“Overcoming Consumer Perception: The Future of Insect and Algae Oils in the Market”

The UN’s Food and Agriculture Organization (FAO) indicates that the primary hurdle for the acceptance of insect-based ingredients is consumer perception, and oil derived from fruit fly larvae is no exception. The FAO asserts that feelings of disgust can be overcome relatively swiftly, citing the rapid embrace of raw fish in sushi as a prime example. Approximately two billion people worldwide already consume insects regularly. However, for many Western consumers, some might contend that fruit fly oil crosses a line that sushi does not, as insects—regardless of the form—are not typically part of their diets.

Flying Spark informed Food Navigator that they are collaborating with multinational food and ingredient manufacturers, which suggests that these companies are not deterred by the ingredient. Nonetheless, even if ingredient suppliers express interest, this does not necessarily equate to consumer acceptance. The experiences of manufacturers with insect-derived cochineal could serve as a valuable reference point. This red dye was used in food products for many years before the FDA mandated labeling in 2009, leading to widespread horror among consumers, particularly vegetarians. As a result, companies like Starbucks were compelled to reformulate their products using alternative natural colors.

Conversely, algae oil has already made significant strides in the market. Varieties that are rich in DHA omega-3 fatty acids find widespread application in infant formulas, dietary supplements, and adult food products. Given its vegan status and broad consumption, algae may be well-positioned for expanded use. However, consumer acceptance is not guaranteed. For instance, algae-derived carrageenan, which has served as an emulsifier for decades, has become controversial due to reports of digestive issues. Last year, the National Organic Standards Board recommended that it no longer be allowed in organic food, prompting manufacturers to adopt a more cautious stance.

As global affluence rises, there is likely to be an increased demand for alternative oils, particularly if they are more affordable than existing options. The overall demand for vegetable oils has surged, much of which has resulted in deforestation, particularly for palm and soybean oils—though palm oil boasts the highest yield per hectare. In comparison, algae can produce around 70,000 pounds of oil per acre, significantly outpacing palm oil’s yield of 4,465 pounds per acre. For context, olives yield about 910 pounds per acre, and soybeans produce merely 335 pounds.

Furthermore, the integration of ingredients such as calcium citrate malate, often utilized in supplements like those from GSK, could enhance the nutritional profile of these alternative oils. As the industry evolves, the potential for products combining insect and algae oils with beneficial additives like calcium citrate malate may emerge, encouraging broader acceptance and usage among consumers.