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European FoodTech 2025: Stability Amid Global Turbulence

Published on April 15, 2025

I am glad to share with you the eighth edition of our yearly focus on the state of European FoodTech. This has been quite a journey for Europe’s FoodTech (as well as for us at DigitalFoodLab). You can download the report here and register for our upcoming webinar on the state of FoodTech investments (in Europe and globally) on the 30th of April (11:30 CET).

When we started releasing this report, our main frustration was how small the European ecosystem was, notably in comparison with the rest of the world. Less than a billion euros was invested each year, and then mostly in restaurant delivery startups. Now, even in the current context, investments in FoodTech are much higher, and more importantly, from our point of view, Europe is now a leading hub in this ecosystem.

In 2024, European Food Tech startups raised €4.1B, only 2% less than the €4.2B raised a year before. Investments finally stabilised after a 57% drop from 2021’s highs.

Let’s be clear: that’s still a decrease and without any rebound in sight. However, if we compare Europe’s FoodTech situation to that of the rest of the world, we should note that investments are much less than what we observed elsewhere. Compared to 2021 levels, European FoodTech investments dropped only by 57% compared to 72% globally. Europe has hence strengthened its position as a leading hub, with 28% of the global funding going to startups established there.

On a less positive note, we observed a decline in the number of deals, notably in early-stage startups.

 

The German and Dutch ecosystems fared particularly well due to a handful of megadeals into delivery startups. Also, the Nordic ecosystems (notably Finland’s) died particularly well due to a combined wave of investments in aquaculture and alternative proteins.

While funding for new proteins (from plant-based to cellular agriculture) is plummeting globally, we observed an almost 20% increase in Europe. Many of Europe’s alternative protein startups are indeed extremely well-positioned in trends like cacao, sugar, and fat alternatives.

With this decrease in early-stage funding and startup creation, and beyond an eventual bounce back in funding, what will be key for the future will be the ability to make FoodTech attractive again to entrepreneurs and investors.

Learn more and download the 70-page long report for much more insight, notably on the different categories, national ecosystems, top deals and M&A activity.

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