Protein Panic and the Black Soldier Fly (BSF) Opportunity
Decoding Huddle Ventures "India's Insect Protein: An Overview"

The UN-FAO estimates that by 2050 animal protein production needs to almost double (meat +70%, aquaculture +90%) to satisfy population demands. With the world's population continuing to increase and dietary trends moving towards more protein-rich intakes, the animal feed market is currently facing a huge and growing shortage of protein. Even now, around 80% of global soymeal production and over 70% of fishmeal derived from wild-caught fish stocks are allocated to animal feeds, not only contributing heavily to deforestation and the depletion of marine ecosystems but also diverting nutrition from human consumption to animal consumption.
In response to this mounting crisis, insect protein, particularly from Black Soldier Fly (BSF) larvae, emerges as a scalable and efficient alternative. Research shows insects need much less land and food to generate the same protein output as livestock and are suitable for animal consumption. For instance, mealworms (insect proxy) are 4× more effective than pigs and 12× more than cattle at converting feed into protein. Insects also produce hugely fewer greenhouse gases (as much as 80× less methane than beef cattle) and can be produced on organic waste, recycling food waste. In this context, Black Soldier Fly (BSF)is nature's insect protein factory.
BSF larvae consume and process waste to produce high-quality biomass with the larvae having around 40% protein and 30% fat content. The short lifecycle of BSF, around 14 days from egg to harvestable larvae and back to eggs, overshadows conventional protein source generation capacity. BSF larvae can leverage low-cost organic waste like brewery grains, vegetable market refuse, and agro-industrial residues which are widely available and have no great alternative uses, to successfully process waste into high-quality biomass, while using 70% less land,90% less water than cattle, and reducing virtually all GHG emissions associated with livestock agriculture. All these factors form the perfect recipe for BSF farming to have strong unit economics, especially in regions such as India where energy expenses are low owing to favorable temperatures.
Production expenses for dried larvae meal in India are between ₹80–₹120 per kilogram, with estimates indicating strong returns on investment of over 60% for mid-scale operations handling about 10 tons of waste per day. Sustaining major drivers in costs are labor and feedstock logistics, although those in tropics such as India have effectively dealt with these using semi-manual systems supported by point-focused automation as scale rises. Additionally, the by-products such as frass and lipids are economically significant and can be sold back with frass to soil aggregates, fertilizers, oils for pesticides and animal feed, in soaps and shells to cosmetics and neutraceuticals.
The international insect protein market is projected to develop at a 45.7% CAGR during the period 2024-2032, with a value of $6.2 billion. The regulatory agencies of the European Union, up to 2021, have given complete endorsement to insect protein for poultry and pig feed, with other countries like the U.S. and India quickly starting to follow the trend. Commercial viability has also been proven, with international feed companies like BioMar successfully using BSF protein in aquaculture feeds without compromising performance. The international market are also becoming competitive as firms like Ynsect, Protix, innovafeed stake claim to the value chain of insect protein. The pet food industry has also adopted insect protein, exemplified by Nestlé Purina's successful introduction of insect-based pet food lines, highlighting consumer acceptance of alternative, more sustainable protein sources. The economic value of production of BSF protein is high given that the total market for animal feed is $140B worldwide.
The competitive market is unfolding in India, with startups pioneering various strategies. If India replaced only 10% of the existing fishmeal consumption with BSF larvae meal, this replacement alone would have a market of around ₹2,000 crore. The shrimp/fish feed and petfood categories alone are a $14b market in India. Worldwide, the insect protein market, expected to grow to 500,000 tons by 2030, is an opportunity of more than $4 billion, and still only just over 2% of global feed protein demand, which demonstrates significant growth in the future. With this dynamic, 2025 is a turning point for investments in Insect protein.
Firms and investors that strategically position themselves with operations and partnerships today will be in a position to significantly shape and profit from this sustainable protein market's future growth curve. Huddle Ventures has invested in this space with Green Grahi, who is one of India's most promising players in the insect protein space and is using the Black Soldier Fly (BSF) to convert food and agricultural waste into high-value protein and next gen biologicals. What differentiates Green Grahi is that it can scale up with a strong unit economics model—treats 2 tons of waste per day and generates BSF larvae at a competitive price of ₹80–100 per kg. It does this with a capital-effective setup, showing a path to profitability without deep-tech or costly automation dependence. In addition, Green Grahi has already established certain market validation. It sells its larvae to chicken farmers and their frass fertilizer is capturing the rising demand for organic and sustainable inputs in Indian agriculture.
Most importantly, Green Grahi is not only addressing protein production but addressing India's key organic waste management issue as well. By situating their operations close to stable sources of waste (such as vegetable markets and agri-processors), they convert logistical headaches into positives, building a decentralized but scalable model that is solving for rise in farm incomes while generating important employment for 100s of rural youth. A huge shout out to Huddle Ventures for authoring the investment thesis on BSF insect protein and providing important info for this post :)