Global Agrifoodtech Investment Shows Signs of Recovery with $16 Billion in 2024

By Agroempresario.com

Agribusiness investors may finally have a reason to be optimistic. After years of decline, the global agrifoodtech sector has shown signs of stabilizing, reaching a total investment of $16 billion in 2024. According to a recent AgFunder report, while this figure remains significantly below the record-breaking $51 billion of 2021, it represents only a 4% drop compared to 2023, signaling a potential turnaround.

The sector has struggled in recent years due to macroeconomic pressures, a broader pullback in venture capital funding, and increased geopolitical tensions. However, despite ongoing challenges such as tariff wars and climate-related risks, certain markets are showing resilience. The U.S., the Netherlands, and India have demonstrated promising growth, even as others, including China, the UK, and Spain, continue to struggle.

Upstream vs. Downstream: Changing Investment Trends

In 2024, upstream categories—those closest to the farm or lab—secured 51% of total agrifoodtech funding across 1,265 deals. However, investment in this segment declined by 22% year-over-year, with Bioenergy & Biomaterials and Novel Farming Systems being the hardest hit, both experiencing declines of over 50%.

On the other hand, downstream categories—closer to the consumer—saw a resurgence, increasing their share of total funding by 38%. Notably, eGrocery reclaimed its position as the most-funded category, accounting for nearly 12% of total investment and growing by 17% year-over-year. Interestingly, despite the rise in total funding, the number of downstream deals fell by 37%, with only 497 deals closed. However, an increase in median deal size (up 14% year-over-year) helped push the sector’s total investment figures upward.

U.S. and India Lead the Global Market

The United States continues to dominate global agrifoodtech investment, securing $6.6 billion in funding in 2024—an increase of 14% compared to the previous year. Meanwhile, India emerged as a major player, climbing from fourth to second place in global rankings. With $2.5 billion in funding, India’s growth (up 215% year-over-year) was largely fueled by late-stage deals in food delivery and eGrocery startups.

Several other nations also posted significant increases, including the Netherlands (+118%), Finland (+403%), and Japan (+76%). Finland’s impressive growth was primarily driven by a $260 million investment in aquaculture company Finnforel, while Japan benefited from a $65 million funding round for alternative materials company Spiber.

Key Takeaways from the Report

• Global agrifoodtech funding reached $16 billion in 2024, marking only a 4% decline from 2023.
• The total number of deals dropped by 24%, with the most significant decline occurring in downstream categories.
• The U.S. remains the top investment destination, with $6.6 billion raised (+14% YoY).
• India led developing markets with a remarkable 208% growth, reaching $2.5 billion in funding.
• Investment in downstream categories rose by 20% year-over-year, now making up 38% of total agrifoodtech funding.
• eGrocery was the top-funded category, growing 17% year-over-year and accounting for 12% of total investment.
• Cloud Retail Infrastructure was the fastest-growing category, with a 45% increase in investment across 52 deals.
• North America was the only developed market region to show positive growth (+10% YoY).
• South Asia posted a 202% increase, driven primarily by India, which accounted for 70% of developing market investments.

Looking Ahead: Signs of a Market Rebound?

While global agrifoodtech investment is far from its 2021 peak, the latest data suggests that the industry may be stabilizing. The continued growth in key markets like the U.S. and India, along with increased funding in downstream segments, indicates that investor confidence may be returning. However, with ongoing geopolitical uncertainty and economic volatility, the sector remains in a delicate balance.

As agribusiness leaders and investors navigate these shifting dynamics, the coming years will determine whether the industry is on a true path to recovery or merely experiencing a temporary plateau.