đź’Š Is personalisation the future of food?

Published on January 26, 2022

In the past couple of weeks, with all the 2022 trends and predictions released (notably by DigitalFoodLab), I have had many interesting conversations about the future of food. Beyond the obvious hype sectors (alternative proteins notably), one theme was coming again and again: personalisation.

What do we mean by food personalisation?

Basically, we can identify three “levels” of personalisation (to use the analogy with autonomous cars):

  • Level 0 – no personalisation: you eat what you want until health warnings such as a high level of cholesterol or pre-diabetes.
  • Level 1 – assistance: getting to know the broad needs of any individual – what are his/her needs in terms of macronutrients (proteins, fats, carbs) and which foods are to be avoided. With this knowledge, services can assist the consumer in its daily choices.
  • Level 2 – nutritional plan: getting to know*the specific needs in terms of micronutrients, the predisposition to certain illnesses and the specifics of digestion. This enables the creation of personalised nutritional plans and food supplements.
  • Level 3 – personalised foods: making the previous data adaptable to the environment of the individual(daily activity and intakes) to create fully personalised foods such as meals.
  • Level 4 – automation: as level 3 but without the need for intervention from the consumers to add their food intakes, levels of energy, daily activities, etc.
  • Level 5: no human intervention is needed, your food is fully automated and personalised

Where are we?
So, according to the previous levels indicated the goal is to reach at least the third level. However, **the industry (mostly startups) is mostly between levels 1 and 2**. While the space was limited to nutrigenomics (the science combining nutrition and genomics), it has increased with new “testing kits” using different data points. The mapping below show the various categories used to provide some level of assistance:

What we observe is that more and more companies are going beyond giving “general advice” (such as “eating fewer carbs” or “increase your consumption of vitamin C”) with nutritional plans and even subscription plans to food supplements. The British ecosystem is particularly well-positioned here with:

  • ZoĂ©, a startup that combines microbiome and glucose information to prove its users with deep insights and advice
  • NGX, an early-stage startup that combines its users DNA and (sport and wellness) goals to create personalised ready-to-eat meals.

What’s next?
Food personalisation has been seen the future for at least the past 20 years. It may well remain a thing of “the future” for the next decade. However, we observe significant progress toward this goal with more tools helping consumers to understand and act on their metabolism.

A second step forward has been the dramatic reduction in the costs associated with the various tests mentioned. Genome sequencing, microbiome testing and glucose monitoring have become commodities and the value is now much more in the hands of the companies that create value out of the data.

We expect to see more and more services combining various sources of data (using these cheap tests and devices) to provide real value and actionable insights from consumers. Food companies will certainly focus on situations where the incentive to follow a strict diet and to track all your intakes is strong. Obvious candidates are sport (endurance, muscles gain, weight loss) and food-related (often) avoidable illnesses (such as Diabetes Type 2). These two markets alone represent a huge potential, both for new ventures and for CPG leaders. They will certainly experiment with the idea of personalisation in the near future.

Do you want to plan the future of your food or retail company in a world where food will become more personalised? We have already worked with world-leading food corporations to help them understand this space, identify how it may threaten their current business model and leverage the huge opportunities it represents. contact us here!

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Use case: project for a global F&B company looking to map its AgTech innovation ecosystem and the best startups to partner with

What we did:

  • Mapping of the AgTech ecosystem: startups, research regulators, and other leading companies.
  • Discussion to select areas to focus on.
  • Analysis of the information to reveal the trends and a model to analyse eventual partners.
  • A workshop to validate the opportunities based on our recommendations.
  • Scouting of relevant partners followed by introductions.

Results:

  • Mapping the different categories of innovations in AgTech that should be considered now to create long-term benefits for the business.
  • Identification of key partners (an incubator and a couple of startups).

Use case: project for a CPG company on the healthy ageing ecosystem

What we did:

  • Education of the board through a couple of workshops to define the perimeter
  • Identification of key opportunities and threats created by long-term evolutions (technologies, business models, behavioural changes).
  • Deep dives on each of the priority categories.
  • Co-construction of a vision on how the company should address these challenges.
  • Identification of partners (startups, incubators, funds) to move forward.

Results:

  • Creating a consensus on which categories to prioritise and how to address them.
  • Implementation of an open innovation strategy through the development of partnerships.

Use case: project for a global CPG company to develop a strategy on the healthy ageing ecosystem

What we do (ongoing mission on a subscription model):

  • Kick-off where we present an overview of the AgriFoodTech ecosystem to select with the client the categories to cover and for each, the level of information required.
  • Monthly newsletter: each month we send a newsletter with the articles that we have gathered ranked by relevance, their summaries, and a layer of analysis.
  • Database: we set up a personalised database that will be filled month after month with the information gathered on the companies identified for the watch.
  • Workshops: twice a year with the client’s innovation team and other “innovation curious” team members, we present an overview of the evolutions, key trends and a dashboard of the topics followed by the watch.

Results:

  • A clear, regular and evolutive tool to follow what is happening in terms of innovation on key topics.
  • A forum (through the workshops) to discuss innovation trends and new opportunities.

Use case: opportunity screening for an ingredient company

What we did:

  • Kick-off to define the perimeter of the ecosystem studied.
  • Mapping of the different trends shaping the innovation ecosystem of the client.
  • Analysis of the trends on DigitalFoodLab’s trend curve and other relevant frameworks.
  • Workshop to discuss DigitalFoodLab’s recommendations on key trends to prioritise

Results:

  • Shared view of the innovation ecosystem for the client with a view of the trends to prioritize.
  • Clear document (personalised trend curve) that can be easily shared internaly to explain the company’s innovation choices and which can be then updated each year.

Use case: scouting for an agriculture coop

What we did:

  • Kick-off to define the perimeter of the client, the goals of the scouting (partnerships) and the criteria on which startups should be evaluated.
  • Set-up scouting: we selected the first batch of 20+ key startups following the criteria of the client.
  • On-going scouting: then we set up a quarterly scouting of about ten startups.
  • For each scouted startup, we created an ID card with key information such as the business and technological maturity, funding, and corporate partnerships. We also added an explanation of why we selected this startup.

Results:

  • An ongoing and evolutive scouting are matching the client's criteria and its capabilities in terms of deal flow.

Use case: working on an acquisition process for a CPG company

What we did:

  • Kick-off to define what the client is seeking, notably in terms of maturity.
  • Workshop with the client based on a mapping of the different innovation ecosystems adjacent to its activities to select some priorities and discuss inspiring examples of startup acquisition stories.
  • Identification of 20+ targets.
  • Workshop to select the most relevant to engage with.
  • DigitalFoodLab worked as a sparing partner during the acquisition process, notably to help design how the acquired startup could be integrated into the overall company’s strategy.

Results:

  • Different results from traditional M&A processes with a focus on the client’s innovation strategy.
  • Identification of a good match for an acquisition.

Use case: market due diligence on sugar alternatives

What we did:

  • Kick-off with the client to discuss its interest on this category, its expectations and existing level of information (notably on the target company).
  • Mapping of the ecosystem to analyse the different existing alternatives and technologies to compare them.
  • Interview (calls) with relevant startups made by our internal biotechnology expert.
  • Recommendation on whether to invest or not.

Results:

  • Clear view of the ecosystem and of the reasons to believe (or not) in each sub-category.
  • Enforceable recommendations based on facts and expertise.