AgriTech adoption in Southeast Asia could unlock more than $90 billion in annual GDP (gross domestic product) gains by 2033, according to a report. Despite agriculture contributing around 15% to the region’s GDP and employing nearly 30-40% of its workforce, the sector remains largely under-digitised, making it one of the world’s largest untapped opportunities for agricultural technology. Agritech adoption and digitalisation can help achieve this gap, says the report by Omnivore, Beanstalk AgTech, and Briter.
The report says that potential is huge in Southeast Asia because farms in this region are far less productive than the global best farms. “Production yields for the most regionally important agricultural commodities in Southeast Asia are commonly 2-6x lower than those of the highest-yielding producers, with some exceptions who outperform (such as Vietnam and Malaysia).”
"We have spent over a decade investing in Indian AgriTech, watching the ecosystem mature through governance, exit opportunities, and the hard work of building market infrastructure," says Mark Kahn, Managing Partner, Omnivore. "The agritech landscape in Southeast Asia is navigating a similar journey, and India's experience offers a genuine roadmap. The fragmentation is real, and so is the opportunity to uplift agricultural production and farmer communities across the region. Patient, disciplined capital that understands local market dynamics is what moves these ecosystems forward."
AgriTech investments may have peaked at $750 million in 2022 before falling sharply by nearly 70% by 2025, according to the report, but “this decline does not signal a failure of the sector itself,” it says.
Rather, it reflects deep structural challenges, including fragmented markets, complex policy frameworks, small landholdings, and high distribution costs. These inefficiencies are compounded by inadequate cold storage, weak logistics, and a highly fragmented supply chain. As a result, nearly 30% of agricultural produce is lost post-harvest, translating into an estimated annual loss of $40 billion, with much of the produce spoiling before it ever reaches the market, it notes.
“SEASA (Southeast Asia and South Asia) experienced $40 billion in annual losses from 30% food loss across supply chains due to inadequate cold storage and fragmented logistics,” the report states.
Opportunities in AgriTech
As per the report, the biggest opportunities in AgriTech in Southeast Asia lie in four major areas. First, digital value chains means the digitisation of the supply chain for tracking crops, monitoring farms, etc. Platforms (including SaaS, traceability, and MRV solutions) represent the most mature AgriTech opportunity across Southeast Asia and South Asia, driven by mandatory compliance pressures in export-oriented value chains.
Second, AgriFin tech addresses a significant $12-15 billion financing gap faced by farmers, as they face difficulties accessing loans easily. According to the report, solutions such as digital lending platforms and farm insurance can help farmers get required capital and insurance.
Third, deep technology and biotech focus on smart innovations, such as AI-powered farming systems, biotechnology, smart feed solutions for aquaculture, insect protein, and marine biotechnology. As per the report, agritech innovations can automate fish feeding, monitor water quality in real time, and reduce feed costs by 20-30%.
Fourth, sustainable food brands are growing rapidly as consumer preferences shift towards healthier, more sustainable, and plant-based foods. According to the report, rising incomes across Southeast Asia are driving higher food spending. This creates a significant opportunity for companies to build strong, trusted brands in the region.
The report also highlights aquaculture (fish farming) as a major opportunity in this region, as it contributes $26.9 billion annually to Indonesia’s economy and employs millions across Vietnam, India, and Bangladesh.
“Rising protein demand, shrinking arable land, and climate volatility are accelerating a shift toward farm-based seafood and seaweed production. If executed well, next-generation solutions in feed optimisation, IoT-enabled farm management, and marine biotechnology could deliver both cost resilience and climate impact. Indonesia’s aquaculture industry alone generates $26.9 billion annually”
Vaishanavi Singh, the author, is an intern at The Economic Times Digital.
The report says that potential is huge in Southeast Asia because farms in this region are far less productive than the global best farms. “Production yields for the most regionally important agricultural commodities in Southeast Asia are commonly 2-6x lower than those of the highest-yielding producers, with some exceptions who outperform (such as Vietnam and Malaysia).”
"We have spent over a decade investing in Indian AgriTech, watching the ecosystem mature through governance, exit opportunities, and the hard work of building market infrastructure," says Mark Kahn, Managing Partner, Omnivore. "The agritech landscape in Southeast Asia is navigating a similar journey, and India's experience offers a genuine roadmap. The fragmentation is real, and so is the opportunity to uplift agricultural production and farmer communities across the region. Patient, disciplined capital that understands local market dynamics is what moves these ecosystems forward."
AgriTech investments may have peaked at $750 million in 2022 before falling sharply by nearly 70% by 2025, according to the report, but “this decline does not signal a failure of the sector itself,” it says.
Rather, it reflects deep structural challenges, including fragmented markets, complex policy frameworks, small landholdings, and high distribution costs. These inefficiencies are compounded by inadequate cold storage, weak logistics, and a highly fragmented supply chain. As a result, nearly 30% of agricultural produce is lost post-harvest, translating into an estimated annual loss of $40 billion, with much of the produce spoiling before it ever reaches the market, it notes.
“SEASA (Southeast Asia and South Asia) experienced $40 billion in annual losses from 30% food loss across supply chains due to inadequate cold storage and fragmented logistics,” the report states.
Opportunities in AgriTech
As per the report, the biggest opportunities in AgriTech in Southeast Asia lie in four major areas. First, digital value chains means the digitisation of the supply chain for tracking crops, monitoring farms, etc. Platforms (including SaaS, traceability, and MRV solutions) represent the most mature AgriTech opportunity across Southeast Asia and South Asia, driven by mandatory compliance pressures in export-oriented value chains.
Second, AgriFin tech addresses a significant $12-15 billion financing gap faced by farmers, as they face difficulties accessing loans easily. According to the report, solutions such as digital lending platforms and farm insurance can help farmers get required capital and insurance.
Third, deep technology and biotech focus on smart innovations, such as AI-powered farming systems, biotechnology, smart feed solutions for aquaculture, insect protein, and marine biotechnology. As per the report, agritech innovations can automate fish feeding, monitor water quality in real time, and reduce feed costs by 20-30%.
Fourth, sustainable food brands are growing rapidly as consumer preferences shift towards healthier, more sustainable, and plant-based foods. According to the report, rising incomes across Southeast Asia are driving higher food spending. This creates a significant opportunity for companies to build strong, trusted brands in the region.
The report also highlights aquaculture (fish farming) as a major opportunity in this region, as it contributes $26.9 billion annually to Indonesia’s economy and employs millions across Vietnam, India, and Bangladesh.
“Rising protein demand, shrinking arable land, and climate volatility are accelerating a shift toward farm-based seafood and seaweed production. If executed well, next-generation solutions in feed optimisation, IoT-enabled farm management, and marine biotechnology could deliver both cost resilience and climate impact. Indonesia’s aquaculture industry alone generates $26.9 billion annually”
Vaishanavi Singh, the author, is an intern at The Economic Times Digital.
