The global food transition is expected to be a key investment trend over the next 12 months, according to Chicago-based investment manager S2G Ventures.
According to the company, like the global energy transition, the global food transition is expected to accelerate during 2022, driven by changing consumer preferences, climate change and changing capital markets. .
“The food transition is still in its infancy but is being propelled by seismic tailwinds: massive demographic changes are driving new consumer demand, significant advancements in the biology, chemistry and physics of food production to create new choice and now capital markets anchored by ESG who want to finance high growth and disruptive companies ”, said Sanjeev Krishnan, Managing Director and Chief Investment Officer of S2G Ventures.
According to its report 10 Trends Shaping the Future of Food in 2022, trends such as new technologies create significant opportunities in food production.
Using robots to increase efficiency, for example, reduces labor requirements across the food system and drives the transition to healthy and climate-smart food systems.
Supply chain disruptions over the past two years have also accelerated innovation in the space, according to the report.
Trends such as food waste solutions will soon be recognized as both good business practice and an essential tool for transition.
Banks and investors have launched a multitude of products to meet demand.
In July last year, Credit Suisse and JP Morgan Asset & Wealth Management teamed up to launch an investment fund specializing in sustainable nutrition.
Credit Suisse said the new fund “Address the links between nutrition, health, biodiversity and climate, with particular emphasis on the societal and environmental aspects of nutrition”.
In March last year, Goldman Sachs raised $ 800 million of a lasting bond to accelerate work on climate transition and advance certain thematic areas, including sustainable food and agriculture.