Cultivated, Cell-Cultured & Biotechnology

Canada’s Foodtech Report: Is Canada Ready to Compete in the Global Foodtech Race?

The Canadian Food Innovation Network (CFIN) has released its Foodtech in Canada 2025 Ecosystem Report, offering insights into investment trends, sector strengths, and challenges in Canada’s food technology sector from 2014 to 2024.

“Canada’s foodtech ecosystem has made remarkable progress over the last decade.”

Canada’s agrifoodtech sector attracted $4.1 billion CAD in investment over the past decade, with $2.3 billion CAD directed to food technology projects. The sector has grown at an 8.4% compound annual growth rate (CAGR), surpassing the global average decline of -2.6%.

However, venture capital investment in Canadian foodtech lags behind other countries, with only 40% of funding rounds backed by VC, compared to 60% in the UK and US. Instead, government grants play a larger role, representing 30% of Canadian foodtech funding rounds, compared to just 5% in the UK and 8% in the US.

The Honourable Lawrence MacAulay, minister of agriculture and agri-food, explained the report’s value in guiding the sector forward: “This report will help businesses, researchers, and investors learn the lay of the land and bring more of our top-quality products from the farm to the table with cutting-edge innovations.”

Canadian Food Innovation Network foodtech canada report
© Canadian Food Innovation Network

Key strengths in Canadian foodtech

The plant-based food sector has emerged as a leading segment, growing at a five-year CAGR of 49.5%. More than 60 companies, including New School Foods and No Meat Factory, are innovating in this space. Plant-based companies now account for 26% of the Canadian foodtech ecosystem, nearly double the global average of 14%.

Food waste solutions are another area of rapid expansion, growing at a 40.7% five-year CAGR. Companies such as Flashfood, Knead Tech, and Crush Dynamics are working to repurpose surplus food and reduce waste.

Additionally, Canada’s biotech sector has seen increased activity in food processing. Companies like Mara Renewables and Chinova Bioworks are developing nutrient-dense food products using biotechnology, contributing to a 24.7% CAGR in this segment.

New School Foods salmon
© New School Foods

Challenges facing the industry

Despite strong early-stage funding, Canadian foodtech startups struggle to secure later-stage investment. Series A and B funding rounds in the US and UK are, on average, twice the size of those in Canada, while Series C rounds in the US are three times larger.

Labour shortages and supply chain disruptions further complicate industry growth. A combination of an ageing workforce, declining birth rates, and restrictions on immigration and temporary foreign workers have made it difficult for companies to find skilled labour.

CFIN CEO Dana McCauley states, “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. However, to truly realize our potential as a global foodtech superpower, we must address the pressing challenges that remain.”

The full “Foodtech in Canada 2025 Ecosystem Report” is available at: https://cfin-rcia.ca/yodl-content/cfin-reports/foodtech-in-canada-2025-ecosystem-report.




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