From kitchens to dinner tables, technology is orchestrating a gastronomic revolution unlike any other. Tech is being used to transform food processing techniques, enhance food safety standards, optimize production efficiency, and much more across the industry.
This trajectory of the global food tech industry can be attributed to the increasing adoption of advanced technologies such as artificial intelligence, robotics, and automation.
Additionally, the proliferation of online platforms has also further facilitated greater accessibility to fresh and innovative food products, fuelling new demands and consumption trends in the market.
According to a recent analysis, the global food tech market is expected to reach USD 342.52 Billion by 2027.
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The Food Tech Industry in Canada
In 2022, Canada’s food and beverage processing industry emerged as the nation’s leading manufacturing sector, boasting a production value of $156.5 billion, representing 18.2% of total manufacturing sales and contributing 1.7% to the national GDP.
This industry, which employs 300,000 Canadians, plays a pivotal role in the country’s economy by supplying approximately 70% of all processed food and beverage products available domestically and serving as the primary purchaser of agricultural output.
The food tech sector in Canada is experiencing a renaissance much like the rest of the globe, characterized by a wave of innovation, investment, and sustainability initiatives. Dana McCauley, Chief Experience Officer at the Canadian Food Innovation Network (CFIN), aptly describes this era as a “golden age of food science and technology.”
Most recently in February 2024, 8 Canadian food tech startups received a collective $1.9 million in project funding from the CFIN FoodTech Next program. Here’s a snapshot of some key highlights:
1. Freshr Sustainable Technologies (previously known as Impactful Health R&D), based in Nova Scotia, secured US$100,000 to develop sustainable active packaging, starting with fresh fish, to reduce food waste. The funding will aid in building and testing a pilot line for continuous film coating. This innovation extends food shelf life, minimizing losses during transportation.
2. CarbonGraph Inc., headquartered in Ontario, received US$96,358 to enhance its sustainability platform for automating environmental footprint assessments of food products. The funding will support the development of new functionality to capture supply chain data, enabling high-quality assessments and providing consumers insight into their dietary choices’ environmental impact.
3. Cibotica Inc., located in British Columbia, secured US$90,741 to develop a food-safe version of a universal dispensing mechanism, optimizing their robotic salad and bowl makeline for increased productivity and efficiency in food service environments.
4. Freshline, also based in British Columbia, obtained US$83,908 to enhance its B2B e-commerce platform for food distributors and retailers. The funding will improve core functionality and streamline manual tasks, potentially revolutionizing the industry.
5. New School Foods Inc., headquartered in Ontario, received US$80,526 to advance their proprietary food scaffolding technology for whole-cut meat alternatives, starting with a plant-based salmon fillet. The funding will be used to create equipment that enhances the product to closely resemble traditional salmon.
6. ABCO Industries Inc., situated in Nova Scotia, secured US$64,926 to develop a new blancher for thermal vegetable blanching, using advanced steam delivery and digitized controls for enhanced sustainability and efficiency in the blanching process.
Startup Opportunities in FoodTech in Canada:
1. The Rise of Food Deliveries:
The Online Food Delivery market in Canada is poised for substantial growth and is projected to demonstrate an annual growth rate of 7.91% through 2028, reaching US$19.78 billion. The Grocery Delivery market is also set to expand, with a revenue growth of 15.7% in 2025.
With an average revenue per user (ARPU) of US$0.54k in 2024 and an expected 22.4 million users in the Meal Delivery market by 2028, Canada’s online food delivery sector is driven by convenience demand and the surging popularity of food delivery apps.
SkipTheDishes, a homegrown success story, exemplifies the potential and impact of food delivery startups in catering to evolving consumer preferences and lifestyle choices. Once a modest startup with a handful of restaurant partners, it now has partnerships with over 14,000 restaurants across 115 markets nationwide. Founded in 2012 by brothers Chris and Josh Simair in Saskatoon, the company saw exponential growth and was then acquired by the U.K.-based Just Eat Global Group in 2016, achieving 264% year-on-year growth and earning recognition as one of Deloitte’s Technology Fast-50 award winners. With strategic expansions into new markets and innovative technology enhancements, SkipTheDishes is busy empowering both consumers and restaurateurs alike.
2. Smart Cooking Appliances:
The demand for smart appliances in Canadian households is on the rise, driven by a growing emphasis on sustainability, technological innovation, and changing lifestyle preferences.
Modern consumers prioritize convenience, efficiency, and cutting-edge features in their kitchen appliances, spurring the popularity of smart devices controllable via mobile apps. There’s also a notable shift towards energy-efficient appliances as consumers seek to reduce utility bills and environmental impact. This trend aligns with the growing preference for a healthier lifestyle, fueling demand for appliances such as air fryers, steam ovens, and juicers that facilitate nutritious cooking.
Urban hubs like Toronto, Vancouver, and Montreal stand out as key markets for smart cooking appliance startups, benefiting from increased housing projects, disposable incomes, and higher consumer demand for kitchen innovations.
3. Artificial Intelligence in Food Tech:
Canadian startups are harnessing the power of artificial intelligence to revolutionize dietary analysis and personalized nutrition recommendations.
RxFood Corp. located in Ontario is leveraging AI technology to analyze photos of meals captured by users over a three-day period. Their AI-powered system assesses food content, portion sizes, and calculates validated diet quality scores. The next phase of the project aims to automate the interpretation and food recommendations by incorporating user information such as age, location, gender, and dietary restrictions.
Cronometer Software Inc from British Columbia is integrating AI technology into its mobile and web app to replace its Food Suggestion feature. This AI-powered alternative will provide personalized food recommendations based on individual user needs, assisting users in meeting their specific daily calorie and nutrient targets. Recommendations will be tailored based on factors such as recently logged foods, selected filters (e.g., high protein, vegetarian), meal categories (e.g., lunch), and dietary exclusions (e.g., gluten and peanuts). This project aims to enhance user satisfaction and nutritional outcomes, showcasing advancements in personalized nutrition through AI technology.
4. Plant-based Alternatives
Plant-based protein and related food tech is a top priority for Canada, as it features as one of the Global Innovation Clusters. Protein Industries Canada was created to position Canada as a global source of high-quality plant protein and plant-based co-products. This non-profit organization funds, collaborates with, and catalyzes transformation in the agriculture and food production sector. They provide entrepreneurs with access to markets, customers, and partnerships that amplify their expertise and innovations.
With Canada’s unique advantage in producing high-protein crops like canola and pulses, coupled with access to global markets, plant-based food tech entrepreneurs have a compelling opportunity to contribute to Canada’s leadership in the global plant-based products industry.
5. Sustainability in FoodTech:
Sustainability lies at the heart of the food tech industry, with a growing emphasis on food safety, traceability, and waste reduction. Technologies such as blockchain are revolutionizing supply chain transparency, while the surge in plant-based foods reflects a broader shift toward ethical and environmentally-conscious consumption habits.
For example, Toronto-based ‘food rescue’ startup Flashfood is tackling food waste by connecting grocery stores with consumers through an app. The app offers discounted surplus food nearing its expiration date, helping to reduce food waste while offering consumers affordable options.
The Future of FoodTech:
Looking ahead, the future of food tech holds immense promise, with innovations poised to reshape the way we produce, distribute, and consume food. Food traceability, AI, plant-based meat alternatives, and smart kitchen technologies are just a few areas expected to drive significant advancements, fostering sustainability, efficiency, and consumer well-being.
Deeply intertwined with food tech are also Agri-tech advancements, which you can read more about here, where we talk about precision farming, CEA, agricultural biotechnology, and more!
