S2G Ventures reveals 10 trends shaping the future of Food & AgTech in 2022

S2G Ventures, a leading multi-stage investment firm focused on the food, agriculture, ocean and seafood markets, has unveiled ten Food and AgTech trends that will shape the future of food in 2022, in advance of Food Tech arriving for the first time at CES.

In response to changing consumer preferences, climate change and shifts in the capital market landscape, S2G Ventures predicts that we are entering a global food transition, much like the global energy transition that has been a multi-decade effort of over $4 trillion of capital formation.

According to Sanjeev Krishnan, S2G Ventures Managing Director and Chief Investment Officer, "The food transition is still in its infancy but is being propelled by seismic tailwinds: massive demographic change spurring new consumer demand, significant advancements in the biology, chemistry and physics of food production to create new choices and now capital markets anchored by ESG that want to fund high growth, disruptive companies."

S2G Ventures' report, "10 Trends Shaping the Future of Food in 2022", explores the trends that are driving the transition to a climate-smart, healthy food system. The trends fall into three categories: The 4th Industrial Revolution Comes to the Farm, Supply Chain Disruption Accelerates Innovation, and Food Technology Advances Health and Consumer Choices.

The 4th Industrial Revolution Comes to the Farm

Countless challenges facing farmers in the US today are straining operations but also creating the conditions for innovation and adoption of new technologies.

1. Robots will increase efficiency while reducing labor needs across the food system.
2. The rise of ESG will help to digitize the farm.
3. Fintech will transform opportunities in agriculture, just as it did for the student loan and mortgage markets.
4. RNA technology that saved lives during Covid-19 will be applied to farms to save soils.

Supply Chain Disruption Accelerates Innovation

The supply chain disruptions experienced over the past two years have created a sense of urgency to develop solutions that will make supply chains more nimble, sustainable, localized and less wasteful.

5. Fermentation will power the next generation of alternative protein products.
6. Cellular protein will provide consumers around the world with safe, sustainable food.
7. Adoption of food waste solutions will be recognized as both a good business practice and an essential tool for feeding the world.

Consumers Demand Better Food Choices and Experiences

To address declining national health standards as well as consumers' growing interest in adopting more holistic diets, food and nutrition startups are using cutting edge science as well as Ai and ML to develop nutrient dense, functional and personalized food products.

8. AI and machine learning platforms will unlock greater understanding of and use cases for plants and fungi.
9. Food will become central to the effort to prevent chronic disease and improve health outcomes.
10. Food brands and grocers will have to "personalize or perish."