Conflicts, climate change, constrained investment and the requirement to reduce agricultural emissions are all factors impacting our global food production system at present. Novel approaches will be needed in the future if we are to feed an estimated population of 10 Billion by 2050. Foodtech and agritech are likely to play an increasing role in ensuring an adequate food supply. Regenerative sciences will be at the forefront of this progress.
Recent analysis by The Economist Impact research unit indicates that gains in food security have slowed considerably from a decade ago. Agricultural production volatility, reduced investment in agricultural research and development (R&D), natural resource limitations and supply-chain challenges have conspired to put a cap on global food production. On top of all this, many governments remain unprepared for extreme weather events with adaptive water and irrigation management systems lacking globally alongside substandard soil and land management practices.
With population growth and changing consumer patterns, there is forecast to be an increase in food demand of approximately 70% over the next three decades. Meanwhile climate change and detrimental practices relating to land and water management are reducing the amount of arable land available for farming. The manner in which we grow, process and distribute food will need to change greatly in future. Food and agricultural technologies can assist and hence precisely why specialist food and agritech investors continue to emerge.
Until recently, legislative changes have increasingly been favouring environmental protections and green transition. So startups enabling intensive agriculture and food production, whilst reducing environmental footprint, had been attracting more interest. However it remains to be seen whether or not shifting political fortunes in Europe and America will set green reforms to pause. The European Green Deal and Biden’s oddly titled Inflation Reduction Act could both be at risk after this year.
However, continuing trends towards greater health consciousness will incentivise the development of new value added food products. As well, the pressing need to feed increasingly more people will obviously not abate any time soon. Foodtech and agritech ventures currently in growth mode will no doubt continue to attract investment as capital markets steadily return to normal.
Genius ReFi provides a digital ecosystem based model for discovery, collaboration and funding of early-stage regenerative science.
