Explore the Food and Beverage Industry Report 2024

In this Food and Beverage Industry Report for 2024, we delve into a sector undergoing rapid evolution, driven by innovation and changing consumer habits. Amidst this transformation, the report analyzes key growth areas, from technological adoption to product development. The focus on distribution efficiency and the rise of AI in food tech form pivotal themes. It offers a deep dive into industry trends, firmographic data, and the forces shaping the food and beverage landscape.

This report was last updated in July 2024.

This food and beverage report serves as a reference for stakeholders, investors, policymakers, and economic analysts in the industry, providing a snapshot of the industry’s health to map its trajectory for innovation and growth in the coming years.

StartUs Insights Food and Beverage Industry Report 2024

• Executive Summary
• Introduction to the Food and Beverage Industry Report 2024
• What data is used in this Food and Beverage Report?
• Snapshot of the Global Food and Beverage Industry
• Funding Landscape in the Food and Beverage Industry
• Who is Investing in Food and Beverage Companies?
• Emerging Trends in the Food and Beverage Industry
• 5 Food and Beverage Startups impacting the Industry

Executive Summary: Food and Beverage Industry Report 2024

This report is created using data obtained from the Big Data and AI-powered StartUs Insights Discovery Platform, covering more than 4.7 million global companies, as well as 20K+ technologies and emerging trends. We also analyzed a sample of 3885 food and beverage startups developing innovative solutions to present five examples from emerging industry trends.

• Industry Growth: The sector experiences a slight decline in growth (-0.8%), yet exhibits resilience through innovation.
• Manpower & Employment Growth: The industry employs over 27 million individuals and added 1.4 million new jobs last year.
• Patents & Grants: Startups contribute to over 92100 patents and secured more than 6240 grants, reflecting strong R&D and investor confidence.
• Global Footprint: The USA, UK, India, Germany, and Canada emerge as top hubs, with top city hubs in New York City, London, Singapore, Melbourne, and Sydney leading as central nodes for innovation.
• Investment Landscape: The average investment value stands at USD 28 million per round, with over 19000 investors participating in more than 76000 funding rounds.
• Top Investors: Notable investors include SoftBank Vision Fund, Tiger Global Management, and Tencent, among others, investing over USD 14.5 billion collectively.
• Startup Ecosystem: Five innovative startups include ZabonEx (Distribution Prediction), BetterBasket (Automated Merchandising Intelligence), Re:meat (Cultivated Meat), LoopM Alternatives (Sustainable Packaging Materials), and Infusd Nutrition (Water-soluble Functional Ingredients).
• Recommendations for Stakeholders: Implementation of AI for food business management and sustainability practices to capitalize on emerging consumer trends is key. Strategic investments in high-growth areas like AI or sustainable packaging will lead to long-term business benefits.

Explore the Data-driven Food and Beverage Report for 2024

The Food and Beverage Industry Report uses data from the Discovery Platform and encapsulates the key metrics that underline the sector’s dynamic growth and innovation. The report showcases a detailed analysis of the sector’s performance and innovation. Despite a marginal industry growth decline of 0.8% over the past year, the food and beverage landscape shows resilience with 349K+ companies actively documented in the database.

Employee growth in the sector remains robust, with a significant addition of 1.4 million workers, reflecting the industry’s capacity for job creation amidst challenges. Globally, the industry boasts a workforce of 27 million, showing its significant impact on the economy.

The report identifies the USA, UK, India, Germany, and Canada as the top five country hubs for the food and beverage sector, with cities like New York City, London, Singapore, Melbourne, and Sydney recognized as the leading city hubs. This geographical distribution underscores the global reach and the entrepreneurial spirit that fuels the food and beverage industry.

What data is used to create this food and beverage report?

Based on the data provided by our Discovery Platform, we observe that the food and beverage industry ranks among the top 5% in the following categories relative to all 20K topics in our database. These categories provide a comprehensive overview of the industry’s key metrics and inform the short-term future direction of the industry.

• News Coverage & Publications: The food and beverage industry was featured in over 110000 publications last year, reflecting significant media coverage.
• Funding Rounds: The database reveals data on more than 76000 funding rounds within the food and beverage sector.
• Manpower: The industry employs over 27 million workers, with an increase of more than 1.4 million new employees in the past year.
• Patents: Holders of food and beverage innovation own upwards of 92000 patents.
• Grants: The sector has secured over 6200 grants, showcasing support for its advancements and developments.

A Snapshot of the Global Food and Beverage Industry

The food and beverage industry continues to demonstrate its significance as a major global employer, boasting a remarkable workforce of 27 million people. This sector has exhibited a commendable growth trajectory, as evidenced by the substantial addition of 1.4 million employees over the last year, signifying the industry’s resilience and expanding nature.

Startups contribute to over 92100 patents, demonstrating a strong focus on research and development. They have also collectively secured more than 6240 grants, indicating the confidence of investors and government bodies in their future potential.

Additionally, the industry’s vastness and diversity are marked by the presence of over 349000 companies. This data highlights the sector’s ability to generate employment also also underscores its role as a key pillar of the global economy. This is evident through its contribution to job creation and entrepreneurship in the face of dynamic market conditions.

Explore the Funding Landscape of the Food & Beverage Industry

The F&B industry presents a vibrant investment landscape, as depicted by the average investment value of USD 28 million per round, highlighting investors’ strong confidence in the sector’s growth and profitability. The industry captivates a wide investor audience, with over 19000 investors actively placing their bets on its future. This interest is further reflected in the closure of more than 76000 funding rounds, underscoring a lively and dynamic capital infusion environment.

Over 31000 companies have benefited from these investments, showcasing the depth and breadth of innovation and entrepreneurship that thrives within the food and beverage space. This financial engagement underscores a keen interest in nurturing a diverse range of businesses, from startups aiming to disrupt the market to established companies scaling new heights.

Who is Investing in Food and Beverage Companies?

The top investors in the Food and Beverage industry collectively channel more than USD 14.5 billion into the sector, displaying significant financial commitment and foresight.

• SoftBank Vision Fund leads with investments of USD 2.9 billion in 24 companies, marking a robust confidence in the industry’s potential.
• Tiger Global Management follows with USD 2.7 billion allocated across 48 companies, emphasizing their aggressive investment strategy.
• Temasek Holdings has laid down USD 2.1 billion in 22 companies, showing their targeted investment approach.
• Tencent’s strategic investments amount to USD 2 billion in 19 companies, showcasing their focus on growth and innovation.
• Sequoia Capital China infuses USD 1.3 billion into 37 companies, underpinning the value they see in the sector’s expansion.
• Kohlberg Kravis Roberts commits USD 1.2 billion across 16 companies, indicating their selective investment policy.
• T. Rowe Price’s investment strategy includes USD 1.2 billion distributed among 11 companies, focusing on high-impact opportunities.
• Goldman Sachs completes the list with a significant USD 1.1 billion invested in 22 companies, reinforcing its trust in the sector’s robustness and future growth prospects.

These investments reveal a clear conviction in the ongoing evolution and long-term sustainability of the food and beverage industry.

Explore Firmographic Data for All Food & Beverage Trends

Different retail industry trends will impact your business in different ways. Book a demo to explore all the trends impacting retail companies in more detail. The top emerging trends in retail include:

• Food & Beverage Distribution represents 946 companies and employs 277000 individuals. This indicates a stable yet modest growth, with 9500 new jobs added last year. However, it’s experiencing a slight contraction, with an annual trend growth rate of -1.5%, suggesting potential disruptions or shifts in the traditional distribution models as the industry evolves.
• AI for Restaurants is an emerging trend with 198 companies developing this technology further. The segment boasts a workforce of 12600, bolstered by 1400 new hires in the previous year, reflecting its rapid expansion with an impressive annual growth rate of 31.61%. This growth underscores the increasing adoption of AI to optimize restaurant operations and enhance customer service.
• Ultra-Processed Foods, while smaller, includes 111 companies and employs 4700 people. It has grown by 400 employees in the last year, marking an annual trend growth rate of 3.90%. This trend points to a continued demand for convenience foods, despite the global push towards healthier eating habits.

5 Top Examples from 3800+ Innovative Food and Beverage Startups

The five innovative startups showcased below are picked based on data including the trend they operate within and their relevance, founding year, funding status, and more. Book a demo to find promising startups, emerging trends, or industry data specific to your company’s needs and objectives.

ZabonEx develops a Food Distribution Prediction Platform

Oman-based startup ZabonEx specializes in deploying machine learning to forecast product distribution in the food and beverage sector. Its platform connects to various data sources, offering intelligent suggestions for data processing. It enables the construction and implementation of explainable machine learning models, enhancing accuracy and customer focus. By leveraging machine learning, ZabonEx assists manufacturers and retailers in maximizing perishable product value and minimizing waste. The platform’s Prediction Engine adapts to consumer consumption habits, refining supply and distribution strategies. This approach increases sales by aligning with real-time demand and also enables product freshness.

BetterBasket offers Automated Merchandising Intelligence

US-based startup BetterBasket offers real-time pricing and assortment solutions for grocery stores. Its platform leverages a proprietary algorithm to match items across markets, enabling informed pricing and product decisions. It provides insights for optimizing margins and sell-through by indexing market pricing and analyzing local competitor data. BetterBasket’s technology also provides automated updates, eliminating the need for manual oversight in pricing strategies. This solution tracks over 20000 US ZIP codes, offering granular, real-time pricing data. The system is designed to enhance category margins for retailers and brands.

Re:meat provides Cultivated Meat

Swedish startup Re:meat focuses on meat production through cellular agriculture. The company combines expertise in various fields to construct a large-scale cultivated meat facility, starting with beef. Its innovation includes cultivated Swedish meatballs, which received positive feedback at consumer tastings. The startup enables scaling production, utilizing serum-free technology for large-scale outputs, contrasting with the industry’s R&D focus. Re:meat offers sustainable protein sources, highlighting a shift in the food industry towards environmentally friendly alternatives.

LoopM produces Sustainable Packaging Materials

LoopM is an Indian startup that produces sustainable packaging solutions using advanced biomaterials. The startup’s Bio-Based Coatings enhance the longevity of perishables, ensuring food safety and reducing waste. LoopM’s packaging solutions employ active packaging technology to optimize product shelf life. By repurposing agro-waste, LoopM contributes to environmental sustainability and waste reduction. The firm’s processes also align with efforts to minimize global greenhouse gas emissions by tackling food spoilage.

Infusd Nutrition creates Water-soluble Functional Ingredients

Canadian startup Infusd Nutrition creates ingredients for multiple markets including beverages, nutrition, and cosmetics. It specializes in producing water-soluble versions of typically fat-soluble and insoluble nutrients. Specifically, the startup explores new uses for Omega-3 hemp seed oil, leading to the development of its novel ingredients. Infusd’s technology also promises a new approach to integrating beneficial nutrients into everyday products.

Gain Comprehensive Insights into Food & Bev Trends, Startups, or Technologies

The 2024 food and beverage report showcases the industry’s growth challenges, and how companies are reinventing with advanced distribution technology. As the industry marches towards sustainability and technological integration, the insights from this report are instrumental for stakeholders to navigate the evolving market and harness the opportunities that lie within these trends. Get in touch to explore all 3800+ startups and scaleups, as well as all industry trends impacting food and beverage companies.