Food Startups

4 Food Startups That Will Disrupt the Industry In 2021 And Beyond

| 5 minutes read

When we talk about food, what comes to your mind? Flavour, exotic taste, and smell, right? Do you know food has opened up with a lot of opportunities, and many startups have proved themselves in the food industry? But this is not only the story- the demand for nutritious ingredients, product transparency, and environmentally-conscious sourcing has a powerful impact on product development and is currently dominating the food industry. These claims create a cut-throat competition for companies in the industry and leave many uncertain in which changes to invest in.

The food industry got a boost when delivery companies like Uber Eats, Doordash, Food Panda knocked on the door; also revenue in the Food & Beverages segment is projected to reach US$21,320M by the end of 2021, as per a report by Statista.

We have made it our mission to identify key players who will disrupt the food startups 2021.


Here are the four notable food startups that will disrupt the industry in 2021.

Let’s begin:

1. SmartSweets 

Founded: 2016

Headquarter: Vancouver

One of the most archetypal entrepreneurship stories is when a person observes a market gap for a particular product they want to buy. Instead of waiting for someone else they create it, they start their own business to fulfill that need for them and the same like-minded people. That is exactly what Tara Bosch (Founder and CEO SmartSweets) did when she became frustrated shopping for a great-tasting, healthier candy option. As we all know, candies contain many sugar and artificial colors used to make the colorful candies.

Tara also knew there were plant-based natural sweeteners that could replace the sugar syrup traditionally used by companies. During the summer of 2015, she bought a gummy bear mold off, and next year, she started testing candy recipes of her own.

SmartSweets officially launched in 2016, and Tara was able to get her original Fruity Gummy Bears into a few local Canadian grocery stores. Building on that success, Tara successfully attracted Whole Foods Canada and eventually Whole Foods U.S. In November 2019, SmartSweets candy was available in 20,000+ stores across the United States and Canada. 

 

2. Daily Harvest

Founded: 2014

Headquarter: New York, USA

Being a professional, Rachel Drori generally spends her weekends prepping meals for the upcoming week. She tried the various meal subscription services to find out the better solution, but she was not satisfied with their services; she found that it would require more effort to schedule.

Rachel began always encouraging healthy foods and making food healthy and delicious. She started to keep frozen pre-portioned bags of mixed fruits and vegetables that she would use to make nutrient-dense smoothies throughout the week. Once Rachel’s friends noticed her healthy meal ‘hack,’ they asked her to start delivering smoothie ingredients to them too, and Daily Harvest was born. Rachel now successfully serves more than 100,000+ of her customers nationwide with Daily Harvest’s monthly subscription; thus, it has expanded to include soups, harvest bowls, chia parfaits, and many others. It is truly said; the idea of establishing a startup comes from innovative ideas.

 

3. Meatable

Founded: 2018

Headquarter: Delft, Netherlands

Most people love meat, and eating meat is good for health, but do you know how animals were treated and killed? To eliminate pain and cruelty, Dutch startup Meatable found out the innovative idea. The company works on the production of meat derived from animal cells- a method of meat production that theoretically has a far smaller carbon emissions footprint and is better for the environment than traditional animal farming.

Nowadays, the cruelty-free market is booming; Meatable is the first kind of company that focuses first on pork rather than beef, with opti-ox technology speeding up production from months to days. Although the product is not real meat, it will taste like real meat; this isn’t amazing?

Meatable snapped up a Eurostars grant in November 2019 and a further €8.9 million in seed funding in December 2019. Daan Luining is the co-founder of Meatable.

 

4. IWON Organics

Founded: 2016

Headquarter: Corte Madera, California

Nowadays, you will find thousands of products that will shout out and say they have the highest protein and organic. The problem is, how do you know the product is suitable for your body? We guess you will say it has protein and made with organic ingredients. You’re not wrong, but this is the situation when you blindly trust the outer packaging information. 

Mark Samuel, the CEO, and Founder of IWON Organics had shared his experience. He said, “I had consumed much milk-based high protein food, and after some time I noticed that my body struggled and became intolerant of milk-based products.” Then he decided to adjust and fulfill the need of daily protein requirements through plant-based protein sources. But the problem was there are only a limited number of plant-based protein products available. Mark launched IWON Organics. The startup’s first product was high-protein, plant-based chips made from 100% organic, non-GMO, and all-natural ingredients used. Today, IWON Organics’ product lineup includes high-protein, plant-based varieties of Puffs, Stix, and O’s and can be purchased in over 7,000+ global locations.


Food startups’ success also depends on the technology they use and develop; therefore, food tech startups have developed some outstanding techniques you should look for.

1. Artificial protein (lab-grown meat) 

Lab-grown meat has become an alternative food option. It will give the same taste as meat; the only difference is the meat is grown in a lab. 

According to the latest report in the US, the global lab-grown meat market is predicted to be worth $15.5m by 2021 and $20m by 2027, according to analysis. One report estimates that 35% of all meat will be cultured by 2040. Startups like Mosa Meat, Memphis Meats, Aleph Farms, and many others are ruling the market for cell-based meat.

2. Food Robotics  

Food manufacturing robots are commonly used in the feed placement, cutting, dispensing, packaging, or casing of food, pick-and-placing products into containers, and sorting. Companies employ robotics to advance products and efforts towards minimizing errors. As per PR news wire, the global Food Robotics market was valued at USD 402.2 Million in 2019, and it is expected to reach USD 745 Million by the end of 2026, growing at a CAGR of 9.1% during 2021-2026. Some of the Food robotics examples are Rockwell Automation, Staubli, Epson America, and many other startups involved in the Food robotics market.

3. Advanced food delivery system

Days are not that far when drones will deliver you food at your place; many of the startups have already started their testing procedure. Artificial Intelligence technology is used in drones to track the location, and with no time delay- you will get the order on time. Companies like Uber Eats, Doordash, Food Panda, and many other companies are in the queue.


Conclusion

The food business is not new, but the industry rose almost ten times in the last ten years. Companies are using various technologies and methods to serve their potential customers, and it is good for customers because they get ample options to choose and decide.

According to the latest reports, the global food business will hit $1.2trillion by 2030; after the COVID-19, things are getting normal, and once again, we can see the food industry bouncing back. With the above information, we have understood that technology plays an important role, and by using various techniques and methods, you will soon grip the food market.

These are just a few startup companies; many other startups can disrupt the industry with their innovation & methods. And we will cover the next few startups in part two of this blog.

 

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