Foodbytes: The new normal for the food system

As we continue to see the world adjust to an ongoing pandemic, it’s clear that the outbreak of COVID-19 has created profound change in the global food system. While the outlook continues to fluctuate by the day, many aspects of the industry will be transformed long-term.

The FoodBytes! Q1 2020 Trend Report examined food and agriculture innovations in response to COVID-19, driven by increased demand for fresh produce, shelf-stable products and health-added ingredients. Throughout the pandemic, consumers have been shopping more consciously, buying local and embracing digital e-commerce. The Q2 Trend Report dives deeper into four startup innovation areas that the FoodBytes! team expects will drive lasting change, offering a data-driven snapshot of the pandemic-proof innovations they believe are here to stay.

Shortening the link: Farm-to-Consumer Channels on the rise

We have seen criticism of lean, globe-spanning supply chains with calls for shorter, more locally diverse alternatives. One category that has received great attention is Farm-to-Consumer eGrocery. Many investors may revisit the space with new vigor in light of COVID-19 as consumers look to buy produce directly from the source. This category is gaining more traction as consumer demand for supply chain transparency grows.

Food loss mitigation on the agenda

Before the COVID-19 outbreak, food waste amounted to about 33 percent of global food production and consumption. An extended pandemic will increase food waste further, due to lack of foodservice demand and the logistical challenges in redirecting food to retail. Companies around the world are trying hard to eliminate pandemic-fueled food waste. Startups that offer valuable solutions to mitigate food loss are well placed to weather the pandemic storm.

On-farm automation and digitization

As the focus on labor efficiencies persists, Foodbytes! expects to see greater adoption of  agricultural technology innovations like precision agriculture, robotics and indoor farming. Growing food safety and hygiene concerns have resulted in increased consideration of automation across agricultural production. Labor shortages exacerbated by COVID-19 safety concerns have sparked the development of new technologies that minimize worker presence across the production process, while at the same time helping companies reduce costs.

The continued proliferation of plant-based meats

The pandemic has accelerated the trend toward buying animal-free products and plant-based alternatives. Growing consumer concerns around the sustainability of animal consumption, coupled with meat supply chain disruption, have caused plant-based foods to experience increased demand. According to Nielsen data, overall plant-based sales globally have increased 90 to 240 percent, depending on the category, since March.

“The COVID-19 pandemic has made it clear that players in our food system must be prepared for constant change and transformation. Rabobank is now playing a much larger role in helping companies adopt the innovation mindset and capabilities that are essential for a resilient food supply, as well as long-term business success,” said Anne Greven, head of F&A Innovation at Rabobank.

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