Last week, Singapore-based Next Gen Food, the company behind the plant-based chicken burger TiNDLE, raised the largest ever Series A in that category. So we've taken a closer look at what's happening in the segment.
There are 175 startups working on plant-based meat alternatives. In addition, there are 244 startups developing plant-based fish and dairy consumer products.
VC Investment in plant-based meat products increased 20% year-over-year to $3.0 billion in 2021. Plant-based meat accounts for half of that.
The first commercially viable plant-based protein products were introduced in the 1930s made out of soy and wheat, though taste and texture hardly resembled conventional meat, unlike today's generation of plant-based meat products. This is thanks to 160+ startups working on flavour and mouthfeel.
Although some companies have raised hundreds of million, it is still early to choose winners. Beyond Meat, the second most valuable plant-based protein company, has struggled to increase sales in the recent months.
💇 China introduces new rules for online food delivery platforms via Verdict Food Service. The government ordered that food delivery platforms reduce fees to restaurants impacted by Covid-19. Following the announcement, the value of the two biggest food delivery platforms Meitun and Elle have decreased 15% and 4%, respectively.
📹 The Kitchen 2030: How Food & Cooking Will Change in the Future (Video) via The Spoon. Senior executes join a panel to discuss the trends driving the future of kitchen tech.
☕️ Starbucks Faces Online Uproar in China After Coffee Price Hike via The WSJ. The coffee giant increased prices by 30 cents per cup as sales have slowed down. This triggered an online uproar in Starbuck's second biggest market.
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Latest foodtech deals
Select deals from last week:
🇸🇬 Next Gen Foods, a Singapore-based market of plant-based meat products, raised $100 million Series A to expand into the USA and build an R&D centre. The company is following an asset-light approach, contracting third party manufacturers to create and package its plant-based chicken burgers.
🇮🇳 DealShare, a Bengaluru-based social commerce platform for groceries, extended its Series E by $45 million. The company became a unicorn last month. It expects to become profitable in the next 2 years. It is considering an IPO around that time.
🇩🇰 Agreena, a Danish regenerative carbon farming company, raised a €20 million Series A led by Kinnevik. Founded in 2018, Agreena started as a commodity trading platform, but has since transformed itself into a CO2 e-certificate issuer. Farmers can then trade those e-certificates to finance the transition to low GHG farming.
Other notable foodtech deals from around the globe:
🇺🇸 Boston Meats, a spinout from Harvard University, secured $12 million in early stage funding. It is one of the 160+ startups enabling alternative protein products.
🇺🇸 NY-based Sunzobagged $10 million to bring authentic Asian flavours to the sparkling water category.
With $2.9 billion of VC investment in foodtech, Germany emerged as a leading hub in Europe, ahead of The United Kingdom. However, looking closer at early-stage deals, it is evident France and The United Kingdom are at more favorable position. Opposite to Germany, in France and The United Kingdom there are many bets, which would likely lead to a vibrant foodtech ecosystem in the future.
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