Key Takeaways

• The return-on-investment (ROI) in the food processing industry in 2021, 2020, 2019, 2018, and 2017 are 9.96%, 6.16%, 3.73%, 10.15%, and 7.37%, and 7.11%.
• Capital expenditure (CAPEX) in the food processing industry grew by 29.21% at the end of the 2021 fiscal year.
• Emerging technologies within the food production industry attracting significant investment include alternative protein, meal kits & delivery solutions, e-commerce, hardware-enabled solutions, and supply chain solutions.

Introduction

ROI in the Food Processing Industry

2021

• According to CSI Markets, the return-on-investment (ROI) in the food processing industry in each quarter of 2021 in the US is shown below:
•  
  Source
   
• Based on the data shown above, the average return on Assets in the food processing industry in 2021 is 5.38% (5.55+6.03+5.48+4.44)/4).
• The average return on investment in the food processing industry in 2021 is 9.96% (10.04+11.19+10.25+8.36)/4).

ROI in 2020

• The return-on-investment (ROI) in the food processing industry in each quarter of 2020 in the US is shown below:
•  
  Source
   
• Based on the data shown above, the average return on Assets in the food processing industry in 2020 is 3.19% (3.79+3.04+2.72+3.22)/4).
• The average return on investment in the food processing industry in 2020 is 6.16% (7.57+5.75+5.16+6.15)/4).

ROI in 2019

• The return-on-investment (ROI) in the food processing industry in each quarter of 2019 in the US is shown below:
•  
  Source
   
• Based on the data shown above, the average return on Assets in the food processing industry in 2019 is 1.96% (3.62+1.25+1.61+1.35)/4).
• The average return on investment in the food processing industry in 2019 is 3.73% (6.81+2.42+3.07+2.62)/4).

2018 ROI

• The return-on-investment (ROI) in the food processing industry in each quarter of 2018 in the US is shown below:
•  
  Source
   
• Based on the data shown above, the average return on Assets in the food processing industry in 2018 is 5.36% (0.47+6.98+6.86+7.13)/4).
• The average return on investment in the food processing industry in 2018 is 10.15% (0.98+13.32+13.07+13.3)/4).

2017 ROI

• The return-on-investment (ROI) in the food processing industry in each quarter of 2017 in the US is shown below:
•  
  Source
   
• Based on the data shown above, the average return on Assets in the food processing industry in 2017 is 3.89% (6.92+2.93+2.85+2.87)/4).
• The average return on investment in the food processing industry in 2017 is 7.11% (12.85+5.3+5.12+5.17)/4).

Capital Expenditure

• The US Census Bureau provides data on the capital expenditure in various industries in the US. However, data on the food processing industry is grouped under Accommodation and Food services.
• The historical (2008-2017) capital expenditure in the Accommodation and Food Service industry is presented below:
•  
  Source
   

Capital Expenditure Some Food Processing Companies

• The total CAPEX of 38 of the top 100 food processing companies in 2017 was $14.2 billion.
• The total budgeted CAPEX of 38 of the top 100 food processing companies in 2018 was $16.2 billion.
•  
  Source
   

Capital Expenditure Growth Food Processing Industry

• Capital expenditure in the food processing industry grew by 29.21% at the end of the 2021 fiscal year. Data on 2020 quarterly and annual CAPEX growth can be found below:

•  
  Source
   
• Capital expenditure in the food processing industry grew by -13.26% at the end of the 2020 fiscal year. Data on 2020 quarterly and annual CAPEX growth can be found below:
•  
  Source
   
• Capital expenditure in the food processing industry grew by -2.13% at the end of the 2019 fiscal year. Data on 2019 quarterly and annual CAPEX growth can be found below:
•  
  Source
   
• Capital expenditure in the food processing industry grew by -4.6% at the end of the 2018 fiscal year. Data on 2018 quarterly and annual CAPEX growth can be found below:
•  
  Source
   
• Capital expenditure in the food processing industry grew by 0.93% at the end of the 2017 fiscal year. Data on 2017 quarterly and annual CAPEX growth can be found below:
•  
  Source
   

Emerging Technology Attracting Funding

Alternative Protein

• Alternative protein is one of the emerging food production technology attracting massive investments.
• About $3.1 billion was invested in 2020 in alternative protein-related companies.
• The chart below shows the number of deals and total money invested in companies creating a sustainable alternative to conventional animal-based protein between 2010 and 2020:

 

Source

e-Commerce

• e-Commerce is one of the food technology subsectors attracting the most funding and investment since 2010.
• According to Finistere Ventures, e-commerce attracted $5.3 billion in funding in 2020.
• The market capitalization of some major e-commerce companies that have attracted funding recently is shown in the picture below:
•  
  Source
   

Meal Kits & Delivery

• Meal kits & delivery is another food tech sector attracting large investments.
• Meal kits & Delivery attracted investments of $6.3 billion in 2020.
• In 2019, meal & delivery attracted investments of $4.3 billion.
• Meal kits & delivery and e-commerce together commanded 68% of the total investments in food tech in 2020.
• Meal kits & delivery and e-commerce commanded over two-thirds of all food tech deals by value since 2010.
•  
  Source
   

Supply Chain

• Supply chain technology in the food technology space is gradually attracting investment.
• The pandemic exposed a significant problem in the supply chain that adversely affected food technology.
• In 2020, the sector attracted 5% of all food tech investments.
• The segment attracted $0.9 billion in 2020.
•  
  Source
   
• Some examples of food tech companies attracting significant investment in the space are in the image below:
•  
  Source
   

Hardware-Enabled Solutions

• Hardware-enabled solutions are solutions that enable "food preparation or distribution via next-gen vending machines, smart ovens or robotics used in the home or commercially for production."
• Hardware-enabled solutions accounted for 5% of all investment in food tech in 2020.
• The sector attracted $0.9 billion in total investment in 2020.
•  
  Source
   
• Some hardware-enabled technology companies are shown in the image below:
•  
  Source
   

Research Strategy