The Canada Black Soldier Fly Market is expected to grow at a CAGR of 18.2% from 2021 to 2028 to reach $18.4 million by 2028

The Canada Black Soldier Fly Market is expected to grow at a CAGR of 18.2% from 2021 to 2028 to reach $18.4 million by 2028

Some of the major factors driving the growth of this market include the growing aquaculture industry, rising demand for alternative proteins in the animal feed industry, and increasing government and support for the Canadian BSF industry.

However, limited acceptance and approvals for Black Soldier Fly Larvae (BSFL) to be incorporated into the human diet hinder the growth of Canada’s black soldier fly market. Additionally, the potential use of chitin and chitosan in industrial applications is expected to create opportunities for the players operating in this market, and the availability of cheaper substitutes is a major challenge for market growth.

COVID-19 Effects on the BSF Product Supply Chain in Canada

The COVID-19 disease caused by the novel coronavirus SARS-nCoV-2 has created a severe public health emergency globally, with its quick spread in more than 215 countries. According to the World Health Organization, the number of cases of COVID-19 continues to climb, with more than 1,782,171 confirmed cases and 29,618 deaths in Canada as of November 30th, 2021. Like other manufacturing industries, the COVID-19 outbreak poses numerous challenges to the feedstock sector in Canada.

The feedstock such as soymeal, fishmeal, and others manufacturing industries has faced major challenges, including the risk of continuing production, distribution, transportation, and other supply chain activities; lack of workforce; delays in development activities; and raw material sourcing. The rescheduling of private investment financing and public funding initiatives towards developing the sector has further restricted its development. These factors are expected to impact the animal feed industry, driving the demand for alternative protein substitutes, including black soldier fly products.

However, the lockdown has been announced to control the pandemic, impacting the movement of vehicles carrying livestock, feed, and feed ingredients. Due to the risk of animal feed, suppliers are slowing their production or closing altogether. Farmers are concerned they may need to slow or stop slaughterhouse operations and keep their animals for longer due to lower demand, requiring them to use more feed than usual. Even delivery trucks are difficult to procure. These factors have led to livestock farms building up two-week feed supplies when normally they might only keep enough for one or two days. For example, Purina Animal Nutrition LLC, which uses black soldier fly as a feed ingredient, has slightly increased its livestock business sales. In addition, Cargill had seen its global feed sales volume grow by 10% or more in March 2020. Thus, the rising preference for BSF over traditional feedstock as a rich source of protein & immunity booster during the current outbreak of COVID-19 has created a new wave of interest in the BSF market in Canada.