🩸State of food personalisation in 2023

Published on June 14, 2023

Personalisation may be our favourite “megatrend” at DigitalFoodLab. While we feel it may be the most disruptive impact on our lives and the food system, it is also the least active. Indeed, while many startups and researchers are looking into the space, things are not really moving forward.

What is personalisation about?

As for many disruptive trends, the promise is simple to state and extremely hard to achieve. Personalisation means two things:

  1. knowing our individual needs: basically, each of us has different needs in terms of diet. It may go from avoiding certain types of ingredients to the kind of diet (rich in carbs or fat). These “needs” are related to our short-term energy level, microbiome state, weight, long-term health predispositions, and, eventually, life expectancy.
  2. being able to act on this information by eating the right foods, adding personalised supplements, and knowing which types of activities are best suited at each moment.

Why is it important?
Such considerations make many people uneasy, notably “functional food”. However, let’s consider some facts:

First, diseases, deaths and the rising costs of avoidable conditions can be directly related to food. For example, we can consider the increasing number of obese people, which has risen constantly over the past decades. It is even anticipated that more than half of the world’s population will be overweight by 2035. In developed economies, obesity will go above 40% (and 58% in the US). Beyond the human cost, this strains our economies and health systems. The last World’s obesity report predicts that in 2035, the yearly cost of overweight people could be above $4T (T as trillion, i.e. thousands of billions). In comparison, that’s Germany’s GDP, and that’s only one of the many food-related conditions.

In the meantime, we know perfectly well what we should be doing. There is now a wealth of research showing that simple changes in our diet could dramatically impact our health. As shown in the graph above, an average Westerner of 50 years old could increase their life expectancy by 12.5 years by changing their diet behaviour.

So, on the one hand, we know what we should do, and we collectively do the opposite. It is not unlike climate change and meat consumption: more people are aware of the link between the two, but they keep eating more meat.

Personalisation is here to solve this problem by helping consumers on three levels:

  1. giving them individual information. Our relationship with what we eat will be changed if we know that eating this or that food will directly impact our health.
  2. offering personalised advice on how to move from their current diet to an optimal one.
  3. creating easy-to-use personalised food products and supplements.

Where are we?
However, right now, we are still blocked at the first stage, as we don’t know how to combine all the information provided by DNA tests, Microbiome tests, Glucose monitoring devices, and other tests.

As you can see on the innovation curve, personalised foods have barely moved from last year. Food coaching apps are in the pit of disillusion. The years when the “quantified self” was one of the hottest topics seem far away.

So, what’s next?
The situation is not as bad as it looks on the graph. We are observing two exciting trends:

  1. Continuous Glucose Monitoring (CGM) startups, like Veri or Levels, are rising. Glucose is trending right now, somehow as a diet fad but also as a way to boost our metabolism and, in some cases, to manage pre-diabetes. Compared to DNA or microbiome, tracking and acting on is super simple. However, most devices rely on small trackers using a needle. This remains a deterrent for many people. Things could change dramatically if, as rumoured, Apple introduced a non-invasive CGM in its Apple Watch in a couple of years. Then, tens of millions of people would have access to this information and be looking for advice, foods and supplements to manage their glucose levels.
  2. The merge between health and food. Many startups in this space are moving toward health. This is notably the case of Viome, which is evolving from microbiome tests toward cancer early detection. We believe that the integration between health and food, and the implication of healthcare companies in this space, could help to boost food personalisation.

In a word, we are far from the promise of food personalisation. But should entrepreneurs, investors and large companies ignore this space? I don’t think so, notably for the latter category. When personalisation will “becomes a thing”, they will need to be ready to have established partnerships and to have a clear view of how their products and business models will have to shift. That’s not something you can plan overnight.

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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.