Table of contents
- What is Food Tech (Food technology)?
- Food Tech Potential
- Food Tech Categories
- What Drives Food Tech Industry Growth?
- Investing in Food Tech industry
- FoodTech market growth
Food has always been the most important component for all lives to survive. Not only that, but it is also important to provide necessary nutrients for the body to grow, develop, and nourish. It is predicted that for the next 30 years, the requirement for food will increase by 60%. Consumer focus is getting edible products, but they also track the source of a particular food item and prefer foods with better taste. As technology in this industry has already shown great growth, it is safe to say that food tech will be one of the uprising industries in the coming future. Currently, the market value of this industry is $70 billion.
What is Food Tech (Food technology)?
The combination of the agri-food industry with technology is known as food tech. Technologies like IoT, big data, and AI are used in the food industry to process, deliver, and consume food. Food technology turned the agri-food industry into a more modern, efficient, and sustainable sector. Researchers are trying to find solutions for existing and potential problems linked with the food industry, such as climate change, lack of natural resources, population growth, food preservation, and healthy food delivery. The main idea of this sector is to improve the food production process on the whole.
Food Tech Potential
According to Emergen Research, by 2027, the global market of agri-food technology will reach the value of $342.52 Billion. Access to smartphones and the internet can be a catalyst for this rapid growth of the industry. The government and other private sectors implement several regulations to ensure food safety, animal welfare, health, climate, and environment control. These steps are necessary to avoid waste of food and reduce energy consumption; that’s why almost every food industry is adopting new technology to process food.
Food Tech Categories
Food technology is categorized as follows:
The use of technology in the agricultural sector has brought solutions for several farming-related problems. The use of drones, sensors, and farm management software has improved the crops’ quality and output. New farm products, next-generation farms, and urban farming are the application of Ag tech.
Following are the technologies that are being used to improve the agriculture sector:
- Farm Management Software: The software is used by farmers to keep track of the important data and properly manage the tasks.
- Agriculture Marketplaces: This is a business-to-business model for the farmers to buy online farming goods like seeds and equipment.
- Drones and Robots: Drones and robots are used to collect data on the crops from better angles and can also be used to spread seeds along the field.
- AG-Biotech: The purpose of Biotech in the agriculture field is to provide ease for living organisms associated with agriculture and food.
- Urban and Novel Farms: Urban farming is used to make consumption and production sectors closer. Also, to increase the sustainability, quality, and yield of food products.
Food Science’s primary focus is to meet the modern requirement for the production of food. It satisfies the need for healthy food with fewer environmental and health problems. The research involves the introduction of new ingredients to produce healthy food.
Have a look at the following advancements in food science:
- Future Foods: Food products are being replaced with new, more sustainable, and healthier ingredients.
- Product Innovations: This sector is working on improving the existing products such as chocolates and baby foods. In other words, taste, the product itself, new ingredients, and sustainability of the existing products are being improved.
- Meal Substitutes: Traditional meal is being replaced with nutrition-rich bars, powder, and drinks.
- Drinks: New, improved, and healthier alcoholic and non-alcoholic drinks are being produced.
- Packaging: Packaging of food products and beverages is improved to preserve the product for a longer period.
- Appliances and Cookware: Companies are manufacturing new styles of appliances and cookware.
Foodservices are improved than traditional catering services. Next-generation restaurants are being built to improve services with the help of robots and cloud kitchens.
Following are the improvement in foodservice sector:
- Reservation Platforms: Several companies have improved reservation services by companies. Making a reservation for any restaurant has been made easier.
- Payment Services: For the restaurants, payment management is becoming easier, and companies providing these services are also connected with other businesses associated with the restaurant.
- Foodservice Management: Management services are helping restaurant owners to control every aspect, such as marketing, customer feedback, and inventory management.
- Cooking Robots: Robots are being used to replace humans in restaurants. These robots can be used to perform tasks like cooking, bartending, and others.
- Catering: Local chefs can now organize a dinner or drinks party based on their budget and cooking style.
- Cloud Kitchens: Companies are renting out their kitchen for virtual restaurants to carry out their delivery services.
Now, selecting a specific for yourself has been made easier through coaching companies that suggest people select food according to their needs.
Following are how coaching services are working:
- Nutrigenomics: This sector handles genome and micro-biota tests of the foods to meet the customers’ requirements.
- Transparency: It provides the customer with all the necessary information on food products.
- Recommendation: People are getting answers to their questions about the type of food they should eat with specialists and algorithms from AI.
- Food Experiences: The companies get a response from the tourists on their food experience from specific points.
- Recipes: Several traditional recipes are being reinvented through attractive social media videos and games.
The delivery of food products from ingredients to restaurant meals has been improved in several ways.
Following are the improvement made in the delivery sector:
- Meal Kits: Customers can get all the ingredients to prepare a specific meal at home.
- Restaurant Delivery: Third-party drivers are delivering restaurant meals to customer’s homes across the city.
- Market Places: Online stores for food products are being established.
- Virtual Restaurants: companies are using cloud kitchens to produce their food products.
- Discovery Box: This box is made by specialists who put the selected food products in it and are delivered worldwide.
- Delivery Robots: Drones are being used to deliver food to desired locations.
Retail services are being improved by improving supply chain and customer-experience in market places.
Following are the ways retail services are improving:
- Data for Supply Chain: Data management is improved to resolve the supply chain issues.
- Loyalty: Customer feedback from stores is used to build better customer relations.
- Vending Machines: These machines are used to provide meals, food products, and snacks.
What Drives Food Tech Industry Growth?
With the rising population, the demand for food products is also increasing. But the growth of the food tech industry is dependent on several variables. The technological advancement in both agriculture and the food sector is necessary for the growth of this industry. For instance, robotic in this sector can resolve many issues and make the food processing part easier. Also, drones are proving to be a useful assistant for collecting data on farms to increase yields. The 3-D printing technology is important to manufacture packaging that is attractive and safe at the same time. As the nano-cell technology is introduced, it can come in handy in producing meats through stem cells.
Nowadays, consumers are asking for better food rather than more food. Healthier food is important for the growth of this industry. All the factors linked with the customers’ food and health should be kept in mind before producing a food product. A study has shown that more than 40% of people avoid sugar in food products due to the risk of getting diabetes. That’s why food companies should be focusing on getting alternatives to sugar. This is another factor that can push the growth of this industry.
As more and more food industries are investing and technology to produce food more efficiently, it meets the demands of store owners. Store owners and marketplaces want to get more products at low prices. With the innovations in the food sector, the industry will grow much faster. Other factors such as affordability of the food products, quality of the food products, and replacement of human staff can also be the catalysts of this industry.
Energy consumption decreases because of several legislation from the governments on protecting animal rights and controlling environmental changes. This means that there will be less use of sugar, fats, and salt in food products which will eventually reduce energy consumption. As our society is demanding food companies to control environmental pollution, the companies are adopting safer options for the manufacturing process and reducing wastes.
High-tech innovations in the food industry are also driving the growth of the food technology industry. More companies are trying to connect traditional ways of manufacturing food with modern technology to better taste and quantity of the product. This is how companies will be getting the value of their money. Without high-tech, the growth of the food tech industry can be affected negatively.
Investing in Food Tech industry
There are many ways to invest in agriculture tech , but we are going to focus on the following:
Food Tech Stocks
You can invest in any food technology sector via stock investment. It means that you can buy shares of a particular company that you think has the potential to grow in the future. In this way, you will be making a profit from the company as the company grows. You can explore all the most relevant agriculture tech stocks via eToro best Food Tech stocks
Pre- IPO (Initial Public Offering) is investing in a company by units of stocks. The companies offer this selling of the stocks before the stocks are made public. Because you will be buying huge blocks of stocks, it means more risk is involved in this. That’s why companies offer a discount for the buyers in Pre-IPO placement.
Investing in pre IPO companies is risky yet beneficial. If you choose wisely and make the right investment, you can make huge money through pre IPO investment.
Food Tech Copyportfolio – Top Food Tech stocks
Copyportfolio is one of the premium services by eToro. This is an advanced version of copy trading. The FoodTech Copyportfolio by eToro is specifically designed for investing in Drone. The main aim of this is to reduce the risk and benefit the current market. The Copyportfolio is rebalanced every quarter to adapt to the best investing strategies. Each instrument in Copyportfolio is counted as a single trader, and each trade depends on the percentage of funds you have. It is similar to copying another trader.
The minimum investment starts from $1000, invest in eToro FoodTech funds today.
Interested in Food Tech Stock Investment?
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FoodTech market growth
By the end of 2020, eToro “FoodTech” yielded a 25% profit. This is a consistent number, when compared to an average 14.9% gain year return during the 2016-2020 period.
In accordance with analysis, this number is expected to be increased in 2021.
The food manufacturing industry is growing. Since the agricultural use of Drones, artificial intelligence, and big data have spread, the number of other sectors that use food technology has increased. Food technologists are starting to use Delivery services, Food science, and coaching. Profitability was also already consistent for the industry, and this may continue to be the case in the future. Investing in this industry can be done in several ways, notably through copyportfolio investment or stock investment.