Innovating the food industry is one of the most impactful ways to reduce our planet’s footprint. Therefore, companies in Estonia and around the world are developing increasingly sustainable methods to bring food to our tables. These methods are crucial for sustainable development, as breakthroughs in biotechnology continually find alternative sources of ingredients to replace animal-based and environmentally harmful components.
Problem
In Europe, introducing novel foods to the market requires a risk assessment by the European Food Safety Authority (EFSA), a process that can, in practice, extend from 1.5 to 4 years. This process is complex due to a lack of basic knowledge, administrative burdens, and uncertainties in scientific testing, understandably causing uncertainty and dependence on EFSA-backed consultants among entrepreneurs.
Goal
The goal of the collaboration between Accelerate Estonia, ÄIO, and Gelatex was to create a novel food hub in Estonia. Both local and international companies would benefit from a unique knowledge center within the Estonian public sector – initially planned to be established at the Centre of Estonian Rural Research and Knowledge (METK). To achieve this, ÄIO and Gelatex planned pilot projects based on their products. During the collaboration process, it was however identified that a step towards a novel food hub would first necessitate a comprehensive overview, e.g. by way of an impact analysis, of the sector’s potential in Estonia for both the public and novel food sectors.
Impact analysis
Accelerate Estonia conducted an impact analysis in collaboration with Civitta AS. The analysis mapped out challenges and regulations affecting the development of the novel food sector and assessed the sector’s economic potential. The broader goal of the analysis was to evaluate the impact of establishing a novel food knowledge hub on Estonia’s food industry and economy and to identify alternative approaches for the development of food innovation.
The analysis highlighted the following outcomes:
- Estonia’s food industry currently adds low value and only carries a small share of research and development activities. The sector is significantly affected by environmental issues and regulatory challenges.
- The development and production of novel foods are science-intensive fields. While the sector in Estonia mainly consists of startups, large companies dominate the same field in Europe.
- Introducing novel foods to the market requires an EFSA risk assessment, a process that is complex and time-consuming for companies. Currently, Estonia does not have a national strategy for the novel food sector, but the analysis found that developing one would support the creation of science-based jobs and innovation.
Possible directions
As part of the analysis, four possible directions for the development of the novel food sector in Estonia were proposed:
- A consultancy-focused support unit to simplify administrative processes and share basic knowledge.
- An expanded function knowledge hub to broadly support food industry innovation and science-intensive entrepreneurship.
- An EFSA bot, an AI-based solution to consolidate scientific information and guidelines for the sector.
- Greater coordination and simplification of innovation support methods.
These options would help reduce administrative obstacles and support the development and faster market introduction of novel foods.
By analyzing the four proposed alternatives in collaboration with ÄIO and Gelatex, it was concluded that developing the novel food sector iremains important but requires further efforts. Various stakeholders, such as RUK and ÄIO, have confirmed that a support service is indeed necessary: companies are hindered by obstacles in information retrieval, the EFSA process, and investments.
Although a 360 degree solution is not currently possible, AE, together with food sector representatives, has created a core team aimed at developing a roadmap to facilitate the process, accelerating food innovation promotion and the future establishment of a food innovation hub.
According to plans
- The roadmap will be developed based on the existing capabilities of institutions to identify opportunities for knowledge acquisition and to place the service under a specific public sector institution. At the beginning of the project, METK was considered the most suitable institution.
- Estonian Business and Innovation Agency (EBIA) will coordinate the mapping of food innovation and organize a working group to find a solution for creating a food innovation center.
- As a result of the working group, a roadmap will be created to help companies in the food sector better navigate both information and financing opportunities and enable EBIA to start international communication to attract new companies to Estonia.
- A responsible owner will be appointed for the novel food service to update and enhance the process as needed based on emerging opportunities.
The impact analysis showed the significant export potential of novel foods and highlighted opportunities for promoting international cooperation. Establishing a functioning unit would help build an international network, also fostering science and development activities in this field in Estonia. According to the analysis, right now is the best time to develop food innovation so that Estonia can stand out internationally, supporting entrepreneurship, innovation, and R&D activities.
Estonia’s first novel food tasting
In May, during the Latitude59 conference, Accelerate Estonia, in collaboration with ÄIO and Gelatex, organized one of Europe’s first public tastings of novel food. Selected guests and novel food enthusiasts tasted five different recipes prepared by chef Johannes Hõimoja, using ÄIO yeast biomass and Gelatex potato nanofibers for cultivated meat production.
Organizing a novel food tasting is an extremely bureaucratic process, but Accelerate Estonia managed to arrange the event in just one month, demonstrating the goal of the national innovation lab to reduce bureaucracy and accelerate market introduction of innovation. The Estonian public sector is committed to creating a strong support structure to help novel food companies successfully navigate the European regulatory framework and bring innovation to our tables faster.
What is next for Äio and Gelatex?
ÄIO is currently working with more than 100 partners, including a recent partnership with the Finnish dairy company Valio. Alongside advancements in the food sector, ÄIO is broadening its expertise to the animal feed and cosmetics industries. An investment round is being assembled to support the scaling up of production and the completion of the novel food dossier. While the company’s current focus is on penetrating key markets in Europe, the USA, and Singapore, global expansion is expected in the future.
Gelatex currently works with researchers in universities, medical technology corporations, pharmaceutical companies and also startups in cell culture and tissue engineering field. Gelatex continues to support cultivated meat companies with development and regulatory materials as needed. The primary focus has now shifted to other sectors, particularly medical and pharmaceutical applications, with ongoing collaborations with leading corporations in these fields.
Facing legal hurdles such as the ones described in the article? Take a look at our Apply section and see if Accelerate Estonia’s team might be of help.
