Butter is one of the foods with a high impact on the environment. Margarine on the other hand is recognized as a less environmentally impacting spreadable product if it is based on plant hydrogenated oils. However, hydrogenated trans-fats bear health associated risks, which induce the search for new materials to substitute milk and plant lipids. The study aimed at identification of processing (solid fat content and color), environmental impact and product design properties of lipids derived from insect biomass of two species (Hermetia illucens and Tenebrio molitor) to be applied as an alternative for plant and animal lipids in spreadable products like margarine or butter. Pilot scale processing trials identified the potential of classical margarine technologies application for the use of insect lipids in spreadable products with high fat content (more than 80%). It was possible to substitute up to 75% of lipids with insect fats without negative effects on spreading abilities and with improvement of product coloring (yellowish color). Substitution of up to 50% of plant lipids with insect oils (both H. illucens and T. molitor) resulted in insignificant increase of environmental impact of margarine. Substitution of 75% of lipids in margarine resulted in a product which had higher environmental impact than conventional margarine, but lower than those reported for butter. Designed for the first time, insect-based margarine opens multiple possibilities for further product design, which should be further explored.