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9 min
If 2022 was โthe great reckoningโ that brought the crash of the ultrafast delivery wave, 2023 will likely see a continued unwinding of countless other "non-essential" businesses that will struggle to raise funding or get acquired. Venture firms poured a whopping $39bn into food tech startups in 2021 and less than half of that amount this year. Thus, a massive correction was due as companies lapped high comps from the pandemic. This will likely continue throughout most of next year as companies continue to slash costs to extend their runways. We likely wonโt see any more wide-eyed Wonder type of pitches for some time, and that may not be the worst thing. While food is one of the most resilient sectors of our economy, consumers will increasingly make tradeoffs around price, convenience, and nutrition/quality. In 2023, health doesnโt just equate to macronutrients, but a triple bottom line that also includes sustainability and unit economics.
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