Global FoodTech investments in 2024 - DigitalFoodLab

The latest report on FoodTech investments highlights a significant decline over recent years, with startups raising $15.1 billion in 2023—a 48% drop from 2022 and a striking 72% decrease from 2021’s record highs. Despite this, early 2024 shows promise, with $7.9 billion already raised in the first half of the year, hinting at a potential rebound.

Delivery startups, once the backbone of FoodTech funding, experienced a sharp contraction, falling from 74% of total investments in prior years to just 21% in 2023. However, the resurgence in 2024 is driven by a few major late-stage deals. Simultaneously, upstream and midstream startups—particularly in AgTech and Food Science—now account for over 50% of total funding, with sustainability-focused innovations leading the charge.

Early-stage investments, however, have taken a notable hit in 2024, following a period of relative stability through 2022 and 2023. The current funding strength stems largely from late-stage deals, which, if continued without replenishment at the early stages, could risk the long-term health of the FoodTech ecosystem.

Encouragingly, the report also notes a surge in partnerships between startups and established companies, particularly in AgTech and Food Science. These collaborations are poised to deliver value and may play a critical role in fostering renewed trust and investment in the sector.

To download the full report, please click here.