FOODTECH INDUSTRY ANALYSIS Venture Capital ClubCatólica Lisbon School of Business and Economics

October 2021

EXECUTIVE SUMMARY

Dear Bynd-Team,

It is with great pleasure to present you our Foodtech report. This report is the second industry report created in partnership between the Venture Capital Club at Católica Lisbon SBE (VCC) and Bynd Venture Capital.

Thank you very much for the collaboration and partnership.

Markus DuczekCo-Founder & VP Venture Capital Investments @ VCC

ABOUT VCCThe Venture Capital Club at CatólicaSchool of Business and Economics is astudent club that provides a communityfor exchange and knowledge transfer forinterested students in venture capital byusing the outstanding network and Start-up environment of Lisbon.

ABOUT BYND VENTURE CAPITALBynd is a leading Iberian Venture Capitalfirm operating since 2010, with focus onseed / early-stage technologycompanies connected to Iberia, havingdone 40+ investments across verticalsand geographies.

AUTHORS

PURPOSE OF THIS REPORTThis report provides you with an overviewof the latest trends in the industry as wellas some market assessments (Global,European & Iberian Market). Thehighlight of the report is the identificationof potential target startups in the end ofthe report. The selection of thosepromising startups was conducted basedon the investment criteria of Bynd.

Leonardo Berruti Alex Brunner Tiago Casinha Isabell Gollmer Yann Lelong

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TABLE OF CONTENT1. Executive Summary

2. FoodTech Trends

3. Global FoodTech Market

3.1 Market Size & Growth

3.2 Global Ecosystem Snapshot

4. European FoodTech Market

4.1 Market Size & Growth

4.2 European Top Deals 2020

4.3 European Segmentation by Region

5. Iberian FoodTech Market

5.1 Portugal

5.2 Spain

6. Iberian Startup-Portraits

7. Investment Strategy

8. Sources

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TRENDSIn the Foodtech Industry

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INTRODUCTION

New technologies have changed the world in many industries. The food industry, on theother hand, is still wondering how to apply innovations such as big data or the Internet ofThings (IoT) to its business. The challenges for the sector are numerous, including foodsustainability, and the Foodtech industry is leading the way. Foodtechinvolves companies and projects that use technologies such as IoT, big data and AI, toturn the food industry into a more modern, sustainable and efficient sector in all itsstages, from food preparation to its distribution and consumption. In the following, we willpresent the current trends that are shaping the future of the industry. To get an overviewover the trend landscape, we allocate the various trends according to the food valuechain published by the the European Commission.

TRENDS

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AGRICULTURE & FOOD PRODUCTION

FOOD PROCESSING

NEXT-GEN FOOD & DRINK

DIRECT-TO-CONSUMER

FOOD & LAST-MILE GROCERYDELIVERY

FOOD-AS-MEDICINECONSUMER APPS & SERVICES

KITCHEN & RESTAURANT TECH

SURPLUS & WASTE MANAGEMENT

Trend allocation along the food value chain; Source: European Commission

It is evident that most of the current trends are located in the sustainable foodprocessing & distribution in the food value chain. Due to customer proximity and lowerentry barriers, startups and companies try to innovate and disrupt this part of the foodvalue chain, rather than areas that require higher investments upfront.

FOOD SAFETY & TRACEABILITY

AGRICULTURE & FOOD PRODUCTION (AgTech)

TRENDS

TREND 1

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At the initial stage of the food value chain, the food production stage, numerousservices, and technologies are being developed to increase farming efficiency andsustainability. Leveraging the technological possibilities which are being enabled by theInternet of Things (IoT), smart farming applications are reshaping the agriculture industry.The market share for smart agriculture was estimated at $5.6 billion in 2020 and isexpected to reach $6.2 billion by 2021. Some applications of IoT in agriculture includethe monitoring of climate conditions, greenhouse automation, crop management,cattle monitoring and management, precision farming and predictive analytics,agricultural drones as well as end-to-end farm management systems.

Efforts to make agriculture more sustainable furthermore include carbon removalthrough nature-based agricultural projects. A central goal in the farming sector is toproduce large scale carbon-negative proteins, for example by using vertical farms.According to Antoine Hubert, CEO of Ÿnsect, vertical farming requires 98% less land tobe used, dramatically reducing carbon emissions of the protein production, whilegenerating zero waste. Bearing in mind that the global food industry accounts for morethan a quarter of global greenhouse gas emissions, tremendous efforts are needed inthis sector to become more sustainable which, in turn, offers a huge potential forinvestment. It is expected that new solutions, leveraging innovative technologies, willincreasingly change traditional agricultural practices and allow for more sustainablemodels in the future.

On a global scale, some of the most successful players include Bowery and Infarm. Onthe Iberian market, we would like to highlight H2YDROPONICS, BioEnto, and Plant onDemand.

FOOD PROCESSINGTREND 2Along with significant agricultural developments, agri-food use cases emerge aroundbioprocessing methods to produce valuable nutrients while keeping costs low as well asimproved chemistry and crops to support farmers and biodiversity as part of our diets.

TRENDS

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Next-Gen Food & DrinkTREND 3

(1) Large-scale alternative proteins

In recent years, plant-based protein foods globally gained large market shares. In astudy from 2019, UBS estimated that the plant-based protein and alternative meat marketwould grow by 28% year-on-year, reaching over $85 billion (€70 billion) in 2030, with theplant-based dairy market alone estimated to be worth $37.5 billion by 2025. In the firstseven months of 2020 alone, more than 20 alternative meat startups globally raised over$1.4 billion in funding, according to FAIRR. The fact that funding for alternative proteins inEurope increased by 178% in 2020, from €203m in 2019 to €566m in 2020, exceeding thefunding raised by food delivery startups, shows that this is one of the most promisingmarkets within Foodtech.

The range of options for plant-based foods is already huge and offers a wide variety ofdifferent solutions as an alternative to meat and dairy with new products continuing tospread.

New technologies within the automation and robotics sectors will certainly continue todrive innovation advancements within agriculture, manufacturing, and foodpackaging. These solutions will help in building a more sustainable food industry whileensuring the highest health standards in food processing.

One disruptive technology to improve food processing and enhance food ingredients’functionality is bioinformatics. Traditionally coming from pharmaceutical applications,food and beverage companies can leverage this technology to better understand anduse the potential ingredients as well as their impacts on human health.

Closely related to bioinformatics are ingredient informatics, helping to understand theproperties of specific ingredients and how they can be linked to desired outcomes.Creating a database with all information about foods can help achieving andconnecting all these aspects. This information can furthermore allow to better predictconsumers’ responses to new products, flavors, and formats.

Examples of successful Foodtech players in this segment include Chef and Apeel.Promising Iberian players are MOA, AgroSingularity, and Consentio.

TRENDS

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Several solutions for dairy, for example, begin to emerge beyond the use of soy, oat,and almond, using split pea, hemp seeds, and barley, amongst others. This trend,however, does not only include cultivated protein for the human markets. Cell-basedproteins may also be used as alternatives for animals (e.g. livestock or aquaculture).

Looking at lab-grown meat, first states are beginning to regulate their production anduse, with Singapore being the first state to regulate it, as it is already being served insome restaurants. In this sector, extensive collaboration can be observed, with the goalto build a resilient supply chain as well as to scale faster. A further non-vegetarianexample includes insect-based products which are slowly entering the Europeanmarket.

One of the main challenges will remain in the optimization of taste, sensoryexperience, and formulation for scale-up in the near future. The most imminent riskmost likely lies in not being able to meet consumer perception, taste, texture, or cost.

(2) New market niches

Emerging startups increasingly leverage the healthy characteristics of less-scalednatural sources, such as seaweed and microalgae, mushrooms, as well as variouskinds of alternative beverages. One of the most clearly evolving trends in this sectorincludes foods made from or enriched with microalgae. As a component of seaweed,microalgae are a rich source of nutrients and vegan proteins. Therefore, many startupsare making use of this sustainable protein source for developing innovative foodproducts, for example as meat alternatives.

Another increasing trend is relating to precision fermentation, mainly driven bycollaborations and mergers of cell and plant-based companies in 2020. We expect thistrend to further thrive as precision fermentation and renewable as well as upcycledproteins are extremely useful in the development and improvement of cell and plant-based products.

Looking at a different use-case of fermentation, namely fermented drinks, this trend isalso expected to grow as consumers increasingly demand for healthy and functionalproducts. In 2020, for example, the use of homemade kombuchas as well as pickling –the process of fermenting foods for preservation – has dramatically increased.

On a global scale, the most successful players include BeyondMeat and Oatly. On theIberian market, we would like to highlight Innomy, baïa, and NOVAMEAT.

Direct-to-Consumer(D2C)

TRENDS

TREND 4

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Moving from innovations in food production and processing to new forms of fooddistribution, direct-to-consumer (D2C) delivery models offering meal-kits for homecooking gained in popularity in recent years. Already set in motion by the increasingdigitalization of restaurant businesses, the ultimate breakthrough was achieved due tothe Covid-19 pandemic, with consumers staying in their homes as a consequence oflockdown measures across the globe. The interest in meal-kit companies is huge as theplatforms and services become more robust and scalable. Especially young peoplejumped on board of this trend during the pandemic, driven by the motivation to try outnew and healthy meals at home without too much effort. As many companies in thissector focus on subscription-based models, loyal customers can be attracted andretained which ensures recurring sales and ultimately enhances scalability.

In addition to meal-kits for home cooking, D2C solutions may also include the delivery ofcooked meals. In this case, the start-ups prepare and subsequently deliver the mealsdirectly to their customers.

On a global scale, the most successful players include HelloFresh and Gusto. On theIberian market, we would like to highlight Prodto and foodStories.

Food & Last-mile Grocery DeliveryTREND 5

(1) On-demand food delivery

On-demand food delivery refers to the nowadays widespread home-delivery ofrestaurant meals. From a funding perspective, the largest rounds within Foodtech weresecured by on-demand food delivery in recent years. This sector, however, seems toapproach maturity, as it only represented 21% of the total European Foodtechinvestment in 2020, compared to 59% in 2019. Despite the comparably decreasingfunding amounts, restaurant food delivery is certainly expected to play an enormousrole in redefining the restaurant industry, even beyond the pandemic. It is expected that,as consumer lifestyles change in the post-Covid world, restaurants might generally needto adopt hybrid infrastructures to operate successfully.

TRENDS

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Key for established as well as emerging restaurants will be to have access to efficientapps and solutions that facilitate takeaway and delivery services for customers.

As a consequence of the surging demand for food delivery services, so-called darkkitchens, or sometimes also referred to as “cloud” or “virtual” kitchens are emerging.These dark kitchens – kitchens that are solely being used for food delivery purposes –are expected to be leading the way in the next generation of delivery-focusedbusinesses. Although this restaurant form is not entirely new it is expected toexperience a significant rise in demand. Restaurants will need to adapt and kitchens insmaller, centrally located premises that exclusively serve online delivery orders.

(2) Last-mile grocery delivery

Going one step further, solutions tackling the so-called “last-mile delivery” relate toon-demand grocery delivery and are gaining in popularity as people are staying moreat home as a consequence of the pandemic. The key for players in this market is toensure increased consumer adoption rates as well as to create a better userexperience and relationship with their customers. Most start-ups attract their customersby promising deliveries within less than 10-15 minutes. In 2021, the speed of suchinnovations has tremendously increased.

Similar to the previously discussed dark kitchens for on-demand food delivery, darkstores are being operated and spread across cities in order to guarantee fast on-demand grocery delivery options. Now that the first players on the European marketsettled in their markets, they are heavily expanding. In the first four months of 2021alone, more than €1.8 billion were raised by grocery delivery startups which, as of May2021, represented about 70% of the total investments in the European Foodtech sectorin that year, noting that this number does not even include subsequent rounds raisedby the German pioneers Gorillas and Flink later in the year. These two players aloneraised more than $1.5 billion between January and September 2021. It is expected thatby 2025, 15-20% of the food and beverage industry’s overall sales will come from onlinechannels, that is ten times more than in 2016.

On a global scale, the most successful players include Picnic, Delivery Hero, GrabFood,Gorillas, and Glovo. On the Iberian market, we would like to highlight Booh! andProdto.

Food Safety & Traceability

TRENDS

TREND 6

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As consumers are increasingly becoming conscious about their food consumption, thedigitalization of supply chains and therefore enhanced traceability are imperative forproviding the necessary information and to help customers better understanding theorigin of their consumed products as well as business practices of specific food brands.According to Innova Consumer Survey 2020, 60% of global consumers would like tolearn more about the origin of their foods. Using technologies can provide the customerwith information on the origin, growing conditions, and overall provenance story of cropsand products. The goal must be the generation of field-to-fork data for the entire foodvalue chain. It is expected that even beyond food safety and production methods,clear and transparent information will increasingly be required on various aspectsdefining food quality, for example including aroma, flavor, and nutritional benefits.Products will need to meet stricter regulations regarding, for instance, animal welfare,sustainability, and healthy eating.

The tools to achieve such transparency for the consumer foremostly include innovativetechnologies such as blockchain and artificial intelligence (AI), which are expected tooffer solutions for a wide spectrum of applications. Already in recent years, theimplementation and rise of data-driven technologies has significantly influenced globalfood value chains and made them more transparent and efficient. Accelerated by theCovid-19 pandemic, governments are increasingly investing into these technologies toenhance safety in agri-food businesses. Technologies such as cobiotics (robots) anddrones using big data analytics, AI, or blockchain, may significantly enhance food safetyas well as reduce the risks of spoilage, waste, or contamination.

Further use cases include invisible barcodes, enhanced online communication, as wellas new forms of sustainable packaging. By 2025, the global food traceability market isexpected to rise to nearly $20 billion.

On a global scale, some of the most successful players include QZenseLabs and Trax. Onthe Iberian market, we would like to highlight Trazable, Oscillum, and nutrasign.

Food-As-Medicine

TRENDS

TREND 7

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Food-as-medicine technologies exist throughout the entire value chain and refer toproducts or services that prescribe food an ability to improve health. Accelerated by theongoing Covid-19 pandemic, consumers are increasingly seeking natural immunityboosting products as well as foods with added health benefits. Many consumers aretherefore educating themselves on immunity boosting ingredients and including suchproducts into their general lifestyle and diets to strengthen their immune system. Thistrend will certainly not be temporarily bound to the current pandemic setting, as chronicillnesses are forecasted to last and have a global impact of $47 trillion by the year 2030.While in 2020 already more than half of consumers reported supplementing their diet asa means to enhance their immune health (Market Research, 2020), Innova ConsumerSurvey 2020 found that 60% of global consumers are increasingly looking for immunehealth enhancing food and beverage products with one third of the people increasinglybeing concerned about their immune health.

On a global scale, the most successful players include hundred and Farma Genetix. Onthe Iberian market, we would like to highlight nucaps and baïa.

Consumer Apps & ServicesTREND 8

Along with the previously mentioned trend of increased consumer awareness regardingfood consumption, certain apps, platforms, and products may provide the necessarytools for consumers to access the necessary information as well as to facilitate access tocertain foods. While many apps tracking nutrition, allergens, and other aspects inpeople’s diets already exist, the key distinguishing factor in the future is to providenutrition and tracking solutions as well as other products that are personalized.Innovative platforms or apps built on algorithm-powered personalization software (e.g.using AI) have the ability to tackle individual consumer needs as well as to developpersonal nutrition plans or products. These solutions might, for example, provideindividual nutrition coaching, such as health tracking grocery assistants, educate theconsumer on nutrients that may improve health, backed by scientific evidence, orsuggest personalized supplements for individual consumers, such as personalizednutrition bars or drinks.

Kitchen & Restaurant Tech

TRENDS

TREND 9

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Along with technological improvements, a variety of smart kitchen appliances andequipment as well as devices that help restaurants managing their business moreefficiently are continuously emerging. Some of the most prominent examples include thefollowing:

• voice assistants and chatbots for better customer experience• tabletop ordering systems, offering digital menus, and allowing for at-the-table order-

placing as well as more efficient point of sale (POS) systems• self-ordering kiosks, which are already being used in several restaurant chains,

effectively reducing waiting times in queues• kitchen display systems (KDS), facilitating communication between the restaurants’

front house staff and kitchen staff• marketing automation that allows restaurants to better consolidate customer data

and attract more customers through targeted marketing campaigns• robotic chefs that may fasten order management and improve processes within the

kitchen and ultimately speed up the entire chain of processes from customers’ ordersuntil food delivery

Additionally, apps and services helping restaurants to reduce their climate impact havegreat potential and may, for example, create more transparency by introducing climatelabeling on meals and ingredients.

Examples of successful Foodtech players in this segment include Swedish Klimato andQuandoo. Promising Iberian players are wetechfood, delectatech, and Ordatic.

The growing relevance of this trend becomes obvious when looking at the evolution ofraised capital for European Foodtechs offering consumer apps, with an increase of348% between 2018 and 2019, to over €300 million.

On a global scale, the most successful players include Simple Feast and DayTwo. Onthe Iberian market, we would like to highlight ekilu and maybein.

Surplus & Waste Management

TRENDS

TREND 10

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Finally, we can see a range of solutions targeting the measurement, monitoring, andreduction of food waste. In commercial kitchens, for example, companies can makeuse of AI-based solutions to accurately and profitably reduce food waste. This trend willcertainly further accelerate as consumers are increasingly becoming sustainability-conscious in their food consumption. In 2020, Accenture published a report, claimingthat 60% of the people started making more sustainable and ethical purchases since theoutbreak of the Covid pandemic with 90% willing to continue doing so after thepandemic. EIT Food furthermore found that more than a third of people are willing tobuy locally produced foods as a result of the pandemic with 87% of those willing tocontinue in the future.

While this trend offers a wide range of possible use cases, examples include thedevelopment of plastic alternatives avoiding microplastic or being biodegradable, appshelping to reduce food waste at home, or solutions for sustainable and intelligentpackaging (e.g. plant-based and compostable packaging). Generally, the trend movestowards ensuring that excess food enters into the circular economy.

Examples of successful Foodtech players in this segment include ToGoodToGo andMatSmart. Promising Iberian players are Proppos and AgroSingularity.

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MARKET

The Foodtech market has been growing a lot on the past years and in fact, it is expectedto reach a value of $250.43 billion by 2022 and $342.52 billion by 2027. The compoundannual growth rate (CAGR) was 7.9% between 2013 and 2019. With the 2020 pandemic,there was significant growth in some market segments such as e-groceries, for example.Also, the confectionery & snacks market had a volume of about $1.4 trillion in 2021. Theglobal agriculture industry market is estimated to be worth around $8.7 trillion accordingto Plunkett Research and the global food export alone was estimated at around $1.5trillion in 2017. Finally, the total food market amounts to $8 trillion in 2021 and this market isexpected to grow at a 3.1% CAGR between 2021 and 2025.

However, even though the food industry heavyweights lost value on the stock marketduring the COVID-19 crisis, companies like Beyond Meat, Hello Fresh and Ocadoincreased their valuations, showing the stock market reflects the consumer behavior to amore online-driven delivery service ecosystem.

GLOBAL MARKET & GROWTH

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MARKET

Funding Stages of Foodtech Startups; Source: Foodforwarding.com

The chart above shows that the overall Foodtech market is not yet very mature with thevast majority of startups being in Pre-Seed to Series A. According to foodforwarding.com,most startups are not older than 5 years.

GLOBAL ECOSYSTEM SNAPSHOT

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MARKET

The segmentation of the Foodtech market by trends is the approach we consider mostinsightful. Consisting of 10 major trends, we can say that the market is very fragmentedand has many different aspects that can be tackled by new companies entering themarket. Thinking of food, one may think of B2C first. Nevertheless, there are also verypromising B2B segments in the Foodtech market such as safety & traceability where dataand blockchain play a crucial role. The restaurant and kitchen management segmentfurthermore has a lot of potential to optimize internal and customer-related processes offood businesses of any kind. Another interesting point to make is the rapid developmentdue to Covid. At the beginning of the pandemic, none of the last-mile startups that arevery well known and considered extremely promising today, where on the mainstreamagenda. Traditional food delivery though can be considered as the most mature trend,hitting new records with Covid. Food delivery and e-grocers are striking back in Q2 2021with some notable late-stage rounds such as Glovo (€448M - Series F), Swiggy (€679M -Series J), Oda (€224M), and Deliverect (€55M - Series C).

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AGRICULTURE & FOOD PRODUCTION (AgTech)

FOOD PROCESSING NEXT-GEN FOOD & DRINK

DIRECT-TO-CONSUMER (D2C)

FOOD & LAST-MILE GROCERY DELIVERY

FOOD SAFETY & TRACEABILITY

FOOD-AS-MEDICINE CONSUMER APPS & SERVICES

KITCHEN & RESTAURANT TECH

SURPLUS & WASTE MANAGEMENT

GLOBAL ECOSYSTEM SNAPSHOT

MARKET

Global Ecosystem Snapshot; Source: Own analysis

Last year alone (2020) there was a total of €2.4 billion invested in Foodtech startups (12times more than in 2013) and the startup valuations increased by 156% compared to2019. Taking into account that 2020 was a year marked by the COVID-19 pandemic andlockdowns, that increased e-groceries by up to 10 times compared to 2019.

With the COVID-19 pandemic, quick-commerce startups (15 minutes delivery time)demand have seen skyrocketing growth. A great example is Gorillas, a startup fromGermany that raised €245 million in a series B and became a unicorn nine months afterlaunching. In fact, the top 10 Foodtech startups worldwide grew from €17 billion in 2015to €433 billion in 2020 according to dealroom.com.

The pandemic also highlighted inefficiencies in the food supply chain and the need fornew technology solutions. Investments to enable supply chain automation, or funding toindoor and vertical farming have been on the rise attracting large VC funding.

EUROPE MARKET & GROWTH

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MARKET

European Top Deals 2020; Source: digitalfoodlab.com

Within Europe, almost 50% of the top deals in 2020 according to deal size come from thealternative proteins segment, showing that this trend is booming currently. Also, we can

say that France (with Paris) is on the forefront as Foodtech country in 2020 even thoughUK is still on top when it comes to funding sizes. With only one large deal closed in 2020,

especially with the Brexit in mind, space has been opened for new and upcomingnorthern countries that make their way to the top with companies like Oatly and Wolt.

What needs to be said is that in 2021 much happened in the European Foodtech marketwith last-mile grocery delivery companies exploding and saving heavy deals in Q1 and

Q2. This is not reflected in the latest rankings due to the recency, but we want to mentionit here since this trend is certainly going to last.

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MARKET

Company Total amount raised Country

Gorillas €1.2B Germany

Flink €275M Germany

Zapp €90.9M U.S.

Dija (GoPuff) €3B UK

Weezy €19.4M UK

EUROPE REGIONAL SEGMENTATION

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MARKET

European Foodtech Hubs; Source: digitalfoodlab.com

The European Foodtech hubs are not distributed evenly across the continent. In fact, it isquite the opposite. And even inside leading countries, it is often one city that leads interms of deals and investments. Eight cities alone account for more than 72% of theinvestments and five of them make 66% of the total in 2020, according todigitalfoodlab.com.

London has been the number 1 hub of European Foodtech until now, which couldchange with Brexit. What we can say is that in 2019 it still accounted for 28% of Europe’s

Foodtech investments. Berlin being 2nd placed as the home of unicorns like DeliveryHero, HelloFresh or Marley Spoon. On the third place we find Amsterdam that, with its

connection to the University of Wageningen, hosts many startups in delivery and AgTech.Paris being 4th, hosts most French Foodtech entrepreneurs. With Glovo continuously

growing in size, Barcelona also makes it to the top European Foodtech hubs, beingespecially focused on robotics (e.g. RemyRobotics). Also to mention are Stockholm,

Milan and Zurich, as smaller and more local hubs (in terms of number of startups, dealsand amount raised), according to digitalfoodlab.com (2020).

IBERIA PORTUGAL

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MARKET

Portugal is a country where food is an integral part of the culture and everydayinteractions. In fact, according to Dealroom.com, the food sector in Portugal is the thirdmost invested industry by venture capitalists. Food is all around us, yet theseentrepreneurs struggle to get their businesses started and the Portuguese Foodtech

ecosystem is scattered.

Portugal, being a southern country, has specific characteristics that make it ideal to

produce plant-based food products from vegetables to fruit. However, agricultureconsumes a lot of water and resources, and this combined with the favorable conditions

in Portugal, makes it a great place to invest in Agri-Tech. Improving the efficiency of theproductions by providing exactly what the plant needs, would not only reduce costs, but

also increase the quality and help the environment in an organic and sustainablemarket. Moreover, the geographical position of Portugal is favorable for exports of its

products. Finally, the gastronomic aspect of Portugal is also diversified and well-known,making it a big opportunity when it comes to improve even more the quality while

reducing costs. Agri-Tech is increasingly present in the Portuguese Foodtech ecosystemhaving more than 15 startups – the biggest sector present in the country.

When it comes to the geographical presence in Portugal, most startupsare headquartered in Lisbon, but there are also some in Alentejo and in the north inPorto, Braga, Aveiro, and Viseu.

Regarding the market segmentation, the most important sector in which Foodtechcompanies are competing in Portugal is the Online Delivery sector. Startups like EatTasty,

Foodzai, Misk, Bring Eat, Levoo and Ezyfood are operating as online platforms wherecustomers can access and order food from restaurants; most of them are based in

Lisbon, even if this trend has affected other important cities and touristic locations of thecountry. We retrieved from Statista the main important data regarding the online food

delivery in Portugal:

IBERIA PORTUGAL

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MARKET

• Revenue in the Online Food Delivery segment is projected to reach $177 million in 2021

• Revenue is expected to show an annual growth rate (CAGR 2021-2025) of 11.5%,

resulting in a projected market volume of $274 million by 2025

• The market's largest segment is Platform-To-Consumer Delivery with a projected market

volume of $89 million in 2021

• In global comparison, most revenue will be generated in China ($191 billion in 2021)

• The average revenue per user (ARPU) in the Online Food Delivery segment is projectedto amount to $80.55 in 2021

• In the Online Food Delivery segment, the number of users is expected to amount to 3.2million users by 2025

• User penetration in the Online Food Delivery segment will be at 21.6% in 2021

IBERIA SPAIN

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MARKET

In Spain, the agri-food value chain is of great importance. According to the SpanishFederation of Food and Beverages (FIAB), the food and beverage industry is a sector

that has experienced consecutive annual growth, reaching a production of €119 billionin 2019. The contribution of the food industry to the total of the economy is key: Itemploys about half a million people, contributes around 2% of the total economy andrepresents 15% of the total industry and 19% of the manufacturing industry.

Spain is becoming a major Foodtech player in Europe and globally by all measures. Witha growing ecosystem hosting more than 150+ agri-Foodtech startups and numerous

ecosystem enablers and investors, Foodtech innovation is taking hold in the IberianPeninsula. With more than €400 million invested in Foodtech startups in 2019 alone andover €635 million total investment raised between 2010-2019, Spain ranks among the top5 European countries investment-wise.

The ecosystem is made up of:

• More than 150 startups

• More than 40 institutional investors

• 14 “facilitators”

• 8 accelerators

• More than 210 actors

Barcelona is home to the largest number of startups in the agri-Foodtech sector, with 35,followed very closely by Madrid with 31. In addition, some other cities are beginning toappear on the scene, such as Valencia (12), Sevilla (4), and Murcia (4).

Startups in Spain can access the following research facilities and innovation hubs:

IBERIA SPAIN

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MARKET

Name Description

EatableAdventures

It was the first food entrepreneurship community,first European early-stage food investmentnetwork, and has worked with over 25,000startups and over 500 projects each year since itsinception. Its accelerator program takes fourmonths, is intensive and hands on, and connectsstartups with its international mentor network.

The Food &FoodtechInnovationHub

Barcelona’s first shared workspace dedicated tothe most avant-garde food and Foodtechcompanies in Spain, powered by ForwardFooding in Partnership with Talent Garden toconnect and engage entrepreneurs.Applications are always open.

Fishing Tech

Fishing Tech is connecting the experience andcontacts of leading companies in the fishingindustry with innovative technology startups andcompanies around the world. Applications areopen now, and there are zero equityrequirements.

Ivoro

Primarily an innovation hub, though did hold anaccelerator in 2017. Successful applicants canuse its Lab Kitchen to further develop and fullytest concepts, and you can register your interestat any time. Typical investment size: $150k.

Sources

Sources

(1) https://www.forbes.com/sites/jenniferhicks/2020/11/25/here-are-four-food-tech-trends-that-will-still-be-trending-in-2021/?sh=3d2aca6a78dd

(2) https://www.foodentrepreneurs.com/the-4-foodtech-trends-that-will-still-be-trending-in-2021/

(3) https://forwardfooding.com/blog/foodtech-trends-and-insights/10-food-tech-trends-to-watch-in-2021/

(4) https://sifted.eu/articles/european-foodtech-2020-data/

(5) https://www.digitalfoodlab.com/e1-8b-invested-european-grocery-delivery-startups-less-4-months/

(6) https://www.eitfood.eu/blog/post/the-top-5-trends-for-the-agrifood-industry-in-2021

(7) https://www.foodbusinessnews.net/articles/18000-three-technologies-transforming-the-food-industry

(8) https://markets.businessinsider.com/news/stocks/beyond-meat-ubs-plant-based-meat-market-85-billion-2030-2019-7-1028367962

(9) https://forwardfooding.com/blog/foodtech-trends-and-insights/food-tech-trends-europe-2020/

(10) https://easternpeak.com/blog/iot-in-agriculture-technology-use-cases-for-smart-farming-and-challenges-to-consider/

(11) https://www.newfoodmagazine.com/article/128575/food-technology-2/

(12) https://www.sourcetrace.com/blog/food-safety-technology-trends-in-2021/

(13) https://www.posist.com/restaurant-times/features/restaurant-technology-trends-2020.html

(14) https://www.mckinsey.com/industries/agriculture/our-insights/alternative-proteins-the-race-for-market-share-is-on

(15) European Union, 2020. Farm to Fork Strategy.

(16) The State of the European Foodtech 2021, March 2021, Five Season Ventures & Dealroom.com

(17) 2020 State of the European Foodtech Report, Digital Food Lab with Eutopia, Kea, Nestle and Vitagor

(18) 2020 European Agri-FoodTech Report, F&A Next

(19) https://www.globenewswire.com/news-release/2021/01/14/2158488/0/en/Food-Tech-Market-Size-to-Reach-Value-of-USD-342-52-Billion-by-2027-Online-Food-Delivery-Segment-Accounted-for-Largest-Market-Share-of-45-4-in-2019-says-Emergen-Research.html

(20) https://www.imedpub.com/articles/market-analysis-24th-international-conference-on-food-technology--processing.php?aid=25038

(21) https://dealroom.co/uploaded/2021/04/Foodtech-2021-vFINAL.pdf

(22) https://www.statista.com/outlook/cmo/food/worldwide27

Sources

(23) https://www.researchandmarkets.com/reports/3891329/global-food-tech-market-by-service-type-online

(24) https://nutraceuticals.imedpub.com/pmarket-analysis-on-food-technologyp.pdf

(25) https://forwardfooding.com/blog/foodtech-trends-and-insights/the-2020-spanish-food-tech-ecosystem-report-is-out/

(26) https://tracxn.com/explore/Food-Tech-Startups-in-Portugal

(27) https://sifted.eu/articles/gorillas-raises-e245m-unicorn/

(28) https://forwardfooding.com/food-tech-data/

(29) https://www.hungry-ventures.com/

(30) https://www.ft.com/content/849393e2-b14f-43b6-966d-88fdf9d110ab

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