7A – Testing the Hypothesis Part 1
I think the growing population will only continue to increase the demand for protein. Dwindling natural resources will likely force humanity to seek out and consume more efficient forms of protein. I think insect protein, in powder form, from crickets and mealworms, will only continue to grow in popularity. The relatively high price per gram of “cricket flour” indicates strong market potential and room for growth.
I think a separate market also exists in the pet food industry because many Americans have dogs and cats. Feeding these animals chicken and pork will likely become less feasible in the not so far future. Therefore, substituting cricket or mealworm flour for beef and chicken may be a great solution.
Are there others who have the need?
All people have the need for protein. I think pricepoint will increase the need for insect protein for some. Others will already see it as a need and therefore be more immediately receptive to the product. I do not intend to target all consumers because this is such a bizarre product to people who live in a civilized society. However, there are already many people who refuse to eat meat and, as an economist, I think that trend will only continue to grow.
I think there is also a great opportunity to implement these products for humanitarian efforts due to the ease of shipping (no refrigeration), ready to eat status and nutrient-rich composition.
What are the boundaries of the need?
How much more efficient are insects than cows, chickens, and pigs? What are other nutritional benefits? How long is the shelf life for cricket flour? Who are the major players in the industry and who are the major competitors?
Provide a range of “whys”:
While protein from plants and beans is great, farmers can produce insects in relatively small facilities, better ensure cleanliness and a diminished need for pesticides and herbicides.
Protein powder is easy to package and ship. The nutrient-dense composition of protein powder makes shipping large qualities of nutrient-rich product cheap.
I think this market will only expand and there is much economic profit left, incentivizing businessmen and women to enter and compete. Currently, the price of cricket powder is quite high. I believe it’s much higher than the average citizen's willingness to pay. Therefore, I think more competitors need to enter the market, thus driving down prices and incentivizing consumers to try and use the product.
Interview Questions:
1) Do you agree or disagree that the world needs cheaper, ready-to-eat, more sustainable and efficient protein options?
2) Are you willing to try insect protein powder?
3) Do you think your willingness to pay (WTP) for cricket flour is similar to your WTP for whey protein powder?
Sierra M—
1) “I probably would agree but it honestly just scares me to think about so I haven’t considered it.
2) “If it was a last resort.”
3) “I like that it’s a sustainable product that would potentially solve two problems at once (provide protein and reduce waste) however I’m completely turned off by the thought of eating bugs!”
Jefferson P—
1) “I don’t have enough information to answer the question fully. I do know over the past half century our production per square mile has gone way up due to genetic and technological advances. However, if I were to read the statement on a package, I would be likely to believe it. In my lifetime we’ve passed the 7 billion mark and haven’t looked back. I think we’ll need all the cheap, safe food we can get.”
2) “At the initial thought of it I’m not a fan but logic quickly overcomes it. I know a huge chunk of the population everyday dines on insects and I’m sure the powder tossed into a smoothie would taste just fine.”
3) “Either equal price or slightly lower than conventional protein. My perception would be that farming insects for the powder would be cheaper, therefore I’d expect the price to be 5%-10% less.”
4) Additional thoughts: “I appreciate the innovation, any product that can fill a similar role to an existing product but come in under in cost is a winner. I’m sure existing competitors would come out with a bunch of fake science talking about the “huge” differences in protein composition, but that’s just how it goes.”
Jon S—
1) “I agree. With the world population growing at a rapid pace, and urban sprawl taking place as a result, the need to maximize effective and efficient sources of nutrients is paramount.”
2) “I would if I was educated further on the product and if it tasted good.”
3) “I’m a little turned off by eating bugs. But, if it’s in a powder form and I can’t tell the difference from whey, bring it on!”
Antoine H—
1) “I disagree because natural is the best for the body. I’m weary of long-term side effects of consuming foods with a long shelf-life.”
2) “Sure, why not!” I don’t dislike the product; it’s all the same to me” (referring to powdered protein).
3) “My willingness to pay is the same for both whey and cricket powder.”
Audrey J—
1) “I think I agree with that.”
2) “It depends on the flavor and the price. If it tastes good, I’m interested. If it tastes good and it’s a good deal, I’ll likely try it.”
3) “My willingness to pay is a little lower for cricket flour than for whey because why eat cricket flour if you can have whey for the same price?”
Write up:
I think I’m going to have fun with this idea. It is something that interests me and I’m extremely curious what the general public thinks. After doing some limited research, cricket and mealworm flour is already for sale on Amazon and there were a shocking amount of positive reviews, especially about the succulent, nutty flavor of cricket flour.
I do think an insane amount of money would have to be spent on marketing because this is such an odd product for American consumers. But, I think there is a large enough population who value the environment above all else. I also think other savvy consumers, like Jon, will purchase the product if it’s affordable and has an outstanding nutritional makeup, which cricket flour does.
I enjoyed conducting the interviews but it’s somewhat difficult to find people who are willing to have a long and somewhat serious conversation about a topic they’ve never heard about. I’m more surprised by the responses from this round of interviews than I was for the previous post. I think it speaks well for Dr. Pryor’s assertion that you never know what people think about something you see as a “need.” A couple of the people I interviewed are fitness gurus and I thought they would be more receptive to the general idea. As it turns out, the person who seemed most interested was Jon and he a row crop farmer and steak-lover. Jeff’s comment on how the competing industries will try to sabotage such new products is interesting and highly believable.
I think it’s time to come up with another batch of questions and find some new people to interview! I think this exercise taught me how important it is to define your market so you can better understand potential customers and therefore tailor marketing and advertising efforts specifically to them.
Who, what, why?
I think a separate market also exists in the pet food industry because many Americans have dogs and cats. Feeding these animals chicken and pork will likely become less feasible in the not so far future. Therefore, substituting cricket or mealworm flour for beef and chicken may be a great solution.
Are there others who have the need?
All people have the need for protein. I think pricepoint will increase the need for insect protein for some. Others will already see it as a need and therefore be more immediately receptive to the product. I do not intend to target all consumers because this is such a bizarre product to people who live in a civilized society. However, there are already many people who refuse to eat meat and, as an economist, I think that trend will only continue to grow.
I think there is also a great opportunity to implement these products for humanitarian efforts due to the ease of shipping (no refrigeration), ready to eat status and nutrient-rich composition.
What are the boundaries of the need?
How much more efficient are insects than cows, chickens, and pigs? What are other nutritional benefits? How long is the shelf life for cricket flour? Who are the major players in the industry and who are the major competitors?
Provide a range of “whys”:
While protein from plants and beans is great, farmers can produce insects in relatively small facilities, better ensure cleanliness and a diminished need for pesticides and herbicides.
Protein powder is easy to package and ship. The nutrient-dense composition of protein powder makes shipping large qualities of nutrient-rich product cheap.
I think this market will only expand and there is much economic profit left, incentivizing businessmen and women to enter and compete. Currently, the price of cricket powder is quite high. I believe it’s much higher than the average citizen's willingness to pay. Therefore, I think more competitors need to enter the market, thus driving down prices and incentivizing consumers to try and use the product.
Interview Questions:
1) Do you agree or disagree that the world needs cheaper, ready-to-eat, more sustainable and efficient protein options?
2) Are you willing to try insect protein powder?
3) Do you think your willingness to pay (WTP) for cricket flour is similar to your WTP for whey protein powder?
Sierra M—
1) “I probably would agree but it honestly just scares me to think about so I haven’t considered it.
2) “If it was a last resort.”
3) “I like that it’s a sustainable product that would potentially solve two problems at once (provide protein and reduce waste) however I’m completely turned off by the thought of eating bugs!”
Jefferson P—
1) “I don’t have enough information to answer the question fully. I do know over the past half century our production per square mile has gone way up due to genetic and technological advances. However, if I were to read the statement on a package, I would be likely to believe it. In my lifetime we’ve passed the 7 billion mark and haven’t looked back. I think we’ll need all the cheap, safe food we can get.”
2) “At the initial thought of it I’m not a fan but logic quickly overcomes it. I know a huge chunk of the population everyday dines on insects and I’m sure the powder tossed into a smoothie would taste just fine.”
3) “Either equal price or slightly lower than conventional protein. My perception would be that farming insects for the powder would be cheaper, therefore I’d expect the price to be 5%-10% less.”
4) Additional thoughts: “I appreciate the innovation, any product that can fill a similar role to an existing product but come in under in cost is a winner. I’m sure existing competitors would come out with a bunch of fake science talking about the “huge” differences in protein composition, but that’s just how it goes.”
Jon S—
1) “I agree. With the world population growing at a rapid pace, and urban sprawl taking place as a result, the need to maximize effective and efficient sources of nutrients is paramount.”
2) “I would if I was educated further on the product and if it tasted good.”
3) “I’m a little turned off by eating bugs. But, if it’s in a powder form and I can’t tell the difference from whey, bring it on!”
Antoine H—
1) “I disagree because natural is the best for the body. I’m weary of long-term side effects of consuming foods with a long shelf-life.”
2) “Sure, why not!” I don’t dislike the product; it’s all the same to me” (referring to powdered protein).
3) “My willingness to pay is the same for both whey and cricket powder.”
Audrey J—
1) “I think I agree with that.”
2) “It depends on the flavor and the price. If it tastes good, I’m interested. If it tastes good and it’s a good deal, I’ll likely try it.”
3) “My willingness to pay is a little lower for cricket flour than for whey because why eat cricket flour if you can have whey for the same price?”
Write up:
I think I’m going to have fun with this idea. It is something that interests me and I’m extremely curious what the general public thinks. After doing some limited research, cricket and mealworm flour is already for sale on Amazon and there were a shocking amount of positive reviews, especially about the succulent, nutty flavor of cricket flour.
I do think an insane amount of money would have to be spent on marketing because this is such an odd product for American consumers. But, I think there is a large enough population who value the environment above all else. I also think other savvy consumers, like Jon, will purchase the product if it’s affordable and has an outstanding nutritional makeup, which cricket flour does.
I enjoyed conducting the interviews but it’s somewhat difficult to find people who are willing to have a long and somewhat serious conversation about a topic they’ve never heard about. I’m more surprised by the responses from this round of interviews than I was for the previous post. I think it speaks well for Dr. Pryor’s assertion that you never know what people think about something you see as a “need.” A couple of the people I interviewed are fitness gurus and I thought they would be more receptive to the general idea. As it turns out, the person who seemed most interested was Jon and he a row crop farmer and steak-lover. Jeff’s comment on how the competing industries will try to sabotage such new products is interesting and highly believable.
I think it’s time to come up with another batch of questions and find some new people to interview! I think this exercise taught me how important it is to define your market so you can better understand potential customers and therefore tailor marketing and advertising efforts specifically to them.
Thank you for reading and I hoped you enjoyed it! Thoughts and questions are welcome.
I think this is a very interesting idea for a product that definitely does not exist currently. You would have to strongly convince people how this could be better for them since I feel like it will definitely be a hard sell considering there are already other products out there that would not require people to eat insect proteins. Although, maybe if there are other benefits involved or great marketing campaigns that can convince people to buy it and use it, you might be onto something.
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