French insect-feed company Ynsect was liquidated after demand fell short

Ynsect raised mealworm larvae at a large factory in Dole, northern France, and processed them into protein powder for animal feed.

The company aimed to offer an alternative to fishmeal, which is made from wild-caught fish.

Fishmeal is widely used in aquaculture, especially to feed farmed fish and seafood, and its production puts pressure on ocean life.

Ynsect attracted more than half a billion dollars in investment, but by 2022 it had lost more than $105 million, mostly because buyers showed little demand.

Producing mealworm feed at a competitive cost and on a large enough scale has proved difficult.

In December 2025, a French commercial court ordered Ynsect’s liquidation after its management failed to secure funding for a path to profitability.

Its failure shows how difficult it can be to replace fishmeal in animal feed.