FOOD SYSTEM CHALLENGES

(selection)

50%
Projected increase in global protein demand by 2050

80%
Of global farmland is used to raise animals while
generating only 18% of calories eaten

1/3
Of global food production is being wasted (70% occurring
before reaching retail)

30%
Of all greenhouse gas emissions are caused by the food
system, more than half coming from animal farming

Sources: Our World in Data, LEAP, WWF, GFI

 “FoodTech (or AgriFoodTech)
is the emergent sector exploring
how technology can be leveraged to
improve efficiency and
sustainability in designing,
producing, choosing, delivering &
enjoying food”

Forward Fooding AgriFoodtech definition, 2019

IMPACT OF FOODTECH SOLUTIONS
(selection)

Optimise yield sustainably Reinvent Proteins

& grow food on every surface
Companies developing alternative
Companies working on optimising forms of protein, decreasing the role
yield through technology and of animals in the food chain: from
biotech solutions, aiming to restore plant-based meat and dairy, to
soil health, and exploring new crops cellular agriculture and protein
and novel farming techniques. fermentation.

Reduce food waste Build a more efficient, traceable

& transparent supply chain
Technologies aiming to reduce food
waste at all stages of the supply Technologies shortening the supply
chain - agriculture, domestic, chain (D2C), or controlling, monitoring
restaurant, retail, & production and optimising the supply chain of
waste - while upcycling existing food from farm to fork, including
waste, building a more circular food extending the shelf-life of products in a
system for us all. sustainable way.
OUR PROPRIETARY TAXONOMY
A unique approach for navigating the Technology Landscape

To understand the market dynamics of the sector in the most granular way, we use our
proprietary taxonomy which covers the entire food supply chain. Our scouting team Layer 1 - ‘Activities’
categorises each single company according to 8 verticals (‘Activities’), and further divide Dividing supply chain by main verticals
them into subcategories (‘Domains’), applying additional tags (‘Technologies’) to each from Farm to Fork.
company for more precise classification.
(e.g Agtech, Food Processing, Food Delivery, etc…)

8 ‘Activities’ divided in sub-categories:

Layer 2 - ‘Domain’
Dividing each vertical by sub-categories.

(e.g for Agtech: Ag Biotech, Precision Farming,

Vertical Farming,etc...)

Layer 3 - ‘Technologies’
Assign specific tags on each company for
further distinction in terms of technology,
150+ technology tags: market application or ingredients.
Dairy alternatives, Cellular agriculture, Alternative protein, Insects, Blockchain, IoT, Data
(e.g Gut health vs Cognitive Health; Precision
Intelligence, Functional food & drinks, Decision support technology, Robotics, Automation, fermentation vs Biomass fermentation, Dairy
Dark kitchen, Personalisation, Cognitive health, Probiotics, Precision fermentation, alternatives vs Meat alternatives, etc...)
Aeroponics, Hydroponics, 3D printing, Fat analog, Scaffolding, Gene editing, etc….
 THE AGRIFOODTECH GLOBAL LANDSCAPE
Historic funding snapshot since 2014

Activity

Number
of companies
2718 720 1647 481 450 669 2266 752

% of total
number of 28% 7% 17% 5% 5% 7% 23% 8%
companies

Total funding
since 2014
$46.2B $27.5B $127.6B $11.1B $8.6B $16.0B $26.2B $11.5B

% of total
funding
16.8% 10% 46% 4% 3% 6% 9.6% 4%

CAGR
2018-2023
8.7% -15.3% -20.7% 21.4% -6.3% 26.6% 21.0% 14.9%

Number of
Unicorns
16 9 28 5 1 7 11 4

Source: As of July 2024

 THE FOODTECH TRANSITION
2021-2022 marked a turning point for the AgriFoodTech sector

Over the last decade over 50% of global funding

$68.6B
went to Food Delivery and Alternative Proteins
alone, however, this investment dynamic has
started to change since 2021.

Global AgriFoodTech investments have also

dropped by 74% since 2021, in line with global
VC funding (-56% - Source: Crunchbase).

$18.7B

Source: FoodTech Transition Scenario planning based on 2024 H1 data

 THE FOODTECH TRANSITION
2021/2023 Comparison

Key Data Points 2021 2023

(selection)

Global investments $64.1B -74% $17.1B

Number of deals 2,040 -44% 1,132
% of Pre-seed & Seed deals 36% +25% 61%
% of grants
6% +17% 23%
Share of Europe
% of global investments
23% +13% 36%
% of Total Global Investments
for Food Delivery 68% -30% 38%
& Alternative Proteins
Source: *in 2023 European AgriFoodTech investments surpassed the US one for the first time in the last 10 years
 THE FOODTECH TRANSITION
The current investment landscape is in constant evolution

As global AgriFoodTech investments decrease, the distribution of capital across verticals is also in constant evolution. While
in 2021 Food Delivery and Alternative Proteins gathered 68% of all AgriFoodTech investments, in 2023 they represented only
38% in of total funding. Investments are now shifting towards a broader range of solutions across the Supply Chain.

Share % of global AgriFoodTech funding by Domain - 2021/2023 Comparison (selection)

Farm management & Functional eGrocers Vertical & Indoor farming

Ag Biotech
Precision farming Foods & Drinks

2021 2023 2021 2023 2021 2023 2021 2023 2021 2023

3.8% 6.3% 2.7% 5.4% 1.4% 3.4% 27.9% 10.6% 3.6% 3.6%

Source:
‘DECODING THE FOODTECH TRANSITION’
Our Approach & Methodology

The AgriFoodTech sector is rapidly evolving and has been deeply impacted by the current economic downturn and global geopolitical situation. Our
tailored reports series “Decoding the FoodTech transition” leverage our decade-long team expertise to help you navigate these ‘waves of change’
smoothly. We provide actionable insights and strategic guidance to help you understand this transition period and better prepare for new realities while
staying ahead of the curve. By leveraging our FoodTech Data Navigator database, sector knowledge and network of industry experts, we offer
comprehensive and data-driven analysis for each Activity and Domain of our taxonomy previously described. Our approach covers the following:

Transition Period Future Scenarios

Current Situation
Identifying the main Navigating short
Understanding the current market
Opportunities & Challenges and mid-term evolutions
& Innovation Landscape
6-18+ months 18-24+ months

● Number of active AgriFoodTech ● Deepdive on Technology &

companies and main technology scalability hurdles ● Projected investments (18-24
‘clusters’ explained ● Regulatory hurdles months)
● Current market size & dynamics ● Consumer trends and Innovation ● Market size projections (18-24
● Funding activity & Trends adoption months)
● Case studies of successful ● Analysis of the main drivers to ● Key Technology developments
companies advance the sector ● Deep dive on key opportunity areas
● Signals from the industry (e.g M&A, ● Investment dynamics and challenges of the sector
Open Innovation) ● Signals from the industry (e.g M&A, ● Key Market & Technology
● Policies & Government initiatives key industry partnership) development scenarios drawing
● Supply & Demand laws ● Policies & Government initiatives
 NEXT-GEN FOOD & DRINKS
Deep Dive on the Plant-based Domain

(sample slides)

Source:
 PLANT-BASED
Global Ecosystem Key Figures

Definition: Alternatives to
animal-based proteins Main Number of Funding since
produced from plants Clusters companies 2014

986 8
Number Of Active Companies Average Company Age 🧀Dairy 328 $3B

$9.7B 18
Total Funding since 2014 Number of IPO’s 🥩Meat 394 $5B
completed to date

$973M $1.6M 🐟Fish 77 $465M

Total 2023 funding Median funding round in 2023
vs $2.5M in 2021

15.5% 5.4% 🥚Egg 38 $396.9M

CAGR 2018-2023 Share of Global AgriFoodTech
funding in 2023 vs 4% in 2021

Source:
 PLANT-BASED
Market Size & Industry Signals

Market Size Animal-based

Plant-Based Market Share of Price premium for
Alternatives Alternatives Plant-Based Alternatives**

Global Meat Market 2024* $1.46B $11.4B 0.78% 77%

Global Milk Market 2024* $350B $25B 7.21% 104%

Latest signals from the industry (selection H1 2024)

● Kraft Heinz partnered with NotCo to introduce plant-based Kraft NotCheese slices in the U.S (March 2024).
● Nestlé launched Maggi Rindecarne, a blended meat and plant-based ‘extender’, in Chile (July 2024). They also opened a new
plant-based food production facility in Serbia (May 2024).
● Umiami inaugurated a commercial-scale plant-based meat production facility in France (March 2024).
● Retail brands like WK Kellogg announced high-protein vegan cereals (June 2024) while Ferrero launched a plant-based version
of the iconic Nutella (March 2024)
…

*Source: Statista - excl, eggs & fish alternatives

** Source: SPINS, GFI (2023 market data)
 PLANT-BASED
Funding Projections

Key assumptions made for projections:

● We created funding projection for 2024 total

investments by extrapolating investment data
collected for H1 2024 to date. A significant
drop is expected for 2024.

● We expect a slow rebound in 2025 albeit with

a modest growth, lower valuations and
smaller rounds. Considering 2021 valuations
were rather over-inflated, we applied a more
‘conservative’ approach reflecting the
2018-2020 CAGR to the 2024-2026 period,
hence our projections.

● We also applied the full AgriFoodTech

ecosystem 2018-2020 CAGR (27.3%) as
opposed to Plant-based (131%) CAGR, which
was also over-inflated during the 2018-2020
$100.3M
period.

Occurred Projected
Source:
 PLANT-BASED
Global Sales Projections

Source: 2020 and 2023 GFI State of the Industry reports

CAGR for projections calculated based on 2020-2023 $ sales
 PLANT-BASED
Key Drivers & Barriers (selection)

Key Drivers Barriers

Government grants, investments and supportive policies are supporting the Price point remain a barrier
growth of plant-based foods - Price is the second-most important factor for consumers when
- Governmental support for plant-based protein R&D grew, with choosing plant-based foods, with many unwilling to pay more than
substantial funding from the UK, Germany, and Denmark. they would for meat and dairy.
- Many strategic partnerships and expansions have accelerated the - Plant-based meat substitutes carry a 77% price premium over
proliferation of plant-based foods in latest years (e.g. Kraft and traditional animal-based meat while plant-based milk substitutes have
NotCo) a 104% price premium compared to conventional animal-based milk.
- Plant-based funding in Europe surged to $584 million in 2023—a 74%
increase from 2022. Taste and nutrition remain a barrier to adoption/retention for many consumers
when it comes to plant-based foods
- Leading plant-based products are comparable to or preferred over
Hybridization is gaining traction to increase quality of plant-based products
animal products, however average plant-based products significantly
- Cultured fats is driving better texturization and binding properties, lag behind animal products.
potentially reducing the need for additional additives. - Concerns over plant-based foods being ultra-processed focus on
- Industry leaders are embracing these new technologies; e.g. Cargill preservatives, emulsifiers, gelling agents, thickeners, and sweeteners.
has partnered with CUBIQ FOODS to develop novel fat technologies
that enhance flavor. Achieving the mouthfeel, juiciness, and succulence of animal fats remains
challenging
Scientific innovations are opening new opportunities - Plant-based fats must withstand cooking without losing quality or
- Novel binders, such as ROVITARIS from Plantible and ICL, are leaking out and provide essential fatty acids.
improving texture and sustainability.
 PLANT-BASED
360° Market Overview

Market outlook* Startup/Scaleup ecosystem Consumers

2024 Global Meat Market 2024 Global Milk Market Whole Alternative Proteins sector 2023 Plant-based vs animal-based price per weight
Animal-based = $1,463B Animal-based = $350B 1681 Startup & Scaleup companies Meat: 77% price premium
Current Meat Substitutes = $11.4B Milk Substitutes = $25B $20.2B Funding since 2014 Dairy: 104% price premium
situation Ratio => 0.78% Ratio => 7.21% -60% Investments between 2023 and 2021
Source: Statista Source: FoodTech Data Navigator Source: SPINS, GFI
Main challenges
❏ Price parity
❏ Plant-based meat/dairy is declining/stalling ❏ Regulation (e.g novel food, cultivate meat bans)
❏ Current quality of products on taste,
❏ Too many players for nascent category ❏ Scalability
texture, nutrition and clean label
❏ Meat industry lobbying ❏ Production costs efficiency
❏ Perception (e.g UPF)
Transition
Drivers
period
❏ Industry support (Investment, M&A, OI) ❏ Product hybridisation (e.g cultivated fats) ❏ Education on Health and Environmental
❏ Supportive policies ❏ Regulation benefits
❏ R&D grants and gov investments ❏ Smart & Patient VC capital towards enabling tech ❏ Increasing prevalence of lactose intolerance
❏ Demand ❏ Co-dev Partnerships and other dietary restrictions
❏ AI integrations ❏ Price & Quality

Projected outcome

2026 Global Meat Market 2026 Global Milk Market

Future Animal-based = $1,651B Animal-based = $401B
scenarios Substitutes = $13.8B Substitutes = $29.8B
+18-24 => 0.84% => 7.43%
months

Source: Statista
INTERESTED IN DEEP DIVE FURTHER INTO AGRIFOODTECH?
Topics covered with our reports

Agtech Next-Gen Food & Drinks Food Processing Kitchen and Restaurant Tech

● Ag Biotech ● Plant-based ● Biotech & Synthetisation ● Commercial robotics &

● Ag Marketplace ● Cellular Agriculture ● Novel processing Hardware
● Animal Health & Nutrition ● Protein Fermentation techniques & Equipments ● Restaurant operations
● Farm Management ● Insects management & POS systems
● Precision Farming ● Functional Food & Drinks ● Appliances
● Farm Robotics & Machinery ● Meal Supplements &
● Insects Farming & Aquaculture Replacement
● Vertical & Indoor Farming

Consumer Apps Food Safety and Surplus and Waste

Food Delivery
& Services Traceability Management

● B2B marketplaces ● Food Discovery/Recipe apps ● Food safety & Quality ● Food Waste Tech & Food
● Catering/Office services & & Experiences ● Supply chain monitoring & sharing platforms
Vending machines ● Meal planning & Nutrition traceability ● Sustainable packaging &
● Dark Kitchens ● Restaurant & shop finder Plastic alternatives
● Delivery & fulfilment technology booking & ordering ● Upcycled ingredients, Food
● Delivery from restaurants ● Retail tech surplus & Waste efficiency
● eGrocers
● Meal kits & Subscription services

Register your interest HERE

 THANK YOU!
To learn more about
‘Decoding the FoodTech Transition Report’
get in touch HERE

For general inquiries contact us at

[email protected]

To learn more about Forward Fooding visit:

forwardfooding.com