As global demand for seafood is projected to more than double by 2050, the pressure is mounting to develop sustainable solutions that can meet this burgeoning appetite without further depleting fish stocks or damaging marine ecosystems. A combination of wild-caught fish, aquaculture operations, and plant-based or cultivated seafood alternatives is emerging as a multifaceted approach to boost the global protein supply. However, the landscape for aquatic food technology—encompassing innovations in fisheries, aquaculture, and seafood substitutes—has recently faced headwinds, with investments dipping significantly in early 2024.
In the first half of 2024, funding for aquatic foodtech startups reached only $150 million across 18 deals, marking a 40% decrease from the same period in 2023. While the overall venture capital market for agrifoodtech has been bearish, aquatic food tech has historically fared better than many sectors, raising nearly $500 million in 2023 alone, which was a 17% increase from 2020. The peak year for this sector came in 2022, when startups raised an impressive $1 billion, a staggering 136% increase compared to 2020—a year often viewed as a baseline for comparison.
The aquatic foodtech sector has raised a total of $3.6 billion since 2014, representing only 1.63% of global agrifoodtech funding over the last decade. The market is particularly buoyed by fish farming, with global fisheries and aquaculture production hitting 223.2 million tonnes in 2022, a 4.4% increase from 2020. Notably, 2022 marked a historic shift where aquaculture surpassed capture fisheries as the primary source of aquatic animals, producing 130.9 million tonnes.
Several categories within aquatic foodtech are instrumental in this “blue transformation.” Novel Farming Systems, which focus on advanced aquaculture techniques, have attracted $1.3 billion across 197 deals over the past decade. This includes innovative companies such as LAXEY, an Icelandic salmon farming firm that recently raised $49 million to establish a sustainable land-based aquaculture farm. Similarly, Agriloops, a French startup, secured $14 million to develop an eco-friendly aquaponic farm in saltwater.
Innovative Foods, which encompasses cellular and plant-based seafood alternatives, has also seen significant investment, with $689 million raised across 136 deals since 2014. Companies like BlueNalu and Wanda Fish Technologies are pioneering cellular aquaculture, with the former raising $33.5 million to create sustainable seafood products and the latter securing $7 million for cultivated fish filets.
The Farm Robotics and Mechanization category has garnered attention as well, with firms like EFishery and Poseidon Ocean Systems raising millions to enhance aquaculture infrastructure and technology. Meanwhile, Agribusiness Marketplaces and Fintech have emerged as crucial players, with platforms like Captain Fresh and Juhudi Kilimo providing vital financial and logistical support to fish farmers.
Despite the recent downturn in investments, the long-term outlook for aquatic foodtech remains promising. The sector’s resilience, demonstrated by its growth trajectory over the past years, suggests that it could rebound as global seafood demand continues to rise. The innovations being developed today are not only essential for meeting future protein needs but also play a critical role in ensuring the sustainability of our oceans and aquatic resources. As the industry evolves, the integration of technology and sustainable practices will be key to navigating the challenges ahead.