Technology has changed how different industries function. Today, technology in the food industry is the most sought after ingredient in our diet charts! Food industry has opened its doorway to new technologies and mobile application based services which led to an immense transformation in how the food industry operates. The recipe of food and technology has given birth to food technology.
A validation of it can be found in the investments growth that the food tech industry is witnessing.
“Technology is not its own industry anymore; it’s a part of every other industry, so it’s natural for tech investors to find that intersection.”
~ Greg Golkin, Managing Partner, Kitchen Fund
Elements driving food tech investments
According to Ernst and Young, the spending trends of consumers show that they are ready and willing to pay for food tech innovations that can meet their increasing needs of convenience, health and low environmental impact. This opportunity in food technology is a good time for food innovators to capitalize on these market demands and grow rapidly.
The rising investments have led to innovation in the food industry. In the midst of new consumer demographics that encompasses the young, urban dwelling, working professionals; the focus has shifted on sustainability, health and freshness of the products. However the food tech industry is evolving accordingly.
The sector is aiming to familiarize itself to the changing times and provide healthier, more suitable food habits and avoid fraud in the food products.
Technologies propelling the food tech industry
Blockchain based mobile application can strengthen food management by tracing and recording transactions to maintain the safety and quality of the food industry. Blockchain technology also helps in providing brand transparency and managing big data.
Let’s discuss a few examples to help you understand how blockchain technology and food are shaping the new ecosystem
- IBM partnered with Raw SeaFoods to track sea foods via blockchain. They are working towards the goal of offering an opportunity for tracking food – from farm to stores. It has not just prevented food-related frauds but also guarantees higher security in the F&B domain.
- Mobile applications are using blockchain technology to deal with fake milk products. A China based startup is working on the development of its radio-frequency identification (RFID) based anti-counterfeit label. Powered by blockchain, the label would make sure that the customers have all the necessary information to know the validity of the product’s authenticity and trustworthiness.
2. Augmented reality and virtual reality
With the introduction of AR and VR in the food industry, creative food images have become less important. Transparency in food is now the most important thing that there is. The calorie intake of a consumer is now attached with what cuisine they are ordering with the help of AR and VR. Technology is also helping the consumers by filling in the gap between different cultures.
For example: If you want to try different cuisines, AR and VR will help smooth the process and make you understand how to embrace new dishes. The technologies help you get acquainted with the ingredients that went into the dish, how they are grown, supplied. In fact, they can go up to be as immersive as giving people a peek into how the dishes are consumed. This will result in consumers who are more inclined towards giving new things a shot!
3. AI based chatbots
Food mobile applications are using AI based chatbots to connect with their consumers. They send food recommendations based on the eating behavior and mannerisms. Not only this, but the support via chatbots is available 24*7. The future of food tech is directed towards becoming more intelligent and personalized at the back of predictive analytics and machine learning technologies.
That being said, divisions like personal chefs, on demand meals, grocery and food delivery are becoming more popular day by day resulting in a huge number of startups and investors joining the race for market share.
“Food has always been a technology; it’s just that it wasn’t branded like a technology.”
~David Lee, Impossible Foods COO and CFO
This technology driven food industry is going beyond personal consumption.
Did you know the most recent years have been the most significant for food tech innovation? The funding in agrifood tech skyrocketed to $19.8 Billion in 2019.
The future of food tech companies is really bright because they are going to be the answers to these mind boggling questions like:
- How to feed a population that is set to hit 9 billion by 2025?
- How to create more efficient agricultural practices?
- How can technology reduce $1.2 trillion in food waste each year?
Let’s look at what the numbers are saying; global agrifood tech startups raised $19.8 billion in 2019.
Future of food tech
Let’s discuss the key areas which are driven by food tech innovations and investments that have completely delivered a new narrative along the value chain.
1. Consumer food tech
It is a division within food technology investment that revolves around the development of new and existing technologies that are mainly promoted towards the consumers. Consumer food tech also concentrated on nutrition based technology which aims to fulfill the consumer demands.
For example: Going organic became a food trend. People started focusing on plant based, meatless, animal free products. Keeping all the food trends in mind McDonald’s via Beyond Meat came up with meatless burgers and started serving them on their menus.
2. Industrial food tech
Industrial food tech is a subdivision of food tech that takes care of the business model. Just focusing on food would not be enough, some companies will have to focus on how to process, package and deliver healthy and innovative food.
For example: Companies like Hazel Technologies are into the genre of food preservation technology. They are focusing on how to increase shelf life and reduce waste by improving produce quality during packaging and transportation.
3. Consumer awareness and tracking
It is very important to increase food traceability because of the rapidly growing awareness about food fraud. This will lead to innovation in the food supply and procurement subdivision of food tech. A fully aware consumer will prefer quality and gourmet food products which has made restaurants reinvent their delivery models.
Can Food tech be a Good Business Model for Serial Entrepreneurs?
If you want to invest in a food tech company or establish a food tech startup now is the time! According to a Statista report revenue in the online food delivery segment is projected to reach US$136,431m in 2020. Also, about online food delivery, restaurant-to-consumer is by far the leading global category but platform-to-consumer delivery is growing faster.
Here are some steps to keep in mind while developing a food delivery app development company:
- Research the market
- Know your audience and competitors
- Figure out features of your restaurant app development company
- Research and figure out how much it will cost you to create an on-demand food delivery app like UberEats, GrubHub, and Zomato
- Hire the right people as you food delivery app developers who design, develop, test and manage the application
- App maintenance
During the food delivery app development process, you need to know which market niche you want to target and be prepared for the challenges you might face. Make sure that the restaurant app development services that you provide are user friendly and work efficiently for restaurant owners.
Appinventiv is a leading mobile app development company with vast experience in restaurant mobile app development for clients all over the globe. Do feel free to reach out to us, we can bring your ideas to life!
Since the numbers have already said it all we just want you to know that technology will play a crucial role in how the food we eat is produced, packed and delivered. Not only this, but food tech will also focus on its nutrition value, quality, taste, freshness and sustainability. As they say, we are what we eat!
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