Vietnamese startup's gamble: Making snacks from crickets.

Having invested over a billion VND in producing cricket snacks and selling more than 10,000 packs in the first month, Rec Rec dreams of popularizing insect-based foods among Vietnamese people, but it's not easy.

"Snacks have always had a bad reputation for being unhealthy and lacking in nutrition. This is our opportunity to create a new branch: healthy snacks," said Nguyen Hong Ngoc Bich (Bicky Nguyen), co-founder of Rec Rec.

The snack market in Vietnam is worth approximately $5.81 billion, according to the German online data platform Statista. They hope to capture a share of this market thanks to consumers who enjoy healthy snacks. Instead of using starch, Ngoc Bich and like-minded individuals pooled their money to produce snacks from cricket meat.

Although not a newcomer to the cricket industry, Bich's ambition is not easy to achieve. She is the co-founder and business development director of CricketOne, a producer and exporter of cricket protein, wholesaling to 20 markets. Founded in 2017, the company is the second in the world to receive a new food certification from the European Commission, allowing it to sell its products throughout the EU.

Despite its reputation abroad, the company's name was unfamiliar to Vietnamese people. Between 2016 and 2018, they sought opportunities in the domestic market but were unsuccessful. The biggest obstacle was the unpopular use of insects as food. "We approached many food companies to introduce our product, but it was difficult for them to accept," she said.

Not giving up on her intention to sell cricket meat to Vietnamese people, her motivation was rekindled when, over the past two years, the export of whole crickets for snacking increased sharply in North America and Europe. Believing this was the right time to act, Bich could no longer simply knock on the doors of food companies as before. "I have to take a bolder approach," she told herself.

Nguyen Hong Ngoc Bich (Bicky Nguyen), Co-founder of Rec Rec. Photo provided by the subject .

Therefore, they decided to produce cricket snacks themselves. For distribution, they partnered with FoodMap, an e-commerce platform specializing in agricultural products, starting in September 2022. The two parties agreed to contribute one billion VND, 50-50, to establish Rec Rec. They also contributed personnel for phases 1 and 2 to work directly alongside the project's independent team.

Initially, the founding team intended to focus on specialty products. But after researching, they decided to target the mainstream snack market instead. "We decided to do things properly, from quality standards and packaging to flavor, so that we could compete with and stand out on supermarket shelves alongside existing snack brands," Bích said.

Only when they started working on it did they realize how difficult it was. The hardest part was researching and developing a complete product, from flavor to appearance. To find the target market, the situations in which the product would be used, pricing policies, and brand recognition, they conducted numerous market research surveys with various customer groups and age ranges.

As a result, they realized that snacking is a culture, not simply something to eat to satisfy hunger. "People can and want to snack all the time, whether they're full or not, whether they're sad or happy, whether they're alone or with others," Bich recounted.

However, snacks in Vietnam are mainly made from starches such as potato, wheat flour, rice flour, and corn flour. The differences between brands revolve around variations in shape, texture, and seasoning. A common weakness is that they are often labeled as "nutritionally poor."

Using whole crickets and no vegetable oil, Bich's team believes their product excels in terms of health benefits. "Each packet of Rec Rec provides 14-15g of protein, equivalent to a serving of protein for an adult per meal, along with vitamins and minerals," the co-founder said. To make it palatable, their dried whole crickets are tossed with three flavors: wasabi, salted egg, and cheese.

The snacks are produced at CricketOne's factory, utilizing existing facilities and raw materials, with a maximum capacity of 100,000 bags per week. "Increasing production is absolutely no problem because CricketOne's current production capacity is 45 tons of input per month, which will increase to 150 tons per month by July," Bich said.

Launched in February 2023, over 10,000 packs of cricket snacks were sold through online channels and social media. They are now also available on the shelves of Fine Life, BRG, and Nam An offline stores, and have found their way into Aeon, Kohnan, and Circle K.

According to Mai Thanh Thai, a representative from FoodMap, this is a new product but has been widely accepted by young consumers with open minds and modern lifestyles. "This is demonstrated by the fact that the product is currently selling well in convenience stores, supermarkets, and online channels," he said.

Some retailers are also beginning to see the effect. BRG said it has high expectations for this unique product with its attractive packaging, which sparks consumer curiosity.

However, besides attracting curious individuals, popularizing it among the general public remains challenging due to the unfamiliarity of eating insects. "Housewives are still hesitant and haven't had much experience with it," said a representative from the Finelife chain.

According to retailers, the product is suitable for those following an "eat clean" diet (prioritizing plant-based foods, grains, and lean protein), a "keto" diet (low in carbohydrates and high in healthy fats), or those needing a snack while exercising, but the brand is not yet widely known. Even at the counter, the packaging is smaller than other snack brands, making it difficult to spot.

Whole dried crickets are topped with a type of snack cake for promotional purposes. (Photo provided by the subject)

Surveying consumer reactions, Ngoc Bich stated that 30% welcomed and used the product, 20% were neutral, and 50% refused to use it. "With these results, our task is to serve the 30% group, launch new products to win over the 20% group, and let the market gradually win over the 50%," she suggested as a strategy.

According to the plan, in the next six months, she will launch a new packaging size and add flavors such as barbecue, lemongrass chili, and original. After that, they will move on to making snacks from cricket protein powder. The startup's debut product is whole dried cricket snacks, which Bich calls the "hardcore" product. Therefore, if customers accept it, products made from cricket protein will have a higher chance of success.

"Rec Rec should have a product tasting and consultation program that highlights the unique features so that customers can easily grasp the information and access the product more quickly," a BRG representative suggested.

Statista forecasts the Vietnamese snack market will grow annually by 8.93% over the next five years, reaching $8.91 billion by 2028. FoodMap is optimistic about the increasing demand for healthy eating, leading to a high repeat purchase rate of cricket snacks. "I believe that in just about 4-5 years, the consumption of products made from crickets or other sustainable protein alternatives will become very popular," said Thanh Thai.

The journey to conquer the domestic market has only just begun, but this startup is proactively setting its sights on the international market. To gauge the reaction, in March they raised $10,000 through crowdfunding on the US platform Indiegogo. The funding round quickly closed after 3 days with contributions from users in 5 countries, including the US, Singapore, and Australia.

"If we develop to our full potential and make every effort in the direction we've set, we hope the company will receive a fair valuation, on par with snack and FoodTech companies in other markets in the US, Europe, and India," Ngoc Bich expects.

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