Several agritech startups have emerged in Southeast Asia, aiming to help ensure food security amidst the climate emergency. A favourable consumer attitude towards agritech further supports this sector.
Asian consumers have indicated a preference for trying novel food products that were not previously available. They also seek products that add value in previously impossible ways, such as meat alternatives or nutrient-dense foods.
Currently, approximately 270 startups are operating within Southeast Asia’s foodtech sector. These startups have found support from over 250 investors and several accelerator programs.
Let’s dive into the latest foodtech trends in Southeast Asia.
Plant-based meats are becoming popular
Experts say reducing meat and dairy consumption could help fight the climate crisis. This is because research shows that industrialised livestock rearing significantly contributes to carbon emissions while also increasing biodiversity loss and deforestation.
Southeast Asia is focusing on reducing meat production since the region accounts for half the world’s supply of animal proteins. For the region to achieve Asia Research Engagement’s target of shifting to alternative proteins by 2030, it will need a governmental policy push, corporate intention, and increased consumer adoption.
Companies operating in the region, such as Thailand’s Betagro, recognise their challenges. The current consumer preferences for alternative proteins may not last forever.
Eventually, companies will need to deliver products that match or outdo traditional meats in terms of price and taste. However, technological advancement has not enabled companies to deliver on this so far.
Sustainable agriculture is on the rise
There are many reasons for Southeast Asian nations to adopt sustainable agricultural practices. It can help promote biodiversity, improve climate resilience, and lead to better land management.
Governments within ASEAN have recognised its importance and are taking steps to ensure that agriculture serves the nations for generations to come. Some of the opportunities identified include precision farming technologies, remote sensing, adding shrubberies to enhance biodiversity, reduction of methane, controlled irrigation, and more.
While opportunities are present, significant challenges remain. For example, the impact of climate change is already being felt. It is only likely to worsen at a rapid rate, affecting almost every aspect of agriculture. Further, improper land management and deforestation are leading towards soil degradation and biodiversity loss.
Traditional sustainable farming practices have existed in the region for generations—for example, combining rice cultivation and fish farming to improve biodiversity and water quality. Key stakeholders, including governmental agencies, private companies, farmers and farmer organisations, are increasingly collaborating to make modern sustainable agriculture a reality within the region.
The rapid adoption of technology
One of the main concerns with technological advancement is how quickly it will be adopted, if at all. Farmers in SEA have proven to be open to adapting their farming practices to new-age technology. They are using drones to help improve crop yields and spray pesticides, while data analytics is becoming a significant part of crop management.
In Vietnam, MimosaTEK is bringing precision agriculture to small farmers using sensors to monitor crops, which can improve the use of water, fertiliser, and pesticides.
Urban farms are gaining popularity in Singapore because they can help reduce food imports and improve local self-sufficiency. This type of farming can also enhance efficiency through more precisely controlled farming methods, which allow for produce growth throughout the year. Sustenir, a Singapore-based startup, operates urban farms with yields fourteen times higher than traditional farms.
Other startups like Kamereo, a company delivering fresh produce directly from farms to stores and F&B businesses in Vietnam, which recently raised USD 7.8 million in funding, and Aonic, a Malaysian drone and software company that secured an undisclosed sum in November 2024 Series A funding, and are changing farm practices in the region.
The developing agritech ecosystem
The overall food ecosystem is undergoing significant changes. In 2022 alone, investments in Southeast Asia’s agritech startups reached USD 1.7 billion. These investments are critical to helping the region’s agricultural sector, with projections indicating there will be approximately 780 million more people to support by 2050.
Startups are experimenting with technology to adapt farming business models. One AI-powered application, Dokter Tania, can help farmers identify plant diseases and provide expert guidance on crop cultivation and the use of fertilisers. Other regional startups such as Qarbotech, Tunas and Mertani are also shaking up the industry.
Such innovations will likely have a transformative effect on the sector within a few years. The rapid pace of advancements in the industry is matching the quick adoption not just by farmers but also by consumers.
Developments within the technology industry as a whole are also likely to have an impact on foodtech. Emerging areas like data analytics and artificial intelligence will potentially change agricultural operations.
Soon, foodtech trends in Southeast Asia, like urban farming, personalised nutrition, alternative proteins, and drone usage, may become mainstream and render traditional food habits unrecognisable. Southeast Asia’s foodtech sector is at the forefront of this development as investments globally amp up with VC funds such as AgFund, bringing in more funding. The industry is on the cusp of evolving into an agritech-forward region supplying domestic and international food needs while mitigating the potential food insecurity resulting from climate change.