October, 2021

FoodNet - Part 1. Key segments of the global FoodTech market

FoodTech is one of the fastest growing markets, with a potential turnover of $300 billion in 2022.
Global FoodTech market Analysis – main segments, key trends and development prospects until 2026

SBS Consulting
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FoodTech is a combination of biological, information and digital technologies in the entire food production chain: from farms to packaging, storage, preparation and delivery of food products. FoodTech is one of the fastest growing markets, which could reach a turnover of $300 billion in 2022.

In the first part of the research, SBS Consulting experts analyzed the global FoodTech market – identified its main segments and formulated key trends and development prospects up until 2026.

FoodTech market segments

AgTech (Agrotechnology)

Key focus areas:

  • Improving the efficiency of agricultural production
  • Urban farms and agricultural biotechnology
  • Drones and robots for agriculture
  • Software for farm management
  • Agricultural trading platforms
Growth dynamics: Investments in European AgTech start-ups grow from USD 35 mln in 2014 to USD 881 mln in 2020.

FoodScience

Key focus areas:

  • Creating new, healthier foodstuffs and packaging
  • Development of substitutes for traditional foods, highly nutritious bars and beverages
  • Innovation in food production and packaging
  • Cannabidiol-based beverages and alternative proteins
Growth dynamics: Investments in European Food Science start-ups grow from USD 13 mln in 2014 to USD 645 mln in 2020.

FoodService

Key focus areas:

  • Restaurant table reservation platforms
  • Payment services (ePOS) and point of sale management
  • Cooking robots and virtual restaurants
  • Catering service management and cloud kitchens
Growth dynamics: Investments in European Food Service startups grew from USD 13 mln in 2014 to USD 524 mln in 2020.

Coaching (Counselling and consumer support)

Key focus areas:

  • Nutrigenomics and individual nutritional needs
  • Transparency of information on foods
  • Counselling on dietary recommendations and recipes
  • Creation of culinary experiences and food-related tourist attractions
Growth dynamics: Investment in European Coaching sector start-ups has been irregular, but shows rapid growth in some segments such as nutrigenomics.

Delivery (Food and grocery delivery services)

Key focus areas:

  • Delivery of ready meals, supermarket groceries and meal kits
  • Delivery robots and grocery e-commerce platforms
  • Virtual restaurants and marketplaces
Growth Dynamics: Investments in European startups in the Delivery sector grew from USD 718 mln in 2014 to USD 1,792 mln in 2019. The global online food delivery market is predicted to reach USD 154 bln by 2023.

Retail (Technologies in logistics and trade)

Key focus areas:

  • Supply chain automation and improving customer experience
  • Vending machines and supply chain data management solutions
  • Creating customer loyalty programmes and improving customer interaction
Growth dynamics: Investments in European startups in the Retail sector grew from USD 11.4 mln in 2015 to USD 57 mln in 2020.

Conclusion

The study highlights the significance and rapid growth of various segments of the FoodTech market. Key areas include agrotechnology, food science, food service, consumer counselling and support, food delivery services, and retail innovation. Each of these segments shows significant growth prospects and is attracting major investments. FoodTech companies play an important role in creating more sustainable and efficient food production and consumption systems.

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