Pitchbook estimates that “around food” services and technologies attract more than $1 billion in investment annually. The food technology industry is growing around the world as well as the gambling sector where you can get $300 free chip no deposit right now, and there are no signs that this growth will stop. On the contrary, major participants are expected to enter and actively develop the food tech sector.
In 2023, experts predict the growth of food subscription services and cooking recipe product sets, as well as b2b-trends – services for delivering food to restaurants. These are the food technology trends that will develop in 2023.
For example, the use of big data to predict good locations to open kitchens by obtaining information on demand and supply in certain areas. Nowadays, tableless kitchens for take-out gain popularity, and the cost of opening such a kitchen is much lower.
The variety of food available in some dormitory city areas. Currently, you can only order pizza and sushi here – the scope is narrowing due to the lack of restaurants in outlying areas. The service will create opportunities to order food that is not available in the dormitory areas but not through delivery from the center, but through these restaurants that are popping up in the dormitory areas.
Deliveries will increase the presence of the service in the areas. We expect that when food delivery services begin to invest in growth, they will actively form regional markets with a local focus. Food tech companies will need to overcome many local barriers – such as ordering food only on holidays, etc.
People will cook less often. The increase in take-out products will lead to affordable home-cooked meals that everyone is used to: ribs, soups, stir-fries, pilafs, and salads. As a result, people will begin to cook less and order home-cooked meals more often, taking time for themselves or their loved ones. Another interesting feature is that speed of delivery is less important to users than accuracy. the difference between 45 minutes and 60 minutes is not significant, it is mainly about on-time delivery.
The takeaway is not just coming from restaurants. Companies will start delivering not only from stores but also from markets. In addition, there may be interesting options to combine food delivery services with other services. For example, you could order a week’s worth of food and cleaning services or a concierge service where a cab driver picks up your dinner for you before picking you up.
Today companies are looking for ways to cut costs as paper and plastic increased by 50 percent due to a shortage of dyes and plastics.
Retailers, for example, are already refusing to print receipts – something that money has managed to do that environmental campaigns can’t. Reusable or recyclable eco-friendly packaging will become a trend in the near future.
While such an initiative would require costs to collect, recycle or prepare for reuse, it would be cheaper than buying new packaging and would help attract new customers.
Collaboration is the new black. In the food technology crisis, we will see more mutually beneficial collaborations, which will allow companies to expand this area.
Collaboration with retailers is already common, with companies and restaurants setting up corners in hypermarkets. Food delivery services are expanding their reach through partnerships with car-sharing services.
In addition, companies are partnering with local producers and adapting their products to their own brands. Restaurant chains are also expanding their audiences and entering the corporate catering market through their respective aggregators.
In the future, there will likely be less storage space and warehouses for storing products.
Before the crisis, food technology services became part of a large ecosystem. But now that the giants have temporarily stopped investing, companies will occupy new niches on their own.
Delivery, for example, now offers not only restaurant meals and food, but also pharmaceuticals and pet products, and has entered the retail market.
Where are food tech investors putting their money?
According to a report by Five Season Venture and dealroom.co, global venture capital investment in food technology has almost quintupled: from €3.08 billion in 2014 to €14.3 billion in 2018. This trend is only getting stronger. One of the most promising areas for investment is online food delivery. Around 60% of global investment in food technology is in online food delivery for stores and restaurants.
In addition, designers are moving toward developing products for specific consumer groups: vegans, gluten intolerant people, organic food advocates, etc. The world’s largest meal box delivery service, Germany’s €2.6 billion HelloFresh, has acquired organic and gluten-free food designer Grean Chef.
Another food technology innovation is the recommendation service that has its own online supermarket. Successful examples include the Danish service Vivino, the world’s most downloaded wine app and the largest online wine supermarket. In 2018, the company attracted $20 million in investment.
Food tech companies will look for new ways to increase their profits and develop side businesses, including non-food items. The restaurant industry itself dictates the need to create a marketplace of services around familiar services: this could be a food delivery logistics service, a food sharing platform, or a transportation lease for couriers.