CHICAGO LEADS THE NATION IN FOOD INNOVATION & MANUFACTURING

Food industry report released today by the Research Center at World Business Chicago, details Chicago's dominance in food innovation and commoditization

CHICAGO, May 24, 2022 /PRNewswire/ -- Since the 19^th century, Chicago has been a dominant U.S. hub for food and beverage manufacturing. Today this industry is accelerated by innovation and pandemic related shifts, from global supply chain and demand, to venture capital investment.

According to a report released today by World Business Chicago, Chicago Business Bulletin, Innovation in Chicago's Food Sector, the city's food innovation ecosystem is one of the fastest growing in Chicago. The industry is seeing more venture capital investment than in Boston and Seattle, spurred by a clustering of food companies in Chicago from major corporate to early-stage and start-ups. Among the report's other key takeaways:

• Chicago's traditional food and beverage manufacturing industry is the largest in the U.S., generating $9.4 annual in output, employing over 65K people. Chicago outperforms in employment growth, growing 9.4 percent versus 4.2 percent since 2019.
• Building on Chicago's legacy food manufacturing industry, its food innovation ecosystem is sizeable and growing:
• There are over 2,800 locally headquartered food innovation related companies.
• In 2021, Chicago's food innovation companies raised $723 million in venture capital, an increase of 508 percent from 2019. Investments in Chicago's food innovation companies with active patents are at an all-time high, while investments in similar companies in other top tech ecosystems have declined.
• More investors are taking notice, e.g., in 2021, there were 21% more investors involved in Chicago's food innovation deals than in 2020. A quarter of investors are locally based.
• Innovation in Chicago's food industry looks different than in other industries, i.e., large companies may acquire innovation rather than creating it, while small businesses spend more on R&D than larger corporations.

World Business Chicago (WBC) timed the release of this report to precede the Chicago Venture Summit, Future of Food (www.chicagoventuresummit.com) being held May 25 and May 26, 2022, when over 500 startups, venture capital and private equity investors and others in food and beverage verticals will convene to discover why Chicago is a strong destination for food and agriculture founders, innovators and investors from around the world.

"We compete around the world not only for our core strengths, but our values, our culture, our commitment to diversity and equity," said Michael Fassnacht, President & CEO, World Business Chicago, Chief Marketing Officer, city of Chicago. "I congratulate our team for a job well done on this report. I look forward to sharing this widely throughout Chicago's business community."

"When the team reviewed the data and trends, it was clear to us that Chicago's dominance is deeply rooted but also a result of consistent innovation; not something you typically see in stalwart, legacy industries," said Robin Ficke, Vice President, Research, World Business Chicago. The WBC Research Center team members who co-authored the report include Justine Ingram, Research Coordinator, Himashi Jayasundera, Research Analyst, Hannah Loftus, Research Director, and Robin Ficke.

About World Business Chicago
World Business Chicago serves a critical role in driving inclusive and equitable recovery throughout the city's 77-neighborhoods. As the city's economic development agency, World Business Chicago leads business acquisition, workforce and talent, community impact and equity, support of our business community and promotion of Chicago as a leading global city. For business related news, announcements, and original research-based content, follow World Business Chicago on Linkedin and Twitter. 

SOURCE World Business Chicago