“Canada’s foodtech ecosystem has made remarkable progress over the last decade, driving transformative innovations that enhance sustainability, boost economic productivity, and create jobs nationwide,” said Dana McCauley, chief executive officer of the Canadian Food Innovation Network (CFIN) when she recently released its first annual report.
“However, to truly realize our potential as a global foodtech superpower, we must address the pressing challenges that remain. CFIN is fully committed to empowering homegrown innovators and fostering solutions that will shape the future of food technology in Canada,” she said,
The report charts more than $4.1 billion in Canadian agrifoodtech investments between 2014 and 2024, in which $2.3 billion went specifically to foodtech projects.
While Canadian foodtech has seen a healthy inbound of investments, with an 8.4per cent compound annual growth rate compared to -2.6 per cent globally, the report found an unbalanced funding distribution between public and private funding.
Over the past four years, approximately 60 per cent of foodtech investment rounds in the United Kingdom and the United States have been backed by venture capital, compared with 40 per cent in Canada.
However, public grants play a much more significant role in Canada, comprising 30 per cent of all foodtech funding round which compares with five per cent in the U.K.and eight per cent in the U.S.
The plant-based sector’s 60 companies account for half of Canada’s foodtech industry.
On the global stage, the report shows that Canada has a larger pool of plant-based protein innovators, representing 26 per cent of the Canadian foodtech ecosystem, compared to the 14 per cent global average.
More and more Canadian startups are developing solutions to address the country’s 21 million tonnes of food waste, ranging from repurposing the ‘outcasts’ of the food industry to converting waste into syrup, the report said.
This growth is reflected across the 11 food waste management companies examined in the report such as Flashfood, Knead Tech, and Crush Dynamics.
Canada’s biotech sector has seen significant growth in food processing, with 18 companies using innovative biotech processes to produce nutrient-dense proteins for infant formulas, cognitive health supplements, and other food products. Notable companies in this field include Mara Renewables and Chinova Bioworks, the report said.
Labour shortages and supply chain complexities pose significant challenges for Canada's food system, with manufacturers, restaurants, retailers, distributors, and foodtech companies struggling to find talent amid an aging workforce, low national birth rate, reduced immigration and temporary foreign worker levels, and steep competition, NIMA said.
