Isra-Tech | AgroTech, FoodTech & WaterTech

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FoodTech Israel’s Foodtech Landscape

Dramatic Growth Fostered by Healthy Investments & Governmental Support

C urrently, Israel boasts over 200 Foodtech startups that innovate to create solutions for healthier, higher quality and more sustainable food. These companies specialize across many areas, but alternative protein has become clear industry leaders, receiving about 60 % of all investments in Israeli Foodtech in 2022 . These companies work towards creating technologies that allow for the replacement of conventional proteins in meat, dairy, egg, and seafood products, while still maintaining taste, texture, and quality standards. In 2022 , the GoodFood Institute Israel (GFI) published a report emphasizing that Israel will need a strong national plan to support its thriving Foodtech industry, as this organized structure can enhance food security and become a “strategic national asset” for Israel. In a similar manner, the Israeli government officially announced Foodtech as one of the nation’s top 5 investment priorities with the Ministry of Science, Technology, and Space. Investment activities and economic trends In the past two years, about US$ 1 . 1 billion has been invested into Israel’s Foodtech industry, causing an overall 26 % increase in investment deals in this period. With over 60 % of these funds going towards the alternative protein sector, Israel has quickly become a world leader in alternative proteins, fermentation, and cultivated meats, and the capital raised in these areas ranks second to only the United States. GFI estimates that Israeli alternative Foodtech, which refers to technology and digital solutions employed to develop efficient and sustainable foods, is one of the hottest areas in Israeli industry – and it only keeps growing.

protein startups raised US$ 454 million in 2022 , accounting for 15 % of the capital raised for this sector worldwide. Fermented protein

startups raised US$ 147 million, 18 % of global investment, and the cultivated meat subsector’s US$ 105 million composed 12 % of total global investments. The increased prevalence of Foodtech startups, especially

pertaining to alternative proteins, can be attributed to many factors. On the global level, food insecurity has been rising over the past few years, causing less people to access constant sources of sufficient, safe, and nutritious food. Especially in the wake of the COVID- 19 pandemic, Russia’s war with Ukraine and climate change, commodity prices have drastically increased due to supply chain and bottleneck issues, energy has become more expensive, and persistently high fuel and fertilizer prices have made it more challenging to grow traditional food. Consequently,

Dan Catarivas

governments and investors around the world searching for more efficient, resilient, and sustainable ways to produce proteins have turned to Foodtech companies, many of which operate in Israel. Israeli cooperation in Foodtech Israel’s Foodtech sector receives both public support – from the government’s Ministry of Health, the Ministry of the Economy, the Ministry of Science, Technology, and Space, and the Israel Innovation Authority – and private support from an array of sources. Over the past decade, the government has distributed over NIS 230 million in

Dan Catarivas is the President of Israeli Federation of Bi-National Chambers of Commerce and Industry

Isra-Tech Israeli Technologies Magazine August 2023