Food tech is gearing up for a big comeback after a tough few years. The market faced a serious downturn in 2021, which saw investments plummet by 70%. Alessio D’Antino, co-founder and CEO of Forward Fooding, spoke at IFE recently about how the industry has learned from its mistakes.
Initially, many investments were too focused on a few areas like alternative proteins and vertical farming. D’Antino noted, “During 2017 and 2018, we thought vertical farming could solve our food production issues. The same went for alternative proteins, which raised a whopping $61 billion between 2016 and 2021.” However, this narrow focus led to a harsh crash when investments dried up.
Now, the landscape is changing. Investors are casting wider nets, exploring various solutions to climate issues. Last year, investment volumes stabilized, hinting that the decline might be over. “We could see a slow rebound in the next couple of years, aiming for just under $25 billion,” D’Antino said. His optimism stems from a more holistic approach to innovation, which he believes will reshuffle the landscape of food tech and agriculture.
The agtech sector alone features over 500 companies with an expected growth rate of 8% in the coming year. Excitingly, areas like bio-fermentation and food as medicine are projected to grow by 23% and 14%, respectively. Ingredient circularity—essentially recycling what would normally be wasted—is also gaining traction at a 12.2% growth rate.
Over the past decade, the food tech industry has expanded rapidly. There are now more than 10,400 agrifood tech firms globally, with over $250 billion invested since 2018. Still, this sector is small compared to fintech, which tops $1.23 trillion. Regions like London and the Netherlands are emerging as leaders in this field, sparking innovation and attracting attention worldwide.
Social media has seen a surge in discussions about the food tech revival. Users are sharing their excitement and skepticism, reflecting a mix of hope and caution about sustainability and ethical production methods.
As the food tech industry evolves, experts believe it can play a crucial role in addressing global challenges like food security and climate change. The lessons learned in recent years could pave the way for a more resilient and innovative future in food production.
For more insights on food tech advancements, explore this report—a detailed analysis of current trends and forecasts in the industry.
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