2019 foodtech trends review

Published on January 27, 2020

It’s one thing to publish “predictions” for the year, it is another one to come back one year later and analyse them with a critical eye. I will try to do that as objectively as possible on the 8 trends that we listed exactly one year ago for the Future of FoodTech. How have these trends evolved on the innovation curve (from discovery to the peak of expectations to productivity) and have we, at DigitalFoodLab, forgotten important elements?

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In this graph are listed the 8 trends that DigitalFoodLab listed in January 2019 as the most important for the future of FoodTech and how they evolved on the Gartner’s innovation curve (from an unknown discovery to the thing everyone speaks of to desolation and finally productivity)

What were the trends and how have they evolved?

  • Delivery startups: Delivery startups are still the place where investors put the bulk of their money when looking at FoodTech. If we were right in our estimation of delivery startups reaching productivity, vending machines have not been as hot in 2019 as we thought. In 2019, delivery startups have:
    • Been less numerous, notably in Europe where consolidation is underway (Takeway’s acquisition of Just Eat and Delivery Hero’s European activities)
    • Moved toward profitability
    • Seen the rise of cloud Kitchens as a new business model
  • Data For retail and Transparency: more and more startups have been targeting retailers and food brands to help them create more transparency
  • Plant-based startupstwo startups, Beyond Meat and Impossible Foods have at the heart of FoodTech this year with their meat substitutes that are now present in most quick-service restaurants in the USA and soon worldwide. In the meantime, clean meat startups have known their best year ever and are now one or two years away from reaching the market with their lab-grown meat products.
  • Digital Native Vertical Brands (DNVB): new food brands created by startups are still popping up every week and have a bright future
  • Urban farmingagain a great year for urban farms with huge deals such as Infarm’s $100m funding. Now, these startups have to prove that they can be profitable and have their place in the “real world” supply chains.
  • Robots in production and delivery2019 has been rough for cooking robots with Zume layoffs. As Urban farming startup, they have to show how they work in the real world.
  • Personalisation2019 has seen new interesting moves in the space of personalisation with new tests and coaching startups and more personalised products.

The big absence: packaging

I would say that it’s not too bad for a set of predictions and we’ve got a pretty good job at looking what people would talk about in 2019 and how things would move on. However, we have forgotten one big trend when doing this mapping: packaging. Creating more eco-friendly packagings and avoiding waste is one of the things we have been asked about the most.

We are now working on our 2020 edition of the FoodTech trends. Stay tuned (and obviously don’t forget to send me your critics on our analysis).

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Join the 60+ clients of Digital FoodLab: leading agrifood companies, retailers, banks, investors, startups, and public organisations.

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.