The Current State of the Insect Industry and Direction for Fostering Policy

Abstract

○ The global insect market is growing with the noteworthy potential of the insect industry, andalong with this trend, the insect market in Korea has expanded to be valued at KRW 300billion as of 2015. The market is expected to grow further by 1.7 times from the present scale(2015), reaching KRW 540-560 billion by 2020. In particular, the market for insects for feedand as medicine is predicted to grow dramatically over the coming years. Nevertheless, theawareness of the domestic insect sector as an industry is still very low, calling for propermeasures to deal with such limitations.- The insect markets for feed, medicine, and development of insect-based biomaterials areforecasted to drastically grow.- The size of the pollinating insect market is also expected to expand by 33% from the currentstate to KRW 57.5 billion. The market for insects as natural enemies is predicted to growby 33% to KRW 4-6.7 billion, thanks to an increasing interest in health and the environmentand the government policies for fostering eco-friendly farming.○ However, the burden of investment in facilities for insect-related business and difficulties inmanaging diseases undermine the willingness of farmers to produce insects. Consumers ofinsects in urban regions also complain about poor accessibility to purchase insects andhardships in rearing management.- Producers of insects point out the problems in operating expenses, disease control techniques,and prediction of demand for insects. Farms that use insects for pollination (for growingvegetables and fruits) tend to show a negative perspective on the quality and effect ofinsects.- People who consume insects for the purpose of education or as pets point out the complexityof insect rearing management, the lack of diversity of species that is limited to rhinocerosbeetle and stag beetle, and unreasonable prices.○ It is needed to increase the income of insect producers, set the direction of policy for increasingthe satisfaction level of consumers of insects, and improve relevant laws and regulations.- In order to foster the insect industry that is still in the early stage, it is necessary to builda medium- and long-term policy for development of the industry, to continuously implementgovernment policies and invest in R&D projects, to define the role of each stakeholder ofthe industry, and to make efforts to accomplish such goals.- It is crucial to register the types of edible insects or those for medicine, and design variouspromotion measures to improve the awareness of insects. The import of harmful insectsshould be strictly managed, in particular, to remove any factors that weaken the potential ofthe insect industry.○ This study provides a priori approach to explain the direct and indirect effects of the productionand use of insect resources. If there is an opportunity to quantitatively analyze the effects inthe future, such a study will contribute significantly to the growth of the insect industry.