Signs of recovery in global agrifood tech
After three years of decline, global agrifoodtech investment is showing signs of stabilising, reaching $16 billion in 2024, just 4% lower than the previous year.
While investment levels remain well below their 2021 peak, this slowdown in decline suggests a potential turning point for the sector, according to the new Global Agrifood Tech Investment Report 2025, from leading agrifood tech investment and intelligence platform AgFunder.
Agri-TechE is the UK partner for this latest edition, providing insights into what these trends mean for the UK’s innovation ecosystem.
The UK perspective: a tough year, but strength in innovation
Despite a decline in both funding (-45%) and the number of deals closed (-40%), the UK retained its position as the fourth-largest agrifood tech investment market globally, attracting $616 million across 113 deals (individual deal sizes averaging $1.3 million).
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 $80 million round for logistics disruptor Dexory, that uses AI to manage warehousing.
Belinda Clarke, Director of Agri-TechE, emphasised the UK’s position in the global landscape:
“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 agrifood tech. 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 agrifood tech 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. While investment in Farm Robotics, Mechanisation, and Equipment has remained relatively stable over the past five years – holding steady at around $780 million – 2024 experienced a modest 2% reduction following a 9% increase in 2023.
As the Western Growers Association notes: “Over 50-70% of high-value crop production costs are labour-related, yet less than 2% of the work is automated. That’s an enormous inefficiency— and it represents an equally enormous opportunity. Advances in robotics, AI, and automation are finally reaching a point where they can be commercially deployed in ways that meaningfully impact productivity, costs, and sustainability.”
According to AgFunder partner Rob Leclerc, the coming years will likely see “more capital-light business models and greater incorporation of AI” in agrifood tech. 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.
Mixed Fortunes for the rest of the world
A mixed picture emerges across different regions and investment categories. While some developed markets, such as the United States (+14%) and the Netherlands (+118%), saw increased investment, others – notably in Europe and China – continued to struggle.
Despite these mixed signals, half of the venture capitalists surveyed for the report believe that agrifood tech investment may have hit its lowest point. The stabilisation of global venture capital funding, which saw a modest 3% increase to $314 billion, reinforces this cautious optimism.
Though, as the Report’s authors note: “no one is out of the woods yet”.
[subheading] Looking Ahead with Agri-TechE
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. With strong growth in select markets and continued interest in AI-driven innovations, agrifood tech is positioning itself for a more resilient future.
As one of the UK’s agri-tech networks, Agri-TechE remains committed to fostering connections between innovators, investors, and industry leaders to help the UK continue to thrive in this evolving landscape.
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