Volare opens €15M insect protein plant, defies sector’s scale-up curse

The factory aims to process food-industry byproducts into protein and oil using black soldier flies, positioning itself as a supplier for animal feed and pet food markets.

The launch arrives as the sector grapples with high-profile failures. French insect-protein leader Ÿnsect collapsed in 2025 after raising over €600 million, while Denmark’s ENORM and Germany’s FarmInsect both folded last year. Volare’s CEO Jarna Hyvönen attributed the company’s progress to a lean approach, citing automation, cost-efficient engineering, and years of testing. She argued the facility demonstrates the viability of its production model at scale.

The project marks a significant expansion from Volare’s earlier demonstration plant, leveraging technology refined over years of commercial trials. As a spin-off from VTT Technical Research Centre of Finland, the company benefited from decades of research in food processing and circular economy. Hyvönen highlighted the natural efficiency of black soldier flies, VTT’s expertise, and Volare’s control over its industrial processes as key advantages.

By converting an existing printing house instead of building new, Volare reportedly saved at least a year in construction time. The site’s sturdy floors, designed for heavy machinery, made it a practical choice. The €15 million capital expenditure remained within budget, and the company secured an additional €7.1 million to expand across Europe, though investors were not disclosed.

The sector’s struggles underscore the difficulty of aligning technology, regulation, and commercial demand. Ÿnsect’s downfall stemmed from technical issues, delays, and cost overruns, while FarmInsect’s decentralized model faltered under high production costs and competition from cheaper proteins like soy and fishmeal. Hyvönen noted the multifaceted challenges: “You need customer buy-in, regulation, technology that makes sense, and the ability to execute. Some companies failed in one of these areas, which turned into much bigger problems.”

Unlike peers that pursued capital-intensive projects, Volare focuses on industrial side streams, targeting markets where sustainability and circular-economy benefits could drive adoption. The next phase will test whether the model can secure long-term demand—a hurdle that has derailed other insect-protein startups.

For Europe’s alternative-protein sector, Volare’s factory offers a rare success story. Whether it can translate efficiency into profitability—and avoid the pitfalls that doomed rivals—will depend on navigating the same regulatory and market pressures that have tripped up others. The coming months will reveal if its approach can sustain growth or if it faces the sector’s persistent challenges.

Sources: tech.eu