Rethinking the Food Supply Chain: The Other Side of Food Innovation

Published on February 26, 2025

When we talk about the future of food, the focus is often put on improving how we grow food or the types of products that should reach the consumer. However, if what we eat is changing, how we organise the “distribution” of food, from farm to fork, is also evolving fast.

The food supply chain is often ignored beyond some discussions on the impact of transportation on climate (very limited compared to the weight of agriculture), packaging and waste. And even on these two points, much attention is given to consumer choices while most of the change needs to happen upstream. Consider this figure: 40% of all food is never eaten and never leaves the farm or the factory (15% never leave the farm in the UK, and 16% in the US).

Welcome to DigitalFoodLab’s Newsletter! I’m Matthieu Vincent, co-founder of DigitalFoodLab, an innovation strategy consultancy specialising in the future of agriculture and food. Each week, I bring you a curated selection of news and my insights on the trends shaping the future of these industries. Curious to take it further? Let’s connect t¨o explore how you can join the 60+ leading companies we’ve helped navigate innovation ecosystems and turn opportunities into actionable strategies.

To separate it from the rest of the value chain, we have dedicated a whole part of our recently published report on the trends shaping the future of food to the Smart Supply Chain. Two underlying forces are driving this megatrend:

  • The fight against waste to mitigate the food industry on climate change (and answer questions on the use of plastic packaging and its own impact).
  • A push for more digitisation coming from the desire for more standardisation and higher quality standards from CPG companies and supply chains all around the world.

Supply chain megatrend

As you can see in DigitalFoodLab’s trends curve above, we have mapped five trends for 2025, one less than last year, as we have removed reusable packaging. Already facing disillusion, the category has “left” the scope of disruptive innovation due to a combined:

  • Lack of sufficiently disruptive value proposition: as regulations to ban single-use plastics have been implemented, notably in Europe, large foodservice companies have developed internal solutions rather than relying on startups.
  • Shifting moods on restrictions and climate goals, which is well illustrated by the recent “back to plastics” Trump executive order, which bans paper straws from government offices.

🧑‍🍳 Digital restaurant: a very mature category which comprises all the tools and services that help restaurants to digitise, from their relationship to the consumer (online bookings, online operations with players such as Flipdish) to the management of the kitchen (recipes, stocks,…) to payment services (Toast).

♻️ Food waste management with solutions to minimise the quantity of food waste throughout the food supply chain, from farm to restaurant (with connected bins such as Winnow) to grocery stores (with order management tools like Afresh).

☁️ Digital Supply Chain: after a phase of focus on traceability and transparency solutions focused on using blockchain solutions, this ecosystem is “re-emerging”. Now, the main focus is on tools that help large food companies map and understand their direct and indirect emissions and hence are linked to carbon credits.

📦 Smart Packaging: solutions that reduce waste, improve product shelf life, protect produce against diseases, and promote a clean way to create food packaging with less plastic. One key category is using biodegradable and edible sprays applied on fresh produce to increase their shelf-life (such as Apeel).

📱B2B Marketplaces, or new supply players, are startups that use digital technologies to offer an alternative ordering service for restaurants or retailers. This ecosystem is developing in parallel but with stark differences in developed economies, where the focus is on disintermediation, and in developing ones, where it is more about setting up an infrastructure and a way to supply the millions of corner shops.

For all players on the food supply chain, considering how their supply chain will shift is not optional. From climate impact to regulatory pressure and consumer expectations, upgrading the supply chains while making them more resilient is now a strategic necessity. Even more than in other categories, this is not about waiting for good solutions to be developed: it is key to experiment and to co-construct with innovators the solutions that are best suited for each company’s supply chain. Those who fail to adapt risk falling behind in an increasingly competitive and transparent food system.

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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.