- AGRI-FOOD IS A GROWING MARKET SOON TO BE DISRUPTED -
The food and agriculture sectors are poised for transformation in the fight against climate change. With increasing regulations, innovation becomes imperative for companies in these sectors. The global food technology market size was valued at USD 183.6 billion in 2023 and it is predicted to surpass around USD 472.7 billion by 2033 with a CAGR of 10% from 2024 to 2033.
Over the past ten years, the agri-food tech sector has catalysed growing attention, allowing it to expand from a tiny niche to a global market, with $204.7B invested since 2014 to finance tech and biotech-driven solutions around new ingredients, precision agriculture, novel farming systems, functional foods, alternative protein, food waste reduction, food safety & traceability, among many other areas (Bron : Global AgriFooTech investment report 2024, AgFunder).
More funds are expected to flow into the agri-food tech sector:
As wealth transitions from older to younger generations worldwide, impact investing is meant to attract significantly more investments in the years ahead. The younger generation, more acutely affected by the effects of global warming, is increasingly prioritizing impact investing as a mean to address environmental challenges.
- CHANGING REGULATIONS -
With the growing importance of impact investing, regulations are being developed to incentivize and regulate the sector. There is a growing interest among individuals to make a positive impact, which is putting pressure on regulators to adapt the legal framework accordingly.
As regulations evolve, they will shape future investment decisions and contribute to the continued growth of impact investing, driven by a heightened demand for sustainable and socially responsible investment opportunities.
Examples:
- European Green Deal
- Farm to Fork Strategy
- European Sustainable Development Goals
- GIANT FOOD COMPANIES ARE PLEDGING BILLIONS OF DOLLARS INTO THIS REVOLUTION -
Tyson, Cargill, Danone, JBS Foods and much more invested billions in young innovative ventures in the agri-food tech sector.
Sources: Vision research reports, Food Technology Market, Global Industry Analyis, March 2024 AgFunder AgriFoodTech Investment Report 2022 DigitalFoodLab State of the European Foodtech Ecosystem 2022, Fevia Growth Market Reports 2022, Company websites, The Insight Partners
