The National Innovation Agency (NIA) in Thailand is pushing for Bangkok to become the “food-tech Silicon Valley.” The agency has invested in food-tech start-ups in the area as a part of its “Space-F” project.
The project encourages an influx of investment for the Thai food sector in light of the global food security crisis – which has been exacerbated by multiple factors of climate change, inflation and the ongoing war in Ukraine.
NIA is proposing the use of “deep tech” as the primary way to get Bangkok on the map as a food-tech capital.
The project has been running for about three years, with a focus on funding start-ups, while providing support and mentorship. They do so for local and overseas start-ups, moving them to build businesses in Bangkok.
The growth of food-tech
The global food-tech industry has grown from US$220.32 billion in 2019 and is projected to reach US$342.52 billion by 2027, at a CAGR of 6.0%, according to Emergen Research. This can be linked to the global food crises, with the heightened need for innovation in food security.
“According to the State of Food Security and Nutrition in the World 2022 report by the UN, more than 800 million of the world population, or around 10%, are now suffering from hunger in the effect of the COVID-19 pandemic, economic crisis, shortage of raw material and the decline of food safety,” warns Dr. Pun-Arj Chairatana, executive director at NIA.
Space F creating innovations
Space F covers nine key food-tech trends: health and wellness, alternative proteins, smart manufacturing, packaging solutions, novel food and ingredients, biomaterials and chemicals, restaurant tech, food safety and quality and intelligent food services.
All of these categories are looking to be improved by NIA in Thailand to build economic success and food security in its country and globally.
“Space-F” provides a prominent platform to encourage entrepreneurial start-ups to embrace deep tech and innovation to bring advancement to their business and the food industry. Selected startups then will be mentored to take on Southeast Asian and global markets,” says Pun-Arj.
The NIA executive director is confident that deep tech business in food and agriculture continues to have equal growth as e-commerce and fintech worldwide. This helps the food companies in Thailand also relish robust supply chains.
“By the end of 2025, the food-tech industry is expected to be worth 7.76 trillion baht (US$205 trillion),” says Pun-Arj.
“As the world’s population is increasing rapidly, coupled with climate change, the decline of agricultural labor, and food waste resulting from mass consumption, global food security is now a serious issue that needs to be solved,” he concludes.
The future of food-tech
Many Asian countries have been actively spearheading food-tech advances in recent years. According to the Thai Ministry of Commerce, Thailand has one of the biggest markets in the APAC (Asian-Pacific) region, reporting sales of US$3.5 billion across the nutraceuticals industry in 2019.
Consumers in Thailand, Singapore, South Korea and Japan are also growing accustomed to plant-based and cultivated seafood from cells, with regulatory pathways in these countries opening up.
General ingredient production in Asia has also been on the rise. Last year, Corbion launched an initiative to increase its capacity for producing lactic acid and lactic-acid derivatives ahead of its previously announced expansion in Thailand, scheduled for next year.
