FoodTech Italy: the rise of Agrifood-tech start-ups and growing investments

The year 2023 marked a moment of significant growth for the Agrifood-tech sector in Italy, with investments in start-ups and SMEs in the agrifood sector increasing by 10% to EUR 220 million. This phenomenon not only confirms the value of Italian agrifood in the national economy, but also the growing importance of innovation and technology in the sector.

According to ISTAT, in 2023 the agri-food sector generated more than EUR 65 billion in absolute value, contributing 3.8% of the total Italian economy. These figures reflect the crucial importance of the sector in terms of employment, with 740,000 farms, over 330,000 catering companies, 70,000 food industries and 4 million employed workers.

The Categories of FoodTech Startups

The report identified four main categories in the FoodTech startup landscape: Agritech, Food Production & Processing, Retail & Distribution, and Restaurant-tech & Delivery. In the Agritech category, new cultivation systems, agricultural automation and applied biotechnologies stand out, with a growing interest in vertical farming and the optimisation of agricultural practices.

Italian FoodTech start-ups have identified five key resources necessary for their growth: attracting international investors, support from the Italian food industry, participation in international events, knowledge of best practices, and facilitating access to public support.

Resilience and Investment Growth

Despite the global challenges, Italian FoodTech has shown remarkable resilience, with total investments in the sector increasing by 10% in 2023 to around EUR 167 million. The majority of investments are in the seed and pre-seed stages, highlighting investors’ support and interest in emerging start-ups in the sector.

The rise of Agrifood-tech start-ups in Italy and the increase of investments in the food sector reflect an unprecedented moment of growth and innovation. With the support of the Italian food industry and the attraction of international investors, Italy’s FoodTech is preparing to define the future of agriculture and food, aiming towards greater competitiveness and sustainability in the global landscape.