Investment in foodtech made significant leaps forward thanks to increasing consumer demand, digitization and innovation in certain food categories. According to a report recently released from Deloitte & Touche, LLP, the value of deals made in the sector from 2020 to 2021, jumped from $6 billion to $13.1 billion, respectively. Factors driving investment in the sector include continued growth in alternative and plant-based proteins, the establishment of tech-based platforms that improve supply chain logistics and consumer experiences, and technological innovation in general.
According to Heather Gates, audit & assurance private growth leader for Deloitte, the accelerated growth in foodtech innovation is parallel with advances in agtech. “Hydroponic farming, improved fertilizers and pesticides, and robotics AI are all enabling more sustainable, steady production of produce even in urban centers, which can help augment local distribution opportunities for foodtech platforms,” she stated in the report.
The expansion of food tech is also promoting more farm-to-table options to consumers, because it streamlines distribution and delivery. As interest on the part of consumers for healthier and more convenient options continues, companies will see an increased emphasis on innovation in foodtech that incorporates sustainability and waste reduction, nutritional considerations, environmental impact, more competition in making more foods available at an affordable cost, and continued emphasis on last-mile transportation.
Read the full report, “Road to Next”, on Deloitte’s website.