Food Tech Market Outlook:
The Global Food Tech Market was estimated at USD 6,07,500.0 Million in 2021 and is anticipated to reach USD 14,81,710.0 Million by 2030, expanding at a CAGR of 10.9% during the forecast period.
Food tech, often known as food technology, is the process of developing, manufacturing and distributing food products using cutting-edge technology. The application of food tech spans across a number of industries, including –ingredients sourcing, such as traceability, food production, such as lab-grown meat, food processing, such as frozen food, food distribution, such as packaging, food retail, such as grocery stores, supply chain, such as restaurant pos systems.
Macro-economic Factors
Consumer Preference & Behavior
Growing awareness of the environmental impact of food production and consumption has led to the development of plant-based and lab-grown meat alternatives, food reduction technologies, and sustainable packaging solutions.
Busy lifestyles and the rise of on-demand delivery services have increased the demand for convenient food options. This has led to the growth of meal kit delivery services, pre-packaged healthy snacks, and ready-to-eat meals that can be quickly prepared at home.
Consumers are becoming interested in the sources of their food and are demanding greater transparency from food producers and retailers. This led to the development of technologies that enable consumers to trace the origins of their food, focusing on food labeling, quality, and ethical standards of food products.
Technological Advancements
The food tech industry is experiencing rapid technological advancements. Advances in biotechnology have led to the development of plant-based and lab-grown meat alternatives. For instance, Beyond Meat and Impossible Foods are using plant-based ingredients to create meat-like products.
Additionally, a significant step toward the eventual availability of cell-cultivated meats in the US supermarkets and restaurants was reached when the Food and Drug Administration declared a lab-grown meat product developed by a California start-up safe for human consumption.
Precision agriculture uses technologies like sensors, drones, and GPS mapping to optimize crop production and reduce waste. Robotics and automation are being used to improve production efficiency, reduce costs, and improve food safety. For example, the US-based hamburger restaurant, CaliBurger, uses a robot named Flippy to flip hamburgers.
Increasing Investments
Consumer demand for healthy, sustainable, and convenient food alternatives has led to major investments in the food technology sector in the recent years. Companies that produce plant-based meat have recently garnered large funding.
For instance, according to the Good Food Institute, investments in plant-based meat, egg, and dairy companies totaled USD 2.1 billion in 2020, while Impossible Foods, a significant player in the plant-based meat sector, has raised more than USD 1.9 billion in funding so far.
Impossible Foods is a privately owned company by a number of investors including Coatue Management, Mirae Asset, Horizons Ventures, Temasek, and Khosla Ventures. Startups focused on reducing food waste have attracted investments. Online food ordering and delivery platforms have seen significant growth in recent years. Companies such as DoorDash, GrubHub, and Deliveroo have all received significant funding.
Food Tech Market Dynamics
Market Driver- Rise in Online Food Delivery
Rising online food delivery and expanding food tech market are attributed to several factors, such as increasing number of people using smartphones and having access to the internet.
This makes purchasing food online simple for consumers. Therefore, meal delivery services such as Uber Eats, DoorDash, Grubhub, Deliveroo, and others have emerged. The meal delivery industry in the US is one of the more complicated ones, with DoorDash, Grubhub, and Uber Eats at the top, each controlling a sizable urban market.
According to McKinsey & Company, as of May 2021, DoorDash was a market leader in San Jose with 77% of the market share, in Houston with 56%, in Philadelphia with 51%, and in San Antonio with 51%. As of May 2021, Uber Eats and Postmates together dominated the market in Los Angeles with 50% market share and New York City with 41%.
Market Driver- Food Insecurity Issues
Consumers have concerns about the safety of their food, as they seek measures that guarantee it’s clean and free from contamination. Therefore, technology for food testing & detection, smart packaging, and traceability & transparency tools are developed to address consumer concerns.
According to USDA’s Economic Research Service (ERS), 10.2% of the total population in the US, which are 13.5 billion households, experienced food insecurity in 2021. The food tech industry plays a significant role in addressing food insecurity issues by providing innovative solutions that improve access to affordable and nutritious food.
Existing advanced technologies, such as programs integrated with artificial intelligence (AI) and radio-frequency identification (RFID) technology, allow food to be tracked throughout its lifecycle to generate new data.
For instance, the Atlanta-based firm Goodr supports community feeding programs and helps businesses to reduce waste and Hungryroot, an online grocery store and recipe delivery service, uses AI to track consumer purchase patterns and eventually influence customer decisions.
Market Restraint- Lack of Infrastructure and Access to Technology
The lack of infrastructure and access to technology in certain parts of the world, particularly in rural and low-income areas, is expected to restrain the market during the forecast period. The high cost of technology and the lack of reliable internet connectivity make it difficult for small-scale farmers and food businesses to adopt and benefit from food tech innovations.
Precision agriculture technologies such as sensors, drones, and machine algorithms require reliable internet connectivity and power access to properly function. In areas with limited infrastructure, small-scale farmers do not have access to these technologies, which makes it difficult for them to increase their productivity and income.
Market Opportunity- Gene Editing Revolutionizing the Food Tech Industry
Gene editing allows the modification of a genome more precisely than other forms of breeding. It can reduce the breeding time needed to produce a new variety or breed as well as reduce research and development costs. Gene editing offers a chance to tackle a number of challenging issues, including developing durable resistance to abiotic stressors, pests, and diseases.
Additionally, it presents fresh possibilities for introducing traits that adapt to underutilized and neglected crop species. Gene editing has the potential to improve crop nutrition, increase feed conversion effectiveness, and reduce methane & nitrogen emissions from animals. Food production needs to increase in the coming years to fulfill the demands of the expanding population.
However, output is already at its maximum with existing agricultural practices, due to the rising challenges of climate change on food supply. The global ability to produce enough food is being strained by increasingly frequent droughts and harsh weather conditions, as well as by rising levels of pollution, pest outbreaks, and agricultural land competition.
Scope of Food Tech Market Report
The report on the global food tech market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Food Tech Market– Global Industry Analysis, Size, Share, Growth, Trends, and Forecast
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Base Year
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2021
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Historic Data
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2015 and 2020
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Forecast Period
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2022–2030
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Segmentation
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By Type (Cultured Meat, Plant-Based Food Market, HMR (Home Meal Replacement) Market, 3D Food Printing Market, Food Automation Market, Smart Food Logistics Market, Personalized Nutrition Market, Restaurant Digitization Market, Upcycled Food Market, Eco-Friendly Food Packaging Market)
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Regional Scope
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North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
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Food Tech Market Segment Insights
On the basis of type, the global food tech market is segmented into cultured meat, plant-based food market, HMR (Home Meal Replacement) market, 3D food printing market, food automation market, smart food logistics market, personalized nutrition market, restaurant digitization market, upcycled food market, eco-friendly food packaging market.
The cultured meat segment held a market value of USD 12.93 Billion in 2022. Demand for cultured meat is driven by several factors, such as less contamination, few antibiotics, less environmental impact, and technological advancements in the cultured meat market. The 3D food printing market segment held a market share of 0.02% in 2022.
Demand for 3D Food Printing is expected to rise during the forecast period, owing to design freedom, availability of a variety of textures, food waste reduction, time-saving personalized nutrition, and less inventory. Plant-based diets provide all the protein, carbs, vitamins, lipids, and minerals required for good health, in addition to being high in fiber and phytonutrients.
HMRs are either whole meals or constitute essential ingredients for a dish, are sold in one or more packaging containers. The meals cut down on the time taken to prepare home-cooked meals, and include various sources of protein, carbohydrates, and vegetables.
The 3D food printing market segment held a market share of 0.02% in 2022. Demand for 3D Food Printing is expected to rise during the forecast period, owing to design freedom, availability of a variety of textures, food waste reduction, time-saving personalized nutrition, and less inventory. 3D food printing allows for food customization.
The food automation market segment held a market value of USD 11.90 Billion in 2022. Demand for robotics in the food automation industry is increasing. This is attributed to the oligopolistic nature of the food automation market. The smart food logistics market segment held a market value of USD 27.33 Billion in 2022.
Demand for smart food logistics is driven by the increased use of advanced data analytics, improved automation, and high adoption of robotics for improving, the logistic market and mobile computing for business resource planning.
The personalized nutrition market segment held a market share of 1.9% in 2022. Demand for personalized nutrition is increasing, due to rising awareness about a healthy diet that is essential for human growth, development, and disease prevention.
The restaurant digitization market segment held a market value of USD 9.07 Billion in 2022. Demand for restaurant digitization is increasing, due to the numerous advantages and benefits of digitizing restaurant menus. The smart upcycled food market segment held a market value of USD 55.97 Billion in 2022.
Demand for smart upcycled food is driven by the need for repurposing of food waste, on account of sustainability, which provides potential for start-ups and other stakeholders to create value-added products such as beverages, food items, dietary supplements, nutraceuticals, animal feed, cosmetics, and personal care products.
The eco-friendly food packaging market segment held a market share of 29.4% in 2022. Demand for eco-friendly food packaging is increasing, due to growing customer demand for ecologically friendly products and services and eco-friendly packaging solutions.
Regional Outlook
Based on regions, the market is separated into five regions, namely, North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. The market in North America is anticipated to expand at a CAGR of 11.3% during the forecast period, owing to the increasing investments in food tech in the region. Increasing demand for plant-based foods attract FoodTech investments in North America.
The market in Asia Pacific is estimated to expand at a CAGR of 10.5% during the forecast period, owing to the increasing population in the region. Europe is anticipated to hold 23.41% market share in 2030. In Europe, food tech startups are increasingly trying to create new solutions for addressing the current challenges. The major factors influencing the development of food technology in the region are sustainability, wellness, and health.
The market in Latin America is anticipated to expand at 10.2% CAGR during the forecast period. According to a study by the Food and Agriculture Organisation of the United Nations (FAO), agricultural and fisheries exports from Latin America and the Caribbean would make up 25% of the total global exports by 2028.
Additionally, Brazil, Argentina, Mexico, and Colombia are the agriculture-based economies in the region. The Middle East & Africa is anticipated to hold a 3.19% market share in 2030. The UAE is a market leader in food technology, due to its technological expertise and leadership in the online food ordering and delivery industry.
Key Benefits for Industry Participants & Stakeholders
- In-depth Analysis of the Global Food Tech Market
- Historical, Current, and Projected Market Size in terms of Value
- Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
- Industry Drivers, Restraints, and Opportunities Covered in the Study
- Recent Industry Trends and Developments
- Competitive Landscape & Strategies of Key Players
- Neutral Perspective on Global Food Tech Market Performance
Segments
By Type
- Cultured Meat Market
- Plant based Food Market
- HMR (home meal replacement) Market
- 3D Food Printing Market
- Food Automation Market
- Smart Food Logistics Market
- Personalized Nutrition Market
- Restaurant Digitization Market
- Upcycled Food Market
- Eco-Friendly Food Packaging Market
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
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