East Asia Turns to Biotech to Offset 40% Decline in Agrifoodtech Investment

By Agroempresario.com
East Asia’s agrifoodtech sector faced a significant downturn in 2024, with a 40% year-over-year funding drop—the lowest in a decade—according to AgFunder’s 2025 Global AgriFoodTech Investment Report. The region raised $1.2 billion collectively, but the sharp decline is largely attributed to China’s slowdown. When excluding China, investment in the subregion actually showed slight growth, nearly matching 2019 levels.

Japan stood out as a bright spot, with agrifoodtech startups raising nearly $300 million—up 76% from 2023’s $164 million. This growth was led by biomaterials innovator Spiber, which secured a $65 million late-stage round, the largest in Japan last year. Spiber’s microbial fermentation technology produces protein-based alternatives to plastic and leather, gaining attention not only in agtech but also in fashion and beauty through partnerships with brands like Patagonia and Shiseido.

AgFunder partner Manuel Gonzalez points to Japan’s convergence of “abundant, low-cost capital, world-class technology, and deep market access” as a foundation for broader tech-driven growth across sectors, including food and agriculture. Beyond Spiber, restaurant-tech startups Dinii and Peco Free attracted $52 million and $24 million, respectively, while biotech ventures like Regional Fish and Symbiobe gained traction with innovations in aquaculture and marine-based fertilizers.

“Japan’s food security hinges on overcoming the limiting factor of energy cost—especially as agriculture shifts toward an unmanned, AI-driven future,” notes Gonzalez. He highlights Japan’s broader tech renaissance, including the Rapidus semiconductor project and growing investment in AI infrastructure, as key drivers of this transformation. M&A activity in Japan also rose by 44% year-over-year.

Meanwhile, East Asia’s once-booming eGrocery segment saw a dramatic collapse. The sector, which peaked during the pandemic, attracted over $6 billion in 2021. Major players like Xingsheng Youxuan and ELEME had previously raised multi-billion-dollar rounds. But by 2024, eGrocery funding plummeted to just $29 million, with no eGrocery companies among the region’s top 20 fundraises—suggesting the boom times are over.

Biotechnology emerged as the new growth engine, especially in the context of food security and national innovation strategies. Agrifood biotech startups raised $471 million across 47 rounds in 2024, up 29% from $367 million in 2023. China led this segment, driven by policy shifts aimed at agricultural self-sufficiency. In February, the Chinese government unveiled a strategic plan focused on biotech innovation, AI integration, and development of new seed varieties—a response to ongoing trade tensions with the U.S.

South Korea also embraced agrifood biotech as part of its 2030 Bioeconomy Plan, investing in microbiome technologies to create eco-friendly fertilizers and pest control. Local companies like CJ CheilJedang, through its biotech arm CJ BioScience, and startups like Microbalance and Kookmin Bio are pushing forward microbiome applications in agriculture and food innovation.

South Korean impact investor Sopoong Ventures, a data partner of AgFunder, even described the country as a “future hub for global biotech.” According to Sopoong, the synergy between startups and established firms is fueling a robust ecosystem geared toward sustainable and efficient farming.

Fermentation technologies and microbiome-enhanced products are particularly promising. For instance, CJ CheilJedang uses microbial fermentation for alternative feed and fertilizer production, while Kookmin Bio, which raised $2.5 million in 2024, focuses on biohealth food and pharmaceutical R&D.

Although overall funding in East Asia declined, the uptick in biotech investment signals a strategic pivot for the region. Countries like Japan and South Korea are doubling down on innovation to drive long-term food resilience, economic competitiveness, and sustainable agriculture. As agrifoodtech increasingly overlaps with sectors like energy, semiconductors, and artificial intelligence, East Asia is laying the groundwork for a more self-reliant and tech-integrated food system.

With the post-pandemic correction behind and a renewed focus on biotech, East Asia is positioning itself not just to recover, but to lead the next generation of agrifood innovation.