{"id":3152,"date":"2019-09-24T09:55:00","date_gmt":"2019-09-24T09:55:00","guid":{"rendered":"https:\/\/innovationisrael.org.il\/en\/?post_type=press_release&p=3152"},"modified":"2023-12-06T07:40:44","modified_gmt":"2023-12-06T07:40:44","slug":"israel-innovation-authority-report-the-potential-of-israeli-foodtech","status":"publish","type":"press_release","link":"https:\/\/innovationisrael.org.il\/en\/press_release\/israel-innovation-authority-report-the-potential-of-israeli-foodtech\/","title":{"rendered":"Israel Innovation Authority Report: The Potential of Israeli Foodtech"},"content":{"rendered":"\n
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The food industry is considered one of the most significant industries in the world. The monetary value of the global food and agricultural industry was estimated at $8.7 trillion in 2018 \u2013 $700 billion in growth compared to the previous year.1<\/a><\/sup>https:\/\/www.plunkettresearch.com\/statistics\/Industry-Statistics-Global-Food-Industry-Statistics-and-Market-Size-Overview\/<\/a><\/span> In Israel, according to data from StoreNext, sales of food and beverages in the market was assessed at NIS 37.4 billion in 2018.2<\/a><\/sup>https:\/\/www.storenext.co.il\/%D7%A1%D7%99%D7%9B%D7%95%D7%9D-%D7%A9%D7%A0%D7%AA-2018\/<\/a><\/span><\/p>\n\n\n\n Over the past several years, following the development of the data revolution, the food industry has been underoing significant changes \u2013 compared by some to the change wrought on this industry by the industrial revolution 3<\/a><\/sup>https:\/\/drive.google.com\/file\/d\/1flu9JCp5uN8TpKEx_QljSi83OegRydr-\/view?usp=sharinghttps:\/\/drive.google.com\/file\/d\/1flu9JCp5uN8TpKEx_QljSi83OegRydr-\/view?usp=sharinghttps:\/\/www.cbinsights.com\/research-food-startups-report<\/a> <\/span>. Changes can be even more significant since the food sector is influenced by a wide variety of parameters: demography, climate, and of course humankind\u2019s growing access to information and knowledge. Therefore, the food industry deserves considerable thought on both the global and local levels so that Israel too can realize the economic opportunities it presents.<\/p>\n\n\n\n Engines of change in the food market (stemming largely from the demands of the consumer market):<\/strong><\/p>\n\n\n\n <\/p>\n\n\n The effect of food on public health<\/strong> A USDA dietary recommendation report reveals that half of US citizens suffer from chronic diseases that are related to poor nutrition.6<\/a><\/sup>https:\/\/health.gov\/dietaryguidelines\/2015\/resources\/2015-2020_Dietary_Guidelines.pdf<\/a><\/span><\/p>\n\n\n\n Another facet of public health refers to the manner in which food is consumed and the ingredients that make up food products. The consumption of food with high nutritional value is on the rise in the world, but this rise is not equal in different parts of the world. Most of the highly nutritious food is consumed in countries with middle to upper level incomes. In Israel, according to data from 2017, the rate of obesity stands at 17.5% and is lower than the OECD average (19.5%). Israel also enjoys a lower mortality rate from vascular diseases7<\/a><\/sup>http:\/\/www.oecd.org\/health\/health-systems\/health-at-a-glance-19991312.htm<\/a><\/span> ,8<\/a><\/sup>https:\/\/www.oecd.org\/els\/health-systems\/Obesity-Update-2017.pdf<\/a><\/span><\/p>\n\n\n\n The foodtech environment and startups<\/strong> Funding: According to data from Start Up Nation Central, Israeli startups in the field raised $84 million in 2016, $144 million in 2017, $123 million in 2018 and $135 in 2019 (up to Q3). <\/p>\n\n\n\n According to IVC data: in 2013 Israeli startups in the industry raised $52 million, $69 million in 2014, and in 2015, the sum more than doubled to $153 million. Israel is considered by top corporations and investors in the global food market as a leader in this growing sector \u2013 with the country itself seen as a kind of \u201cincubator.\u201d<\/p>\n\n\n\n Foodtech sectors in which Israel has a significant presence<\/strong><\/p>\n\n\n\n Segmentation according to fields<\/strong> Government activities to position Israel as a leader in the field of foodtech are currently underway. The government recently approved an investment of NIS 100 million for several foodtech initiatives in the north of the country.<\/p>\n\n\n\n \u2003 Challenges<\/strong><\/em>:<\/p>\n\n\n\n Opportunities<\/strong><\/em>:<\/p>\n\n\n\n Promoting the sector: The Israel Innovation Authority<\/strong> In addition:<\/p>\n\n\n\n Beyond the diverse support spearheaded by the Israel Innovation Authority in the fields of foodtech and the food industry, the Authority\u2019s most important role is creating significant connections between food manufacturers and startups in the food industry and adjacent fields, as a lever for growth and an increase in productivity.<\/p>\n\n\n\n Today, the foodtech industry is supported on a governmental level primarily by the Israeli Ministry of Economy and Industry and its branches: the Israel Export Institute recently detached the foodtech sector from the food sector, signaling the importance of this sector for export and growth9<\/a><\/sup>http:\/\/www.export.gov.il\/files\/food\/foodtech17.pdf?redirect=no <\/a><\/span> and, as mentioned, the government recently announced the establishment of a NIS 100 million foodtech center in Kiryat Shmona.<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" The global food industry has been undergoing far reaching changes over the past few years. Foodtech may constitute a unique opportunity for Israel. The following are the challenges and opportunities for Israel vis-a-vis the global food industry The food industry is considered one of the most significant industries in the world. The monetary value of […]<\/p>\n","protected":false},"featured_media":7148,"parent":0,"template":"","geographic_location":[96,114,111,107,112,108],"collaboration_opportunities":[97,98,99,100,102,101],"mini_site_category":[],"class_list":["post-3152","press_release","type-press_release","status-publish","has-post-thumbnail","hentry","geographic_location-europe","geographic_location-india","geographic_location-japan","geographic_location-latin-america","geographic_location-singapore","geographic_location-united-states","collaboration_opportunities-academia","collaboration_opportunities-enterprise","collaboration_opportunities-entrepreneur","collaboration_opportunities-government","collaboration_opportunities-investors","collaboration_opportunities-media"],"acf":[],"yoast_head":"\n\n
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Much of the population in developed countries suffers from health issues characterized by an unbalanced diet. <\/p>\n\n\n\n
Over the past several years, the foodtech sector has been growing in Israel, largely due to startups and the implementation of technologies from disparate fields, bringing a new kind of innovation aimed at integrating within the global food industry. This presents Israel with challenges and opportunities on a global scale, for which Israel\u2019s industry must prepare. Whereas in 2014 there were 170 companies active in the Israeli foodtech sector according to IVC, in 2018 there were more than 300 startups active in this field.<\/p>\n\n\n\n\n
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Twenty-six startups are active in Israel in various aspects of food monitoring, including raw ingredients and prepared foods. Some 35 companies develop smart packaging technologies. Thirty-one innovative tech companies are developing solutions for digitization and connectivity between different parts of the food supply chain. Some 43 companies are active in developing novel ingredients, including alternative proteins, sugar substitutes, milk alternatives, etc. Twelve companies are active in the field of nutritional counselling and nutrition advice. Some 22 companies are developing advanced processes for mechanizing food production (robotics, 3D food printing, new processes to produce vegetable proteins, etc.) Another 10 companies are working on innovative kitchen appliances for the home. <\/p>\n\n\n\n
Summary: Challenges and opportunities for Israel\u2019s foodtech industry<\/strong><\/p>\n\n\n\n\n
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The Israel Innovation Authority supports the traditional food industry under its Department for Advanced Production in the MOFET program. <\/p>\n\n\n\n\n