expected to remain the key growth regions. The United States leads with a CAGR of 6.66%, supported by strong adoption in premium pet nutrition and cosmetics. Europe, driven by sustainability mandates, sees Germany, France, and the UK at the forefront of feed and personal care integration. In Asia, China is projected to grow at 6.02% CAGR, backed by government support for large-scale insect farming and aquaculture needs, while India’s growth at 5.63% centers on poultry feed expansion and sustainable farming initiatives.

Competitive and Industry Developments

Industry players are also leveraging strong branding and consumer engagement to expand awareness. In February 2025, InnovaFeed launched “HiluciaforPets”, a digital campaign to promote insect oil-based sustainable pet food solutions. In January 2025, the company also partnered with Agryco to launch Hilucia™ Frass for plants, demonstrating a broader circular economy approach that connects insect farming to sustainable agriculture.

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The Road Ahead

As the insect oil market moves closer to USD 690 million by 2035, competitive advantage will be defined less by raw production scale and more by ecosystem control, sustainability certifications, and integration into traceable, digital supply chains. With both global and regional players innovating across feed, pet nutrition, cosmetics, and industrial sectors, insect oil is set to evolve from a niche innovation into a mainstream, sustainable alternative shaping tomorrow’s bioeconomy.

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