S2G Ventures: Global food transition to become major investment trend

Consumer demand and supply chain issues are driving innovation in the space

01/04/2022 - 12:56
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Written by Banking Exchange staff

The global food transition is set to be a key investment trend in the coming 12 months, according to Chicago-based investment manager, S2G Ventures.

According to the firm, much like the global energy transition, the global food transition is set to accelerate over the course of 2022, driven by changes in consumer preferences, climate change and shifts in capital markets.

“The food transition is still in its infancy but is being propelled by seismic tailwinds: massive demographic change spurring new consumer demand, significant advancements in the biology, chemistry and physics of food production to create new choices and now capital markets anchored by ESG that want to fund high growth, disruptive companies,” said Sanjeev Krishnan, S2G Ventures managing director and chief investment officer.

According to its 10 Trends Shaping the Future of Food in 2022 report, trends such as new technologies are creating significant opportunities in food production.

The use of robots to increase efficiency, for example, reduces labor needs across the food system, and drives the transition to climate-smart, healthy food systems.

Disruptions to supply chains over the past two years has also accelerated innovation in the space, according to the report.

Trends such as food waste solutions will soon be recognized as both good business practice and an essential tool for the transition.

Banks and investors have been launching a slew of products to meet the demand.

In July last year Credit Suisse and JP Morgan Asset & Wealth Management teamed up to launch an investment fund specializing in sustainable nutrition.

Credit Suisse said the new fund would “address the ties between nutrition, health, biodiversity and climate, with a particular focus on nutrition’s societal and environmental aspects”.

In March last year Goldman Sachs raised $800 million from a sustainable bond to accelerate work on climate transition and advance certain thematic areas, including sustainable food and agriculture.

Be sure to read the full report "10 Trends Shaping the Future of Food in 2022" here.

Tagged under Buyside Exchange; Socially Responsible Investing; SRI; Sustainability; Climate Crisis;