PreZero, part of Lidl and Kaufland owner Schwarz Group, has signed a memorandum of understanding with biotechnology firm REPLOID Group AG, to explore the development of insect-based products.
The non-binding MoU outlines key areas for possible collaboration in the area of insect larvae processing, development and distribution, with both REPLOID and PreZero committing to develop an insect-farming facility in Buchen, located in Baden-Württemberg.
This facility, which will utilise food waste as a feedstock, will also include a processing plant, and is expected to be completed by the end of 2026.
As well as the development of a facility, the two firms plan to establish a processing plant for handling insect larvae and producing fertiliser, as well as for the distribution of raw materials derived from insects.
A joint market presence (own brand) is also planned, the companies said.
The European edible insect market is forecast to reach a value of $1.2 billion by 2030, according to recent research. In Western Europe, the insect-based food category is expected to grow at a compound annual growth rate of 45% between 2024 and 2030. Europe currently accounts for more than 25% of global edible insect production.
‘Considerable potential’
PreZero Stiftung & Co. KG and its subsidiary GreenCycle GmbH are part of retail giant Schwarz Group, which operates the Lidl and Kaufland chains. Both PreZero and GreenCycle are active in waste management and recycling, with a focus on sustainable practices.
In a statement, the companies said that they see ‘considerable potential in the utilisation of food waste by insects and the development of sustainable solutions in recycling and energy management’.
REPLOID Group AG is listed on the Vienna Stock Exchange and is headquartered in Wels, Austria. Read more here.
