The annual Asia-Pacific AgriFoodTech report by AgFunder has revealed a partial recovery in innovative food investments, a category that encompasses cultivated meat, novel ingredients, and plant-based proteins.
$204 million was raised by innovative foods companies in the APAC region between January and the end of October, up 85% compared to the same period in 2023. Furthermore, 59 deals were made during this time, up from 49 last year. Notably, Singaporean oat milk company Oatside raised one of the largest Series B rounds of the year at $35 million. While these figures are encouraging, investments remain significantly lower than they were in 2021 at the peak of the hype phase.
Agrifoodtech investments
Asia-Pacific agrifoodtech investments as a whole have also increased considerably, reaching $4.2 billion. This is a significant recovery compared to 2023, when just $3.4 billion was raised. Asia-Pacific agrifoodtech now accounts for 31% of global agrifoodtech funding, up from a ten-year average of 26%.
Seed-stage deals have seen a considerable increase, with funding totals up 13% despite a decrease in the number of deals. Deals at Series A and C increased in both size and number, while Series B deals increased in number but decreased in size.
“Remarkable recovery”
Novel farming systems, including categories such as indoor farms, aquaculture (including sea vegetables), and new living ingredients like microbes, also saw a modest increase in investments. As of the end of October, $76 million had been raised across 25 deals, compared to $64 million and 29 deals in the same period in 2023.
By region, India took the top spot with $2 billion in funding raised, overtaking China which raised $1.5 billion. South Asia (including India, Pakistan, and Bangladesh) is already up over 100% compared to FY 2023.
“Agrifoodtech funding in Asia Pacific (APAC) has demonstrated a remarkable recovery in 2024,” says the report. “As of the end of October, APAC agrifoodtech startups have raised $4.2 billion in funding, accounting for 31% of global agrifoodtech funding year-to-date. This represents a notable increase from APAC’s 26% average share of global agrifoodtech funding over the past 10 years.”
