The UK has retained its position as the fourth-largest agrifoodtech investment market globally
After three years of decline, global agrifoodtech investment is showing signs of stabilising, according to a new report.
Investment reached $16 billion in 2024, which is 4 per cent lower than the previous year, according to agrifoodtech investment and intelligence platform AgFunder.
While investment levels remain well below their 2021 peak, this slowdown in decline suggests a potential turning point for the sector, the company said.
Leading UK agri-tech innovation network Agri-TechE has partnered with AgFunder for the latest report, providing insights into what these trends mean for the UK’s innovation ecosystem.
A tough year, but strength in innovation
Despite a decline in both funding (-45 per cent) and the number of deals closed (-40 per cent), the UK retained its position as the fourth-largest agrifoodtech investment market globally, attracting $616mn across 113 deals.
AgFunder said this demonstrates that, while the market remains tough, investor confidence in UK agrifood innovation endures. Notably, AI-driven automation and robotics continued to attract attention, highlighted by an $80mn round for logistics disruptor Dexory, which uses AI to manage warehousing.
Belinda Clarke, director of Agri-TechE, said: “The UK has proved yet again that it is leading the field behind the global superpowers of the US and China when it comes to private investment into agrifoodtech.
“The annual AgFunder report provides the most trusted set of insights about the status of the sector, and Agri-TechE is delighted to be the UK partner for this latest edition. The ability of the sector to attract private investment is a key metric about the confidence in our industry and the potential to deliver on-farm and supply chain benefits.”
The role of AI and capital efficiency
Despite the overall funding decline, certain segments within agrifoodtech showed resilience. Artificial intelligence, robotics and on-farm mechanisation continue to generate both excitement and frustration. While their potential presents vast opportunities, 2024 also saw concerns over AI “hype” in investment pitches.
Farm robotics and automation are becoming increasingly appealing as labour shortages and rising costs put pressure on agricultural production, the report notes. While investment in farm robotics, mechanisation and equipment has remained relatively stable over the past five years at around $780mn, 2024 experienced a modest 2 per cent reduction, following a 9 per cent increase in 2023.
According to AgFunder partner Rob Leclerc, the coming years will likely see “more capital-light business models and greater incorporation of AI” in agrifoodtech. However, the AI boom has also led to concerns within the investment community, with investors Manuel Gonzalez and Stephanie Dorsey voicing frustrations over AI fearmongering and its overuse in startup pitches.
While the industry remains far from pre-pandemic investment levels, the slowing rate of decline in 2024 suggests that a fragile recovery may be underway, according to the report. With strong growth in select markets and continued interest in AI-driven innovations, agrifoodtech is positioning itself for a more resilient future.
