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Food Tech - Industry - Global Market, Share and Trends 2023-2028

Report ID:

FTIND1G

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Industry:

Summary of Food Tech

The global food system is undergoing rapid digital transformation as new technologies enable data-driven farming, personalized nutrition, and sustainable food production. We examine the key market trends and innovations shaping the future of food tech and provides strategic recommendations for how businesses and consumers can leverage emerging opportunities. Based on our estimates, we can say that the global Foodtech market is forecasted to be a $405.02 billion industry in 2029 from $280 billion in 2023 with a CAGR of 6.26%.

The global foodtech industry is being transformed by innovations in precision agriculture, food e-commerce and delivery solutions, alternative proteins, smart packaging, supply chain digitization and personalized nutrition. Technologies like IoT sensors, drones, computer vision and data analytics are revolutionizing farming practices and sustainability while online grocery shopping and on-demand meal delivery services are booming.

New companies are developing meat, dairy and seafood products directly from animal cells or plant proteins as well as advanced packaging with sensors for quality control and traceability. Blockchain, AI and automation are optimizing inventory management, reducing waste and increasing transparency across digitized food supply chains.

Foodtech startups are also creating personalized nutrition apps and smart kitchen appliances to help consumers make informed choices aligned with their health goals through diet coaching, macro/micro nutrient trackers and alternative protein options.

Recent Trends and Insights

Foodtech is a prominent vertical in venture capital, with projected funding of approximately $30 billion by 2022, and a combined valuation of $1.4 trillion for firms operating in this space.

The majority of the proceeds went to e-grocers, who made over $18 billion from 102 transactions. JOKR, an on-demand grocery delivery firm based in New York City, just achieved unicorn valuation, and Instacart recently achieved an astounding $39 billion valuation. At-home genetic testing kits and nutrition regimens tailored to metabolic rates and gene variants for diseases like diabetes and obesity are being offered by startups like DNAfit and Habit. Other services like Hungryroot, Imperfect Foods and Misfits Market also bagged big rounds of funding over the last year to keep up with surging demand amid the pandemic. Farm-focused startups like GrubMarket and MilkRun pulled in fresh capital, too.

A study by IBM found 89% of consumers are willing to share personal data for more transparency into food origins, safety, etc. Companies are responding by partnering with traceability tech firms and blockchain to provide farm-to-table tracking. The global foodtech industry raised nearly $40 billion in venture funding across some 1,358 deals in 2021, doubling deal values year over year. And as we settle into 2022, the leading segments identified in the report — namely online grocery shopping, robots and alternative proteins — are poised to keep heating up.

Product Insights

Automation is playing a key role in the growth and efficiency of ghost kitchens. Since they don’t have dining space, ghost kitchens are designed entirely around optimizing the preparation and delivery of food. Technologies like kitchen management software, automated cooking equipment and robotic assistants are allowing ghost kitchens to streamline processes from food production to packaging.

Food delivery and logistics have attracted around 60% of venture capital investment in 2017-2021, equating to around £11.2 billion per year on average. Investment in personalized nutrition has also grown 552% to reach £500 million in 2021. The Global Ghost Kitchen Market size was valued at US$ 64 billion in 2022 and is expected to reach US$ 282.16 billion by 2029, growing at a compound annual growth rate (CAGR) of 11.84% from 2022 to 2029.

The foodtech industry is rapidly evolving, and some virtual kitchen companies are developing robotic helpers that can take over repetitive tasks like flipping burgers or preparing specific ingredients. Some of the companies that are using robots in their kitchens include Chipotle, Wing Zone, and White Castle, among others. The robots are becoming more common in restaurants, and it is expected that they will be working in restaurants by 2024-2025. 

Overall, automation and AI are helping ghost kitchens operate in a highly efficient, scalable manner. They allow a single facility to support multiple virtual brands and delivery partners. As cooking technologies advance, we may see ghost kitchen needs like space, equipment and even staff requirements reduced further.

Key Companies

Some major players within this vast domain of industry are

  • United Kitchen
  • Rebel Foods
  • Grubhub
  • Domino’s pizza
  • Pizza hut
  • Apeel sciences
  • Amazon
  • Goodr
  • DoorDash
  • Ghost Kitchen Brands

Regional Analysis

North America remains the largest and most developed market for foodtech, accounting for an estimated 33% of the $253 billion global market in 2022. The US and Canada are leaders in agriculture technologies, food safety solutions and supply chain digitization. For instance–the USDA is investing over $5 billion through 2025 in infrastructure for processing, packaging and distributing domestic food products.

The Asia-Pacific region is expected to continue to grow, with the Asia Pacific foodtech market projected to reach US$ 80.8 billion by 2029, with 37% CAGR from 2022 (US$ 8.92 billion). Countries like China, India, Japan and Australia have been encouraging innovation in food manufacturing, packaging, and logistics technologies through government initiatives. Investments in smart factories and automated warehouses are fueling market expansion across Asia Pacific.

The State of European Food Tech 2021 report by Dealroom.co shows that Europe has created 15 foodtech unicorns, the same number as Asia, while the US has created 26. Scandinavia is leading in food waste reduction, with companies like Winnow and Too Good to Go. Collaborative robotics and AI applications are experiencing high demand for applications like predictive equipment maintenance and quality control.

Market Segmentation

By Type:

  • Traceability/supply chain management technologies
  • Food safety and quality inspection systems
  • Industrial IoT solutions for monitoring and control
  • Farm management software
  • Manufacturing execution systems
  • Industrial controls and automation equipment

By End User:

  • Restaurants, Caterers, Meal Prep Companies and Packaged Food Producers
  • Food and beverage
  • Agriculture and livestock
  • Food processing and manufacturing
  • Packaging
  • Logistics and distribution

By Enterprise Size:

  • Large food and beverage companies
  • Small and medium food producers
  • Startups and emerging foodtech firms

By Region:

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East and Africa

Our Methodology

We have offered a well-founded review of the global foodtech market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.

We value your investment and offer free customization with every report to fulfil your research needs.

Frequently Asked Questions

The Global Size of the Food Tech Industry is USD 280 Billion in 2023 and is expected to grow to USD 405.02 Billion by 2029

The CAGR of the Food Tech Industry Market in the Global Region is 6.26%

The APAC region accounts for 34% of the total market share of the Food Tech Industry Market

The key players in the Food Tech Industry Market in the Global Region are Nestlé, PepsiCo, McDonald's Corporation, Unilever and Swiggy. These industry leaders collectively contribute to shaping the landscape of this market and driving growth within the industry.

The factors driving the Food Tech Industry Market in the Global Region are Alternative Proteins, Nutraceutical, E-Commerce, Food safety and Personalised nutrition. These factors contribute to the overall growth of this industry, establishing it as a key player in the interconnected global economy.

Summary of Food Tech

The global food system is undergoing rapid digital transformation as new technologies enable data-driven farming, personalized nutrition, and sustainable food production. We examine the key market trends and innovations shaping the future of food tech and provides strategic recommendations for how businesses and consumers can leverage emerging opportunities. Based on our estimates, we can say that the global Foodtech market is forecasted to be a $405.02 billion industry in 2029 from $280 billion in 2023 with a CAGR of 6.26%.

The global foodtech industry is being transformed by innovations in precision agriculture, food e-commerce and delivery solutions, alternative proteins, smart packaging, supply chain digitization and personalized nutrition. Technologies like IoT sensors, drones, computer vision and data analytics are revolutionizing farming practices and sustainability while online grocery shopping and on-demand meal delivery services are booming.

New companies are developing meat, dairy and seafood products directly from animal cells or plant proteins as well as advanced packaging with sensors for quality control and traceability. Blockchain, AI and automation are optimizing inventory management, reducing waste and increasing transparency across digitized food supply chains.

Foodtech startups are also creating personalized nutrition apps and smart kitchen appliances to help consumers make informed choices aligned with their health goals through diet coaching, macro/micro nutrient trackers and alternative protein options.

Recent Trends and Insights

Foodtech is a prominent vertical in venture capital, with projected funding of approximately $30 billion by 2022, and a combined valuation of $1.4 trillion for firms operating in this space.

The majority of the proceeds went to e-grocers, who made over $18 billion from 102 transactions. JOKR, an on-demand grocery delivery firm based in New York City, just achieved unicorn valuation, and Instacart recently achieved an astounding $39 billion valuation. At-home genetic testing kits and nutrition regimens tailored to metabolic rates and gene variants for diseases like diabetes and obesity are being offered by startups like DNAfit and Habit. Other services like Hungryroot, Imperfect Foods and Misfits Market also bagged big rounds of funding over the last year to keep up with surging demand amid the pandemic. Farm-focused startups like GrubMarket and MilkRun pulled in fresh capital, too.

A study by IBM found 89% of consumers are willing to share personal data for more transparency into food origins, safety, etc. Companies are responding by partnering with traceability tech firms and blockchain to provide farm-to-table tracking. The global foodtech industry raised nearly $40 billion in venture funding across some 1,358 deals in 2021, doubling deal values year over year. And as we settle into 2022, the leading segments identified in the report — namely online grocery shopping, robots and alternative proteins — are poised to keep heating up.

Product Insights

Automation is playing a key role in the growth and efficiency of ghost kitchens. Since they don’t have dining space, ghost kitchens are designed entirely around optimizing the preparation and delivery of food. Technologies like kitchen management software, automated cooking equipment and robotic assistants are allowing ghost kitchens to streamline processes from food production to packaging.

Food delivery and logistics have attracted around 60% of venture capital investment in 2017-2021, equating to around £11.2 billion per year on average. Investment in personalized nutrition has also grown 552% to reach £500 million in 2021. The Global Ghost Kitchen Market size was valued at US$ 64 billion in 2022 and is expected to reach US$ 282.16 billion by 2029, growing at a compound annual growth rate (CAGR) of 11.84% from 2022 to 2029.

The foodtech industry is rapidly evolving, and some virtual kitchen companies are developing robotic helpers that can take over repetitive tasks like flipping burgers or preparing specific ingredients. Some of the companies that are using robots in their kitchens include Chipotle, Wing Zone, and White Castle, among others. The robots are becoming more common in restaurants, and it is expected that they will be working in restaurants by 2024-2025. 

Overall, automation and AI are helping ghost kitchens operate in a highly efficient, scalable manner. They allow a single facility to support multiple virtual brands and delivery partners. As cooking technologies advance, we may see ghost kitchen needs like space, equipment and even staff requirements reduced further.

Key Companies

Some major players within this vast domain of industry are

  • United Kitchen
  • Rebel Foods
  • Grubhub
  • Domino’s pizza
  • Pizza hut
  • Apeel sciences
  • Amazon
  • Goodr
  • DoorDash
  • Ghost Kitchen Brands

Regional Analysis

North America remains the largest and most developed market for foodtech, accounting for an estimated 33% of the $253 billion global market in 2022. The US and Canada are leaders in agriculture technologies, food safety solutions and supply chain digitization. For instance–the USDA is investing over $5 billion through 2025 in infrastructure for processing, packaging and distributing domestic food products.

The Asia-Pacific region is expected to continue to grow, with the Asia Pacific foodtech market projected to reach US$ 80.8 billion by 2029, with 37% CAGR from 2022 (US$ 8.92 billion). Countries like China, India, Japan and Australia have been encouraging innovation in food manufacturing, packaging, and logistics technologies through government initiatives. Investments in smart factories and automated warehouses are fueling market expansion across Asia Pacific.

The State of European Food Tech 2021 report by Dealroom.co shows that Europe has created 15 foodtech unicorns, the same number as Asia, while the US has created 26. Scandinavia is leading in food waste reduction, with companies like Winnow and Too Good to Go. Collaborative robotics and AI applications are experiencing high demand for applications like predictive equipment maintenance and quality control.

Market Segmentation

By Type:

  • Traceability/supply chain management technologies
  • Food safety and quality inspection systems
  • Industrial IoT solutions for monitoring and control
  • Farm management software
  • Manufacturing execution systems
  • Industrial controls and automation equipment

By End User:

  • Restaurants, Caterers, Meal Prep Companies and Packaged Food Producers
  • Food and beverage
  • Agriculture and livestock
  • Food processing and manufacturing
  • Packaging
  • Logistics and distribution

By Enterprise Size:

  • Large food and beverage companies
  • Small and medium food producers
  • Startups and emerging foodtech firms

By Region:

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East and Africa

Our Methodology

We have offered a well-founded review of the global foodtech market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.

We value your investment and offer free customization with every report to fulfil your research needs.

Frequently Asked Questions

The Global Size of the Food Tech Industry is USD 280 Billion in 2023 and is expected to grow to USD 405.02 Billion by 2029

The CAGR of the Food Tech Industry Market in the Global Region is 6.26%

The APAC region accounts for 34% of the total market share of the Food Tech Industry Market

The key players in the Food Tech Industry Market in the Global Region are Nestlé, PepsiCo, McDonald's Corporation, Unilever and Swiggy. These industry leaders collectively contribute to shaping the landscape of this market and driving growth within the industry.

The factors driving the Food Tech Industry Market in the Global Region are Alternative Proteins, Nutraceutical, E-Commerce, Food safety and Personalised nutrition. These factors contribute to the overall growth of this industry, establishing it as a key player in the interconnected global economy.

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Understand the macroeconomic situations that affect the global positioning of countries.

Businesses can better understand how chatbots can advocate their vision.

DeFi helps reduce dependency on traditional methods of transactions.

Creating a sustainable environment for driving multiple countries into a better tomorrow.

Understand how the U.S. discrepancy in accordance to their debt creates a havoc. 

Sustainable blockchain technology has immense benefit for the environment which cannot go unnoticed.

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Featured Reports

Understand the macroeconomic situations that affect the global positioning of countries.

Businesses can better understand how chatbots can advocate their vision.

DeFi helps reduce dependency on traditional methods of transactions.

Creating a sustainable environment for driving multiple countries into a better tomorrow.

Understand how the U.S. discrepancy in accordance to their debt creates a havoc. 

Sustainable blockchain technology has immense benefit for the environment which cannot go unnoticed.