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CFIN’s just-released Foodtech in Canada 2025 Ecosystem Report is a first-of-its kind analysis of the state of Canadian foodtech. By comprehensively mapping the investors, support organizations, and the 200+ foodtech companies operating across the country, this report reveals where our foodtech sector is excelling, where it is being challenged, and how these challenges can be overcome to build Canada into a global food innovation leader.  

Here are five key things we learned about Candian foodtech in creating this report. 

Canada’s agrifood sector is a powerhouse, contributing $150 billion to the national GDP and employing over 2.3 million people. But here’s the paradox: while food processing and manufacturing account for the lion’s share of this economic activity, investment in foodtech significantly lags behind agtech. Since 2014, 44% of Canada’s agrifoodtech investments have gone to agtech, compared to just 56% for foodtech—far below the global average of 83%. 

This relative underinvestment in off-farm innovation is problematic, especially considering the value-added nature of foodtech. Food manufacturing is Canada’s largest manufacturing subsector, representing 16.5% of manufacturing GDP. Investments in foodtech can act as an economic force multiplier. Unlike primary agriculture, which focuses on raw commodity production, foodtech creates higher-value products that drive greater economic returns and export opportunities. 

By directing more capital into foodtech, Canada’s agrifood sector can better leverage the country’s natural agricultural strengths to transform into a dynamic engine of economic growth. 

Canada’s plant-based protein sector is outpacing global growth, with 26% of our foodtech companies focused on plant-based innovation—nearly double the global average of 14%. 

What’s driving this growth? Strategic investments, innovative product development, and Canada’s position as leading global producer of protein-packed plants. Ambitious new projects like Roquette’s $600M pea protein facility in Manitoba—the largest of its kind in the world—and revolutionary startups like New School Foods and Smallfood are transforming Canada into a hub of plant-based innovation. 

It’s not all smooth sailing, however. Challenges like high production costs and consumer concerns around taste and texture still need solving. But the sector’s potential is undeniable, with plant-based foods already a $1.7B industry in Canada. 

Food waste is a crisis hiding in plain sight, with nearly half of all food produced in Canada ending up in the trash. That’s over $58 billion of lost value every year—further compounded by the environmental toll of food waste-related methane emissions. 

Food waste continues to be one of the thorniest economic and environmental problems to solve. Thankfully, support for food waste innovation is broad, with governments, investors, and food recovery organizations all championing the cause. Canadian innovators are also stepping up. LOOP Mission has turned millions of kilograms of rejected fruits and vegetables into juices, snacks, and other products, while upcycling leaders like Crush Dynamics are finding ways to transform agricultural byproducts into high-value food ingredients.  

Biotechnology is quietly becoming a driving force of Canada’s foodtech ecosystem, and functional foods—products designed to offer specific health benefits—are at the heart of this transformation. The Canadian functional food and beverage market is projected to reach $19.2 billion by 2026, growing at a healthy compound annual growth rate (CAGR) of 6.3%. 

Despite food biotech’s promise as an emerging sector, our interviews with industry experts identified regulatory timelines for new biotech ingredients as on ongoing barrier to growth for Canadian innovators. Scaling production facilities is also capital and time-intensive, making it difficult to attract investors. But with strategic investments in R&D infrastructure and smart regulatory changes, Canada could become a leader in biotech-enabled functional foods that address the growing consumer demand for health-focused, sustainable products. 

Canada’s foodtech sector is heavily supported by public grants, which account for 30% of total funding. While this is a testament to government commitment, it also highlights a glaring gap: private investment. 

By comparison, the US and UK have private venture capital driving 60% of foodtech funding rounds. In Canada, that number is just 40%. This reliance on public funding is a double-edged sword—startups often have the necessary support to get off the ground but are left struggling when they need private capital to scale. Without efforts to encourage the flow of more venture capital into foodtech, Canada risks losing its competitive edge in the innovation domains detailed above.