The Canadian food and agtech scene is booming. A new report by the Canadian Food Innovation Network shows just how much growth is happening.
Since 2018, Canada has seen USD $1.6 billion invested in its agrifoodtech sector. The plant-based protein market stands out, currently valued at USD $1.7 billion. Interestingly, Canada is focusing more on agtech than many global counterparts, with 44% of investments going into agricultural technology compared to just 17% in other countries. The remaining 56% is invested in food tech.
Although Canada is making strides, it faces challenges. The report outlines that Canada’s food tech investments are smaller compared to leading markets. Yet, Canada is carving a niche in plant-based proteins, biotech foods, and upcycled ingredients. The plant-based sector alone makes up 26% of Canada’s food tech investments, significantly higher than the global average of 14%. Functional foods and biotech also represent notable portions of the market.
However, the ecosystem struggles with a lack of private capital. Only 40% of food tech investments come from venture capital, much lower than 60% in the UK and US. This places more pressure on public funding, which accounts for nearly 30% of total funding, compared to just 5% in the UK and 8% in the US. Other hurdles include limited resources for scaling up, a fragmented regulatory environment, and the absence of a clear national food tech strategy.
Still, optimism remains high. Dana McCauley, CEO of the Canadian Food Innovation Network, acknowledges the challenges but believes in the potential of the sector. She cites issues like labor shortages and climate change as threats but emphasizes that Canada’s strengths in plant-based proteins and innovative food solutions can lead to significant advancements. These innovations are vital for boosting sustainability and creating jobs across the country.
For those interested, the full report is available on the CFIN website.
