13 is the number of FoodTech unicorns listed in Europe. DigitalFoodLab unveiled on March 29 its annual report, the fifth of its kind, on European FoodTech. This inventory was made in partnership with Pinduoduo and Nestlé. It bears witness to developments in this exponentially growing market and its very good health. Europe represents 18% of the global FoodTech ecosystem now, 6 points more than in 2020.
FoodTech, purveyor of unicorns
The sector is doing well. In total, 3540 start-ups are listed and 48% of them have raised funds since their launch. Proof of the dynamism and attractiveness of Food tech, the number of investments of more than one million euros increased by 59% in 2021, whereas from 2019 to 2020, this number was rather constant. Since 2017, the number of active start-ups has also grown by 8% each year on average.
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Just as many figures that illustrate the growth of the sector in the same way as two IPOs, those of Oatly and Deliveroo. Add to all this the 7 European start-ups which obtained unicorn status in 2021, such as Gorillas, Swile and Flink. The total number of FoodTech unicorns, these young companies which exceed one billion in value, thus stands at 13, a figure which has therefore doubled in one year. The number of FoodTech unicorns in the world has risen sharply to 55. Europe is just behind the United States, which has 19.
This trend should continue according to DigitalFoodLab. Experts have identified 10-20 start-ups that can become unicorns in the next two years, like Ynsect.
Delivery accounts for 67% of money raised in FoodTech
It should also be noted that 9.5 billion euros were injected into European FoodTech start-ups in 2021, i.e. three times more than in 2020. In this market, six sectors are identified by the authors of the report: l ‘Agri tech, Supply Chain, Food services, Food Science, delivery and Consumer tech. One of them stands out, however: the delivery of meals and groceries, which alone accounts for 67% of the money raised in FoodTech. A sector that has undoubtedly benefited from the pandemic and the various restrictions.
Delivery has experienced a new investment boom, and is far ahead of other FoodTech sectors. Image: DigitalFoodLab.
Linked to delivery, quick commerce, ultra-fast grocery delivery, has welcomed many promising newcomers. The best example is undoubtedly the German start-up Gorillas and its billion dollars raised, although it was only created in 2020.
The report also emphasizes food alternatives and new products, which are attracting more and more investors. Another sign of the good health of FoodTech, the money injected into urban farms is increasing, whereas this field did not exist a few years ago.
France stands out, Germany leads in investments
If delivery predominates in the United Kingdom and Germany, this is not the case in France. France stands out in a particular sector: Agri tech. This sector is attractive, particularly with regard to research on the use of insects in animal feed, where three leaders are French. The study notes in particular the fundraising of Cajoo and La Belle Vie in the delivery sector, of respectively 40 and 25 million euros.
At the global level of FoodTech, the European part represents 20% of fundraising. On the old continent, the distribution of investments is uneven. 62% of the investments made are in Germany, France, the United Kingdom or the Netherlands. Concretely, Germany is far ahead with 31% of investments, followed by the United Kingdom with 12%, France with 10%, and finally the Netherlands with 9%.
On a smaller scale, only about ten cities appear to be particularly attractive for this market. Berlin, London, Paris, Amsterdam, Helsinki, Dublin, Barcelona, Stockholm, Copenhagen and Tallinn alone attract 75% of investments.
If FoodTech players can smile, all is not positive. Sectors such as agricultural robotics attract few investors. It is also important to note that while the number of unicorns may seem large, FoodTech only represents 6% of all unicorns worldwide.