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Case: Looking to the future, established food businesses and entrepreneurial upstarts are exploring new ways to improve agricultural models and develop products that both satisfy
Case: Looking to the future, established food businesses and entrepreneurial upstarts are exploring new ways to improve agricultural models and develop products that both satisfy consumers and provide sustainability for the planet, people, and profits. Within the protein category, food and beverage companies are experimenting with different plant sourcessuch as pea protein and mycoprotein (derived from fungus)and edible insects (Maloney, 2017). Yes, insects. This might come as a surprise to many, while others may have already partic- ipated in entomophagythe scientific term for eating insects. For most Western consumers (in Europe, the United States, Canada, and Australia), the "ick" factor associated with insects is difficult to overcome. Yet it is estimated that 80% of the world's population already chooses to eat insects as part of their diet (Srivastava, Babu, & Pandey, 2009). Incidentally, inhabitants of countries which have not integrated insects into their diets consume the most animal protein (Pariona, 2016). Although edible insects will not completely replace con- ventional meat proteins (i.e. beef, chicken, and pork) in Western diets, reducing our reliance on these animal proteins and exchanging them for a healthy, less resource-intensive alternative has many benefits. Insects have the advantage of being a great protein source, which is less resource-intensive and higher in calcium, amino acids, and other vitamins, as well as being safer for human consumption than other alternative proteins (Van Huis et al., 2013). Yet edible insects represent an innovation adoption challenge, and questions. of consumer acceptance remain. These include: What are the best consumer segments to go after? What positioning and product offerings could help increase adoption? Will there be enough acceptance and adop- tion to "cross the chasm" and gain a foothold in the mainstream marketplace? (Moore, 2002). Entrepreneurial companies, such as Aspire Food Group, Entomo Farms, and Don Bugito, are taking up the challenge. Finding the Value in Insects Cultural Perceptions Associated With Taste and Variety Culture and geography generally dictate whether an individual will accept insects as a food or immediately reject them with disgust. Eating insects is a customary part of diet for a significant portion of the world. For ex- ample, inago no tsukudani (grasshoppers cooked in soy sauce) is a dish traditionally eaten in Japan's moun- tainous regions. In Oaxaca, Mexico, chapulines (grasshoppers) are a widely consumed snack. Typically, it is Western countries that have had difficulty in accepting insects as food or conceptualizing them as a valid meat substitute (Hartmann, Shi, Giusto, & Siegrist, 2015). However, food trends show Western consumers are seeking out more authenticity and cleaner foods, including looking towards ancient practices for dietary guidance (Challa & Uppaluri, 2018). Around the globe, mealworms, crickets, palm weevil larvae, and other insects are eaten with delight, providing flavor and nutrition. Consumers are generally attracted to crunchy foods, which suggests some insects should be deemed more desirable to eat, but this remains to be seen in Western countries (Spence, 2017). There are over 2,000 kinds of edible insects that have been discovered so far, offering a multitude of options for consumers (Jongema, 2017). Video: Mark Gagnon, Professor at Penn State University's College of Agricul- tural Sciences, on Insect-Based Foods. Functional Nutrition Insects offer significant amounts of protein, fiber, healthy fat, vitamins, and minerals (Van Huis et al., 2013). The amount of protein and other nutrients supplied depend on the type of insects. For example, crickets have 8-25g protein per 100g compared to beef's 16-26g; crickets are equivalent to or higher in iron and contain more calcium than beef, pork, or chicken (Van Huis et al., 2013). Insects contain 4.9-12.1g (per 100g) of fiber. Among high protein animal meat and plant-based foods, only oats and cooked peas (10.1g and 5.5g per 100g, respectively) contain fiber equivalents (Williams, Williams, Kirabo, Chester, & Peterson, 2016). More research needs to be conducted to determine whether edible insects are unequivocally "healthier," but statisti- cally, insects are no less "healthy" than conventional meat (Payne, Scarborough, Rayner, & Nonaka, 2016). In addition, edible insect products provide viable options for people who have restricted diets. Insects have the benefit of being free from wheat, soy, milk, peanuts, tree nuts, eggs, and fish. As an alternative protein source, edible insects are therefore an acceptable option for individuals with the most common food allergiesapart from shellfish, since adult insects may trigger shellfish allergies. Many Western consumers restrict their diets. due to allergies, a desire to eat organic food, or religious beliefs, and certain insects are considered accept- able under halal and kosher practices. Normalizing Edible Insects Edible insect companies are fighting to overcome the initial "ick" factor through their familiar product offerings and aspirational promotions to increase product adoption, market size, and sales. A benefit of insects is that they can be ground into a powder and added as an ingredient without significant processing, such as in pro- tein bars and baked goods like bread and chips (see Table 1 for examples). They can also be made into textured protein similar to forms of tofu or seitan that can be added to familiar carriers such as dried pas- ta (see Table 1, Bugsolutely). Having familiar carriers such as pasta, tomato sauce, protein bars, and tortilla chips increases acceptance and willingness to trial the product among varied and wider consumer markets. Companies are using familiar flavors such as chocolate, salt and vinegar, or barbecue, to help draw people away from the idea of "bug" flavor and towards more familiar tastes to increase consumer comfort (Hartmann & Siegrist, 2016a). Once consumers have tried insects through familiar carriers and flavors, they appear to become more comfortable consuming insects, as demonstrated by a greater willingness to try whole roasted insects after having eaten cricket flour chips (Hartmann & Siegrist, 2016b). In addition, overcoming disgust can be assisted by introducing information. Informing people of the health and environmental benefits of eat- ing crickets, and warning people against the consequences of eating factory-farmed livestock, can sometimes help assuage the feeling of disgust that most consumers have. That being said, this is not always an effective tactic for overcoming the "ick" factor; people tend to rely on their own senses and experiences, making taste test an important aspect of the sector's strategy (Hartmann & Siegrist, 2016a). Making the Edible Insect Market Sustainable Edible insects offer an enticing sustainable food source, but this new food sector faces innovation adoption challenges in Western markets. Entrepreneurial players in the industry have various challenges in targeting consumers and positioning their products while seeking to gain an established foothold within a niche market and grow mainstream market acceptance and confidence. There is potential for wider adoption of edible in- sect products, but the questions remain: What is the best marketing strategy? Which consumer segments are best to pursue? Governing and Allowing Edible Insects Regulations Edible insects are not regarded as meat products in the United States and Canada, which reduces the num- ber of compliance and inspection regulations. Under European Union (EU) legislation, insects fall under "nov- elty foods" and have yet to be approved under the recently reformed application process (Reverberi, 2018). Countries in and outside of the EU vary widely in their regulatory positions. Consequently, there is increasing pressure to standardize rulings and open up markets for edible insect products (Reverberi, 2018). In the United States, edible insects currently fall under the jurisdiction of the Food and Drug Administration (FDA), and marketing of insects is allowed with the stipulation that they must have been purposefully bred for human consumption (Reverberi, 2018). The labels on these food products must include the common name for the insect, the insect's scientific name, and must note the potential risks of shellfish allergy (Reverberi, 2018). Mature insects have an exoskeleton (primarily made of chitin) which is the same as other crustaceans; therefore, insect products must contain a warning against consumption for people with shellfish allergies. Certain retailers, such as Whole Foods and Trader Joe's, have requested Generally Regarded as Safe (GRAS) determination from the FDA before they are willing to sell insect-based products. Many food products and additives are "grandfathered" into GRAS determination as they have been consumed by people over the millennia (FDA, 2018). Some additives require more reporting of their safety for consumption, while others require rigorous scientific testing and reporting to demonstrate they meet the requirements of GRAS. This last category is the most likely pathway to be required by the FDA for edible insects. Understandably, it is also the one that necessitates the most time, expertise, and financing to accomplish. For these reasons, the start-ups in this field are reluctant to seek GRAS determination at this time (Nagy, 2017). Is It Allowed? Animal Protein Restrictions and Religious Food Law Frequently, edible insect companies are asked if their products are vegetarian- or vegan-friendly (see, for ex- ample, http://www.aketta.com/about-aketta/faq.aspx). For clarification, vegetarians typically do not eat meat or fish, but consume animal by-products such as eggs, milk, and honey. Vegans do not eat any animals or their by-products. Insects are living creatures, but because vegetarian/vegan labels are self-applied and may be defined differently by each individual (for example, some vegetarians eat fish and some vegans consume honey), there is a significant percentage of vegetarians and vegans willing to try insectsestimated to be around 40% by one industry source. Those who have chosen to eliminate some or all animal products from their diets because of animal welfare concerns are more comfortable with the treatment and processing of insects. In determining consumer segments and marketing strategies, manufacturers and marketers need to give at- tention to the influence of religion on food practices. For example, Hindus, who make up 80% of the Indian population, are commonly believed to be vegetarian. Realistically, the vegetarian population of India is esti- mated to be about 20% of the whole population (Natrajan & Jacob, 2018). Logically, this percentage can be extrapolated to the Indian population outside of the country, and this offers a segment of the market that may otherwise be overlooked. Questions 1. What are the arguments companies might use to attract various consumer segments to try edible insect products? Which segments appear best to pursue? Notes: Please explain broadly
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