Biotechnology in Food-Tech: Breaking Barriers to Scale and Market Growth

The food technology sector is experiencing rapid growth, with the global market is projected to grow from USD 293.54 billion in 2024 to USD 444.35 billion by 2032[i]. This expansion is driven by the increasing need to create more sustainable supply chains which in turn is fuelling significant investments and technological advancements.

With the global population anticipated to reach 9.7 billion by 2050, ensuring food security and sustainability becomes paramount. Biotechnological advancements, such as precision fermentation and cultivated meats, are instrumental in enhancing food production efficiency, improving sustainability, and providing alternative protein sources.

However, the journey from groundbreaking research to widespread commercialization is fraught with challenges. Scaling biomanufacturing processes to meet global demands requires overcoming significant obstacles, including technological limitations, cost reductions, and securing financial investment. Moreover, the evolving regulatory landscape necessitates that industry leaders remain agile, adapting to new policies and seizing emerging partnership opportunities.

Ahead of the approaching Future Food-Tech flagship summit in San Francisco on March 13-14, expert speakers delve deeper into these challenges, exploring the milestones achieved in scaling biomanufacturing, the impact of regulatory changes on biotech-derived food products, and the various financing avenues available to support the industry’s growth trajectory.

The Challenge of Scaling

Scaling biomanufacturing remains a critical challenge. While some stakeholders highlight progress in reducing costs and improving efficiency, others point to the continued need for infrastructure and technological breakthroughs.

Elizabeth Teigland , Application Sales Manager at 利乐 , acknowledges that “the path from the lab to retail shelf can be a long one,” emphasizing the importance of process optimization and testing facilities like Product Development Centers (PDCs) to smooth the transition.

David Kestenbaum , CFO and Co-Founder of Cauldron Ferm , stresses the importance of efficiency gains, stating, “Our breakthroughs in hyper-fermentation technology have successfully scaled to 10,000-liter production, setting new benchmarks for bioindustrial applications.”

Others, like Beth Conerty of iFAB Tech Hub , see a fundamental bottleneck in infrastructure. “Finding ways to use existing assets for multiple users is crucial for projects to continue scaling,” she notes, highlighting the need for greater collaboration across the industry.

For Jaco van der Merwe , Managing Director at Cultivate at Scale , reducing media costs is key to achieving price parity with traditional agricultural products. “Reaching price parity is now within reach, but increasing volumetric productivity is the next big hurdle,” he explains.

Deniz Kent, PhD , Co-Founder & CEO of Prolific Machines , brings a fresh perspective by advocating for new control mechanisms in biomanufacturing. “Using light, we can precisely control cellular functions, reducing operational costs and maximizing production efficiency,” he says, offering a novel approach to process optimization.

John Krzywicki , SVP Commercial and Strategy at Checkerspot , takes a different stance, emphasizing a capital-light model. “Leveraging a network of partners allows us to scale faster without investing heavily in infrastructure, ensuring rapid commercialization,” he says, positioning strategic collaborations as a way to overcome resource-intensive scale-up challenges.

Bill Aimutis , Co-Director at the Bezos Center for Sustainable Protein, sees both promise and risk in the current scaling efforts. “New carbon and nitrogen sources from upcycled products show promise, but ensuring a consistent supply and compositional identity is still a hurdle,” he cautions. Meanwhile, he highlights AI-driven sensors and fluid dynamics studies as powerful tools for improving fermentation efficiency.

Despite these varied approaches, a common thread emerges: Scaling requires both technical innovation and industry-wide cooperation to overcome economic and logistical barriers.

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Navigating the Future of Biotech

As the U.S. administration signals potential regulatory shifts, industry leaders are considering how to best position themselves in this evolving landscape.

Beth Conerty underscores the importance of aligning biotechnology with national interests. “Food security is national security, and the more the industry can align with that vision, the better the industry is likely to fare under the current administration.”

John Krzywicki sees biotechnology as an opportunity to reduce reliance on imports, arguing that “Checkerspot’s platform can convert U.S.-grown sugarcane, corn, and sugar beets into high-value oils, offering a new use for corn and reducing reliance on imported ingredients.”

However, regulatory uncertainty remains a challenge. Bill Aimutis highlights the need for stronger consumer education efforts. “As an industry, we have not adequately prepared consumers and the food processing industry for these new generations of biotechnology products. Eliminating ‘fear factors’ makes it much easier to gain consumer acceptance and future successes for these products.”

While some see regulatory change as an opportunity for growth, others warn that added layers of regulation could hinder innovation if not implemented thoughtfully.

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Attracting Biotech Financing

Scaling biotechnology requires a delicate balance of funding sources, as different investors play unique roles in commercialization.

Checkerspot ’s strategy hinges on joint development agreements (JDAs) and government partnerships. “These kinds of agreements support early-stage production and scale-up without excessive capital burn, ensuring a viable path to commercialization.”

David Kestenbaum of Cauldron Ferm echoes this sentiment but emphasizes financial credibility. “By showing a solid business case for our first industrial-scale bio-fab, we’ve been able to attract debt providers earlier than is typical for an early-stage company.”

Deniz Kent, PhD of Prolific Machines is optimistic about renewed venture capital (VC) interest. “VC support will always play a defining role in the industry and progressing innovation. With promising data, both in the clinic and in the labs, it is imperative to be more strategic in raising capital.”

Brian Heligman , CEO of Biosphere , takes a broader view, arguing that multiple funding mechanisms must work in tandem. “All types of funding are needed. Non-dilutive is helpful for pre-commercial research, venture is great for technology development with clear market impact, debt and project finance are needed for liquidity when risks are underwriteable, and M&A and IPOs are needed to provide the liquidity that makes the entire system spin.”

Bill Aimutis sees large food companies as crucial players in this next phase of investment. “Venture capital funds and some small local funding have brought technology to this point in time, but future investment will require substantial capital for manufacturing infrastructure and development of potential markets.”

While experts agree that funding diversity is key, they differ in their assessments of where the greatest opportunities lie—whether in VC, government support, corporate partnerships, or capital markets.

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Conclusion

As the food-tech industry continues to evolve, biotechnology stands at the forefront, driving advancements in food security, sustainability, and innovation. By addressing scaling challenges, adapting to regulatory changes, and securing diverse financing, the industry will position itself to overcome obstacles and capitalize on emerging opportunities.

Ready to join the forefront of food innovation??Register now to secure your place at Future Food-Tech in San Francisco on March 13-14.

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[i] Source: https://www.businessresearchinsights.com/market-reports/foodtech-market-102917