COVID-19 highlighted the food insecurity of millions worldwide. The pandemic exposed the vulnerability of the current food system, and more specifically the existing weaknesses in every stage of the supply chain. Rabobank’s Foodbytes! platform has shared its predictions in a report titled “From Farmgate to Plate: Top Food & Ag Innovation Trends for 2021”.
Sustainable Supply Chains
Ahead of the next food crises lies an opportunity for greater readiness. Customers are demanding more visibility about where their food comes from. Despite the consumer cost of marketing products sustainably, market share has been maintained and in specific demographics such as millennials, growth has occurred. Therefore, ensuring increased traceability and transparency in the supply chain can lead to a potential cost reduction.
Blockchain Solutions
Blockchain solutions are one example of the future of traceable technology. Put simply, they are a type of database that collects information in groups, known as ‘blocks’, which are chained together. When a ‘block’ is full, it is set in stone, providing an irreversible timeline of data. These processes showcase the existing consumption and production processes and allow them to become more transparent and therefore enhance their potential sustainability.
Startups to watch:
Improved Animal Health
The pandemic highlighted consumers’ animal welfare concern, particularly ways to lower the environmental impact of animal agriculture. This would result in carbon neutrality or at the least reduced emissions.
Startups to watch:
Upcycled Products
As consumers seek products with a smaller carbon footprint, upcycled products are a clear path forward. According to Forbes, upcycled products “could reduce more than 70 billion tons of greenhouse gases generated by food loss and waste.”
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Improved Resource Management
Pressure to reduce carbon emissions has increased worldwide, from both governments and consumers. Marketing these milestones through public goal setting is a strategy being implemented by many companies to promote their commitment to the industry. A growing number of influential companies are demonstrating their commitment to more sustainable practices, which include plans to meet net zero carbon targets, reduce greenhouse gas emissions and moving towards 100 per cent renewable energy operations. Most notably, the ‘farm to fork’ strategy has been implemented, with increased traction predicted for 2021. This focuses on a shorter supply chain and reduced carbon footprint across key areas, and shows that efforts across the entire chain are necessary to create results.
Carbon Sequestration
Carbon sequestration is the process of capturing and storing atmospheric carbon in plants and soil. This highlights soil health as a pathway forward. The maintenance of healthy soil ensures that carbon is stored in the ground and not released as harmful greenhouse gases. Consumers are driving the conversation that regenerative agriculture allows sustainable food purchasing decisions and therefore a reduced carbon footprint.
Startups to watch:
Water Reduction
Two thirds of the world’s population face water shortages by 2025. This highlights that next to labor, water remains a major resource constraint. Using water more efficiently in agriculture is essential to minimising the scarcity of water in coming years.
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Waste Reduction
Currently there are 1.3 billion tons of food wasted every year, costing the global economy 940 billion dollars annually. However, opportunities to stop waste exist across the entire supply chain. This begins with farms but extends to retailers and households. Companies are setting ambitious waste reduction goals to offset this, however, consumers will be challenged to do their part as well. When the pandemic hit in Australia, earlier consumer progress in reducing food wastage was derailed.
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Sustainable Packaging
In the interest of public health, progress in sustainable packaging stalled throughout 2020. This was seen with initiatives such as “bring your own cup” halted and a heightened use of single-use packaging during the year. A reduction in this packaging is the future – with 100 per cent recyclable packaging made from recycled plastic paving the way. In addition, design innovation, alternative materials and cost-effective reusable business models have been highlighted in the report as key areas of innovation in 2021.
Startups to watch:
The Next Frontier of Nutrition
Consumer expectations have expanded beyond taste, to include a focus on health benefits and enhanced performance. Specifically, gut health and immunity are now considered almost medicinal demands and are thought to provide a better understanding of a food’s nutritional values . Sustainability and health has been pinned as the top drivers of consumer purchasing behaviour alongside price, taste and convenience, with further increases expected.
Reevaluating Food as Medicine
Importance has been placed on the concept that an industry must leverage technology to deliver food demands. There is an outstanding opportunity and category for products that address the health needs of an aging population, such as saving money on medical bills by supplementing with foods that can deliver health benefits. Nutrient dense foods are attracting consumer attention, with a focus on nourishing the body as well as the mind.
Startups to Watch:
Beyond Plant Based Protein
The ‘plant-based’ label has continued to grow on supermarket shelves, with burgers leading the way. Consumers are now seeking out a range of plant-based products, extending beyond food or drink, and opening up a sizable gap in the market. However, an increased focus on improving the taste and texture of the food products is necessary to allow customer retention.
Startups to Watch:
Biotech Meets Food
Although not a new innovation, food biotechnology acceptance has increased. With an ability to allow for gene and genome editing, fermentation and cellular agriculture are emerging as opportunities worthy of investment. Each biotech application has experienced significant growth and commercialisation during 2020, with further success predicted.
Startups to Watch:
To read the full report, visit Foodbytes World
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