Asia-Pacific Agrifood Tech: A Resilient Recovery Amidst Global Challenges
November 26, 2024, 5:47 am
Location: Australia, New South Wales, Wagga Wagga City Council
Employees: 51-200
The Asia-Pacific (APAC) agrifood tech sector is on the rebound. After two years of turmoil, funding has surged by 38% in 2024, reaching $4.2 billion. This recovery is not just a flicker; it’s a beacon of hope in a landscape once shrouded in uncertainty. The AgFunder report reveals that APAC now claims 31% of global agrifood tech investments, a significant leap from the 26% average over the past decade.
India has emerged as the phoenix of this sector, reclaiming its position as the top-funded country in APAC. With $2 billion raised, it accounts for nearly half of the region's total funding. A staggering $1 billion of this went to Zepto, an e-grocery startup, in two late-stage financing rounds. This single investment showcases the potential of the Indian market, which has rebounded from a 73% drop in 2023.
China, while trailing behind, is not far off. It secured $1.5 billion, an 18% increase from last year, with 230 deals under its belt. The country remains a powerhouse in early-stage investments, particularly in agrifood tech. Notable players like Shiji Biotechnology and Serata Moyun have raised significant funds, highlighting the competitive spirit in the region.
Japan is the surprise contender, climbing three spots to third place. With a 58% year-on-year increase, it raised $280 million through 93 deals. This growth signals a shift in the landscape, as Japan was the only top 10 APAC nation to see an increase in investments last year. The Brewed Protein maker, Spiber, led the charge with a $65 million round.
Australia, however, faced headwinds. It recorded a staggering 78% decline in funding, dropping its share of the APAC market to a mere 1.2%. Yet, there’s a silver lining. Most deals were closed at the seed stage, indicating a potential resurgence in the future.
The funding landscape is shifting. Upstream tech startups, which support farmers and primary production, had a strong showing. They raised $1.8 billion, while downstream players, closer to consumers, attracted $1.9 billion. The gap between these two sectors has narrowed, reflecting a balanced interest from investors.
E-grocery is the star of the show, raking in $1.5 billion, largely thanks to Zepto. This category has nearly tripled in deal count, showcasing a renewed enthusiasm for online grocery shopping. If we exclude Zepto, upstream categories like Bioenergy & Biomaterials and Ag Biotechnology also attracted significant investments, with $475 million and $459 million raised, respectively.
Alternative proteins and novel farming systems are slowly regaining traction. Innovative Food, which includes plant-based and cultivated meat, saw an 85% increase in funding, reaching $204 million. Singaporean oat milk giant Oatside led this charge with a $35 million round. Meanwhile, Novel Farming Systems raised $75 million, indicating a cautious optimism in these categories.
However, the agrifood tech sector still grapples with gender disparity. Male-only founding teams dominate, making up 92% of the total. All-female teams are a rarity, attracting a mere 0.5% of VC investments. Mixed-gender teams saw a decline, highlighting the need for more inclusivity in this burgeoning industry.
The report, a collaboration between AgFunder, Omnivore, and AgriFutures Australia, paints a picture of resilience. Despite global market challenges, APAC’s agrifood tech sector is not just surviving; it’s thriving. The numbers tell a story of recovery, innovation, and potential.
Investors are cautiously optimistic. The number of deals has surged, with 616 transactions recorded in the first three quarters of 2024, surpassing the total for each of the last three years. This indicates a renewed interest in the sector, albeit with a more cautious approach to funding amounts.
The future looks bright for APAC agrifood tech. As countries like India and China lead the charge, Japan’s rise adds a new dynamic. Australia’s struggles serve as a reminder of the challenges ahead, but the seed stage activity hints at a potential turnaround.
In conclusion, the APAC agrifood tech sector is a resilient ecosystem. It’s a landscape of contrasts, where challenges coexist with opportunities. As funding flows back into the sector, the focus on innovation and sustainability will be crucial. The journey is just beginning, and the horizon is filled with promise.
India has emerged as the phoenix of this sector, reclaiming its position as the top-funded country in APAC. With $2 billion raised, it accounts for nearly half of the region's total funding. A staggering $1 billion of this went to Zepto, an e-grocery startup, in two late-stage financing rounds. This single investment showcases the potential of the Indian market, which has rebounded from a 73% drop in 2023.
China, while trailing behind, is not far off. It secured $1.5 billion, an 18% increase from last year, with 230 deals under its belt. The country remains a powerhouse in early-stage investments, particularly in agrifood tech. Notable players like Shiji Biotechnology and Serata Moyun have raised significant funds, highlighting the competitive spirit in the region.
Japan is the surprise contender, climbing three spots to third place. With a 58% year-on-year increase, it raised $280 million through 93 deals. This growth signals a shift in the landscape, as Japan was the only top 10 APAC nation to see an increase in investments last year. The Brewed Protein maker, Spiber, led the charge with a $65 million round.
Australia, however, faced headwinds. It recorded a staggering 78% decline in funding, dropping its share of the APAC market to a mere 1.2%. Yet, there’s a silver lining. Most deals were closed at the seed stage, indicating a potential resurgence in the future.
The funding landscape is shifting. Upstream tech startups, which support farmers and primary production, had a strong showing. They raised $1.8 billion, while downstream players, closer to consumers, attracted $1.9 billion. The gap between these two sectors has narrowed, reflecting a balanced interest from investors.
E-grocery is the star of the show, raking in $1.5 billion, largely thanks to Zepto. This category has nearly tripled in deal count, showcasing a renewed enthusiasm for online grocery shopping. If we exclude Zepto, upstream categories like Bioenergy & Biomaterials and Ag Biotechnology also attracted significant investments, with $475 million and $459 million raised, respectively.
Alternative proteins and novel farming systems are slowly regaining traction. Innovative Food, which includes plant-based and cultivated meat, saw an 85% increase in funding, reaching $204 million. Singaporean oat milk giant Oatside led this charge with a $35 million round. Meanwhile, Novel Farming Systems raised $75 million, indicating a cautious optimism in these categories.
However, the agrifood tech sector still grapples with gender disparity. Male-only founding teams dominate, making up 92% of the total. All-female teams are a rarity, attracting a mere 0.5% of VC investments. Mixed-gender teams saw a decline, highlighting the need for more inclusivity in this burgeoning industry.
The report, a collaboration between AgFunder, Omnivore, and AgriFutures Australia, paints a picture of resilience. Despite global market challenges, APAC’s agrifood tech sector is not just surviving; it’s thriving. The numbers tell a story of recovery, innovation, and potential.
Investors are cautiously optimistic. The number of deals has surged, with 616 transactions recorded in the first three quarters of 2024, surpassing the total for each of the last three years. This indicates a renewed interest in the sector, albeit with a more cautious approach to funding amounts.
The future looks bright for APAC agrifood tech. As countries like India and China lead the charge, Japan’s rise adds a new dynamic. Australia’s struggles serve as a reminder of the challenges ahead, but the seed stage activity hints at a potential turnaround.
In conclusion, the APAC agrifood tech sector is a resilient ecosystem. It’s a landscape of contrasts, where challenges coexist with opportunities. As funding flows back into the sector, the focus on innovation and sustainability will be crucial. The journey is just beginning, and the horizon is filled with promise.