The Canadian meals and agtech ecosystem is experiencing vital progress, in line with a brand new report printed at this time by the Canadian Meals Innovation Community.
The report, which dives deep into particular sectors, funding, sector sizing, key challenges and alternatives, says the Canadian agrifoodtech ecosystem lags behind international leaders in each funding and firm focus. In response to the report, USD $1.6 billion has been invested within the sector since 2018, with plant-based proteins rising as Canada’s largest meals tech area, valued at USD $1.7 billion in 2023. Nevertheless, in comparison with its international friends, which are inclined to allocate simply 17% of whole agrifoodtech investments into agtech, Canada is a bit over-indexed in agtech with 44% of investments in comparison with 56% invested in meals tech (56%).
Regardless of a complete funding in meals tech that’s smaller relative to its international friends, the report says Canada is establishing itself as a hub for plant-based proteins, biotech-enabled practical meals, and upcycled substances:
“The Plant-Primarily based sector is probably the most vital, comprising 26% of the Canadian meals tech ecosystem (funding), in comparison with 14% globally. That is adopted by Useful Meals & Drinks, representing 12% of firms, and Biotech/ Synthetization—primarily centered on specialty substances —with 7% of the Canadian meals tech ecosystem. All three domains are additionally amongst the highest 5 most represented globally.“
In response to the report, the Canadian meals and ag tech ecosystem faces key challenges relative to the US and different markets, the largest of which is a scarcity of personal capital. Solely 40% of meals tech funding rounds are backed by enterprise capital, in comparison with 60% within the UK and US. This implies a heavy reliance on public grants, which comprise practically 30% of whole funding. That is a lot larger than within the UK (5%) and US (8%). Different challenges embody restricted scaling sources because of the nation’s massive geography and decrease total inhabitants density, a fragmented regulatory setting and lack of a nationwide meals tech technique.
Regardless of these challenges, Canadian Meals Innovation Community CEO Dana McCauley is optimistic in regards to the sector’s future.
“These challenges are daunting: labour shortages, provide chain vulnerabilities, local weather change, and gradual charges of innovation threaten the resilience and sustainability of our meals system. But, Canada’s foodtech ecosystem is rising to the event. By leveraging its distinctive strengths in plant-based proteins, biotech-enabled practical meals, upcycled substances, and past, the sector is driving transformative improvements that improve sustainability, enhance financial productiveness, and create jobs throughout the nation.”
When you’d wish to learn the total report, you’ll find it on the CFIN web site.
