Despite ongoing economic uncertainties, German start-ups are undergoing a positive transformation. According to the latest data from the report series “Next Generation – New Startup Foundings in Germany,” published by the Startup Association and startupdetector, 3,568 new start-ups were founded nationwide in 2025 – a 29 percent increase compared to the number of start-ups founded in 2024. Particularly noteworthy is the upward trend in the B2C segment, which is slowly recovering after a difficult period. The food sector is showing the strongest momentum, with a significant 80 percent increase in new German start-ups compared to 2024. But what has changed? Which food start-up trends are currently shaping the scene, and what challenges must food start-ups overcome to achieve long-term success?
What are the Most Important Food Start-up Trends?
The food start-up scene is currently shifting toward more sustainable and healthier products, a trend reflected in the key trends. Philipp Wolf, founder of the digital food hub swyytr, notes that organic products are increasingly becoming the norm: “Organic is on its way to becoming ‘the new normal,’ even if there’s still a long way to go.” Eva Martell, startup manager at the Food Startup Incubator at Weihenstephan-Triesdorf University of Applied Sciences (HSWT), adds that food start-up trends are not only moving toward organic and sustainable products, but that health benefits are also gaining in importance: “The focus is on vegan and vegetarian products that undergo as few manufacturing processes as possible and are preserved using gentle methods, such as fermentation, canning, and freezing.” In this context, manufacturers are increasingly avoiding added sugar, using alternative sweeteners, and specifically adding nutrients such as fiber and protein to improve health benefits.
What Innovations are Shaping the Food Start-up Scene?
These start-up trends are also reflected in the innovative approaches currently emerging in the industry. According to Martell, process innovations such as fermentation, drying methods, high-pressure/cold pasteurization, and low-energy processing methods offer significant potential. She sees further potential in “clean label” initiatives – specifically, in rethinking processes and shelf lives to eliminate the need for additives.
Wolf highlights developments in the field of plant-based nutrition: “For the first time, we’re seeing a wave of plant-based alternatives that come very close to the originals – in terms of taste, but above all in the previously challenging area of texture.” One example of this is Project Eaden, which uses textile industry technologies to create plant-based, meat-like textures. The development of sugar-free confectionery is also gaining momentum. Wolf cites NEOH from Austria, whose sweetener is based on dietary fiber and offers a sugar-free alternative: “Products that are nearly equivalent in taste but are expected to have significantly fewer health side effects than traditional varieties.”
While innovations like these are driving the industry forward, changes in the investment climate are simultaneously emerging that are influencing the financing options for these new technologies.
Current Investment Climate for Food Start-ups
Through 2021, the food sector saw a steady increase in investment, which peaked during the COVID-19 pandemic. Wolf explains: “This peak was primarily driven by massive investments in quick commerce – that is, by companies like Gorillas and Flink.” However, with the outbreak of the war in Ukraine, the food sector experienced a drastic decline in venture capital. The market is now settling back down to 2017 levels, a significant drop from the previous record highs. Investors’ focus, which had been heavily on the food sector for a time, has shifted again. “It’s very clear right now that the tech sector as a whole is attracting more attention again,” Wolf continues. Many investors are increasingly turning to sectors that promise greater potential.
Marlies Resch also notes that the investment climate for food start-ups has become significantly more selective. “In the past, a lot of capital flowed into nearly all food trends. Today, many investors are pulling back from particularly high-risk areas, such as cultured meat or startups without a robust business model,” she explains. Instead, the focus is on technology-driven approaches such as fermentation, biotechnology, and alternative proteins. “Smart farming, AgriTech, and solutions for resource efficiency are also receiving preferential funding,” Resch continues.
What Makes Food Start-ups Successful?
While the shift in investment appetite poses a challenge, food start-ups can still succeed if they take key success factors – such as a clear strategy, adaptability, and a willingness to learn from feedback – into account. Wolf recommends starting out with a certain degree of naivety and validating your own idea: “Talk to as many people as possible – both potential customers and experts – and take their feedback seriously.” In addition, founders should be prepared to adapt their concepts if assumptions turn out to be wrong, and not give up until an opportunity arises.
Resch emphasizes how important it is to develop a product from the very beginning that is both delicious and attractively priced: “If it tastes bad, customers won’t buy the product a second time, and if the price is too high, they won’t buy it at all.” A strong team, a clear understanding of the target audience, and early financial planning are crucial, as a lack of funding is often a reason for start-ups to fail. “Don’t forget about marketing and sales, either. Products can only be successful through targeted marketing, skillful sales, and outstanding taste.”
Trade shows also play a crucial role. Wolf emphasizes: “For me, trade shows like BIOFACH fulfill two key functions. On the one hand, they’re a necessary platform for raising awareness of new brands and products. On the other hand, they’re an essential tool for building and maintaining one’s own network. Even today, LinkedIn and similar platforms still can’t replace the direct – and often serendipitous – connections made at industry events.” Resch adds: “Trade shows like BIOFACH are particularly valuable for start-ups that already have a market-ready product. They offer visibility to an international audience of industry professionals, enable direct interaction with retailers, investors, and partners, and provide important feedback on the concept, taste, or packaging. They also allow for the early identification of market trends.”
Start-ups at BIOFACH
BIOFACH offers food start-ups various opportunities to present their innovations to a broad audience. German start-ups can showcase their ideas at the “Young Innovators” pavilion, which is supported by the Federal Ministry for Economic Affairs and Climate Action. International founders have the opportunity to present their concepts in the “International Newcomers & Start-ups” special area. In addition, the BIOFACH Start-up Pitches will enter their third round in 2027. There, start-ups will have the chance to pitch their products to an international audience of industry professionals and a high-caliber panel of judges. The winning start-up will be honored with the BIOFACH Start-up Award – which includes a customized prize package.
