Food Tech - Industry - South America Market, Share and Trends 2023-2028

Summary of Food Tech

South America has emerged as a top region for growth in the agrifood tech space. With a population of over 400 million and a growing middle class, companies are developing solutions to improve sustainability, traceability and access across the supply chain. Brazil, Argentina, Chile and Colombia have seen the most startup and investment activity applying technologies like blockchain, IoT, e-commerce and biotech.

With a growing population expected to drive 70% more food demand by 2050– South America is well-positioned to become a top exporter of more sustainable and traceable foods produced through new technologies. The alternative protein sector also shows promise as companies pioneer new crops for ingredients.

The combination of these factors is driving the growth of startups across South America in areas like – precision agriculture, indoor farming, blockchain, biotechnology and food e-commerce/logistics – to develop smarter and more sustainable solutions.

With over 400 million people across South America expected to drive increased demand for food, companies are developing solutions to ensure sustainable and efficient production and distribution. Based on our estimates, we can say that the South America’s FoodTech industry is forecasted to be a $11.86 billion industry in 2029 from $8.4 billion in 2023 with a CAGR of 5.91%.

Recent Trends and Insights

Countries like Brazil, Argentina and Chile have long histories of exporting commodities like soy, beef and wine globally and have the agricultural infrastructure and expertise in place.

Given concerns around climate change, deforestation and food safety– there is demand for technologies helping farmers and producers address these challenges and provide transparency around practices to international buyers.

Countries are actively working to promote innovation through initiatives like startup accelerators, R&D funding and partnerships between universities and private sector. This is helping attract greater investment.

With vast land resources and changing diets, there is an opportunity to produce more specialized and nutritious foods to meet the needs of urbanizing populations. Technologies are enabling optimized production of high-value crops.

Product Insights

Companies developing IoT sensors, drones and computer vision tools to help farmers optimize water, fertilizer and pesticide use to increase yields sustainably. This helps address issues like soil health and climate change impacts.

As populations urbanize, startups are pioneering controlled-environment agriculture near cities in Brazil, Chile and Argentina to provide fresh, locally-grown produce year-round.

Inspired by the global shift, startups are exploring cultivated meat, fermented ingredients and plant-based meat/dairy products tailored to regional diets in Brazil and Argentina.

E-grocery and delivery platforms are booming across major countries, helping address “last mile” challenges to access in rural/remote areas. This supports smaller producers.

Companies exploring novel crops and ingredients through synthetic biology that can be used across food, agriculture, materials and pharmaceutical industries.

Key Companies

Some major players within this vast domain of industry are

• Rappi
• Cornershop
• iFood
• OlaClick
• NotCo
• Foodology
• Yummy
• Restorando
• RobinFood

Regional Analysis

Brazil has seen significant investment in indoor farming technologies, with companies like Plantlab raising $32 million for vertical farms near major cities. This is helping address issues of seasonality and supply reliability. Agrifood giants like JBS and Marfrig are investing in cultivated meat R&D to develop alternative proteins and meet growing global demand.

Startups in Argentina have raised over $50 million applying blockchain for traceability into exports of crops like soy, corn and wheat. This helps command premium prices from importers focused on ESG.

Chile has emerged as a Latin American leader in precision fermentation, with companies producing ingredients like collagen, whey and casein proteins using microbes for use in food, beverages and supplements.

As the third largest flower exporter – Colombia has a growing controlled environment agriculture sector. Startups are pioneering vertical farming and greenhouse technologies for high-value crops year-round.

Biotech innovation is also gaining ground– with companies exploring novel crops for food, ingredients and biomaterials using synthetic biology.

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 Countries:

• Brazil
• Argentina
• Columbia

Our Methodology

We have offered a well-founded review of the South America’s regional 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.