'The Food Tech Industry Landscape In

January 2021

About

The Embassy of the Kingdom of the Netherlands in Singapore

The Embassy of The Kingdom of the Netherlands is there to support your business. The Embassy’s main objective is to promote economic relations between Singapore and the Netherlands. The focus lies upon giving more detailed information about opportunities in sectors with high potential, where the Netherlands offers specific added–value: water & maritime, high tech, energy & environment, life sciences & health and food & nutrition. We offer active support to Dutch companies already present in Singapore and those starting to explore the Singaporean market i.a. by providing information about doing business in Singapore, supporting (online) trade missions and promoting Dutch business in Singapore. The embassy also provides advice to Singaporean companies interested in trade and investment in the Netherlands. We are bringing together the government and private sector to collaborate and innovate.

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Ravenry Team

Project Managers : Ricky Willianto Rininta Bella Yunissa

Researcher : Michael Nathanael Hizkia Respatiadi Jeremy Lim Evelyn Yuliusman Michael Nathanael

Editor : Marc Jitab

Graphic Designer : Dimaz Adipradipto

Contents

Executive Summary 5

Industry Overview 7

Industry Segmentation and Size 8

Urban Farming 9

High-tech egg farms 11

Vertical vegetable farms 11

Other products and services 12

Opportunities and challenges 12

Alternative Proteins 14

Plant-based proteins 18

Fruit-based whole-food meat alternatives 18

Cultivated meat or cell-based protein 18

Other products and services 18

Opportunities and challenges 19

Aquaculture 20

Farm operators: Closed containment fish farms 22

End-to-end digital solutions and IoT for Aquaculture 23

Opportunities and challenges 23

Key Players 25

Urban Farming 26

High-tech egg farms 26

Vertical vegetable farms 26

Alternative Proteins 30

Plant-based Protein 30

Cultivated Meat or Cell-based or Lab-grown Meat 31

Whole Food Protein Alternatives 32

Insect Protein 33

Venture Capitals 33

Aquaculture 34

Farm Operators 34

Iot Players 36

Financing Players 37

Key Trends 38

Economic Trends 39

Consumer Trends 39

Technological Innovation Trends 42

Key Regulations 42

Other recent news and activities 44

Key Ecosystem Players 45

Opportunities and Challenges 54

Key Opportunities 55

Challenges 56

Executive Summary

This report unfolds the current state of foodtech industry in Singapore. Starting off with the market estimation, this report segments the industry into three sub-industries namely: Urban Farming, Alternative Protein, and Aquaculture. Following the market sizing and estimation, products and services from each of the sub-industry are listed, along with the prominent players of each. We also listed 15 key players in the foodtech landscape in Singapore, also the current technology and key regulations, as well as the existing opportunities and challenges for this industry to develop.

The market size is estimated by the available market figures in 2019 and the result is as follows.

The market value of urban farming, aquaculture, and alternative proteins in 2019, in millions of SGD

Segment Current Market Value Addressable Market Value

Urban Farming 22 90.49

Alternative Proteins N/A 7,028.65 - 8,474.69

Aquaculture 33.3 91.2

As the report zooms into the sub-industries, readers will find the findings on the current trending available products in the market, followed by the notable players of each product or service. Urban farming is dominated by high-tech farms and vertical vegetable farms. Alternative proteins cover the products of plant-based proteins, fruit-based whole-food meat alternatives, and cultivated meat- or cell-based protein, while for aquaculture the report highlights farm operators: closed containment fish farms and end-to-end digital solutions and IoT for Aquaculture. The readers will also find the discourse about other products and services available.

And once again, the report looks back on the greater view. The economic trends in Singapore find a challenge on consumption during COVID19 pandemic, however, the economic growth is expected to keep growing on about 4-6% in 2021. This situation provides a positive signal for tech-based agrifood start-ups that plan to initiate their businesses around the start of next year. Nevertheless, the Ministry also stated that the economic activity in the food services sector is unlikely to return to the pre-COVID level even by the end of 2021, and therefore, the start-ups should proceed carefully.

Food consumption trends in Singapore shows that the country’s annual consumption per capita of conventional farm animals reached 55kg. This comes with environmental implication. Hence, this might be the opportunities for foodtech companies to convey the message about how foodtech might help to sustain the environment. This report also highlights the study from Tan. et. al (2020) which outlines five possible

Copyright © 2021 Ravenry Pte. Ltd. 6 scenarios of Singapore’s food consumption trends and how each impacts the environment by 2030. The study can be a guide for foodtech company on how to create a maximum impact in Singapore.

Key regulations are highlighted, specifically to those that might affect the operation of foodtech companies in Singapore, as well as the current news about the industry. The current news consists of the launches of the product, market perception, and multilateral agreements about food innovation that Singapore has taken part in.

This report also spotlights the 15 key players in foodtech landscape in Singapore, ranging from government agencies, private companies, research agencies, collaborative network, and funding agencies/venture capitalists. The 15 highlighted are Enterprise Singapore (ESG), National Research Foundation (NRF), Agency for Science, Technology and Research (A*STAR), Economic Development Board (EDB), Ministry of Trade and Industry (MTI), Singapore Food Agency (SFA), Health Promotion Board (HPB), Ministry of Health (MOH), Agri-Food Innovation Park (AFIP), Aquaculture Innovation Centre (AIC), Food Ventures, GROW, Germi8, Temasek, Singapore Food Manufacturers’ Association.

When the readers are now informed about the current state and trends about the foodtech industry, the opportunities and challenges are presented at the end of the report. The opportunities mainly come from government support. It also comes from how the growing number of foodtech startups aligns with the city’s population that continues to grow and the land remains limited, leading to the interest for tech-based and urban-focused food solutions are predicted to rise for the foreseeable future.

At the same time, this report unfolds the challenges that may impact the marketability of food tech in Singapore, from its outdated regulations, human resources requirements, and consumer preferences on the cheaper price of conventional food.

Industry Overview

As Singapore relies on 90% of its food to be imported to meet 90% of its food needs, food insecurity is one of the country’s top concerns—especially when the entire world faces uncertain climate conditions that could wipe out harvests. In response, the country has prepared USD 72 billion to build infrastructure that can help overcome this health and nutrition challenge and, in doing so, has made Singapore stand out as an important food tech innovation hub in Asia.

Industry Segmentation 01 and Size

This section divides the food tech industry into three sub-industries or segments: urban farming, aquaculture, and alternative proteins.

Market size and market value estimates of these segments

A bottom-up approach was used to estimate each segment’s market size, in which the total market size is determined from available statistics and aggregated to estimate the total. The report uses 2019 figures due to limitations in publicly available information. Table 1 summarizes the market value and market size of the three segments.

Table 1. Market value of urban farming, aquaculture, and alternative proteins in 2019, in millions of SGD

Segment Current Market Value Addressable Market Value

Urban Farming 22 90.49

Alternative Proteins N/A 7,028.65 - 8,474.69

Aquaculture 33.3 91.2

Urban Farming Urban farming aims to feed the nation while keeping Singapore green. From vertical vegetable and high-tech farms to community gardens found in housing estates, offices, restaurants, schools, and rooftops, urban farms are taking root in Singapore.

MARKET SIZE

The total market size of urban farming in Singapore is derived from comparisons between the production and consumption figures of leafy vegetables. Based on Singapore Food Agency (SFA) figures, local production of

leafy vegetables in 2019 is 12,698 metric tons, with an estimated total value of SGD 22 million (see Table 2). This accounts for 14% of total consumption in Singapore. The total market for leafy vegetables in Singapore is 90,700 metric tons in 2019, with an estimated value of SGD 157.15 million.

Table 2. Estimated total market size and value of urban farming in Singapore, 2019

Total Local Value of Local Total Local Urban Value of Local Addressable Production Production Farming Production Urban Farming Market (metric tons) (million SGD) (metric tons) Production (million SGD) (million SGD)

Urban Farming 12,698 22 1,900 3 90.49

The SFA’s latest figures in 2019 put the number of urban farms at 27 out of 77 total leafy vegetable farms in Singapore. This figure includes 25 indoor facilities and 2 rooftop facilities. Estimations place urban farms’ output at around 15% of the total local leafy vegetables produced in Singapore at 1,900 metric tons per year in 2019. The estimation is derived based on the total output of five well-known companies—Archisen, Citiponics, Sky Greens, VertiVegies and ComCrop—and estimated production numbers from other farms. Thus, the total market value for urban farms in 2019 is estimated at SGD 3 million.

In terms of the potential addressable market, the Singaporean government’s ‘30 by 30’ plan reveals a significant food production gap, which it aims to solve through agritech. The ‘30 by 30’ plan seeks to increase local production to 30% of total consumption by 2030. Using just 2019 figures alone, the expected gap for local production is already at 14,512 metric tons. This puts

the potential addressable market for urban farming in 2019 at SGD 25.15 million.

When including other segments, the gap becomes significantly larger at 35,809 metric tons of production with an estimated value of SGD 87.20 million in total. If urban farming methods account for all the gaps in local production, as expected by the ‘30 by 30’ plan, that puts the total segment at a value of SGD 90.49 million in 2019. As Singapore’s population is expected to grow from 5.7 to 6.9 million by 2030, it is expected that the total segment’s value will also increase.

PRODUCT AND SERVICES

High-tech egg farms

High-tech egg farms incorporate automation in the farm’s processes to minimize human involvement. This technology enables farmers to better control the farm environment through, for example, maintaining an adequate range of nutrients and proper amount of feed, keeping the chickens stress-free, and, subsequently, realizing their full potential. Computers in the system can take photographs of each egg to check for hairline fractures and determine if it is clean or dirty, all in an effort to deliver high-quality eggs to the customer. This technology is implemented by Seng Choon Farm (please refer to Section 2: Key Players).

Vertical vegetable farms

Vertical vegetable farms are suitable in hot and humid climates such as Singapore’s. It grows non-native plants in a controlled environment, utilizing

AI and LED lighting to help plants photosynthesize, extend the harvested plants’ shelf-life, and reduce food waste, Sustenir (please refer to the Section 2: Key Players) adopts this technology. This technology enables foreign plants to be planted locally, reducing both the carbon emissions that would otherwise result from international food transportation and the amount of wasted food that’s usually created from the logistical process of importing fresh crops.

Other products and services

Other horticulture or urban farming technology that is increasing in Singapore includes community gardens found in housing estates, offices, restaurants, schools, and rooftops. Instead of planting ornamental greens, gardeners plant edible vegetables and fruit such as cabbage, basil, and lime. Today, the National Park Board’s popular ‘Community In Bloom’ program has more than 1,000 community gardening groups.

Aquaponics systems, which consist of running circulated water through custom-made stainless steel waterspouts, are also highlighted in urban farming.

OPPORTUNITIES AND CHALLENGES Opportunities

High acceptance by consumers to purchase locally sourced foods Another potential key opportunity in driving the growth for this sub-sector is the higher acceptance by consumers to purchase locally sourced produce. This is especially pushed ahead in recent times by the disruption in Covid-19. An overwhelming majority of consumers are willing to purchase local produce, although identification is a major problem. Furthermore, price remains a major obstacle in generating local demand, as even a 2 to 5% premium can turn away consumers. As a response, the government has rolled out a new “SG Fresh Produce” logo which would tackle the first limitation. The government is also constantly educating the public on the premiums of local production.

Challenges

Government Requirements to Convert into High-Tech Farms One of the key challenges for the sub-sector, particularly in the area of digitizing or converting traditional farms into high-tech farms, is the stringent requirements attached to readily available funds. The requirements to apply for the government’s Agricultural Productivity Fund, farmers need to submit proposals which require technical as well as business expertise in the new technologies. This undoubtedly provides a barrier to entry to some of these funds, and as such provides a hamper to the growth of products catering to this segment.

Possible disruption from alternative proteins to high-tech egg farms and plant-based substitute A major potential disruption, specifically for high-tech egg farms, comes from the alternative proteins industry. Currently, plant-based substitutes have existed in the market, and it is estimated that the demand is expected to grow by 6% year on year. However, recent innovations in the area of lab-grown protein, such as by US-based Clara Foods, have also brought this disruption even closer on the horizon. Although this disruption is expected to negatively impact the growth and sustainability of high-tech egg farms, they are not an immediate threat given the lack of competitively priced products on the market. For example, Just Egg, a comparable product on the market, is priced at over 2 times the price of an egg. High costs on building and developing a high tech farm The viability of urban farming remains dubious. A research from AgFunderNews disclosed that urban farming can cost between 3-5 times higher than conventional farming. The cost incurs in economic and environmental terms. Urban farming is a high user of artificial lighting which requires energy. Other advanced farming technology through high-tech machines and smart devices in this sector would drive increased energy consumption, which is further compounded by Singapore’s reliance on fossil fuels such as natural gas or crude oil and inability to efficiently produce energy from renewables. Vertical farms, for example, are found to produce higher GHG emissions than standard greenhouses.

Alternative Alternative proteins are a group of meat substitutes. There are four Proteins alternative protein types: ● plant-based protein, which comes entirely from plants such as nuts, fruits, beans, and vegetables, ● cultivated, cell-based, or lab-grown meat, which uses animal cells to create substitutes for seafood, meat, and dairy, ● whole food protein alternatives, which use existing plants or fungi to imitate the texture, taste, and behavior of meat-like products, and ● insect protein.

MARKET SIZE

At the moment, Singapore’s alternative proteins market is primarily composed of plant-based meat substitutes. The ravage of the Coronavirus pandemic has shifted the distribution model of all players from processed (i.e., selling alternative proteins through dining establishments) to direct channels (i.e., selling through retailers) while also boosting sales several times over. With no publicly available sales figure on these firms, in addition to their disrupted conventional sales model, it is difficult to determine the current size and value of the alternative proteins market.

However, the size of the untapped market can be calculated through the per capita consumption of protein. Table 3 highlights the total consumption of animal-based protein in Singapore for the year 2019. Per capita consumption is multiplied by Singapore’s population count for the year 2019. The sum is then subtracted by 10% to account for people with a vegetarian/vegan/pescatarian or “flexitarian” diet (7% in the case of seafood proteins such as fish and shrimp). The resulting figure is the estimated true total consumption of animal-based proteins in Singapore for the year 2019.

Table 3. Estimated total consumption of animal-based protein in Singapore, 2019, in metric tons

Protein type Per capita Total consumption Exclusion of vg/ve/ps True consumption (minus consumption diets vg/ve/ps)

Chicken 34 kg 193,921.35 46,392.14 147,529.21

Pork 20 kg 114,071.38 11,407.14 102,664.24

Beef 4 kg 22,814.28 2,281.43 20,532.85

Fish 16 kg 91,257.10 6,387.99 84,869.11

Hen shell eggs 21 kg 119,774.95 11,977.5 107,797.45

Duck 2 kg 11,407.14 1,140.71 10,266.43

Mutton 2 kg 11,407.14 1,140.71 10,266.43

Other seafood (Shrimp) 6 kg 34,221.41 2,395.5 31,825.91

The true consumption value is used as the input for further processing into market sizing scenarios, assuming no population growth. Based on the Health Promotion Board’s (HPB) recommendations to shift Singaporeans’ optimal diet, it is estimated that meat, eggs, and fish consumption would reduce by about 3%. After adjusting this consumption downwards, the new adjusted consumption is then further segmented to account for the conversion of flexitarian diets, accounting for 39% of Singaporeans’ diets. Two scenarios are created whereby meat eaters (42% of Singaporeans) partially convert; the first scenario is at 25% conversion, and the second scenario is at 50% conversion. The resulting calculations are exhibited in Table 4.

Table 4. Conversion of meat consumption to alternatives in Singapore, 2019, in metric tons

Protein type True consumption Adjustment Conversion of Meat eater Meat eater conversion (minus vg/ve/ps) with HPB flexitarians conversion (25% ratio) (50% ratio)

Chicken 174,529.21 169,293.33 66,024.40 17,775.80 35,551.60

Pork 102,664.24 99,584.31 38,837.88 10,456.35 20,912.71

Beef 20,532.85 19,916.86 7,767.58 2,091.27 4,182.54

Fish 84,869.11 82,323.04 32,105.98 8,643.92 17,287.84

Hen shell eggs 107,797.45 104,563.53 40,779.78 10,979.17 21,958.34

Duck 10,266.43 9,958.44 3,883.79 1,045.64 2,091.27

Mutton 10,266.43 9,958.44 3,883.79 1,045.64 2,091.27

Other seafood 31,825.91 30,871.13 12,039.74 3,241.47 6,482.94 (Shrimps)

Adding these conversions together provides a clear total market size for plant-based substitutes in Singapore in 2019 (see Table 5). Comparable prices for plant-based substitutes are taken from multiple sources and converted into a per-kilogram price for ease of calculation. Unfortunately, no comparable products were found to substitute duck; therefore, this market size’s value is not added. However, given it is relatively small, the omission of this value is not regarded as a problem. Thus, based on the calculation provided so far, the total market value for plant-based substitutes under Scenario 1 (25% Conversion) is 6,921.78 million SGD and 8,390.04 million SGD under Scenario 2 (50% Conversion).

Table 5 . Estimated total market size and value of plant-based substitutes in Singapore, 2019

Protein type Total market size Total market size Price of Total market value Total market value (25% conversion) (50% conversion) comparable (25%) (million SGD) (50%) (million SGD) products/kg

Chicken 83,800.20 101,576.00 20.00 1,676.00 2,031.52

Pork 49,294.23 59,750.59 32.83 1,618.33 1,961.61

Beef 9,858.85 11,950.12 55.08 543.03 658.21

Fish 40,749.90 49,393.82 22.14 902.20 1093.58

Hen shell eggs 51,758.95 62,738.12 26.02 1,346.68 1,632.34

Duck 4,929.43 5,975.06 - - -

Mutton 4,929.43 5,975.06 14.50 71.48 86.64

Other seafood 15,281.21 18,522.68 50.00 764.06 926.13 (Shrimp)

Total size 6,921.78 8,390.04

However, another crucial segment that comprises the alternative proteins market, besides plant-based substitutes, is lab-grown meats. Also known as cultured meats, lab-grown meats are still very much in the development and trial stages, and Singapore is the only country in the world that has approved lab-grown chicken meat for sale. The market for early adopters of lab-grown chicken meat is estimated at SGD 218 million in 2019, assuming no conversion into plant-based substitutes. When taking into account conversion into plant-based substitutes, the market is estimated to be between SGD 84.65 to 106 million in 2019. Considering this product reaches critical mass with an 84% adoption rate at half the price, the market is estimated to be between SGD 1,422 million to 1,759.36 million (see Table 6).

Table 6. Estimated total market size and value of lab-grown chicken in Singapore, 2019

Adoption stage Unconverted Unconverted Planned Total market value Total market value market (scenario 1) market (scenario 2) price/kg (scenario 1) (scenario 2)

Early adopter (2.5% of 85,493.13 67,717.33 50.00 106.87 84.65 market adoption)

Mass market (84% of 85,493.13 67,717.33 50.00 1,795.36 1,422.06 market adoption)

PRODUCT AND SERVICES Plant-based proteins

Plant-based proteins are entirely derived from plants such as nuts, fruits, beans, and vegetables. Some of the companies that offer plant-based proteins are Beyond Meat, Eat Just, and Impossible Foods.

Eat Just is well-known for its plant-based eggs made from mung beans. Called the Just Egg, it was launched in Singapore in November 2018. Compared to conventional chicken farms, plant-based eggs require less land and water while also producing less carbon emissions. Impossible Foods offers burgers, pork, and sausages made from plants.

Fruit-based whole-food meat alternatives

Whole food protein alternatives use existing plants or fungi to imitate the texture, taste, and behavior of meat-like products, such as Karana’s young jackfruit meat alternative.

Cultivated meat or cell-based protein

Cultivated, cell-based or lab-grown meat uses animal cells to substitute seafood, meat, and dairy. Shiok Meats and TurtleTree Labs are the most well-known startups developing this type of alternative protein.

Other products and services

Another trend in the alternative proteins world is the rise of insect-based proteins for human and animal consumption. Insect-based proteins, in the form of powder made from, for example, black soldier larvae (BSF), are currently used in fish and animal feed. The idea is to maximize the efficacy of what is being fed to the animal since insects can break down food waste more quickly than other organisms. The SFA has already approved BSF powder for use as fish food. The most prominent agrotech startups which make insect-based proteins are Nutrition Technologies and Protenga.

OPPORTUNITIES AND CHALLENGES Opportunities

Friendly regulations in comparison to other countries One of the biggest key opportunities driving the dynamics of the alternative prot sub-industry in Singapore is its relatively friendly regulatory regime compared to other countries. Following reorganisation in 2019 and 2020, a new novel food regulatory framework was launched which simplifies and accelerates the approv process up to 6 months compared to the more cumbersome process in the EU. Th resulted in a major victory for the Singaporeans as they became the first country the world to approve the sales of lab-grown chicken meat. Aside from increasing reputation and prestige of Singapore as a foodtech hub, the new regulations wou attract many foreign companies to invest in Singapore, given frontier tech relies being the first to market. This is in addition to the high government interest in the sub-sector owing to the 30x30 plan.

High acceptance for alternative proteins by customers Another key opportunity for the sub-industry is higher acceptance of alternative proteins by Singaporean consumers. Though not directly comparable, a recent study by Bryant et al. (2019) found Indians and Chinese (which makes up around 83% of the total population in Singapore) are more likely to accept and purchase these alternatives compared to American consumers. However, acceptance also hinges on the price of these products as Singaporeans are the most price-conscious consumers in the world. This will prove challenging as prices of current products are still relatively higher compared to comparable products.

Challenges

Limited market due to plant-based vs lab-grown protein preference One of the main challenges within the sub-industry is the divide between plant-based proteins and lab-grown proteins. At current commercialization trends, plant-based proteins is set to be a significant part of the alternative proteins sub-industry mainly because it is more commercially developed than lab-grown. However, as lab-grown proteins become more commercially advanced, consumers who adopt plant-based meat out of ethical reasons are likely to switch to lab-grown proteins. Thus, the growth of alternative protein

sub-industry might be slightly limited, with more internal cannibalization as the playing field between both variants of alternative meats levels.

Imported raw materials for production Another major challenge specifically in the case of Singapore is in terms of profitability. As the tech is relatively new, few countries in the world possess the required infrastructure and ecosystem to support such an industry. However, when competitors start to spring up around the region, the case for locally produced plant-based or lab-grown alternative proteins seems to wither. The first major problem comes from Singapore’s lack of natural inputs. Plant-based alternatives commonly use ingredients such as soya or coconut oil, all of which have to be imported for local production. This presents cost constraint and potential for supply disruptions for local producers. Meanwhile, lab-grown meats would require significantly more energy consumption, which is a constraint perhaps unique to Singapore (see General Trends). Furthermore, as previously mentioned, Singapore’s small market size makes scaling up production more challenging compared to its neighbours which are significantly larger. As such, the value of local production in Singapore is not particularly sustainable for the long-term as opposed to the research and development activities.

Aquaculture Singapore’s aquaculture ecosystem consists of farm operators, Internet of Things (IoT) players, and aquaculture financiers.

MARKET SIZE

The total market size of tech-based aquaculture produce in Singapore is derived by comparing seafood production and consumption figures. Figures from the SFA show local seafood production (excluding those captured from the sea) at 3,917 metric tons at an estimated value of SGD 33.3 million. Local seafood production (including those captured from the sea) accounts

for 10% of total consumption in Singapore. In total, this puts the size of the fisheries market in Singapore in 2019 at SGD 456 million.

Based on 2019 figures, there are around 122 fish farms in Singapore, with 110 coastal-based farms producing 85% of the total output and 12 land-based farms producing the remaining 15%. However, unlike urban farming, fully digitalized tech-based farms are still few. The only commercial-sized tech-based coastal fish farm owned by Barramundi Asia yielded 700 tons of Asian seabass (barramundi) in 2019, which accounted for 17.87% of Singapore’s total production, or about 21% of all coastal-based farms’ output. Meanwhile, Apollo Aquaculture Group’s vertical farming solutions yielded around 110 tons of various seafood, including hybrid grouper, coral trout, white shrimp, and blue shrimp. This accounts for roughly 20% of the total output of land-based farms in 2019. Thus, using both companies as proxies, in addition to assuming yields from small-scale operations, the total market value of tech-based aquaculture farms in 2019 is estimated at SGD 6.97 million.

Considering the Singaporean government’s ‘30 by 30’ plan, aquaculture tech’s potential addressable market is huge. Compared to 2019 figures, the existing gap is estimated at 7,834 metric tons with a total value of SGD 91.2 million (see Table 7). This would necessitate more than doubling the current output level on conventional farms with more high-tech solutions. For coastal farms, this could result in a total range between SGD 75 to 100 million, based on comparable investments made by Singapore Aquaculture Technology in artificial intelligence (AI) and video analytics systems.

Table 7. Estimated total market size and value of aquaculture in Singapore, 2019

Total local Value of local Total local Value of local Addressable production production aquaculture aquaculture market (metric tons) (million SGD) production production (million SGD) (metric tons) (million SGD)

Aquaculture 3,917 33.3 820 6.97 91.2

Mass market (84% of 85,493.13 67,717.33 50.00 1,795.36 1,422.06 market adoption)

Land-based farming might drive a higher proportion of total value captured in the aquaculture tech segment, given the higher potential productivity of technologies introduced, which allows for vertical-based aquaculture. For example, Apollo’s recirculating aquaculture system could yield two to five times more product than conventional coastal-based farms, while Universal Aquaculture’s hybrid biological recirculation system could yield better quality products in a shorter timeframe. However, similar to urban farming tech companies, new tech entrants are committed to commercializing their tech by entering production rather than selling it to third parties.

PRODUCT AND SERVICES Farm operators: Closed containment fish farms

A closed containment fish farm uses high-tech tanks that can precisely control fish farming elements such as oxygen levels, waste, and feed to achieve a higher yield. The conventional method is to use an open-air water tank, which has unpredictable elements. The closed containment system is also known as a recirculating aquaculture system, in which water is recycled through a multi-level treatment process. Since the water quality is closely monitored and the water is filtered, UV-treated, and oxygenated to maintain conducive conditions to grow stress-free fish, the fish-growing capacity can be increased by four times higher than open-air tanks with the same amount of water. A biofilter is used to break down fish waste, turning ammonia into nitrogen, which helps avoid overfeeding. Further innovations in this high-tech

tank include sensors and other equipment that permit video analysis of the fish’s tracking behavior and swimming patterns to maintain its quality. This technology is implemented by Singapore Aquaculture Technologies (Please refer to Section 2: Key Players)

End-to-end digital solutions and IoT for Aquaculture

End-to-end digital solutions employ AI, satellite remote sensing, and IoT to help farmers improve their farm productivity, control the water environment to minimize risk, and subsequently increase their earnings. These solutions use sensors and other hardware in the closed containment tanks used by the farm operators to video capture and analyze the fish’s tracking behavior or hunger. UMITRON is one such company that deploys such solutions (please refer to Section 2: Key Players).

OPPORTUNITIES AND CHALLENGES Opportunities

Fish is prioritized staple food by government’s plan Based on the Singaporean government’s plans, fish is one of the prioritized staple foods. The aforementioned 30x30 Express grants granted during the Covid-19 situation is one evidence of this. Aside from providing priority financing for this sub-sector, the government is also keen to develop a network of partners to support the ecosystem, such as a partnership with Friends of Sea, an Italian certifier of sustainable aquaculture practices. As such, it can be expected that the government will champion the sub-sector for the foreseeable future.

Challenges

Empowerment of small-scale fish farms remains questioned Presently, a major challenge for the aquaculture industry is the issue regarding how the structure of the industry will be shaped at. At the moment, most fish farm operators are small scale with low tech enablement. Following trends from both t he evolution of the agriculture sector as well

experiences from the evolution of the aquaculture sector in other countries, it is likely that small farms will be s upplanted by high-tech large farms. Based on current technologies, l ess than 10 large farms are needed to fully supplant local production. As such, the efficacy of digitizing small scale Singaporean fish farms would be questionable given their growing insignificance in the near future. This will also create uncertainty in terms of policies that the government will adopt in response to this issue. Furthermore, there are concerns regarding the excess production from these large-farms considering the market in Singapore is relatively small. Experts point to p rice stability as a potential concern for the distributors.

Disruption from the alternative proteins industry The biggest long-term challenge facing the aquaculture industry in Singapore is the potential disruption from the alternative protein sub-industry. Innovations within this sub-industry have delivered commercial plant-based substitutes such as plant-based tuna and plant-based shrimps. Lab-grown meat is also picking up pace all around the world, with a specific Singaporean company Shiok Meat developing lab-grown shrimp meat. Thus, with potentially new sources of supply and further constraints from Singapore’s small market size, the case for a sustainable growth for this sub-industry in the future seems bleak. Yet, given the many challenges facing the alternative proteins industry (as discussed later on), these difficulties are not particularly pressing in the immediate future in terms of market competition.

Uncertainty for the private investors However, the lack of a bright future for the sub-industry itself creates an atmosphere of uncertainty for private investors, which might explain the lack of large-scale private investments in these startups. Most new ventures have been undertaken either by established players such as Apollo Aquaculture Group’s vertical fish farm or through government funds such as in the case of Smart Floating Fish Farm. Thus, the working dynamic between the ventures and the investors would be significantly different than other tech-based startups which are more dominated by growth investors. Study by Brander et al. (2010) shows that excess government support might actually hinder the performance of the new venture.

Key 02 Players

This section will highlight 5-6 top players in each of the sub-industry, preceded by a table displaying a long list of existing players.

Urban Farming HIGH TECH EGG FARMS

Seng Choon Farm The first egg producer in Southeast Asia to use high-technology processes such as quality scanners, to sort, grade, scan & clean eggs

Chew’s Agriculture One of the leading producers of fresh eggs in Singapore, with more than 30 years of history

N&N Agriculture Producing pasteurized egg using precision-pasteurization process to kill Salmonella bacteria and Bird Flu virus that present inside and outside the eggs

Seng Choon Farm Seng Choon Farm, which has provided the Singapore market with eggs for

more than 30 years, has shifted their conventional egg farming method to a

more high-tech path in 2010 to cope with the increasing demand for eggs in Singapore. Thanks to the incorporation of automation, in which most of the farm’s processes are completed by machines and require minimal human involvement, Seng Choon can produce 625,000 eggs a day with only 100

workers on the farm to meet the local market demand for eggs. Such technology enables Seng Choon to control the farm environment, including maintaining an adequate range of nutrients and the proper amount of feed, keeping the chickens stress-free, and subsequently realizing its full potential.

The farm then further advanced their high-technology egg farming business

by deploying computer scanners that can take multiple photographs of an egg to check for hairline cracks and determine if it is clean or dirty with an accuracy of 99%.

VERTICAL VEGETABLE FARMS

Singrow A vertical farming solution that addresses every step of planting, from breeding to harvesting

ComCrop Singapore’s urban farming pioneer, growing food on rooftops near where communities live by modernized marginalized spaces and embracing modernized workers to grow and harvest the highest quality pesticide-free produce

Sustenir Sustenir produce seasonal crops all year round through Controlled Environment Agriculture

Edible Garden City Design, build and maintain food gardens in tropical urban Singapore, which include restaurants, hotels, schools, residences, and more. Over the last 7 years, they have completed 200 food gardens in Singapore

Sky Greens World’s first low carbon, hydraulic driven vertical farm

Citiponics Citiponics uses Aqua Organic System (AOS), a vertical growing system with its strategically designed structure, system and functionalities

VertiVegies Social enterprise controlled environment farming which enables quality and traceable food production all year round with no pesticides, no contaminants and no genetic modification

Artisan Green Artisan Green offers pesticide-free hydroponics technology

Green Harvest Green Harvest grows and wholesales of fruits and

vegetables

Liv Fresh Cultivate nutrient-rich greens in a pollution-free, chemical-free and sustainable environment using hydroponic farming processes

Genesis One Tech Farm Indoor farm with the tallest racking system in Singapore, with a hybrid Nutrient Film Technique (NFT) system that uses very small amounts of water usually highly needed in hydroponic system methods.

Singrow

Singrow applies state-of-the-art agrotechnology to grow fresh fruits economically. It grows a strawberry variety adapted to the humid

Singaporean weather, with a sweeter taste and softer texture, named the Crystal Strawberry. Singrow uses precise climate and nutrient controls on every strawberry cultivation phase for shortening the planting duration from over 6 months, under natural conditions, to only 3.5 months. It also uses

minimal air conditioning and pesticides. Singrow not only crafts its plants; it

also designs its planting technology. A strawberry-specific hydroponic rack is designed to make it easier to care for and cultivate the fruit, and such racks are equipped with lighting that emits specific wavelengths. Currently,

Singrow is in partnership with Nusgrip, MVP Studio, GWS Living Art, and the Global Green Technology Center, and it also receives funding from Grow and

Enterprise Singapore to accelerate its business.

ComCrop

ComCrop claims to be Singapore’s first and only commercial rooftop farming company. Its products are grown on unused rooftop spaces using advanced

hydroponic technology, which uses 90% less water than conventional farms,

does away with pesticides or herbicides and grows the crops near where people live. With the advantage of natural sunlight on the rooftop, combined with the farm’s short distance from the community, the running costs can be kept lower. This results in a better price for the community, besides

delivering a healthier product. The plants are grown in greenhouses that can be climate-controlled to manage optimal growing conditions without the need for artificial air conditioning. Where possible, ComCrop employs from the elderly and marginalized communities for its plant collection, fresh

produce packaging needs, and other farm activities.

Sustenir

Sustenir’s vertical farming technology introduces an alternative to the

present food system that is more suited to Singapore’s hot and humid climate.

The startup’s goal is to grow non-native plants in a controlled, local environment so that the reliance on imports can be lowered. The company utilizes AI and LED lightning to help plants photosynthesize, extend their harvested plants’ shelf-life, and reduce food waste. Additionally, planting

foreign plants in a local facility lowers the carbon footprint from food

transportation and reduces food wastage created from the logistical process of importing fresh crops. Sustenir has grown strawberries and arugula in its hydroponic vertical farming facility since 2019. The company uses biology, technology, and farming science to further advance its vertical farming

system. For example, it also develops its strawberry-specific racks where the

strawberries can grow outward instead of upward, enabling it to deploy a harvesting robot to move along the rack and snip the strawberries instead of picking them.

Edible Garden City

Claimed to be the champions of the grow-your-own movement around the world, Edible Garden City constructs, builds, and manages food gardens in the tropical urban city of Singapore. Its clients include hotels, restaurants, schools, and residences. It performs and operates farming workshops to

supply fresh vegetables, flowers, and herbs to F&B entities and housing

estates. Edible Garden City has been supported by several grants, including one from the DBS Foundation since 2017, which enabled it to create a recirculating water hydroponic system that uses 90% less water and 50% less

substrate, and another, from the Temasek Foundation, which enabled them

to build a two-story, mobile, climate-controlled, plug-and-play container farm for under-utilized car parks and rooftops.

Sky Greens

Sky Greens is the world’s first hydraulically driven, low-carbon vertical farm. It uses green urban solutions to produce fresh, healthy, and tasty vegetables using minimal water, energy, and land resources. Its patented vertical farming system consists of rotating tiers of vegetables planted on A-shaped, 9-meter-tall, 38-tier growing troughs with an aluminum frame. The aluminum

frame can accommodate different growing media, be it hydroponics or soil. The troughs revolve around the aluminum frame to ensure that the plants obtain homogeneous levels of water, sunlight, and vitamins as they pass through different points on the rack. Compared to conventional one-layer

farms, the patented vertical farming system increases the land’s density and subsequently increases the yield by 10 times per unit of land. Since the farming system is built in a controlled environment, the input materials to deliver food supply, security, safety, and quality assurance can be strictly controlled. The system can produce 1 ton of vegetables every other day. In 2015, Sky Green won the INDEX: Award 2015, the most prestigious of its kind in the design world where innovations that upgrade the world are highly valued.

Alternative PLANT-BASED PROTEIN

Proteins Eat Just Mung bean that taste like eggs.

Life3 Biotech Innovative, award-winning company focus on plant-based protein combining agritech, biotech and foodtech.

Beyond Meat Plant based meat combining expert innovation with non GMO ingredients offering equal or even bigger protein levels than their animal counterparts, no cholesterol, less saturated fat, and no antibiotics or hormones.

Impossible Foods Impossible Foods offers burger, pork and sausage made from plants.

Memphis Meats World’s first cell-based beef meatball in 2016 and world’s first cell-based chicken and duck in 2017.

Right Treat Right Treat offers all purpose plant-based pork analogue that is nutritional superior and environmentally friendly.

Zhen Meat Zhen Meat offers natural plant-based meat with no animal ingredients, no hormones and no antibiotics added.

Phuture Food The PHUTURE®y has incorporated rice into PHUTURE® blend which creates the delicious fatty, juicy mouthfeel to

our plant-based product, mimicking that of the building

blocks in meat.

Shandi Shandi uses plant-based functional ingredients to create plant-based meat analogues using “high performance chromatography” technology to change plants characteristic at the molecular level.

Growthwell Growthwell offers Chickp, a plant-based, chickpea protein isolate as an alternative to meat and dairy.

Sophie’s BioNutrients Sophie’s BioNutrients offers plant-based protein with

microalgae.

Lvl Lvl offers superfood drink mixes.

Eat Just

Eat Just is well-known for its plant-based eggs, the Just Egg. It was launched in Singapore in November 2018. Compared to conventional chicken farms,

plant-based eggs require less land and water, produce less carbon emissions,

are lower in cholesterol, are antibiotic-free, and are non-GMO, while

maintaining the same protein content. The plant used to make plant-based eggs is a protein-rich legume called the mung bean, which is claimed to be

able to scramble like eggs and achieve a similar flavor, texture, and color to

that of chicken eggs. Eat Just will have the largest plant protein production facility in Singapore, thanks to its partnership with the investment management firm Proterra Asia in October 2020.

CULTIVATED MEAT OR CELL-BASED OR LAB-GROWN MEAT

Shiok Meat Shiok meat offers cell-based clean crustacean meat (shrimp, crab, lobster) company, the first of its kind in Singapore and South-East Asia.

TurtleTree Labs TurtleTree Labs creates milk from cell based process.

Avant Meats Avant Meatst uses cell technology to make premium delicacy from the sea without sacrificing the ocean.

Shiok Meat Shiok Meat is a cell-based clean meat company. It is the first of its kind in

Singapore and Southeast Asia to develop cell-based crustacean meats

(shrimp, crab, and lobster). ‘Shiok,’ in Malay and Singaporean slang, means ‘fantastic’ or ‘delicious.’ Its cell-based meats and seafood are made by first taking a small sample of shrimp cells. The cells are then grown in a nutrient-rich environment, harvested, and used to make food products such

as siew mai, a popular dim sum dish. Shiok Meat is funded by numerous venture capitals, including Big Idea Ventures, Angel Investor, and Babel Ventures. In October 2020, Shiok Meats announced that it secured USD 12.6 million in Series A financing to produce sustainable, clean, and cruelty-free

crustacean meats. A month later, it launched the world’s first cell-based

lobster meat in an exclusive tasting event.

TurtleTree Labs TurtleTree Labs is the first biotechnology company in the world that uses

biotechnology to produce real, whole milk from cell cultivation. The milk is

safe, healthy, and can be made with far less natural resources while leaving a smaller carbon footprint than conventional dairy farming. The company targets to secure 30% of Singapore’s nutritional needs with lab-grown milk

that matches the composition, taste, and functionality of cow’s milk. The cell-based milk can then be used to make various dairy products such as

cheese, butter, cream, and yogurt.

The company’s claim to be the first and only company that can imitate dairy

milk’s exact composition is a competitive advantage over its plant-based milk competitors—who are trying to capitalize on the climbing popularity of veganism—as plant-based milk does not have the same taste and functionality of regular cow’s milk.

WHOLE FOOD PROTEIN ALTERNATIVES

Karana Karana offers whole plant young jackfruit, no meat asian food which is high fibre, low GI, minimally processed and cholesterol free, allowing genuinely meaty taste and texture.

Confetti Fine Foods Confetti Fine Foods crafts snacks from delectable veggies that is still high in nutrient.

Karana

Karana utilizes the regionally bountiful young jackfruit to construct sustainable whole foods and vegan-friendly meat alternatives that can work

well in classic Asian dishes. The unprocessed young jackfruit is harvested in

its early developmental stage and then optimized, using high technology, with natural flavors to achieve a fibrous texture resembling chicken or pulled pork. Its naturally stringy texture is ideal as a substitute for meat fillings in foods like dumplings. Karana’s young jackfruit is essentially high in fiber,

potassium, and vitamins since it is minimally processed. Its product, which is packed in a glass jar, is available in the Singapore market and restaurants as a beta product. In terms of innovation, the company is presently trying to incorporate micro-encapsulating fat into the young jackfruit as it is struggling

to distribute its retail products to the end customers. In September 2019,

Karana was one of the five global startups selected to present at the Good Food Conference in San Francisco. It distinguished itself from other cell-based protein competitors, whose foods often contain a long list of ingredients and preservatives, with unprocessed plant ingredients plowed at

a young age. High-end chefs prefer this approach as they demand top-notch food ingredients in their cooking, which only serves to build up Karana’s

credibility in creating a successful niche as a whole food plant-based replacement food service.

INSECT PROTEIN

Asia Insect Farm Solutions Asia Insect Farm Solutions offers insects, for example cricket protein, for food and feed applications.

Nutrition Technologies Nutrition Technologies uses unique, high-tech technology which combines bacteria and insects to upcycle nutrients from vegetable and grain by-products.

Protenga Protenga use Smart Insect Farm™ system that makes insect innovation accessible to agricultural and food manufacturing by-products into fully traceable insect protein. Insectta Insectta is a pioneer in taking black soldier fly larvae that were considered as food waste into products for pets and animals, especially for the insectivore’s diet. They also produce biomaterial products.

Insectta

Taking the black soldier fly larvae and eggs, Insectta brings new products to feed the customer’s pets (such as dogs, cats, small mammals, poultry, songbirds, and insectivorous fish) and farming activity. The probiotic in Insectta products is deemed able to reduce the feed conversion ratio, improve animal gut health and immunity, thus increasing yield. They are the first insect

urban farming in Singapore, that also produces biomaterials from black soldiers. The final products include dried and live larvae, organic fertilizer, and biomaterial such as chitosan, protein and probiotics for animals, and currently

developing the organic semiconductor.

VENTURE CAPITALS

Big Idea Venture Venture capital and accelerator fund company which invest in top performers on food tech companies.

VisVires New Protein Venture capital which is into “New Protein”, funding food and agriculture companies.

Unovis Asset Management The global leader investor in alternative protein sector.

Id Capital Investment and advisory company focused on entrepreneurs of future food.

Grow Southeast Asia's first dedicated agrifood tech accelerator with an impact focus.

K2 K2 focuses on investing in tech start-ups that can create new markets which are approaching old problems with groundbreaking solutions.

Innovate 360 Singapore’s first food incubator which facilities recognized by the Asia Pacific Economic Corporation (APEC) as a food technology partner in food security, supported by Enterprise Singapore.

Big Idea Venture

Supporting the world’s best entrepreneurs, Big Idea Ventures is a venture capital and accelerator fund which invests in top performers. The venture capital invests in plant-based food/ingredients and cell-based meat producers. Based in Singapore and New York, it invests US$125,000 in cash and US$75,000 in services twice a year to support early-stage companies based in the Asia-Pacific.

Aquaculture FARM OPERATORS

Apollo Aquaculture Group AAG breeding and trading beautiful ornamental fish (AAG) sustainably, tandem with technological advances for sustainable fish keeping

Barramundi Asia The largest companies in the world cultivate barramundi in the ocean and employ on world-class sustainable fish farming practices and aquaculture technology.

Singapore Aquaculture Singapore Aquaculture Technology or SAT has 3,000 Technologies square metre floating fish farms that use cutting-edge technology to cultivate asian sea bass (aka barramundi) and red snapper.

The Fish Farmer A fish farm operator which keep everything fresh by implement chill temperature from the beginning and store the product in -18 degrees celsius cold room

Blue Aqua International One-stop solution provider for aquaculture industry in the Asia-Pacific region and the United States

Blue Ocean Aquaculture First Indoor Aquaculture Farm in Singapore, named FIN – Technology (BOAT) Farmed Indoor with Nano-oxygen

Apollo Aquaculture Group (AAG)

Apollo Aquaculture Group is an ornamental fish company that supplies ornamental fish and products all over the world. Since its inception in 1972, the company has increased its capacity and capabilities in water treatment

technologies and fish handling procedures. Over the years, it has transformed

itself from a labor-intensive company to a technology-infused enterprise that takes advantage of modern technologies to improve productivity and quality. Its quarantine facility is equipped with an online electronic inventory system to manage stock at an optimum level and an AquaDeck® System, a fully

automated, multi-tier, close aquaculture system, suitable for intensive production in a small space. The company has a quality assurance program to ensure the fish’s quality through biosecurity measures and a state-of-the-art recirculation system to increase the stocking density of the ornamental fish.

With these systems, its experts can diagnose fish diseases with molecular

tools in well-equipped laboratories, to keep diseases at bay, and conduct pre-export inspections on bagged fish. The company’s eight-story vertical fish farm will be able to produce up to 2,700 tons per year by 2023, accounting for about 5% of Singapore’s fish consumption.

Barramundi Asia

Barramundi Asia is one of the world’s biggest companies that farms barramundi using sustainable fish farming practices and aquaculture technology. The company concentrates on the full ‘farm-to-fork’ value chain, having its own RAS hatchery, nursery, and deep-sea cage ‘grow out’ farms in

an active tidal environment. With over 4000 metric tons of biomass, the company also processes and retails its barramundi product brands, Kuhibarra and Cone Bay Barra, alongside its premium online sales portals. This year, Barramundi Asia bought the deep tech startup Allegro Aqua.

Singapore Aquaculture Technologies

SAT is an example of a modern fish farm that employs closed containment tanks, a cutting-edge technology. Its 3,000-meter-square floating farm

nurtures barramundi and red snapper.

IOT PLAYERS

Umitron Umitron create computerized aquaculture to collect data

related to aquaculture to build a sustainable aquaculture computer model with IoT, Satellite remote sensing, machine learning

Delfers IoT Solution companies which enable farm operators to monitor pH and dissolved oxygen levels.

Excelpoint One of the leading regional business-to-business platforms providing quality electronic components, engineering design services and supply chain management

Siemens Siemens offers comprehensive solution for aquaculture industry that combines electrification, automation and digitalization with cutting-edge technologies to improve sustainability and productivity

Umitron

UMITRON claims to be the world’s first real-time ocean-based fish appetite detection system. By employing AI, satellite remote sensing, and IoT, the company helps farmers improve their farm productivity, control the environment to minimize risk and subsequently increase the farmers’ earnings. UMITRON uses image analysis and machine learning to get relevant data from video streams to gauge the fish’s hunger and optimize its feeding. With this technology, farmers can reduce their feed wastage, receive a higher profit, and operate more sustainably.

FINANCING PLAYERS

Enterprise Singapore Government agency championing enterprise development, working with companies to build capabilities, innovate and internationalise.

Temasek Generational, sustainable investor, mostly invested in equities.

The Yield Lab Fund and accelerator focus on driving Agritech innovation across the entire Asia Pacific Region.

Enterprise Singapore

ESG has allocated more than SGD 55 million to expedite the success of promising local aquaculture companies and develop their capabilities to grow more with less through modern climate-controlled, resource-efficient, and high-output farming solutions for population-dense environments. ESG, through its investment arm, SEEDS Capital, has channeled a co-investment scheme together with several private sector venture capital and accelerator partners.

Key 03 Trends

Economic Trends In general, the Singaporean Ministry of Trade and Industry estimated the country’s economy to contract by 6.5 to 6.0 per cent by the end of 2020 due to the COVID-19 pandemic. The accommodation and food services sector contracted by 24.0 per cent year-on-year as sales volume across all sub-segments such as restaurants declined.

On the positive note, the Ministry expects the economy to rebound next year and the GDP will grow by 4.0 to 6.0 per cent in 2021.1 The food services sector is predicted to make a gradual recovery next year as it would benefit from the recovery in visitor arrivals as well as the improvement in consumer sentiments amidst better labour market conditions.2 This situation provides a positive signal for tech-based agrifood start-ups that plan to initiate their businesses around the start of next year. Nevertheless, the Ministry also stated that the economic activity in the food services sector is unlikely to return to the pre-COVID level even by the end of 2021, and therefore, the start-ups should proceed carefully.

Consumer Trends A recent study by Tan et al. on food consumption trends in Singapore can be used to highlight the benefits of consuming homegrown tech-based alternative food sources (see the ‘Opportunities and Challenges’ section). The study shows that the country’s annual consumption per capita of conventional farm animals (including chicken, pork, beef, and mutton) reached 55 kg in 2020 (Figure 1-A). This consumption pattern is estimated to produce around 466 kg of global warming potential (GWP) per capita per year (Figure 1-B). GWP involves greenhouse gases, such as methane from a ruminant’s digestion process and nitrous oxide from its urine and dung. None of these GWP-inducing substances occur in tech-based alternative food sources such as stem-cell-based meat. If these startups could communicate this environmental benefit, they may be able to shift public perception and preference, gradually, from conventional foods to tech-based alternative food sources, which then would boost the marketability of their products.

1 Ministry of Trade and Industry Singapore, ‘MTI Forecasts GDP Growth of “-6.5 to -6.0 Per Cent” in 2020 and “+4.0 to +6.0 Per Cent” in 2021’, Press Release (23 November 2020): 1 & 5 2 Ministry of Trade and Industry Singapore, ‘MTI Forecasts GDP Growth of “-6.5 to -6.0 Per Cent” in 2020 and “+4.0 to +6.0 Per Cent” in 2021’, 4

Figure 1.

(A) Annual consumption, in kg per capita, of specific food items in Singapore. (B) Annual GWP based on each food item’s consumption trends in Singapore.

Source: Tan et al. (2020)

To further accentuate the argument favoring homegrown alternative food sources, there is another finding from Tan et al.’s study that tech-based agrifood startups could use. This study outlines five possible scenarios of Singapore’s food consumption trends and how each impacts the environment by 2030 (Figure 2).

Figure 2. Global warming potential (GWP) based on food consumption trends in Singapore under five different scenarios, 2018 - 2030

Source: Tan et al. (2020) The first scenario assumes that the average Singaporean diet consists of 46% of fruits and vegetables, 26% of grains, and 28% of meats, eggs, and seafood. We can assume that this is the real, daily scenario in Singapore. The second scenario is based on the Singaporean government’s ‘30 by 30’ plan, where 30% of Singapore’s nutritional needs will be produced locally. The third scenario uses the HPB’s optimal health diet recommendation. The fourth and fifth scenarios consider how substituting animal meats in the average Singaporean diet with alternative plant-based meat options will affect the GWP of food consumption in Singapore.

Aside from Scenario 1, the scenario that most likely will play out in the near future is Scenario 2, where the ‘30 by 30’ program is fully in place. The government has started implementing this program by providing investment opportunities, and this is where tech-based agrifood startups could come in. It is advisable that such startups consistently highlight the potential GWP reduction as a key environmental benefit of using homegrown food production solutions. Scenarios 3, 4, and 5—while not impossible—would require the consumers’ compliance with the optimal health diet

recommended by the HPB. These scenarios also require a significant shift of consumer preference from imported conventional food to the more expensive alternative food sources.

Technological A recent study by Mok et al. highlights several existing technology innovation Innovation Trends trends in Singapore that can potentially contribute to food security. The first area of innovation is urban farming, which is meant to overcome limited land space challenges. Prominent innovations include vertical farming, aquaponics, and IoT-based agriculture.

Key Regulations 1. SALE OF FOOD ACT (CHAPTER 283, SECTION 56(1)) - FOOD REGULATIONS (Rg 1 - GN No. S 264/1988) - REVISED EDITION 2005 (30 November 2005)

This is a far-encompassing regulation concerning food policy in the country that covers areas such as food processing standards, food safety, and food additive substances. This regulation applies to all food-related businesses and should be seen as a starting point to understand the Singaporean government’s food policy in general. Currently, the regulation only covers conventional food standards and procedures and has not explicitly stipulated alternative food sources’ standards and procedures (see the ‘Challenges’ section for more details). Tech-based agrifood startups would need to pay attention to any developments in this regulation.

2. WHOLESOME MEAT AND FISH ACT (CHAPTER 349A) - (Original Enactment: Act 5 of 1999) - REVISED EDITION 2000 (30 December 2000)

This regulation refers to all policies and standards related to meat (e.g., beef, pork, and chicken) and fish products, including their processing, storage, and export-import. Ideally, this regulation should apply to all tech-based agrifood startups that plan to operate around these food items (e.g., stem-cell-based meat). However, as with the Food Regulations, it currently only covers the standards and procedures of conventional meat and fish products (see the ‘Challenges’ sub-section for more details). Startups would need to pay attention to any developments in this regulation.

3. SINGAPORE FOOD AGENCY ACT 2019 (No. 11 of 2019) This regulation is concerned with the functions, authorities, tasks, and responsibilities of the Singapore Food Agency (SFA) regarding food policy in the country. It does not directly apply to any business unit in Singapore. Yet, it is still relevant for those who seek to understand how the government conducts monitoring and oversight on all food businesses in the country, including startups.

4. Control of Plants Act (Chapter 57A, Section 48) - Control of Plants (Cultivation of Plants) (Licensing and Certification) Rules - R 2 GN No. S 27/1994 - REVISED EDITION 2000 (31 January 2000)

This regulation stipulates standards and procedures for the cultivation of plants, including fruits and vegetables in the country. It applies to food businesses that deal with agriculture, plantations, and plant cultivation in general. As for tech-based agrifood startups, this regulation applies to those that operate in urban-based agriculture, such as vertical farming and aquaponics. Exceptions are made for those that use tissue-culture and micropropagation techniques as this regulation does not apply to them. Startups in the early stage of their businesses should pay particular attention to this regulation’s Licensing section and ensure compliance with its provisions.

Other Recent 1. Lab-grown cultured meat has been officially approved for consumers in Singapore News And On 1 December 2020, MIT Technology Review reported that regulators in Activities Singapore gave their approval to Just, a San-Francisco-based startup, to publicly sell their lab-grown cultured chicken meat in the form of chicken nuggets. While an as-yet-unnamed restaurant in Singapore will soon be the first to have Just’s cultured chicken on the menu, Just’s CEO, Josh Tetrick, says he plans to expand sales to other restaurants, the retail market, and, eventually, outside Singapore.

2. Float Foods introduced plant-based whole egg

On 9 December 2020, KrASIA reported that Float Foods, a Singapore-based food tech startup, recently introduced Called OnlyEg, Asia’s first commercial plant-based whole-egg substitute that offers an

egg yolk and egg white replacement. It uses legume-based substitutes and is the first of its kind to achieve the level of likeness to a real chicken egg. Float Foods is currently working on improving its product’s nutritional composition to surpass that of a chicken egg. The company is also currently raising capital and looking for strategic investors.

3. Shiok Meats to launch cultured crab meat next year

Expanding from its cultured shrimp meat, Shiok Meats plans to launch its cultured crab meat prototype in the next few months. The company also aims to build a manufacturing plant in Senoko by 2022 and achieve commercial availability of Shiok Shrimp in restaurants and foodservice outlets in that year.

4. TurtleTree Labs is developing cell-based raw milk

After securing a USD 3.2 million investment in June this year, TurtleTree Labs—a Singapore-based startup biotech company—is currently developing the world’s first cell-based milk. The company noted the difficulty of finding a suitable shared facility to upscale the technology it uses and builds. It plans to set up its production facility in the country in the first quarter of 2021.

5. Thai Union has opened a Southeast Asian operation in Singapore dedicated to food tech ventures

In late November 2020, Thai Union, the Thai seafood giant, opened an office in Singapore. The company stated that its Singapore office is dedicated to food tech ventures, citing Singapore as one of Asia’s key food tech hubs. Thus, it provides the company with excellent opportunities to make fruitful regional collaborations with locally based ventures.

Key Ecosystem 04 Players

Enterprise Singapore (ESG) Government Agency, Funding Opportunity, Accelerator

Enterprise Singapore is the government agency tasked with supporting the

creation, development, innovation, and international expansion of startups and small and medium enterprise (SMEs). It is a statutory board under the Ministry of Trade and Industry (MTI) and was formed on 1 April 2018 by the merger of the Standards, Productivity and Innovation Board (SPRING Singapore) and International Enterprise Singapore (IE Singapore), which previously supported the local and international growth of companies respectively.

Enterprise Singapore is a source of grants for food tech startups, and it also facilitates mentorship, networking and collaboration opportunities. Its relevant services are summarised in Table 8.

Table 8. Services of Enterprise Singapore relevant to the food tech industry

Service Description Benefits Criteria

Food Innovate A multi-agency collaboration to Access shared facilities, bring a suite of resources to co-innovate, Food Singapore food companies, Innovation Production enabling you to create and Award (FIPA), Food commercialise food products Innovation Challenge faster, and sell to a larger market. with Monash Food Innovation Centre, Food for Elders

SEEDS Capital As the investment arm of General tech investment Singapore-based company; not a Enterprise Singapore, SEEDS cap of S$2m, deep tech subsidiary or joint-venture. Capital supports the growth of investment cap of S$4m. Incorporated as a private limited promising Singapore-based company for less than five years. startups. We co-invest with Paid-up capital of at least S$50,000. independent investors in Substantial innovative and intellectual innovative startups with strong content. High-growth potential with intellectual content and global clear scalability for the international market potential. market.

Startup SG Teams of entrepreneurs with AMP will assist the Applicants need to reach out to an Founder innovative business ideas can startups with advice, AMP and submit their pitch deck for “Start” Track approach any Enterprise learning programs and consideration based on these criteria: Singapore-appointed Accredited networking contacts. Differentiation, feasibility, market Mentor Partners (AMP) with Enterprise Singapore will opportunity, management team. innovative business ideas. AMPs provide a startup capital Startups are required to raise and will recommend qualifying grant of $50,000. commit S$10,000 as a co-matching applicants for funding support. fund to the grant. Other restrictions apply.

Startup SG Venture Builder and Accredited Provide support for Screening criteria considers the Founder Mentor Partners (NTU, NUS, sourcing innovation, aptitude, expertise, background and “Train” track SMU, SUTD, SUSS) will provide commercialising these related experience of the applicant. 3-month Venture Building ideas, getting Must commit to running a startup programmes. product/solution after the programme. Individuals must validation from customers be Citizens/PR and commit to 100% and finding capital. attendance rate.

Startup SG 5 Accelerators: Big Idea Mentor 150 agrifood tech startups in Ventures, GROW, Hatch Blue, fundraising, product The Yield Lab, Trendlines development, Agrifood Innovation Centre commercialisation and internationalisation.

Un-named “Developing innovation Total funding of over “Promising local agriculture and Grant capabilities to grow more with S$55 million aquaculture companies.” less.”

National Research Foundation (NRF) Government Agency, Funding Opportunity, Research

The National Research Foundation, set up on 1 January 2006, is a department within the Prime Minister's Office. The NRF sets the national

direction for research and development (R&D) by developing policies, plans and strategies for research, innovation and enterprise. It also funds strategic initiatives and builds up R&D capabilities by nurturing research talent.

The NRF has many channels for funding and grants, which have programs relevant to food tech. SG Innovate is a collaboration and investment platform that focuses on Deep Tech, or startups that harness new technology to solve

scientific or engineering challenges, including food tech industry. SG Innovate’s Venture Building team partners with technical founders to create

venture-fundable businesses based on their Deep Tech research and IP.

Agency for Science, Technology and Research (A*STAR)

Government Agency, Funding Opportunity, Research

As one of the oldest state-funded research agencies in Singapore, A*STAR is

synonymous with cutting-edge R&D that serves Singapore’s national needs. The Singapore Institute of Food and Biotechnology Innovation (SIFBI) was launched in 2020 by bringing existing A*STAR divisions together as a single touchpoint for collaborators to tap on research capabilities and knowledge to

sustainably develop innovative food solutions.

A*STAR offers many opportunities for research funding, such as the

Singapore-New Zealand Bilateral Research Programme on Future Foods, where proposals must centre on a fundamental technical problem or challenge and have a novel technical application Future Foods.

Economic Development Board (EDB) Government Agency, Networking, Regulation

The Economic Development Board brands itself as “Singapore’s inbound investment promotion agency” and is responsible for assisting foreign

companies in setting up in Singapore, and for making Singapore an attractive destination for Foreign Direct Investment (FDI). Therefore, the EDB would be the first port of call for international food-tech firms considering Singapore operations. The EDB has also released several blog posts to encourage the growth of high-tech farming in Singapore specifically.

In 2019 and 2020, the EDB launched Tech@SG and Tech.Pass, a visa program that allows pass holders flexibility to participate in activities such as starting and operating a business, being an investor, employee, consultant or director in one or more Singapore-based companies, mentoring start-ups and lecturing at local universities. The program targets high-potential companies

in growth areas such as agri-tech, among others.

Ministry of Trade and Industry (MTI) Government Ministry, Information

The Ministry of Trade and Industry is the parent organisation for Enterprise Singapore, A*STAR, and the Economic Development Board, which have been

mentioned above. Also, MTI has launched a Food Manufacturing Industry Transformation Map (ITM), which seeks to develop Singapore as a food and nutrition hub in Asia. Resources available under the ITM include the High-Pressure Processing (HPP) resource sharing facility and design thinking

and product development workshops. In 2020, MTI launched the Research, Innovation and Enterprise 2020 Plan, which invested $19 billion in science and technology, including health, biomedical science, urban solutions, and sustainability.

In addition, MTI is home to the Pro-Enterprise Panel (PEP), which hosts the First Mover Framework and New Idea Scheme. This gives entrepreneurs innovative business ideas a head start in allocating public assets and could be

a potential resource for food tech businesses. Lastly, MTI operates the Business Grants Portal, which consolidates information on many Singapore government grants.

Singapore Food Agency (SFA)

The Singapore Food Agency is primarily a regulatory authority under the Ministry of Sustainability and the Environment, formed on 1 April 2019, that consolidates the previous regulatory responsibilities of the Agri-Food and Veterinary Authority of Singapore (AVA), the National Environment Agency

(NEA), and the Health Sciences Authority (HSA). In other words, it is responsible for monitoring food safety and security in Singapore.

Besides regulation, the Singapore Food Agency is home to the Singapore Food Story R&D Programme, which releases grants for food tech research. For example, the grant call in 2020 sought innovative solutions for the tropical aquaculture and urban agriculture industries. The Singapore Food

Agency is also a key driver in the "30 by 30", a multi-agency movement to grow domestically 30% of Singapore’s food needs by 2030. Due to the shortage of land in Singapore, this movement would undoubtedly rely heavily on space-saving food tech.

Health Promotion Board (HPB) Government Agency, Public Education

The Health Promotion Board is the public education arm of the Ministry of Health and wields a strong influence over the types of food that Singaporeans

consume. The Health Promotion Board influences food choices through

labelling systems such as the Healthier Choice Symbol Programme, allowing HPB-approved products to carry a special label. The HPB also maintains HealthHub, which is an online portal that provides healthy eating advice to Singaporeans, as well as funding many consumer-oriented campaigns to

promote healthy eating.

Although the HPB does not directly address food tech, its influence over

consumer preferences will undoubtedly affect the demand for food tech products, which tend to be more sustainable than imported ones.

Ministry of Health (MOH) Government Ministry, Regulation

The Ministry of Health is the parent ministry of the Health Promotion Board and oversees certain types of food legislation, such as the upcoming ban on partially hydrogenated oils (PHOs), the main source of artificial trans fats.

PHOs will be banned as an ingredient in all foods sold in Singapore from June

2021. The Food Regulations under the Sale of Food Act will be amended to legislate the ban on PHOs.

Agri-Food Innovation Park (AFIP) Government Agency, Business Co-location

The Agri-Food Innovation Park lies at the heart of the Urban Redevelopment Authority’s Northern Agri-Tech and Food Corridor, which is a development area that connects farms in Lim Chu Kang to the Sungei Kadut Eco-District,

the Woodlands Regional Centre, and the Senoko Food Zone. The Park brings together high-tech urban indoor farming and R&D activities, which will be close to related businesses such as the JTC Food Hub @ Senoko Food Zone.

Therefore, this area will be an appealing hotspot for food tech startups to locate themselves.

Aquaculture Innovation Centre (AIC) Research, Collaboration

The Aquaculture Innovation Centre at Temasek Polytechnic (TP) is supported by Enterprise Singapore. It aims to consolidate knowledge and

experience from different partners, including Nanyang Polytechnic, Ngee Ann Polytechnic, Republic Polytechnic, National University of Singapore, Nanyang Technological University, James Cook University, Agency for Science, Technology and Research (A*STAR) and Singapore Food Agency

(SFA).

The AIC opened in 2019 and its main focus during its first three years will be

on optimising nutrition for food fish. Food and beverage outlets providing food waste that can be used for fish feed are examples of partnership that the AIC is looking for.

Food Ventures Investment

Food Ventures is a Singapore based investment company formed in 2019. We partner, mentor, and invest in promising food-tech startups and

companies which uniquely address the growing demands for healthier, sustainable, and clean label food. Target companies are those that produce novel ingredients and food solutions or food-tech services to offer healthy alternatives to existing food without compromising sustainability and taste.

Its brands include Chick.P, which extracts high quality, clean label chickpea

protein isolate that is both odourless and neutral in flavor, and Confetti Fine Foods, which crafts vegetable chips dressed in exotic flavours.

GROW Investment, Networking

GROW is Southeast Asia's first dedicated agrifood tech accelerator with an impact focus. For startups, it offers coaching, network and programs that help

to launch them into Asia and new international markets. GROW also has a program to help UK and EU startups capture the opportunity in Asia using

Singapore as a gateway.

Big Idea Ventures supports raising seed and growth-stage companies by

using acceleration to invest in top performers. Their New Protein Fund focuses on investment in plant-based foods & ingredients and cell-based meat.

Germi8 Investment

Japanese-backed private investment firm Germi8, funded by Leave a Nest and Focus Tech Ventures, and launched in 2019, plans to invest JPY 100 million in 20 South Asian projects. Germi8, whose aim is to advance the future of food and agriculture, is created by a team of entrepreneurs from biotech, agricultural machinery, education, food, and technology, to place funding into agrifood startups through its extended investment vehicles. The firm aims to assist new business and value creation in agriculture, and it will

focus on seed-stage startups developing alternative proteins, such as plant-based and fermentation-based meat substitutes, seafood, and clean meat.

Temasek Investment

Temasek is Singapore’s state-owned investment giant and has pumped more than US$5 billion (S$6.7 billion) into the agri-food space over the past five

years, nurturing a portfolio of more than 40 agri-food companies. While most

of the investment is in European and North American firms, it would not be surprising if the future investment is more targeted at Singapore and Asia, given the government’s stated aim of producing 30% of Singapore’s food needs by 2030. In line with this, Temasek has signed an agreement with the

Agency for Science, Technology and Research (A*Star) to establish the Food Tech Innovation Centre, a facility to accelerate food technologies’ commercialisation.

Singapore Food Manufacturers’ Association Networking, Collaboration

To help local food manufacturers to internationalise and export their

products overseas. SFMA organises and brings our local food manufacturers overseas for various events such as Trade Shows, Study Missions and Retail Promotions. SFMA also hosts the Food Innovation Product Award (FIPA) is a food innovation competition that builds on SFMA's existing collaborations between the industry and Institutes of Higher Learning. Students from the Food Science and Technology courses from ITE, Polytechnics and Universities will partner food manufacturers to develop innovative food products and market launch strategies.

Opportunities 05 and Challenges

Key Opportunities 1. ‘30 by 30’ program by the Singaporean government that may boost the In response to international food trade disruptions due to the COVID-19 marketability of food tech in pandemic, the government aims to have about 30% of its domestic food Singapore. needs homegrown by 2030. Currently, around 90% of Singapore’s food supply is obtained through import, which means the country needs to triple its homegrown food production. The government stated that research and development of food tech would be the key to achieve this, including high-tech farming and modern aquaculture.

2. Government investment opportunities

Related to point no. 1, the government’s investment arm, SEEDS Capital, has appointed seven co-investment partners to catalyze more than SGD 90 million worth of investments into early-stage tech-based agrifood startups to create disruptive agrifood solutions. This development presents opportunities for agrifood tech startup companies that seek to obtain the necessary capital to develop their businesses. Additionally, the government has introduced an SGD 30 million grant for local food producers who can utilize high-efficiency farming systems to raise their output quickly. These opportunities are available for all tech-based agrifood startups of diverse players across the value chain, from farm inputs and system providers to high-tech commercial farms that produce food for local consumption.

3. The growing number of tech-based startups in urban food solutions in the country

According to an Alpha Beta report, Singapore has an increasing number of first movers in urban agriculture and aquaculture. For example, the number of vertical farms in Singapore has increased from 12 farms in 2016 to 29 farms in 2017 and 34 farms in 2018. One such startup in vertical farming is Sustenir, a company with an indoor vertical setup that produces kale and strawberries throughout the year with consistent quality. Meanwhile, Apollo Aquaculture Group has developed a vertical fish farming system that produces six times more than conventional aquaculture. As the city’s population continues to grow and the land remains limited, the interest for tech-based, urban-focused food solutions is predicted to rise for the foreseeable future.

4. Local production improves nation’s food security and food safety

In other countries, tech-based agrifood startups must compete with the more established food producers that still cultivate their food products conventionally. For example, in the US, both plant-based and cell-based meat companies must go toe-to-toe with local Big Meat producers and lobbyists regarding the labeling of their products, shelf placement, and other issues. Since most of Singapore’s meat supply is imported, there should be a lack of opposition from the local conventional food producers in developing alternative food sources. Nevertheless, tech-based agrifood startups must be aware that such opposition may come from conventional food importers. Currently, there are around 104 importers and exporters of meat and meat products in the country.

The growing numbers of local producers should also increase Singapore food security and food safety as all the productions must comply with Singaporean government guidelines.

Challenges 1. Outdated regulations that may impact the The current Food Regulations Act and Wholesome Meat and Fish Act only marketability of food tech in cover conventional food processing methods such as the slaughtering of Singapore common farm animals (e.g., cattle and chicken). These regulations do not specifically cover the processing and safety standards of alternative food sources such as insect farming and meat cultivated from stem cells. This situation potentially makes the standardization process of alternative food products difficult and eventually impacts such products’ marketability.

Examples:

Food Regulations Act section 59:

Meat means any edible part of the carcass of any animal or bird, healthy at the time of slaughter, which is ordinarily used as food by man, whether fresh, or prepared by freezing, chilling, preserving, salting or by any other process.

Wholesome Meat and Fish Act section 3:

An Act to regulate the slaughtering of animals and the processing, packing, inspection, import, distribution, sale, transhipment and export of meat products and fish products and for matters connected therewith.

However, the approval of lab-grown chicken meat and the Novel Food Safety Assessment (latest version dated 23 Nov 2020) might be a positive sign that the Singaporean government is moving towards regulatory reform that will replace the outdated Food Regulations Act and Wholesale Meat and Fish Act.

Yet, Acts are definitely higher/more legally binding than a guideline document. Hence, the hypothesis is that after the announcement of '30 for 30' program, the Singaporean government decided to move fast with the development of tech-based agrifood and they would reform their regulations at a later date. It seems that, for now, the Singaporean Food Agency (SFA) is the go-to agency for developing the framework for alternative food sources (or what they call 'novel food'). In this regard, the best thing to do for upcoming players in foodtech industry would be to communicate regularly with the SFA regarding their plans and products to ensure they comply with the safety standard.

2. Farmers require more intensive training to cultivate tech-based food, which may impact the available funds for marketing

The increasing number of farms in Singapore has, so far, not significantly increased food production in the country. According to a media report by Channel News Asia, between 2015 and 2019, the number of vegetable farms has increased by 53.7%, from 54 to 83 farms. The figure includes those that have increased

technology utilization in their cultivation. Despite this increase, the production of leafy vegetables only rose by around 11.4%, from 11,400 to 12,700 metric tons. The critical factor here is that Singapore does not have a ready pool of skilled indoor farmers, which means tech-based agrifood startups must be prepared to spend time, effort, and money to properly train their farmers. This situation may impact their marketing funds, especially if their budget is already spread thin to cover infrastructure and personnel recruitment costs.

3. Consumers’ preference for homegrown tech-based food is still lower than the cheaper imported conventional food

Price is a significant factor in influencing consumers’ food purchasing decisions. Therefore, homegrown tech-based foods may not appeal to consumers if they have higher prices than imported conventional food. Unfortunately, this is the current scenario in Singapore. Recent media reporting by Channel News Asia shows that consumers are still unwilling to fork out the extra 2% to 5% to buy homegrown tech-based foods if they can get imported conventional food at a lower price.

Agrifood startups should address this issue by highlighting the benefits of tech-based foods compared to the conventional ones. For example, vertical farming can save up to 99% of water compared to conventional farms. Meanwhile, alternative proteins in both food (made of plant or stem cells) and animal feed (insect- or microbial-based) could contribute significantly towards better nutrition and lower environmental impacts.