OTS - Food tech on its way to reshaping a multi trillion market (part 1)
2022. June 21. 12:35
Berlin & New York, 21 June, 2022 (APA/OTS) - Bain & ZINTINUS:
"The food sector is at a tipping point, about to grow
exponen-tially" - Transforming the global food sector to a more
sustainable industry is important to improve consumer health and
reduce the sector's carbon footprint - it is also a means to secure
food supply - The transition of the food system opens enormous
opportunity for value creation and thus also for entrepreneurs and
investors
The transformation of the world's food market towards a more
sustainable model is now at a tipping point, within an annual
global food market of US $ 8 trillion.
Food sector transformation relies on innovation to deliver
healthier diets, environmental-friendly production, and more
sustainable food practices. A transformation of this size offers an
opportunity of historic proportions, concludes a white paper
co-authored by two seasoned food experts from Bain & Company and
ZINTINUS, a food tech investment fund.
"Transforming the global food sector into a more sustainable
industry is one of the most urgent tasks of our time that will
bring vast benefits to consumers, society and our planet. Consumer
demand is driving the change, offering a vast market opportunity to
entrepreneurs and investors," says Olaf Koch, Co-author of the
report and CEO of ZINTINUS, a food tech investment fund.
"Fortunately, establishing a more sustainable and healthier system
is absolutely possible with the right platforms to foster food tech
innovation and deliver sustainable products to consumers,"
continues Olaf.
The white paper, titled Food Tech - Turning Promise Into
Opportunity" analyses the sector, concluding that opportunities for
innovation range from new ingredients, products and distribution
strategies to completely new food service concepts. Marc-Andre
Kamel, Partner and Head of Global Retail Practice at Bain &
Company, says: "The good news is that transformation on the
required scale is absolutely possible. The prerequisites for a more
sustainable, healthier and secure supply system are now in place.
Recent advances in research and technology have been breath-taking,
boosting confidence that positive change is feasible. We have to
create the conditions for this, and this includes cooperation
between as many parts of society, business and politics as
possible."
The report acknowledges that we have seen initial investment of
$ 18.9bn in US food innovations last year. But, with food demand
predicted to increase by more than 50% by 2050, to transform at the
required scale to make the food sector truly sustainable, it will
require annual investment of US $ 150bn.
The report identifies several trends that will help food sector
transformation, including, amongst others:
- Consumers want healthier and more sustainable products, a
trend boosted by the pandemic. 40% of Millennials and Gen Z state
that they are eating healthier food since the start of the pandemic
and roughly 75% state that they spend more to buy sustainable food
products.
- Plant-based food alternatives are becoming a mainstream
phenomenon. De-mand has increased steadily, outpacing the growth of
incumbent brands by 4-5 times.
- The alternative protein market is projected to reach a
volume of US $68,5bn by 2025, with expected compound annual growth
rates above 10%.
- Better food waste analytics that cut hospitality industry
waste and emerging "food rescue" solutions are contributing to a
reduction in global food loss (around 33% today).
- Adaptations to manufacturing and distribution processes
will improve the supply of food on a global scale while creating a
more sustainable and healthier food system.
The opportunity to create substantial value for society and
economy is significant. Dedicated programs are arising to leverage
this opportunity in various parts of the world with Singapore and
Israel at the forefront.
Both authors state that Europe is in a fantastic position to
further expand its role as a positive driver of food sector
transformation. Europe has a history of an incredibly diverse food
culture that is thousands of years old. Europe has become the
largest exporter of food products and has publicly committed to
making the food sector more sustainable, via the European
Commission's "European Green Deal".
The White Paper "Food Tech - Turning Promise Into Opportunity"
can be downloaded from: https://zintinus.com/report/
Bio Olaf Koch: https://zintinus.com/olaf-koch/
Bio Marc-Andre Kamel:
https://www.bain.com/our-team/marc-andre-kamel/
Media Contact for ZINTINUS:
James Hartwell
Kekst CNC
Phone: +44 7870 487 532
Email: james.hartwell@kekstcnc.com
Media Contact for Bain & Company:
Gary Duncan
Phone: +44 7788 163791
Email: gary.duncan@bain.com
(continues)