The French Did Not Want to Eat Worms, Despite Spending 100,000,000 Euros 0 9

One of the most well-known startups in Europe in the insect processing sector, Ynsect, ceased operations in December 2025. A court in France ordered the liquidation of the company, and all its assets will be sold to pay off debts. The company gained fame for being the first in Europe to establish industrial production of protein from mealworms.

These insects were processed into food products, fertilizers, and protein powder for animal feed. The idea was promising — it combined sustainable production, waste reduction, and environmental safety. However, even with government support, Ynsect could not achieve profitability.

Million-Euro Subsidies Did Not Help

Since its founding in 2011, the startup actively attracted investments and subsidies. Part of the funding came from private funds, while a significant portion came from government structures. The European Commission allocated around 20 million euros for the construction of an innovative plant in Amiens, in northern France.

In total, the project received more than 100 million euros in government aid.

In its best years, the company employed over 300 people, and the project was seen as a model for the entire European alternative protein industry. However, despite the recognition, high costs and scaling difficulties proved fatal.

Why Ynsect Could Not Survive

On one hand, producing protein from insects required huge investments and a long payback period. On the other hand, the European market turned out to be less ready for mass consumption of such products than expected. Additionally, energy prices and logistics costs rose significantly in 2024–2025.

All this severely impacted the company's economy. As a result, even large investments could not compensate for financial losses. Consequently, the management decided to liquidate the company. The court ruling came into effect in December 2025.

Main Reasons for Bankruptcy:

• high production costs and long payback period;

• limited demand for insect products in Europe;

• rising energy and transportation costs;

• dependence on subsidies and external financing;

• lack of a sustainable business model.

What Will Happen to Ynsect's Assets

The liquidation of the company means that all assets of Ynsect will be sold off, and the proceeds will be used to pay off debts. Some industry specialists fear that this case may undermine trust in investments in the insect protein industry. Nevertheless, experts note that interest in eco-friendly protein sources will not disappear.

It is likely that new companies will emerge that will learn from the mistakes and offer more sustainable models.

The story of Ynsect shows that even projects with strong financial backing can fail under market pressure. Despite hundreds of millions of euros in investments and assistance from the European Union, the company could not find a sustainable business model. Its bankruptcy served as a signal for the entire industry: innovations require not only ideas and subsidies but also real demand.