Japan emerges as agrifoodtech hub in APAC with 58% YoY funding surge

By Agroempresario.com

Japan’s agrifoodtech ecosystem has seen impressive growth over the past few years, positioning the country as a rising hub for innovation in the sector. In 2024, Japan ranked third in total agrifoodtech funding in the Asia Pacific region, with $280 million raised across 93 deals. This represents a significant 58% increase in funding compared to the previous year, continuing a positive trend after the global investment contraction in 2022, which impacted major Asian economies, including Japan.

The growth is particularly noteworthy considering the challenges faced by many countries following a global credit crunch. The surge in Japan’s agrifoodtech sector highlights its recovery and resilience, especially as investments in the country’s bioenergy, biomaterials, and farm management software sectors continue to gain traction.

The agrifoodtech sector in Japan is diversifying, with the bioenergy and biomaterials category leading the way. In 2024, the sector raised $65.2 million, primarily driven by a single deal with biomaterial manufacturer Spiber. This represents a 33% increase from the same period last year, when bioenergy and biomaterials ranked fourth in funding.

Cloud retail infrastructure and farm management software also saw significant investments, raising $52.6 million and $26.6 million, respectively. The latter category included a mix of seed, Series A, B, and C deals, showing growing interest in early-stage startups and technological innovations in agriculture.

Interestingly, the innovative food sector, which led funding in 2023, saw a decline in 2024, dropping to sixth place with $23.3 million raised, reflecting a 52% decrease compared to the previous year. Despite this, the overall agrifoodtech sector in Japan remains strong, with investors showing continued interest in both early-stage and mature startups.

In total, 2024 has demonstrated Japan’s growing influence in agrifoodtech within Asia Pacific, with its ecosystem attracting global attention. The country’s focus on sustainable technologies, coupled with a diverse range of agrifoodtech investments, positions Japan as a key player in the future of food and agriculture innovation.