What is it and why invest in it?
Although it may seem artificial, Food Technology is the fusion of the food industry with the technological industry.
Thanks to this combination, more than 1,700 companies have already started using robotic, drones, artificial intelligence (IA), the internet of things (IoT) and 3d printing as part of their work methodology.
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There is no doubt that Foodtech is based on innovation and transformation food industry, but its main goal is to create more efficient systems that help build a more sustainable future.
What is food technology
FoodTech is is not limited to food innovation, it applies to the entire food chain, from the production or cultivation of food, through transport, monitoring, storage, sale and consumption, to our plate.
FoodTech is not limited to food innovation, it applies to the entire chain, from food production or culture to our plate.
It seeks the efficiency of processes and build a more sustainable system, providing solutions to various problems. For example, food production consumes 30% of the energy we produce and emits 22% of total greenhouse gases.
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Plus, every year we waste a third of the food we produce, sometimes before it reaches our tables. Not to mention the fact that 26% of the world’s population is overweight or obese.
Food has a direct impact on us as individuals, but it also affects the environment, through wasted water, overfishing and the degradation of marine ecosystems. All of this diminishes our ability to provide food.
Consumers are increasingly aware of this and demand more sustainable, healthier alternatives that are more respectful of the environment and consumers.
A clear example of this trend emerged in 2019, at the CES consumer tech show. The winner of this show is the creation of Impossible Foods, l’Impossible Burger 2.0, a meatless burger, which aims to deliver a “real” burger taste without the environmental drawbacks of intensive farming.
Food science doesn’t end with the production of more environmentally friendly ingredients, there are other applications, such as BioBean, a company that uses coffee grounds to produce biofuels.
There are also solutions based on the creation of trusses designed to save 99% water used or the use of LED lighting that uses different wavelengths, depending on the type of crop, to optimize production. The examples are almost endless.
Within Foodtech, we have different categories depending on the main focus of their respective activities:
They develop solutions for improve the production and quality of agriculture, using drones, management software or new agricultural products. For example, they create urban farms that help reduce the distance between production and consumption sites. This avoids both the transport and the use of fossil fuels. Another example is the realization higher yields by developing new generation farms that are more efficient and more sustainable.
In this category we present Agricultural market, a company that seeks B2B digital marketplace solutions, connecting producers and industry. The company promotes the transparency of transactions on the agricultural market thanks to a digital platform associated with a network of services and collaborating partners. It facilitates online payments between buyer and seller, product quality control options, and logistics services.
These startups in the foodtech sector differentiate themselves by innovation in food technology, in the product itself, in the transparency of its composition or the means of distribution.
There are projects that seek to develop a new generation of household appliances or kitchen utensils. This equipment is more personalized or offers new uses. This trend includes companies dedicated to find sustainable and healthy alternatives to the ingredients we already consume, like sugar, or projects that seek more sustainable food packaging.
This category includes Memphis meats, a Berkeley, Calif., food technology company that aims to produce sustainably farmed meat that would help reduce the impact of livestock on the environment.
Catering and delivery
They improve the way hotel, restaurant and catering businesses are run today. They implement services for improve restaurant management, their online presence or their marketing strategy. For example, we have companies that allow anyone to hire the services of a local chef to organize a dinner or cocktail party according to their taste and budget, as in the case of the Spanish app. Take a chef.
This ranking also includes companies that are reinventing delivery, like renting kitchens or dark kitchens. Additionally, Uber Eats pioneered the concept of Starship Enterprises. It’s basically replacing the pizza delivery guy with a robot to get the job done.
Retail and food technology
They develop solutions for the retail food industry, digitization of the supply chain for a better in-store shopping experience.
They provide tools for manage data, create interactions between brands and their customers and generate more information on consumer behavior to achieve better sales results and better productivity.
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This includes Do not eat, a company that produces healthy food vending machines for offices, and Tellspec, a big data company that provides restaurants with portable real-time food analysis devices that provide information on, for example , the degree of ripeness of the fruit, possible allergens or food properties, quickly and easily.
We briefly summarize what Foodtech is, the benefits and why we should be interested in this sector.
Technology is entering our farms, restaurants and homes to make our lives easier. Plus, it is transforming the way we produce food and the way we consume it. Industry is working hard for respond to an increasingly conscious consumer and find solutions to the problem sustainability or food waste.
Foodtech is a sector in which we only saw the tip of the iceberg and who will undoubtedly be grow strongly in the years to come. We’re sure this will be a big topic. It will be an important driver to help solve some of the environmental problems we face. Foodtech will change the way we eat.
If you are planning to create a startup in the foodtech sector or if you want to digitalize your business, Tell us about your project. We will be happy to help you.