Page 16 - Food&Drink March 2022

FOOD TECH
Investing in the food tech gold rush
The global food tech market is forecast to grow to $484 billion by 2027. VentureCrowd CEO Steve Maarbani looks at how it will revolutionise the health and wellness market segment.
WHEN I was growing up, my mother would say “let food be your medicine”. The only problem was that the food ecosystem was designed to do more harm than good, and the thing that was meant to support our health, had actually started to kill us.
Diet-related chronic diseases have been on the rise for decades, and the hardest truth to swallow is that many of them are completely preventable.
The most pervasive example of this is the rise of worldwide obesity, which has more than tripled since 1975.
To support global economic development, the food industry (for the most part) has been driven by producing cheaper foods instead of putting the wellbeing of consumers first.
While the industrialisation of food has been hugely beneficial for humanity, it hasn’t been without downside.
HOW CAN WE CHANGE?
Change begins with awareness. As more of us become aware of the food we eat and its overall impact on our health, we are also starting to understand the
have more than doubled in the last year and this is a trend that’s catching on globally.
Europe currently accounts for nearly 75 per cent of all non- alcoholic beer consumed. In Japan, almost 5 per cent of beer sold is non-alcoholic, and in Spain, that number is up to 13 per cent.
It’s important to note that consumers want these non- alcoholic products to go head-to-head with what’s offered by sophisticated drinks brands.
They want their pleasure receptors hit with a complexity of taste and the ritual of a cocktail, but without the liver damage and hangover.
THE FOOD TECH CHARGE
Ensuring the future of food is healthier and more sustainable isn’t just about improving our individual health, it’s about the ability for technology to revolutionise health outcomes.
To that end, it is the food tech innovators that are leading the charge. From fermented foods to probiotics and plant-based meat, food startups have risen to the challenge and are answering the call for products that are better for us and our planet.
The global food tech market is forecast to grow to $484 billion by 2027. While voting with our wallets and purchasing health conscious and sustainable products from these companies is an important first step, investinginthesebusinesseswill support their growth, and can provide a strong and sustainable return on investment.
Take Zega for example. Its intelligent cookware product self-cooks one pot meals without needing electricity or gas. It’s the perfect solution for time-poor families looking to prepare healthier dinners.
Last year, the Australian business raised almost
$1 million in a crowdfunding capital raise, with the funds set to enable it to begin distribution in key markets, manufacture more cookware units, and increase IP protection.
Another Australian company making strides in this arena is Nexba, which developed a patent-pending naturally sugar free sweetener formula and range of beverages. Since its launch in 2017, the company estimates it has removed over three billion grams of sugar from consumers’ diets.
Nexba’s gross revenue grew from $2.5 million in 2017 to $35 million in 2021. The venture raised $6 million in a Series A equity crowdfunding round, has expanded into the UK and plans to roll out its ground-breaking technology to food products globally soon.
Sustainability, health and wellness are top of mind for so many of us, which is why food technology is emerging as one of the most important sectors for humanity and consumers.
We’ve entered a new era of food production, and investors have an opportunity to get behind the innovators leading the FoodTech revolution.
Buckle up and get ready for the gold rush. ✷
✷ ABOUTTHEAUTHOR
“ Ensuring the future of food is healthier and more sustainable isn’t just about improving our individual health, it’s about the ability for technology to revolutionise health outcomes.”
In 2017, the Australian Institute of Health and Welfare estimated that two in three Australian adults were overweight or obese.
Obesity increases the risk of non-communicable diseases, including diabetes, liver disease, cardiovascular disease, and certain cancers. It is also one of the leading risk factors for premature death.
impact of our food choices on the planet.
Covid has accelerated this trend, with many of us looking to improve our overall health in the wake of the global health crisis. For example, lockdowns and isolations led to a massive uptake of those living a sober lifestyle in Australia.
BWS and Dan Murphy said the sales of non-alcoholic beverages
ABOVE & TOP: Nexba is a leader in using food tech to create healthier products.
Steven Maarbani is CEO of the crowdfunding platform for alternative assets VentureCrowd. He is also
on the Advisory Board for a number of high-growth
companies, and was formerly a PwC partner specialising in Venture Capital & Private Equity.
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