Ÿnsect: how the world leader in insects ended up in bankruptcy

Last updated on June 30, 2025

On December 1, 2025, Ÿnsect, long touted as the global leader in insect protein and a gem of French Tech, was placed in judicial liquidation. How could a company that had raised more than €600 million, supported by the government, several ministers, and even international celebrities, end up in this situation? Let's take a look back at a journey that symbolises the structural weaknesses of the sector.

Promising beginnings

Founded in 2011, Ynsect was born from a firm conviction: that insect farming could contribute to a more sustainable agriculture. The company then promised a local, circular, and environmentally friendly protein. It quickly benefited from massive support from the French State, via the Banque Publique d'Investissement (BPI), local authorities, and various innovation programs aimed at supporting the country's reindustrialisation. In 2021, three ministers attended the inauguration of its factory in Poulainville, near Amiens. The actor Robert Downey Jr., known for his role as Iron Man, even promoted Ynsect on American television. In total, the company raised over 600 million euros in public and private funding.

An ambitious technology, but difficulties from the start

Behind this exciting showcase, the technical difficulties quickly become apparent. By attempting to raise mealworms (Tenebrio molitor), the company ventures into relatively unknown territory. It faces numerous complications: diseases, parasites, overly fatty worms clogging the machines, etc. Furthermore, insects require a high temperature to grow quickly (over 25°C), which leads to high energy costs, exacerbated by rising prices resulting from the war in Ukraine.

The construction of the Poulainville mega-factory, highly ambitious for a still-young sector, is falling behind schedule, particularly due to Covid. Delays are exceeding two years.

Far from the promised circular economy

Contrary to initial promises, feeding insects with organic waste is proving challenging. Health regulations prohibit the use of several types of waste, and their variable composition can lead to slower growth or increased mortality rates in insects. Ÿnsect is therefore turning to agricultural by-products, such as wheat bran, which is often already used in animal feed.

This choice raises several problems: these inputs are not waste, they compete with existing uses, and they are expensive. This raises questions about the announced environmental benefits, while weakening the economic arguments.

A fragile economic model

The main difficulty remains profitability. Ÿnsect has long focused on animal feed, particularly for the aquaculture industry. However, insect meal remains uncompetitive: its cost is on average 2 to 10 times higher than that of fish or soy meal. The human food market, once targeted, is halted by low consumer acceptance. 

In 2023, the company abandoned this market and refocused on a narrower segment: premium food for dogs and cats.

A downward spiral

This repositioning is not enough to reverse the trend. Ÿnsect laid off 20 % of its workforce in 2023, repeatedly delayed the completion of its factory, and requested new public funds. The needs are massive: at least 100 million euros would be needed to complete the construction of Poulainville.

In September 2024, Ÿnsect entered safeguard proceedings. In the absence of a buyer, the company was placed in receivership on March 3, 2025. BPI injected 10 million euros in emergency funding, but this only offers a delay of a few months.

As its co-founder, Antoine Hubert, acknowledged in Libération: « There are no more investors on the market. It's like running down a corridor with thousands of doors, and the more you run, the more the doors close. »

Results far from promises

The contrast is striking. In 2023, Ÿnsect reported a turnover of only €656,000, excluding internal transactions, yet incurred more than €80 million in losses. The press is critical, and a specialized newsletter even headlined: « 500 million raised to make the turnover of a bakery. »

In June 2025, Ÿnsect announced that it would lay off two-thirds of its workforce —more than 150 people—and stop breeding insects in France to refocus on processing products from foreign farms. The factory in Dole, in the Jura region, saw its workforce reduced by two-thirds and was taken over by a company co-founded by Antoine Hubert, the former CEO of Ÿnsect.

Finally, on December 1, 2025, Ynsect went into liquidation and closed its factory. None of the attempts to change course had been successful in turning the company around.

A case that is not isolated

Some observers attribute Ÿnsect's difficulties to its overly ambitious model or choice of species. But in January 2025, Agronutris —another major player in the sector, with a more gradual approach and a different species (Hermetia illucens)—also entered into receivership, despite raising €100 million. Other companies have gone bankrupt, such as the Scandinavian leader, Enorm Biofactory (€55 million raised), and Aspire Food Group in Canada (€42 million raised).

Even companies that have opted for a more strategic positioning remain fragile. Innovafeed, which has opted for more gradual development based on the black soldier fly, posted revenues of €5 million and losses of €35 million in 2024. Its US factory has suspended operations for 18 months. As the president of the Public Investment Bank acknowledged, these companies face a "host of difficulties."

The problems appear to be structural: high costs, competition from conventional proteins, and a lack of clear market opportunities.

A necessary reevaluation of public support

Ÿnsect has benefited from considerable public support. Given the theoretical advantages of insects, this choice made sense with the data available at the time. Investing involves a degree of uncertainty, and several assumptions have unfortunately proven more difficult to realize than expected.

However, current difficulties call for a reassessment of public and private investment in this sector. Several signs point to one conclusion: insect farming is struggling to deliver on its promises, both environmentally and economically.

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