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Consumers Are Igniting A Global Food Revolution, And Israel’s Food Tech Sector Is Poised To Address It

Forbes Technology Council

CEO of DouxMatok, a global food-tech company pioneering sugar reduction with the only sugar-based sugar reduction solution, Incredo Sugar.

Investment has been flowing into the Israeli high-tech arena for years, accumulating a record-breaking $25 billion in 2021 alone. It’s no secret that the country is home to one of the hottest tech hubs on the globe, earning itself the nickname “The Startup Nation.” With more than 6,000 active startups, it’s also the global leader in startups per capita.

A number of factors have contributed to Israel’s success. Israel’s population is highly educated and highly entrepreneurial. To add to that, mandatory military service imparts a sense of responsibility and a solutions-oriented mindset, as well as provides advanced technical training to many. Having spent over five years in the military myself, I can certainly draw on those experiences and how they shaped my character today.

Israel is responsible for some truly world-changing inventions like the world’s first USB drive and the navigation app Waze. However, in my opinion, one of the most exciting segments of the country’s technology sector is the innovation driving food tech.

Some might wonder, how did Israel become such a core of food tech innovation? Being surrounded by so many burgeoning startups and hearing constant news of record-breaking investments, this entrepreneurial spirit and success-minded outlook are ingrained in so much of Israel’s culture and society. In addition, government-backed food tech incubators are supporting investment in the growing category and further encouraging eager entrepreneurs to enter the space. Multinational food giants like Coca-Cola, Danone, Nestle and Unilever have also invested their own dollars into Israel’s innovative food tech scene. Food tech also combines two of Israel’s strongest assets: agricultural and technological know-how. Israel has advanced its agriculture sector immensely in the last half century, and this know-how is now driving innovation in food technology.

Israeli food tech companies are working collaboratively alongside leading food manufacturers and CPGs to advance options as quickly as possible to meet the evolving needs of today’s consumer, spurred by a desire for better-for-you foods. These evolving preferences are igniting a food revolution, and Israel is leading the way. As the CEO of a company that operates in Israel’s burgeoning food-tech space, I believe there are three key categories leading food tech advancements in Israel: a trend toward alternative sources of protein, efforts to reduce sugar and an overarching shift toward more functional food ingredients.

Opting For Alternative Sources Of Proteins

A record-breaking $3.1 billion was invested in the alternative protein category in 2020 alone, according to the Good Food Institute, and 2021 reflected even further high growth. Over $600 million was invested in Israel’s alternative protein startup landscape last year, representing around 450% year-over-year growth.

Established alt-meat and alt-dairy brands like Redefine Meat and Remilk are leading the way through high-tech 3D printing and fermentation techniques, respectively. Up-and-comers are also drawing investment eyeballs, including plant-based fish company Plantish and Alfred’s Food Tech, which is working to solve one of the alternative protein category’s biggest challenges: texturization.

As capital continues to flow into the category faster than ever, it demonstrates the resilience of the market opportunity amid several tremendously volatile years. More options for plant-based, cultivated and fermentation-derived proteins are surfacing daily. The innovation and growth seen in alternative proteins over the last two decades illustrate just how exciting the future of food can be. Whether for environmental reasons, diet preferences or nutrition needs, consumer adoption to alternative protein and the continued growth of the plant-based industry are undeniable.

Reducing Sugar

Consumers have become increasingly aware of the health concerns associated with the overconsumption of sugar, such as obesity, diabetes and heart problems. As a result, many are looking for ways to reduce their sugar intake. In fact, 72% of respondents in a recent NielsenIQ study reported that they are taking action to limit or avoid sugars entirely. The same report found that demand for an alternative to sugar is at an all-time high, but the main driver that turns people away from alternative sweeteners is the aftertaste often associated with a substitute.

In addition, sugar also has a major functional role in many culinary processes. Sugar contributes to color, texture, mouth-feel, shelf-life extension and more. Once it is removed or reduced, these attributes are impacted. Many sweeteners are not achieving or maintaining the taste and functionality needs of today’s food products.

Thankfully, Israel’s ability to innovate has found the answer to deliver on both taste and functionality—two major factors in consumer food choices. By using a sugar reduction solution, Incredo Sugar, that uses real cane sugar, food companies today are able to maintain the sweetness that consumers have come to expect but with a significant reduction (up to half) of the sugar used. (Full disclosure: DouxMatok is the parent company of Incredo Sugar.)

Prioritizing Functional Ingredients Beyond Just Nutritional Value

It’s no surprise that consumers are looking more closely at ingredient labels and understanding nutritional value. But consumers are also now looking at ingredients to ensure that their food choices can serve a dual purpose: They’re looking for ingredients that not only have high nutrient value but are functional as well. Functional ingredients include vitamins, minerals, probiotics, antioxidants, fibers and more. Food-tech company Yofix is shaking up the yogurt category with its vegan and soy-free fermented plant-based yogurt alternatives that also deliver prebiotic and probiotic health benefits.

Technology’s role in advancing our food revolution amid evolving consumer needs isn’t just a “nice to have”—it’s essential. Science has given us so many tools to create cleaner, better foods for both human and planetary health—foods that still taste delicious but leave a lighter footprint. It is our role as stewards of this planet to create a better food system—for animal well-being, environmental protection and the health of future generations. As leaders at the forefront of the future of food, we must embrace technology and the tools that science has given us (just as Israel has been doing for decades) in order to advance the food revolution that is happening all around the globe.


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