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In 2013, the United Nations Food and Agriculture Organization identified insects as a promising solution for sustainably feeding the world’s growing population. However, despite a decade of development and innovation, the insect industry has yet to fully realize its environmental and economic potential. This review takes an evidence-based approach to addressing key challenges in the sector, including integrating circular production systems within existing regulatory frameworks in the Global North, ensuring product safety in circular systems, assessing allergen risks associated with insect-based products, mitigating biosecurity risks linked to non-native insect species, evaluating the environmental safety of insect by-products, and promoting animal welfare in insect production. While significant challenges remain, the evidence presented highlights how further research can help unlock opportunities for the industry to achieve its full potential globally. Ultimately, we argue that overcoming challenges – ‘working out the bugs’ – is a fundamental step in the evolution of any emerging industry. Furthermore, greater support for the transition to circular economies will accelerate the sector’s ability to generate meaningful environmental, ethical, and economic benefits.