Invenire lead a project to establish a business ecosystem with edible insects in Finland, funded by Tekes, the Finnish Funding Agency for Innovation through its BioNets programme. The project ran from April to October 2016.
This Report summates our key findings on the state of the market, how an edible insects business ecosystem could be structured and function, and strategies to overcome existing roadblocks. This report also outlines key activities & outputs created through the project.
2. A JOURNEY TO CREATE
BETTER BUSINESS
THIS IS THEFINAL REPORT
OF THE FINNISH ENTO-
BUSINESS ECOSYSTEM
(FEBE) PROJECT.
This is also the story ofhowto explorethe road
ahead, to make better business happen.
3. Invenire lead a project to establish a business ecosystem with edible insects
in Finland, funded by Tekes, the Finnish Funding Agency for Innovation
through its BioNets programme .
The project ran from April to October 2016. As the chief project guide and
mentor, Invenire brought together people and companies from different
industries and areas of expertise to develop a viable business roadmap for
an edible insects industry.
THE AIM OF THE PROJECT
To chart the business
potential of edible
insects
To develop a viable
business roadmap for
an edible insects industry
To develop a working
model and structure
for a Finnish business
ecosystem around edible
insects
5. NUTRITION ENVIRONMENT RESOURCES
The food and population crises
are looming – we’ll be over 9
billion people in 2050 and
simultaneously suffering
from malnourishment and
obesity.
Food production causes serious
environmental impact – we
need to create solutions that
don’t not have a cost to the
environment.
Old linear ways of production
and consumption are too
wasteful – circular economy
models make better use of
scarce resources.
CHANGE IS MANDATORY
The currentfood system –the way weproduceand consume
food– has problems inthree main areas
6. The opportunity of
sustainable proteins
Protein concerns most people in the food value chain,
in one way or another.
Protein – or the lack of it – can mean hunger and poor health.
It is also a factor contributing to many burning issues related to
sustainability, social welfare and equality.
Sustainable protein offers opportunities for better business
for everyone within the food value chain.
Readmoreabout the opportunityofsustainableprotein
7. Edible insects can contribute to solving the food crisis, as they are high in
nutrients, especially protein, and can be produced efficiently and with much
less environmental impact when compared to almost any other protein source.
They are also in the frontline of circular economy as efficient bio-converters,
being able to utilise waste materials from the food process and convert them
back to high-value nutrients and fertilisers. This may play a crucial role in
future food and feed chains.
Edible insects hold a key to sustainable protein production in a circular
economy.
THE #1SUSTAINABLE
PROTEINOFTHE FUTURE?
8. OPPORTUNITIES BEYOND JUST
NUTRITION...
Food Feed
Pharma &
therapeutic
uses
Cosmetics &
personal care
Ecosystem
services
Waste
management
& biomaterials
? ? ?
Beyond the food and feed
market opportunities,
there are likely to be
several others we do
not currently even
know of.
CAPTURING THESE OPPORTUNITIESCALLSFOR
INNOVATIVE CROSS-INDUSTRYCO-OPERATION!
9. ACTIVATINGOPPORTUNITIESTHROUGH
STRATEGY,DESIGN& CONVERSATIONS
All the buzz around edible insects is great.
But will they have a real impact? Insects need to become big - sooner
rather than later. For our own sake, and for the sake of our planet.
But how can we make it happen ?
By embracing an opportunity
mindset & strategic analysis
to discover insights that drive
growth
Creating strategies with
integrated growth,
profitability & sustainability
Designing effective new
models, structures and
processes to create better
business and overcome challenges
Creating value by engaging
people and combining ideas from
multiple viewpoints and
perspectives
11. THE JOURNEY TO CREATE
BETTER BUSINESSWITH INSECTS
INSIGHT PROBLEM SOLUTION BUSINESSMODEL
INSIGHTS INTO THE
OPPORTUNITIES
EXPLORING THE
BARRIERS AHEAD
DEFINING STRATEGIES
TO ACTIVATE THE
OPPORTUNITIES
CHARTING A ROADMAP
& DESIGNING AN
ECOSYSTEM
SCALE IT
The road to creating better business means stepping into the unknown.
By applying a consumer-centric and adaptive method, the journey
incorporated creativity, open innovation and design thinking.
12. STEP 1: INSIGHT INTO
THE OPPORTUNITY
Understanding the opportunitiestocreateBetter Business
13. As groundwork for the Finnish edible insects
business ecosystem project, Invenire researched
the current business environment for sustainable
protein and edible insects in particular including
trends, market issues and industry forces.
This developed a landscape to explore the
pitfalls and opportunities, and challenge the
current environment with radical new ideas.
14. Edibleinsects are nutritious and can be produced
efficientlywith extremely low environmental impact.
Responsible food
is an increasing trend,
which is a perfect fit with
edible insects.
15. BUT SUSTAINABLEPROTEIN
SOLUTIONSALREADYEXIST
The demand for protein ingredients in in human food and animal feed,
including pet feed markets, is projected to keep on growing.
However, there are already several existing options for protein
ingredients – both plant and animal origin – and edible insect protein will
have to compete against these, particularly on the following aspects -
VALUE
How does their amino acid
profile and other
nutritional values compare
to competing options?
Do they provide added
marketing potential to the
end-products?
USABILITY
What are their technical
properties like, e.g.
solubility, texture, taste?
What’s their allergen
status?
What’s their status on
other key aspects, e.g.
vegan/vegetarian, organic,
kosher/halal?
MONEY
How does their price
compare to competing
options?
Can they provide cost
savings, now or in the long
run?
16. EDIBLE INSECTS ARE
A NEW ENTRANT
In the industrialised countries, edible insects have really only started gaining
traction since May 2013 when the Food and Agriculture Organization of the
United Nations (FAO) published a ground-breaking report Edible insects:
future prospects for food and feed security. This report spotlighted the
potential that edible insects could hold to solving the future food crisis.
Many of the current ento-companies worldwide claim the FAO report was the
inspiration for them to start exploring edible insects as human nutrition.
As a result, the majority of the current edible insect companies in
industrialised countries are less than three years old.
17. INDUSTRY UNDER
CONSTRUCTION
In Finland, there are currently
approximately ten companies directly
involved in the edible insects industry.
They focus on technology and process
development, rearing insects, as well as
developing consumer products.
There are still only a handful of larger
scale edible insects producers globally
– and even those still produce relatively small
quantities and are small in company size. A lot
of the existing production is low-tech and the
process includes a lot of manual labour.
There is no established best technology
for farming and processing on the
market yet – many companies are
developing technologies, but keeping their
development work close to their hearts.
Photo: www.protifarm.com
18. LOTS OF HYPE – BUT WILLTHE EDIBLE
INSECTSINDUSTRYSURVIVE?
The insects industry has gained a lot of media attention during the past
few years, which has helped in attracting new entrants - in the farming
sector, but even more so on the consumer products side.
Small-scale entry is also not very complicated; insect farming is
quite simple to start on a small scale with no significant investments
required. Incorporating something like cricket powder in snack bars, for
example, is technically not very complicated.
20. The current market situation was mapped with
grounded insights into possible future
markets for edible insects. It was confirmed
there are many business opportunities for insects.
A clear road ahead, then?
Not quite…
The market exploration also identified some
serious obstacles exist for insects which need to
be overcome. The next step was to apply creative
and radical thinking, to transform the
roadblocks into opportunities.
21. EDIBLE INSECTS AREIN A
DEATH VALLEY
Currentmainobstaclesmeanthere’sa riskinsectswillnevertakeoff
inhumanfood…oranyotherapplication.
TECHNOLOGY REGULATION DEMAND
Underdeveloped technology
and the state of the industry
means products are currently
expensive with low volume
supply.
Both human and animal
markets are still hindered by
partially unclear and
restrictive regulatory status.
There is a big mental barrier
inhibiting consumer desire –
and also no clear industry
need for insects with their
current product offerings.
23. EDIBLEINSECTSNEED TOBECOME
MAINSTREAM
As there are currently very few edible
insect products on the market, available
through very limited distribution channels,
the existing consumer base can
safely be assumed to be tiny.
By reflecting on current insects products
and how they are marketed, key consumer
desired are being appealed to -
• Being a trendsetter
• Seeking experimentation and
novelties
• Committing deeply to sustainable
consumption choices.
IN THE CONSUMER MARKET, INSECTS NEED TO MOVE FROM NICHE TO
MAINSTREAM TO CREATE REAL IMPACT
24. THE KEY LIES INCRACKINGTHE
DEMAND
While the regulatory environment is unclear and restrictive, and
production and processing technologies are under-developed, these are
not the main barriers for insects. These issues will resolve themselves
with time and money.
However, overcoming these barriers is irrelevant without adequate
demand. And this requires cognitive and behavioural change,
across both the consumer and industry sectors.
25. STEP 3: COMING UP
WITH SOLUTIONS
Overcomingthe barriers and activating opportunities
26. So it was clear - edible insects face significant
roadblocks.
To move forward, this problem was approached
as an opportunity rather than a barrier.
By asking “what if” and rethinking the
direction and possibilities, three strategies
were identified to increase the appeal of edible
insects.
These strategies created the basis for a viable
business roadmap framework
- a big leap forward to towards making real
business with insects!
27. 3 APPROACHES TO CREATE BETTER
BUSINESS WITH EDIBLE INSECTS
DEMAND & CONSUMPTION
PROCESSING & PRODUCTION
SYSTEMS & SOCIETY
28. 1. PROVIDE SOLUTIONS
Gently nudge people to alter demand and consumer behavior.
Remove mental barriers and develop unique selling points to
provide solutions, instead of problems.
GOOD TASTE,EASIER LIFE, MEANINGFUL LIFE, NEW EXPERIENCES.
DEMAND& CONSUMPTION
29. 2. INCREASE EFFICACY
Insects are more than just a protein ingredient. They are also great
natural bio-converters and waste managers, in the frontline of
circular economy.
REDUCING COSTS, REDUCING WASTE,MAXIMISING THE USEOF
MATERIAL ANDENERGY FLOWS.
PROCESSING& PRODUCTION
30. 3. RETHINKPRODUCTION
Insects can be grown anywhere – in homes, restaurants, cities,
communities, farms – and they have potential to change the
systems of food production and consumption.
URBAN FARMING, LOCAL FOOD, EMPOWERING CONSUMERS.
SYSTEMS & SOCIETY
31. Better business withedibleinsectscannotbe builtinthe
traditional ways. Newways of thinkingare imperative to
make insectsBIG!
The real sustainability
business makers are creating
disruptive innovations.
32. STEP 4: DESIGNING A
BUSINESS MODEL
Defining theroadmap for an ecosystem
33. With three possible strategies defined, a plan and
structure were needed to progress the mission.
How could a young industry best develop forward?
How could people come together, to create real
business with insects?
A business ecosystem – the joining of
companies, academia, financers, government,
communities, NGO’s and other relevant players –
could create an environment where
collaboration and disruptive innovations
could evolve into better business.
34. PRINCIPLESOF ABUSINESS
ECOSYSTEM
In order to differentiate a business ecosystem from a standard
network, we identified two key principles that need to exist -
A clear business focus
Things are done with the intention of creating business out of
it, whether it’s in the short or long run.
An effective work process
Geared towards enabling business creation and spawning
projects and ventures, big and small.
36. HOW SHOULD AN ECOSYSTEM
WORK?
TOENSURETHE ECOSYSTEM WOULDNOT LAPSE INTONETWORKINGWITHOUTACTION, A WORK
PROCESS TOAID THEECOSYSTEM PLAYERS WASFORMULATED, TOSTART CREATING PROJECTS AND
VENTURES WITHIN THETHREE STRATEGIC AREAS
1 2 3 4 5
INSIGHT INTO
OPPORTUNITY
VALIDATING
THE
OPPORTUNITY
BUSINESS
MODEL
PROTOTYPES
GOor
NO-GO?
INVESTOR PITCH
TRACK
BUSINESS
OPPORTUNITY
EVENT
ONLINE
COURSE&
COMMUNITY
BUSINESS
DESIGN
LAB
PROJECT
EVALUATION
PREPARING
TOLEAP
38. PUTTINGTHEFRAMEWORKINTO
PRACTISE
The structure and workings of a business ecosystem had been
established.
It was time to take that thinking forward to formulate the founding ideas of
the business ecosystem, by applying the three strategies –
DEMAND & CONSUMPTION
PRODUCTION & PROCESSING
SYSTEMS & SOCIETY
39. WHAT WOULD A MORE SUSTAINABLE
AND PROFITABLE FOOD SYSTEM WITH
PEOPLEIN THE CENTRE LOOK LIKE?
CONSUMERS: Consumers understanding how their
food is produced and being able to have influence on it.
PRODUCTION: Producers knowing who they
produce for and being able to have influence on what
happens to their products.
DELIVERY: Consumers having access to nutrition in
a way that fits their personal needs and preferences.
CONSUMPTION: Consumers being able to meet
their personal nutritional and culinary needs and
preferences.
RECYCLING: Consumers and producers
understanding what happens to the products at the end
of the cycle and being able to ensure that a circular
model is enabled.
PEOPLE
PRODUC-
TION
DELIVERY
CONSUMP-
TION
RECYCLING
40. WHAT WOULD IT TAKE
TO MAKEIT HAPPEN?
It would require putting into action values such as transparency, traceability, trust and
origin. It would mean changing the dominant system.
In practice it could mean the following actions for people throughout the system
– whether they are producers, consumers or business people:
TRANSPARENCY, TRACEABILITY, TRUST ANDORIGIN
Increasing
knowledge and
emotional desire to
make more sustainable
choices
Creating solutions that
would make
sustainable choices
easy, self-evident and
automatic
Empowering people
to realise that the
potential for change lies
within them
41. CANWE MAKEALLTHIS HAPPEN
THROUGH INSECTSALONE?
Edible insects offer one solution to sustainable protein
production, but so do many other sources.
And of course protein is just one piece in the puzzle of
sustainable consumer-centric food systems.
Maybe edible insects offer too narrow a perspective for the
ecosystem?
42. JUST ONE
PIECE OF
THE BIG
PICTURE
This project started out from charting the
business potential of edible insects and
the possibilities for creating a business
ecosystem in Finland around edible
insects.
While there undoubtedly is business potential
with edible insects both globally and in
Finland, it started to become evident
that the field is just too small and
narrow for an entire business
ecosystem on its own.
43. BROADERHORIZONNEEDED
Edible insects were starting to look more and more like a pilot case – one
interesting example of how sustainable, consumer-centric food systems can
happen. But the overall picture is so much bigger.
To continue from here, it was necessary to climb a bit higher and
broaden the horizon.
All of this lead to the concept of the Future Food Quest.
44. FUTURE FOODQUEST
Future Food Quest is a mission.
A call to action for anyone passionate about changing the
way food is produced and consumed – and actively
helping to transform food production through the
principles of Better Business.
45. FUTUREFOODQUEST
The Future Food Quest is based on premises such as -
Look beyond what
exists to today, to
start seeing future
possibilities
Bring different
viewpoints together.
Challenging the
current model and
employing blue sky
thinking.
Start asking “what
if”, “why not” and
“what else could be”?
47. This project had clear objectives.
But by its nature, the project had wider
reaching benefits –
• Helping to change current mindsets and
encourage new ways of thinking
• Empowering others and providing tools to
start taking action themselves
• Fostering a collective mission around
insects, helping to form a basis for a sustainable
food business ecosystem
48. RECAP:WHAT DIDWE FINDOUT
ON THE JOURNEY?
We can’t continue
producing and
consuming food
the same way
as before
There is great
potential and
big
opportunities
with edible
insects
In Finland it’s
still a niche
industry
(not to say it’s
huge anywhere
else yet)
The hurdles are
big for the
industry to
develop business-
wise
Edible insects are
just one
solution - we
need to
broaden the
horizon
We need to go on
a greater mission
to create wider
change – we need
a Future Food
Quest!
49. PROJECT OUTCOME:
DELIVERING THE INSIGHTS
Insight reports were developed through a
comprehensive market analysis on how
the global edible insects industry looks like
today - and key consumer trends driving
opportunities.
Market Forces Analysis Report
Industry Forces Analysis Report
Opportunities Analysis Report
Trend brief: Protein Boom
Trend brief: Green & Healthy
*To be released January 2017
50. PROJECT OUTPUT:
ENGAGING CONVERSATIONS
Various communication channels were
used to create conversations to engage
more people with insects and sustainable
food systems, as well as find new
viewpoints.
Personal conversations (meetings, phone
calls), email newsletters, social media
including Twitter and Facebook were
all utilised.
INADDITIONTOEDIBLEINSECTS,THECOMMUNICATION THEMESCOVERED
VARIOUSOTHERTOPICSAROUNDSUSTAINABLEFOODSYSTEMS.
51. PROJECT OUTPUT:
ENABLING COLLABORATION
In August 2016, a Business Opportunity Event was held at
Wiurila Manor House in Salo, Finland.
The event was a mixture of a seminar and a workshop.
The focus was on presenting some of the findings from the market analysis,
as well as working in smaller groups to discuss the various business
opportunities related to edible insects.
There were 36 participants in the event from different types of
organisations, including insect companies, other food industry companies,
research organisations and regional development organisations.
52. PROJECT OUTPUT:
SHARING THE OPPORTUNITIES
To present and share the business
potential of edible insects in a concise
manner to a wide audience, a white
paper was created -
“Making the unwanted desirable -
unlocking the commercial
potential of edible insects”
ANYONEINTERESTEDINTHEBUSINESSOF EDIBLEINSECTSCANFREELY
DOWNLOADTHEWHITEPAPERONOURSLIDESHARECHANNEL
This whitepaper was featured at HiEUROPE 2016and offered to allexhibition visitors
53. PROJECT OUTPUT:
ENCOURAGING NEW THINKING
To encourage and empower new thinking, live
sessions on edible insects were presented at
several conferences, including HiEurope
2016 conference in Frankfurt.
To further share the message, a presentation
snapshot was created and shared through
Invenire and HiEurope social media
channels, and in connection with World
Edible Insect Day.
ANYONEINTERESTEDINTHEBUSINESSOF EDIBLEINSECTSCANFREELY
VIEW THEPRESENTATIONSNAPSHOTONOURSLIDESHARECHANNEL
“Making theunwanted
desirable” at HiEurope
Slideshare presentation
LinkedIn article
54. PROJECT OUTPUT:
PROVIDING TOOLS
To share the market analysis, insights
and strategic thinking developed through
the project, an online learning course is
being created via Teachable.com.
Targeted to help people make real
business with edible insects, the course
will include presentation videos, the insight
reports, infographics and practical exercises
to help viewers develop their own business
ideas with insects.
BENEFITS
• Easierand moreinteresting
to delivermarketanalysis
• Helpcompaniesturnaction
intoinsight
• Helpcreate a community
aroundedibleinsects
55. IMPACTINGTHE OPPORTUNITY MINDSET
“Your thinking has a lot of truth in it. There are some innovations under
development that could be the kind of game-changer you suggest is needed.
But generally at the moment we lack a really delicious high-insect food
product. Most are just about as good as non-insect equivalents but with
added smugness. We need to challenge people to come up with this, as you
say there are lots of links in the chain that need to come together.”
– International edible insects business expert
The project demonstrated the opportunity mindset necessary
to create better business.
The project named and addressed the key roadblocks for insects as well as
suggested solutions. It demonstrated how to see roadblocks as opportunities,
and formulate radical new ideas and solutions.
56. ESTABLISHING A SYSTEMATIC
APPROACH TO ACTIVATE OPPORTUNITIES
“Finnish agriculture and food business are facing a challenging situation.
Climate change, saving the Baltic Sea, as well as the protection of
biodiversity call for a new way of thinking and new ideas for companies.
Now we need new thinking in order to build a truly sustainable future food
business. Invenire is an excellent partner in this work.
- major Finnish primary producer & influencer
The project established a broader mission, the “Future Food
Quest”, to accelerate Better Business across industry
Creating better business ultimately requires real actions. The Future Food
Quest combines the approaches tested in the project, as a systematic way
industry can act on future opportunities to better our food system.
58. THE NEXT STEP: TRYING TO GAIN
MORE MUSCLE
Better business is not something anyone can create out of thin air, or on
their own. Partners, money and other resources are needed for
the journey.
So Invenire applied for funding from Tekes to start building a business
ecosystem around the concept the of Future Food Quest.
60. HOW TO
MOVE
FORWARD?
What’s the next step from here?
The dream remains the same.
By rethinkingprioritiesand applyinga
strategic, adaptive mindset, we’llfind
other ways toprogress theFuture Food
Quest.
64. Action3
ESTABLISHING A BIGGER
PROJECT ON CONSUMER-
CENTRIC THINKING
To help leaders create thriving businesses
through delivering meaningful consumer
solutions
66. Join the next chapterin the journey!
Helpus makebetter business with consumer needsat the core
It is also about
business
that can thrive
in the long term
68. START WITH A
DREAM
Anything is possible
Imagine a bright future where people are happier
and the planet is healthier.
A future where sustainable living is commonplace and
we all have become better stewards of the planet.
69. We can changethe world.
The momentwe decidethat somethingis
important is themoment we start to lead.
What legacy do
you want to
leave the world?