Global agrifood systems need $1.1 trillion annually by 2030

A radical transformation of global agrifood systems is urgently needed—but it’s a transformation that comes with a price tag.

According to a new joint report by Bain & Company and the World Economic Forum (WEF), an estimated $1.1 trillion in annual investment is required over the next five years to shift global food production toward sustainable, resilient models that create jobs and align with the Paris Agreement targets.

Today, however, annual investments stand at just 5 percent of that need, leaving a staggering financing gap. Unlocking the capital necessary to close it, the report argues, will depend on adopting innovative financing models that can attract a broader, more diverse set of financial actors.

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Investment disparities threaten global equity and food security

Currently, private investment in food systems is heavily concentrated in Europe and North America, while regions that most urgently need support — Asia Pacific, Africa, and Latin America — remain significantly underfunded.

This mismatch presents not only a challenge to global equity but also a risk to long-term food security and climate resilience.

“Food systems transformation is not just a climate imperative — it is a commercial opportunity. Financiers with exposure to the food sector have a vested interest to improve credit risk profiles of their customers. Investing in food systems also allows financiers to adhere to increasingly stringent portfolio sustainability regulations and to deliver on critical stakeholder commitments,” said Iwona Steclik, a partner at Bain & Company’s Financial Services practice in EMEA.

Innovative finance as the key to unlocking capital

• The report identifies persistent barriers to scaling finance in food systems, including:
• Uncertainty around returns on investment
• Fragmentation in food production leading to operational inefficiencies
• Inconsistent impact measurement standards
• Limited coordination across stakeholders in the value chain

To overcome these hurdles, the report highlights three core financing models capable of de-risking investments and increasing flows of capital: Direct financing to farmers, including through agri-fintech solutions; lending via corporates, such as agribusinesses with existing supply chain relationships; multi-stakeholder platforms, which coordinate public, private, and philanthropic actors around shared outcomes.

These models reflect a flexible and market-sensitive approach to financing; one that accommodates different commodities, geographies, and risk profiles.

Real-world examples show scalable pathways

Several ongoing initiatives exemplify how different forms of capital can be blended to drive measurable impact:

1. Aceli Africa, which supports lending to small and medium agri-businesses
2. Project Acorn, a farmer-focused carbon removal program
3. McCain Foods’ regenerative agriculture initiative, embedding sustainability into supply chains

Innovative Finance for the Amazon, Cerrado and Chaco (IFACC) platform, which blends government, philanthropic, and commercial funding to protect biodiversity while supporting agriculture

“A defining feature of all these models is the need for coordinated action across the entire value chain, including farmers, agrifood companies, retailers, financial institutions, data providers and governments. Each of these models employs de-risking strategies that span from traditional financing tools like guarantees to innovative approaches such as monetizing ecosystem outcomes,” said Derek Baraldi, head of Sustainable Finance at the World Economic Forum (WEF).

“Transforming food systems presents major investment opportunities for commercial capital to unlock new markets, boost revenues, and enhance portfolio resilience. However, scaling such investments requires a customized strategy aligned with an institution’s strengths, portfolio, risk appetite, and sustainability goals,” said Christian Graf, partner at Bain & Company and leader of the EMEA Sustainability & Responsibility Financial Services practice.

A roadmap for financial institutions

To accelerate the transformation, the report offers five key recommendations for financiers and development banks:

• Set clear targets for agrifood investment aligned with climate and sustainability objectives.
• Forge strategic partnerships across the food value chain, including with catalytic capital providers, farmers, and agri-businesses.
• Design and adopt innovative financing mechanisms, such as blended finance, guarantees, and results-based financing.
• Strengthen credit risk management, leveraging new data sources and improving climate impact reporting.
• Ensure sustained leadership commitment, embedding food systems transformation into institutional strategies and governance.

Flexibility is essential

The report stresses that given the diversity of food systems and financial institutions, there is no universal model for success.

However, by tailoring innovative financial tools to local conditions —and fostering collaboration between public and private sectors — the global community can unlock the capital needed to secure food systems for future generations.

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