5 market and innovation trends within the food industry

5 Market and Innovation

Trends within the Food

Industry

Sam Gibbon – Discovery Product Manager

Contents

• Introduction to Discovery

• Trend 1:Lockdown drives food wastage

• Trend 2: Delivery companies are clear winners of lockdown

• Trend 3: Investments into fresh foods and the delivery industry

• Trend 4:Diet and lifestyle affecting Covid-19 severity

• Trend 5: The rise of meat alternatives

• Discovery provides the tools for quick effective research

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Trend 1: Lockdown Drives Food

Wasteage

During lockdown, an unprecedent amount of food was

dumped by farmers

Lockdown Drives Food Wastage

Restaurants, cafés and schools and other institutions are estimated to account for 30% of all calories consumed in the USA1. With these closed , farmers where left stranded with crops they couldn’t sell

This led to fields of rotting produce, smashed eggs and milk dumping

Relevant Stats • Some analysts predict America’s food-

waste ratio is set to rise from 30% to 40% this year2

1. UN’s Food and Agriculture Organization (fao)

2. André Laperrière of Godan

World hunger could double as result of Covid-19

In April, a letter addressing world leaders warned that world hunger could double as a result of Covid-19 was signed by companies such as Nestlé, Unilever , Danone and PepsiCo.

The United Nations through its World Food Programme said the amount of people facing acute food insecurity could reach 265 million which is up from 135 million in 2019.

The U.S. Bureau of Labour Statistics shows that food prices were up 5.6% in June compared to the year before.


Nestlé and Tesco among major food providers to join new

food waste coalition


By joining the coalition, they commit to series of objectives such as halving their food waste by 2030 and pushing to reduce waste in the supply chain and consumers.

What innovation is being done?

Total Funding:$ 4.00 M

Funding Rounds: 1

Ifarm create technologies that enable anyone to grow fresh vegetables, berries, greens and edible flowers for personal use or commercial purposes.

We offer fully automated sustainable, eco-friendly and economically viable turnkey solutions suitable for production sites of any size.


Vertical farming could simplify supply chains

Total Funding:$ 137.06 M

Funding Rounds: 9

Imperfect Foods provides grocery delivery service rescuing and redistributing food across multiple grocery categories

Latest Funding Round: Series CAmount: $ 72MInvestors: Norwest Venture Partners, Insight Venture Mgmt


Repurpose superficially damaged food

Total Funding:USD 4.00 M

Funding Rounds: 2

Outcast Foods has developed a technology that turns surplus fruits and vegetables into high value whole plant powders. This reduces food waste, decreases greenhouse gases (GHGs), and makes nutrients in food last longer

Latest Funding Round: SeedAmount: $ 3.00 M


Upcycling excess produce

Size2-10 employees

Founded: 2018

Kitche is a new app designed for cost saving & food waste reduction at home

Kitche is totally free and designed to reduce food waste and save you money at home. The average UK family tosses about £70 of food per month. Kitche can help you stop this waste, using various helpful features. Have a read below to see how….


Help households reduce their waste

Trend 2: Food Delivery Apps are the

clear winners of lockdown

Covid-19 accelerated the adoption of food delivery apps

1. JUL 17, 2020, COVID-19 Era Serves Up Big Changes for U.S. Restaurants, Morgan Stanley and Euro Mromotior

This is a clear case of Covid-19 accelerating an existing trend.

Before lockdown researchers at Morgan Stanley predicted it would take up to 2023 for delivery apps to capture 13% of the market

This growth however was thought to be achieved in a matter of months over lockdown

Delivery apps and lockdown

In June, Grubhub reported

revenue growth of 50% year

on year.

Door dash reported that their order numbers in the second

quarter rose 94% versus the same period last year.

Delivery Services are the big winners of lock down

Uber Eats, reported that its April revenue was 89%

higher than last year.


Delivery services turn to M&A to acquire market shareDelivery apps and lockdown

JustEat acquires GrubHub (Jun 2020)

Creating the worlds largest food delivery business outside of china and giving the Justeat their first presence within the US they have acquired Grubhub for $7.3 billion dollars

Uber Eats acquires Postmates (Jul 2020)

With its core ride hailing business struggling, Uber has doubled down on food delivery by acquiring Postmates for $2.65 billion dollars

JustEat acquires Grubhub for $7.3 billion

Uber Eats acquires Postmates for $2.65 billion

The big three food delivery services in the US

1. 2020 Edison Trends U.S. On-Demand Food Delivery Sales Report

According to research carried out by Edison Trends, the US food delivery market is dominated by 3 players.

While Uber Eats’s share jumped by 8% with is acquisition of PostMates, it still lags DoorDashthe current market share leader.

It not yet clear how Grubhub’sacquisition by JustEat will affect their place in the market.


In Q2 Grubhub reportedly

lost $45.4 million It is speculated that Door Dash

lost around $450 million in 2019

Despite the explosive growth and aggressive acquisitions

these companies are still making loses

In Q1 Uber Eats

reportedly lost

$313 million


Delivery apps expand into

offering contactless ordering for

dine-in customers

• 15 September - Uber Eats

adds restaurant contactless

ordering in US

More and more delivery apps offer

“instant” grocery deliveries from

supermarkets

• 20 Aug -DoorDash announce on

demand grocery delivery

Innovation with Food Delivery Companies Delivery apps and lockdown


Funding Rounds: 3

Starship Technologies is a robotics company building fleets of self-driving delivery robots designed to deliver goods locally within 30 minutes. The robots drive autonomously 99% of the time to make safe and environmentally friendly curb-side deliveries

Latest Funding Round: Series AAmount: $ 40MInvestors: Morpheus Advisors, Matrix Management, Qu Ventures


Starship Technologies, Aramark launch contactless robot food-delivery service at Arizona State University

4 September 2020

Starship Technologies is sending its autonomous robots to more cities as demand for contactless delivery rises

9 April 2020

Trend 3: Investments Into fresh food and

delivery industry

Company Name Amount raised/Date Raised

Total Disclosed funding

Topics Description

$375.00 million03/06/2020

$4.84B Super app Mobile PaymentFood Industry

Gojek is a Super App. It’s one app for ordering food, commuting, digital payments, shopping, hyper-local delivery, getting a massage and two dozen services. It is Indonesia’s first and fastest growing decacorn building an on-demand empire across Southeast Asia

$495.00M 21/05/2020

$1.36 B Meal Kits E-CommeraereFresh foods

MissFresh is an E-Commerce platform that specializes in high-quality fresh food. It sells daily grocery products through its mobile-based platform.

$400.00M 18/06/2020

$2.47 B Food Delivery E-Commerance

DoorDash provides restaurant food delivery services connecting customers with local businesses across the United States and Canada.

USD 225.00 M11/06/2020

USD 2.22 B SupermakretMobile Device E-Commerance

Instacart is a grocery delivery startup that delivers in as short as an hour. Focused on delivering groceries and home essentials, Instacart already has over 500,000 items from local stores in its catalog

USD 200.00M 13/07/2020

USD 1.39 B Cultured meat Vegan Food processing

Impossible Foods is a company developing plant-based substitutes for meat, dairy, and fish products..

Top funded companies In food and delivery services in H1

VC Investments in Food and Delivery Services


Funding Rounds: 3

Deliverect is a subscription-based service that integrates third-party online ordering platforms like Uber Eats, Deliveroo, Glovo, and Doordashinto restaurants’ point-of-sale systems, automating the inbound online order flow through a single point

Latest Funding Round: Series BAmount: $ 18MInvestors: OMERS Ventures Management, Newion Investments, SmartFin


Total Funding:$441.35 M

Funding Rounds: 5

Oatly AB produces and markets oat drinks and ice creams. The firm provides its products for use in various recipes. The company was founded in 1994 and is headquartered in Malmo, Sweden.

Latest Funding Round: Venture Amount: USD 200 MInvestors: The Blackstone Group LP, Rabo Corporate Investments, Orkila Capital,Roc Nation, Howard Schultz, Oprah Winfrey, Natalie Portman



Funding Rounds: 2

Founded in 2017, Minnow is transforming how people get their food with its contact-free Pickup Pods, which keep food secure and people safe. A Minnow Pickup Pod can be used anywhere food is delivered or picked up.

Latest Funding Round: Series BAmount: USD 2.20 MInvestors: OMERS Ventures Management, Newion Investments, SmartFin


Trend 4: Diet and lifestyle’s impact on

Covid-19 Severity

Diet and Lifestyle

Top universities (2020) research output

Increased research focusing on diet and lifestyle’s affect

on Covid-19 patients

With the complexity of factors impacting the severity and mortality rates of those infected with Covid-19, some researches have begun to focus on diet and lifestyle to understand its role

A global study suggests that being obese doubles the risk of

hospital treatment from Covid-19 and increases the risk of dying by

nearly 50%1

Diet and Lifestyle

1. 2020 Individuals with obesity and COVID‐19: A global perspective on the epidemiology and biological relationships

Name: Graham A MacGregor Title: ProfessorFocus area: Cardiovascular MedicinePublications: 123Citations: 12319

UK researchers challenge food industry as obesity

indicated to be significant factor in COVID-19 severity

Diet and Lifestyle

Fast food giants accused of “leveraging the pandemic for

commercial gain”

1. 2020 Effects of COVID-19 Home Confinement on Eating Behaviour and Physical Activity: Results of the ECLB-COVID19

International Online Survey

Diet and Lifestyle

According to report carried out by UK research firm SPECTRUM and NCD Alliance, processed foods, soft drink and alcohol companies rapidly pivoted their market strategies during lockdown.

Companies tried to create a “health halo” on processed foods by aligning themselves with frontline workers. Some examples include providing free burgers/donuts for frontline workers and encouraging people to eat more chips to save farmers jobs.

Krispy Kreme to give away free doughnuts to frontline workers

16 April 2020

All Healthcare Workers and First Responders Get a Free Meal at McDonald's

21 April 2020

Burger King encourages people to be heroes by staying home

16 April 2020

The Russian branch of Heineken provided meals and energy drinks’ for medical workers in night shifts

8 April 2020

Global survey indicates unhealthy behaviors became more

prevalent during lockdown

1. 2020 Effects of COVID-19 Home Confinement on Eating Behaviour and Physical Activity: Results of the ECLB-COVID19

International Online Survey

Diet and Lifestyle

Coronavirus prompts PM into obesity crackdown.. Includes a ban on TV junk food adverts before 21:00.

Covid-19 pushes some governments to further try and

tackle obesity

24 July 2020

Germany willing to consider “junk food” advertising restrictions

7 Aug 2020

States in Mexico vote to ban junk food adverts to curb obesity during coronavirus pandemic

19 Aug 2020

Diet and Lifestyle

Trend 5: The Rise of Plant Based Meat

Global meat consumption per capita at it lowest in

nearly a decade

Rise in plant-based meat

The UN Food and Agriculture Organization reported that global per capita meat consumption is projected to fall to the lowest level in nine years.

In the U.S., per capita meat consumption is not expected to return to pre-pandemic levels until at least 2025.

Many are citing restaurant and hospitality closures, consumers trying to reduce food bills, and forced closure of slaughterhouses as major factors.

41

41.5

42

42.5

43

43.5

44

44.5

45

10 11 12 13 14 15 16 17 18 19 20In

kg

Year

Global per capita Meat consumption

Sales of plant-based meat sky-rocketed during

lockdown


According to market research firm Nielsen, sales of alterative meats rose by 264% between 29 February and May the 2nd1

1. May 2020,Coronavirus Meat Shortages Have Plant-Based Food Makers’ Mouths Watering, WSJ,

2020 is the highest year yet for investments into meat

alternatives


250

300

350

400

450

500

2011 2012 2013 2014 2015 2016 2017 2018

On

Do

cum

ent

Per

Ap

pli

cati

on


AAGR

+17%

2014-17

Patents relating to plant

based alternatives

From 2014 onwards there steady growth in meat

alternative patents2014 onwards there has been a sustained steady increase in number of new patents protecting plant-based alternatives

The increase in patenting as coincided with increase consumption of plant-based meats.

In about 18 months we be able to see how patenting has been affected by Covid-19

Range of global players take top patenting spots

Perhaps indicating the global market for meat alternatives, the largest patentors are headquartered across the globe.

Majority of companies in specialize in providing or manufacturing products based on soy-based proteins

The Canadian based company Burconannounced in January a partnership to supply pea- based proteins to Nestlé for food and beverage applications.


Number of granted/pending patents

0 20 40 60 80 100 120 140

Working up enzymes

using protein 4%

Meat-like textured foods 26%

Protein from

leguminous or other

vegetable seeds

-11%

Modifying nutritional

content of food with

vegetable proteins

-23%

Preparing Protein from

Soybeans

Biggest growth in innovation focusing on foods

with a meat like texture

1.3%

1%

4.5%


0 200 400 600 800 1000 1200

Number of Patent Applications

Title: Systems and methods for growing cells in vitro

Application Date:10 Jan 2019Owner: Yissum research development company of the hebrew university

Publication Number:L264193D0

Legal Status:

Cultured Meat Alternatives

Summary A system for growing cells comprising a bioreactor chamber for growing the cells, a delivery system delivering a perfusion solution to the bioreactor chamber for perfusion of the perfusion solution through the cells, a dialysis system having a dialyzer, a dialysate for performing a dialysis.


Title:Meat analogues and methods of producing the same

Application Date:26 Jan 2020

Publication Number:WO2020152689A1

Owner :REDEFINE MEAT

3d printed plant-based steak anyone?

Patent SummaryThe present disclosure provides a meat analogue that comprises a protein-based component and a fat-based component separately distributed within the meat analogue;.


Discovery Provides the Tools for Quick

Effective Research

Every year the world changes… a lot !

3.3 million Patent

applications1

$131 billion dollars

of VC financing3

3 million Academic

papers published2

More than 3.3 trillion

in announced M&A4

In 2018 there were …

1. 2018, World Intellectual Property Indicators (WIPI) WIPO

2. 2018, STM report

3. 2018, NVCA Venture Monitor, PitchBook

4. 2018, Global M&A activity, Financial Times

Tools are disparate, expensive or quickly become out of date

Qua

ntity

Time

Insight gap

An ever-growing insights gap

Qua

ntity

Time

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5 market and innovation trends within the food industry

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