Investment on track
With agri-tech investment growing at a rapid 377% to US$30.5 billion in 2020 from US$6.4 billion in 2014 1 , it is clear that investors are a driving force in Asia’s food industry. The investments reflect a keen interest in the six new food trends outlined above.
Private equity, venture capital and sovereign wealth funds have all played a pivotal role in transferring knowledge and expertise across the food sector, translating market demand into capital allocation, and helping to bridge the gap between academia, corporates and governments.
We foresee that consumer-driven trends will require an additional response of US$750 billion over the next decade to 2030, and these funds need to be directed in a targeted approach to serve a new generation of sophisticated Asian consumers.
When considering the key trends, our research shows that companies with a broad emphasis on health, digital and sustainable offerings have enjoyed valuation premiums between 2015 and 2020, compared with companies that did not.
1 AgFunder. (2021). 2021 AgFunder AgriFoodTech Investment Report.