DigitalFoodLab's 2024 Projections: Navigating Challenges and Seizing Opportunities in FoodTech
Welcome to the OME LinkedIn Newsletter.
In each issue, we explore one of the hot topics in the world of restaurants and food delivery.
DigitalFoodLab recently presented its top five predictions for 2024, offering insights into the ever-evolving world of FoodTech. Let's take a look at the trends that they believe will shape the industry in the coming year.
1. Investment Landscape: Navigating Economic Tides
Anticipate a rollercoaster ride in the investment realm during the first half of 2024. Investments are projected to decline, mirroring broader economic conditions. However, a potential rebound in the US by year-end is on the horizon. The interplay between tech and FoodTech and its connection to economic health underscores the complexity of the funding landscape. The anticipated interest rate cuts may rekindle enthusiasm for risky assets, particularly in AI and sustainability, providing a lifeline for startups with robust technologies or promising profitability.
2. Startup Shakeout: Facing the Hard Truths
Prepare for the shakeout. Well-known startups might face closure, with rumours circulating about their financial woes. Downrounds, indicative of investors gaining control, are becoming more common. DigitalFoodLab 's analysis suggests that several startups may vanish from the unicorn list, with potential ramifications for the broader ecosystem. While this spells trouble for some, it presents acquisition opportunities for deep-pocketed companies seeking strategic assets at a discounted price.
3. Plant-Based Rebound and Tech Skepticism: Finding Balance
Expect a resurgence in plant-based sales after a brief dip due to inflation. However, advanced technologies like precision fermentation and cellular agriculture may face challenges in 2024. Startups overpromising results have left investors sceptical, prompting market concentration through failures or acquisitions. A renewed focus on B2B and hybrid products, combining plant-based elements with cultivated meat, opens avenues for acquisitions by established players.
4. Divergence in Brand Strategies: Health vs. Indulgence
Witness a growing divide between the actions of new and established brands. Established players will emphasize health-oriented food products, fuelled by the buzz around health-centric drugs. Simultaneously, startups are launching a wave of indulgent products tailored to Gen Z, responding to the generational shift away from health-focused Millennial brands. This divergence in strategies creates a dynamic marketplace with opportunities for innovation.
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5. AI's Presence: Unveiling Tangible Applications
While AI remains a central theme, expect a nuanced approach in 2024. Tangible applications might not flood the scene, but three areas warrant attention:
Marketing: Generative AI, exemplified by ChatGPT, accelerates current processes.
Order Management: AI's impact on predicting orders and reducing food waste in foodservice and stores is poised for growth.
Alternative Proteins: AI's role in selecting micro-organisms and scaling precision fermentation for alternative proteins and agriculture remains pivotal.
In conclusion, 2024 promises challenges and opportunities in equal measure for the FoodTech industry. Stay agile, adapt to changes, and seize the possibilities that emerge on this exciting journey.
OME - January 25 2024
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Sean Murray Niall Reynolds Shane O'Neill, Donal Egan John Farrell(FCA/FInstLM) Dmitry Skorinko Hosted Kitchens Fintan Gavigan
#FoodTech #Innovation2024 #DigitalFoodLabPredictions