Find your way around this article
As the agrifood tech sector heads into 2025, global challenges like climate change, resource scarcity, and rising consumer expectations are pushing the boundaries of innovation. This year will see a strong focus on addressing ultra-processed food challenges, scaling precision innovation, valorizing side-streams, adopting regenerative agriculture, and capitalizing on the functional foods boom. Each of these trends presents unique opportunities for food corporates to redefine production, sustainability, and consumer engagement strategies.
Read time: 6-8 minutes
As we look towards 2025, the agrifood tech sector is positioned for transformative growth. Global challenges like population growth, resource scarcity, and climate change are accelerating the need for innovation, while evolving consumer preferences for minimally processed, transparent, and nutritious options are reshaping industry priorities. Rising food demand, stricter climate regulations like CSRD (Corporate Sustainability Reporting Directive), and the pressure to adopt sustainable practices present both challenges and opportunities for corporates to redefine how food is produced, distributed, and consumed.
Explore how agrifood corporations are set to transform the sector in 2025 by driving change in five key areas. Leveraging insights from our BGP network of over 2,500 experts, we highlight how these businesses are harnessing emerging trends to shape a more sustainable and innovative future.
As consumer demand for healthier, more natural options intensifies, food corporates face mounting pressure to reformulate products perceived as overly processed. This trend is particularly acute in the plant-based sector, where highly processed components, such as protein isolates, are increasingly being replaced by minimally refined alternatives like native pulse flours and protein concentrates. While these alternatives may offer slightly reduced functionality, they better align with consumer priorities for simplicity and transparency.
"Any sort of technological advances which can reduce the perception of processing in the consumer's and retailer's eyes is going to be incredibly important, especially in plant-based foods” – BGP Expert, Anthony Warner
The shift is not merely about ingredient changes but about maintaining the delicate balance between functionality, cost, and consumer perception. Food companies are increasingly replacing ingredients like carrageenan and hydrocolloids with more natural or natural-looking alternatives, such as those developed through advanced plant protein categorization and modification to achieve gelling or structural properties. Ingredion has introduced NOVATION Indulge 2740, a clean-label starch designed to replace carrageenan in dairy-based desserts, offering similar texture and stability while allowing for simpler ingredient labeling. Similarly, the cultivated meat industry faces significant challenges related to ultra-processing, which remains integral to production. Alongside scaling and commercialization, companies will need to innovate on the positioning of end-products to gain consumer acceptance.
The implications for corporates looking to tackle UPF challenges are significant:
Precision technologies, including precision fermentation and precision farming, are transforming the agrifood sector, with 2025 expected to bring a stronger focus on scaling and capacity-building to meet future demand. Precision fermentation, which has primarily focused on alternative proteins, is now expanding into broader applications like flavorings, bioactives, and functional ingredients.
However, 2025 will mark a shift toward addressing key challenges, particularly the need for industrial-scale infrastructure to reduce costs and achieve wider adoption. Companies like Vivici are already leading the charge, investing in capacity expansion and strategic partnerships to overcome bottlenecks in scaling.
On the farming side, precision technologies such as AI-driven monitoring, robotics, and IoT-enabled tools will see increased adoption to optimize crop yields, resource efficiency, and supply chain sustainability. Governments and private investors are expected to play a more active role in funding scalable solutions, as the sector prioritizes not just innovation, but operational efficiency and resilience for the future.
The emphasis in 2025 will be on creating the infrastructure and partnerships needed to transition these precision technologies from niche innovations to mainstream solutions, ensuring they meet the growing global demand while driving sustainability and economic viability.
Implications for corporates:
In 2025, the focus on valorizing side-streams—turning byproducts into valuable inputs—will intensify. Companies are increasingly investing in technologies to extract value from side-streams, such as extracting protein from brewers’ spent grain. For example, through its subsidiary EverGrain, AB InBev upcycles spent barley grains from brewing into high-quality protein ingredients for food and beverage products.
With consumer priorities rooted in cost, taste, and functionality, corporates are strategically adopting these innovations not only to meet consumer expectations but also to achieve operational and economic advantages. The corporate focus is increasingly driven by the potential for cost reductions, margin improvements, and short-term commercial opportunities. Additionally, these strategies align with growing sustainability goals, enabling companies to discreetly integrate innovations while enhancing profitability and reducing environmental impact.
"The general challenge with sustainability is it's got to lead with a cost number. When you can take something and turn it into a value-add product—you've monetized it and you've hit the sustainability button." – David Ziskind, BGP expert
Implications for corporates:
Read more about side-stream valorization here
Regenerative agriculture is shifting from a niche initiative to a core sustainability strategy for agrifood corporates. In 2025, the integration of advanced technologies—such as AI-driven soil analysis, precision agriculture tools, and carbon capture monitoring platforms—will accelerate the adoption of regenerative practices. This shift is further fueled by mounting regulatory and market pressures to meet 2030 sustainability targets and demonstrate progress ahead of COP30 (Read more about COP30 here).
"Platforms that integrate technology with regenerative agriculture could help the food industry make sustainability claims more accessible to fulfill." – BGP expert
Platforms like Indigo Ag and Regrow enable farmers to track and verify soil health, carbon sequestration, and water use, providing corporates with measurable data to support sustainability claims. At the same time, predictive analytics and precision tools optimize input use, helping farmers reduce costs and increase yields, while creating premium opportunities for verified sustainable crops.
For corporates, the implications of these advancements span multiple strategic priorities:
In 2025, the demand for functional foods—products enhanced with additional nutrients to provide specific health benefits—will continue to rise. Asia-Pacific is the fastest-growing market for functional foods, driven by rising health awareness and shifting dietary preferences. Key markets like China, India, and Japan are driving this growth, reflecting a strong shift toward preventative healthcare through nutrition. Additionally, the region’s growing population and increasing disposable income is driving spending in this area. Despite its rapid expansion, the region still holds significant untapped potential compared to more mature markets like Europe and the United States, presenting a unique opportunity for growth and innovation.
Certain segments are experiencing particularly rapid growth in the Asia-Pacific region, with gut health leading the way due to heightened consumer interest in probiotics and prebiotics for digestive wellness. Immune-boosting products are also booming, as the pandemic has solidified long-term demand for foods and beverages fortified with vitamins like C and D, as well as zinc. Additionally, products targeting cognitive health and energy—such as those containing adaptogens, nootropics, and plant-based ingredients—are gaining popularity, especially among younger, health-conscious consumers.
Implications for corporates:
As you plan for 2025, the opportunities and challenges in improving sustainability while continue driving profitability and appealing consumer innovation have never been greater. Whether you’re focusing on optimizing side streams, integrating new technologies in farming, or entering new markets, having the right partner can make all the difference.
At Bright Green Partners, we specialize in helping companies define their next opportunities and pursuits in the agrifood tech space, ensuring they stay ahead of industry trends and challenges.
Whether you're exploring the topics above or broader agrifood tech opportunities, we're here to support your planning process. Leveraging our deep expertise across the value chain, we provide actionable insights and strategies to position your business as a leader in sustainable and resilient food systems.
