- Changing Food Trends Statistics
- Elements Driving Food Tech Investments
- Technologies Propelling the Food Tech Industry
- 1. Blockchain
- 2. Augmented reality and virtual reality
- 3. AI-based chatbots
- 4. Robo Chefs
- Future of Food Tech
- 1. Consumer food tech
- 2. Industrial food tech
- 3. Consumer awareness and tracking
- 4. 3D Food Printing
- Can Food Tech Be a Good Business Model for Serial Entrepreneurs?
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 growth of the investment 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
If you are wondering, what is food tech, then here is the answer. As per Wikipedia, food technology is a branch of food science that deals with the production, preservation, quality control, and research and development of food products.
Changing Food Trends Statistics
- As per Statista, due to advancing technologies within the food industry, as well as a demand for healthier, cheaper, and safer food products, the market is forecast to exceed 342 billion U.S. dollars by 2027.
- According to AgFunder’s Farm Tech Investment Report, Farm Tech investing soared to $7.9 billion in 2020, topping 2019 investments by $2.3 trillion.
- According to the National Restaurant Association’s State of the Industry Report, 2021 sales are projected to climb 10.2%, after a steep low during the pandemic.
- As per CB Insights, while a record-setting global food tech investment of $13.5 billion was seen in the first quarter of 2021, dollar investments fell to $8.9 billion in the second quarter and the deal count has increased by over 10% (from 369 to 409) in Q2’21.
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 companies is a good time for food innovators to capitalize on these market demands and grow rapidly.
The rising investments have led to innovation in 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 future food tech companies and industries are evolving accordingly.
The sector is aiming to familiarize itself with the changing times and provide healthier, more suitable food habits and avoid fraud in 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 to 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 their eating behavior and mannerisms. Not only this, but the support via chatbots are available 24*7. The future 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
4. Robo Chefs
As exciting as this sounds, the robo chef technology in food industry will not be cheap with estimates of every robot chef expert costing $15,000 at first – however, in case you are a benefactor at a Michelin Star Restaurant, this may seem like a deal.
For example, Moley, a UK-based robotics organization, has released the world’s first robotic kitchen. The organization asserts the roof-mounted gadget, known as the Moley Robotics Kitchen, will actually be able to cook more than 5,000 plans and surprisingly tidy up after it’s done with its set.
It comprises of a couple of completely automated robot arms that can, for all expectation and reason, repeat the movement of human arms and hands. The organization believes that their robotic chef has the same degree of skill as that of any human – particularly with regards to speed and affectability.
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 have a look at the numbers where 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 is 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, food tech companies like McDonald’s via Beyond Meat came up with meatless burgers and started serving them on their menus.
2. Industrial food tech
Industrial food technology 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 technology companies. A fully aware consumer will prefer quality and gourmet food products which has made restaurants reinvent their delivery models.
4. 3D Food Printing
With the massed multiplication of 3D printing throughout the last recent couple of years, this advancement was presumably a certainty.
This technology will fill in as you expect – by building the end product layer by minute layer. This arrangement will offer unlimited opportunities for the shape, surface, composition, and at last, taste of food products later on in the future.
The future of food creation looks quite intriguing. Additionally, 3D printing will enormously decrease the waste produced from regular cooking and could be utilized to promote healthy innovative food and totally rethink how we produce ‘recipes’.
Can Food Tech Be a Good Business Model for Serial Entrepreneurs?
If you want to invest in a food delivery app development company in US or any other state/ country, or establish a food tech startup, then 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 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. From delivering food using droids to serving using robots to packaging through machines, food ordering app development company are doing their best to serve the client and customers with the best of food technology and innovation. Not only this, but the future food tech will also focus on its nutrition value, quality, taste, freshness, and sustainability. As they say, we are what we eat!