Key Takeaways
- CFIN’s first-ever Foodtech in Canada 2025 Ecosystem Report provides a comprehensive review of Canada’s agrifoodtech sector, analyzing investments, growth trends, and challenges.
- $4.1 billion CAD invested in Canadian agrifoodtech between 2014 and 2024, with $2.3 billion CAD directed to foodtech projects.
- Plant-based proteins, biotech food processing, and food waste solutions are Canada’s strongest agrifoodtech domains, driving high growth.
- Public grants play a significant role in funding, accounting for 30% of all foodtech investment rounds in Canada, compared to just 5% in the UK and 8% in the U.S.
- Challenges include growth capital gaps, labour shortages, and supply chain complexities, which hinder scaling opportunities for foodtech startups.
CFIN’s First-Ever Agrifoodtech Report Explores Canada’s Innovation Landscape
The Canadian Food Innovation Network (CFIN) has released its inaugural Foodtech in Canada 2025 Ecosystem Report, offering the most in-depth overview of Canada’s agrifoodtech sector to date. The report provides critical insights into the sector’s investment trends, strengths, and ongoing challenges.
“Canada’s agrifoodtech ecosystem has made remarkable progress over the last decade, driving transformative innovations that enhance sustainability, boost economic productivity, and create jobs nationwide,” said Dana McCauley, CEO of CFIN. “However, to truly realize our potential as a global agrifoodtech 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 Investment Fuels Growth, but Private Capital Falls Short
Between 2014 and 2024, Canadian agrifoodtech investments totaled $4.1 billion CAD ($2.9 billion USD), with $2.3 billion CAD ($1.6 billion USD) directed toward foodtech projects. While the sector has experienced an 8.4% compound annual growth rate (CAGR)—outpacing the global average of -2.6%—the report highlights a funding imbalance between public and private investments.
- Public grants fund nearly 30% of all foodtech investment rounds in Canada—far exceeding the UK (5%) and U.S. (8%).
- Private venture capital (VC) funding accounts for just 40% of Canada’s foodtech investment rounds, compared to 60% in the UK and U.S.
- Series A and B funding rounds in Canada are significantly smaller than those in the U.S. and UK, creating barriers for scaling companies.
Canada’s Agrifoodtech Strengths: Plant-Based, Biotech, and Food Waste Solutions
The report identifies three key areas where Canada’s agrifoodtech sector stands out:
Plant-Based Food Innovation
- Canada’s plant-based foodtech sector has a 49.5% five-year CAGR, with over 60 companies developing alternative protein products.
- Companies such as New School Foods, No Meat Factory, and Smallfood are advancing next-generation plant-based food solutions.
- 26% of Canada’s agrifoodtech ecosystem focuses on plant-based innovation—nearly double the 14% global average.
Biotech Food Processing
- Canada’s biotech segment has expanded rapidly, with 18 companies leveraging biotechnology for food processing applications.
- Innovations include nutrient-dense proteins for infant formulas, cognitive health supplements, and functional food ingredients.
- Companies such as Mara Renewables and Chinova Bioworks are leading this sector, which has seen a 24.7% five-year CAGR.
Food Waste Reduction
- Canada produces 21 million tonnes of food waste annually, prompting the rise of innovative solutions.
- Startups like Flashfood, Knead Tech, and Crush Dynamics are addressing food waste through repurposing surplus food and converting waste into new products.
- The food waste sector has experienced a 40.7% five-year CAGR.
Challenges Facing Canada’s Agrifoodtech Ecosystem According To CFIN
Despite Canada’s strengths, significant barriers to growth and scaling remain:
- Growth Capital Gaps: Later-stage funding is limited, with Series C rounds in the U.S. averaging three times the size of those in Canada.
- Labour Shortages: Workforce challenges are growing due to an aging population, reduced immigration, and competition for skilled talent.
- Supply Chain Complexities: Logistical hurdles impact agrifoodtech companies, with manufacturers, retailers, and distributors struggling to meet demand.
Advancing Canada’s Agrifoodtech Leadership
With world-class agrifood systems, a strong research network, and government support, Canada has built a solid foundation for foodtech innovation. However, addressing investment challenges, labour shortages, and supply chain inefficiencies will be crucial for securing global leadership in agrifoodtech.
“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,” said The Honourable Lawrence MacAulay, 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.”
The Foodtech in Canada 2025 Ecosystem Report provides a road map for growth by outlining Canada’s strengths, challenges, and opportunities in agrifoodtech. The full report is available at CFIN’s website.
