By Jennifer Kervin
February 5, 2025
DIGITAL JOURNAL
Photo by Getty Images on Unsplash
While Canada’s foodtech landscape has broadened significantly in ten years, a new report highlights challenges like funding and labour shortages.
The Canadian Food Innovation Network (CFIN) has released its first Foodtech in Canada: 2025 Ecosystem Report, offering a detailed look at the sector.
The report, developed with data from foodtech ecosystem platform Forward Fooding, examines more than 9,950 global foodtech companies, including 320 in Canada, mapping investment trends and highlighting key opportunities and challenges.
“Canada’s foodtech ecosystem has made remarkable progress over the last decade, driving transformative innovations that enhance sustainability, boost economic productivity, and create jobs nationwide,” says Dana McCauley, CEO of CFIN.
“However, to truly realize our potential as a global foodtech superpower, we must address the pressing challenges that remain. CFIN is fully committed to empowering homegrown innovators and fostering solutions that will shape the future of food technology in Canada.”
Public funding plays a key role in foodtech growth
Between 2014 and 2024, Canada saw $4.1 billion CAD ($2.9 billion USD) invested in agrifoodtech, with $2.3 billion CAD ($1.6 billion USD) directed toward foodtech projects. The report found that Canada’s foodtech investment has grown at a rate of 8.4% annually, compared to a global decline of 2.6%.
However, a significant portion of this funding has come from public sources. Over the last four years, only 40% of Canadian foodtech investment rounds were backed by venture capital, compared to 60% in the UK and the U.S.
Meanwhile, government grants accounted for 30% of Canada’s funding rounds — a stark contrast to just 5% in the UK and 8% in the U.S.
Where does Canada shine?
The report highlights Canada’s strengths in several areas, including plant-based food, biotech-driven food processing, and food waste solutions.
The plant-based sector, which includes companies such as New School Foods, No Meat Factory, and Smallfood, has grown at a five-year compound annual growth rate (CAGR) of 49.5%. Canada now accounts for 26% of global plant-based food innovation, compared to a 14% global average.
According to the David Suzuki Foundation, close to half of all food produced worldwide is wasted after production. Efforts to tackle food waste are on the rise in the food tech sector, with 11 Canadian companies working on solutions, including Flashfood, Knead Tech, and Crush Dynamics. The food waste sector has seen a five-year CAGR of 40.7%.
Biotech innovations in food processing are also making strides, with 18 companies leveraging biotechnology to produce nutrient-dense proteins for products such as infant formula and cognitive health supplements. Leading this segment are companies like Mara Renewables and Chinova Bioworks, which have contributed to a 24.7% five-year CAGR in biotech food processing.
Funding gaps and workforce challenges slow growth
While early-stage investment in Canada’s foodtech sector is strong, access to growth capital remains a challenge. The report found that Series A and B rounds in Canada are, on average, half the size of those in the UK and the U.S. Meanwhile, Series C rounds in the U.S. are three times larger than those in Canada.
Labour shortages and supply chain issues further complicate the sector’s growth. Companies across the food system, from manufacturers to restaurants and retailers, struggle to find skilled talent in an aging workforce with declining birth rates and lower immigration levels.
“As a farmer myself, I’ve seen how the sector has changed over the years when it comes to technology, and how folks everywhere are looking for better and more sustainable agri-food products,” says Lawrence MacAulay, Canada’s Minister of Agriculture and Agri-Food.
“This report will help businesses, researchers, and investors learn the lay of the land and bring more of our top-quality products from the farm to the table with cutting-edge innovations.”
Canada’s foodtech ecosystem benefits from a strong agrifood system, leading research and innovation hubs, and government-backed programs supporting food technology development. However, the report emphasizes that continued progress requires addressing funding challenges, scaling innovative startups, and strengthening private sector investment.
Photo by Getty Images on Unsplash
While Canada’s foodtech landscape has broadened significantly in ten years, a new report highlights challenges like funding and labour shortages.
The Canadian Food Innovation Network (CFIN) has released its first Foodtech in Canada: 2025 Ecosystem Report, offering a detailed look at the sector.
The report, developed with data from foodtech ecosystem platform Forward Fooding, examines more than 9,950 global foodtech companies, including 320 in Canada, mapping investment trends and highlighting key opportunities and challenges.
“Canada’s foodtech ecosystem has made remarkable progress over the last decade, driving transformative innovations that enhance sustainability, boost economic productivity, and create jobs nationwide,” says Dana McCauley, CEO of CFIN.
“However, to truly realize our potential as a global foodtech superpower, we must address the pressing challenges that remain. CFIN is fully committed to empowering homegrown innovators and fostering solutions that will shape the future of food technology in Canada.”
Public funding plays a key role in foodtech growth
Between 2014 and 2024, Canada saw $4.1 billion CAD ($2.9 billion USD) invested in agrifoodtech, with $2.3 billion CAD ($1.6 billion USD) directed toward foodtech projects. The report found that Canada’s foodtech investment has grown at a rate of 8.4% annually, compared to a global decline of 2.6%.
However, a significant portion of this funding has come from public sources. Over the last four years, only 40% of Canadian foodtech investment rounds were backed by venture capital, compared to 60% in the UK and the U.S.
Meanwhile, government grants accounted for 30% of Canada’s funding rounds — a stark contrast to just 5% in the UK and 8% in the U.S.
Where does Canada shine?
The report highlights Canada’s strengths in several areas, including plant-based food, biotech-driven food processing, and food waste solutions.
The plant-based sector, which includes companies such as New School Foods, No Meat Factory, and Smallfood, has grown at a five-year compound annual growth rate (CAGR) of 49.5%. Canada now accounts for 26% of global plant-based food innovation, compared to a 14% global average.
According to the David Suzuki Foundation, close to half of all food produced worldwide is wasted after production. Efforts to tackle food waste are on the rise in the food tech sector, with 11 Canadian companies working on solutions, including Flashfood, Knead Tech, and Crush Dynamics. The food waste sector has seen a five-year CAGR of 40.7%.
Biotech innovations in food processing are also making strides, with 18 companies leveraging biotechnology to produce nutrient-dense proteins for products such as infant formula and cognitive health supplements. Leading this segment are companies like Mara Renewables and Chinova Bioworks, which have contributed to a 24.7% five-year CAGR in biotech food processing.
Funding gaps and workforce challenges slow growth
While early-stage investment in Canada’s foodtech sector is strong, access to growth capital remains a challenge. The report found that Series A and B rounds in Canada are, on average, half the size of those in the UK and the U.S. Meanwhile, Series C rounds in the U.S. are three times larger than those in Canada.
Labour shortages and supply chain issues further complicate the sector’s growth. Companies across the food system, from manufacturers to restaurants and retailers, struggle to find skilled talent in an aging workforce with declining birth rates and lower immigration levels.
“As a farmer myself, I’ve seen how the sector has changed over the years when it comes to technology, and how folks everywhere are looking for better and more sustainable agri-food products,” says Lawrence MacAulay, Canada’s Minister of Agriculture and Agri-Food.
“This report will help businesses, researchers, and investors learn the lay of the land and bring more of our top-quality products from the farm to the table with cutting-edge innovations.”
Canada’s foodtech ecosystem benefits from a strong agrifood system, leading research and innovation hubs, and government-backed programs supporting food technology development. However, the report emphasizes that continued progress requires addressing funding challenges, scaling innovative startups, and strengthening private sector investment.
This article was created with the assistance of AI. Learn more about our AI ethics policy here.
Jennifer Kervin is a Digital Journal staff writer and editor based in Toronto.
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