April 1, 2024 North Carolina is the Future of Food

With cutting-edge research facilities, a thriving business climate and unparalleled support, North Carolina is driving innovation in the food and beverage industry.

By Christopher Chung, Chief Executive Officer, Economic Development Partnership of North Carolina

North Carolina, a state with a long agricultural history, is rapidly emerging as a dominant force in the global food and beverage industry. The state’s prime location and an ever-growing pool of skilled talent — with over 1,000 food and beverage manufacturing operations and more than 70,000 people working in the industry — along with a laser focus on innovation, is driving this transformation.

The North Carolina Food Innovation Lab (NCFIL) is a key player in the state’s innovation strategy. With state-of-the-art equipment and expertise that would be prohibitively expensive for startups, the lab can smooth the path from concept to commercialization. The lab also has a commitment to a collaboration where industry leaders share their knowledge and guide innovators toward success. By partnering with academic researchers, industry leaders, and government stakeholders, the lab boosts the development of new food products and technologies. And people are starting to listen. In fiscal year 2023, NCFIL grew its client list by 36 percent and revenues by 84 percent.

The North Carolina Biotechnology Center (NCBiotech) supports companies engaged in the life sciences and biotechnology industries, backing industry research, business development, education initiatives, and helps develop and advocate for strategic policy goals. NCBiotech provides education opportunities, jobs, training, and funding opportunities. Last year, Raleigh, N.C.-based Atlantic Fish Co., which develops cultivated seafood products, received a Small Business Research loan from NCBiotech’s Emerging Company Development loan program. Although it is still in its early phases, the company will create marine white fish fillets from overfished species to make seafood more sustainable in response to climate change-induced threats to ocean ecosystems. The product could fix supply issues with many species and offer consumers affordable, protein-rich seafood.

With resources like the NCFIL and NC Biotech available, innovative food and beverage companies looking to establish or expand their businesses are choosing North Carolina. One example is Believer Meats, which develops cultivated meat and has pioneered the first scalable lab-grown meat production system. It recently announced it will establish its first commercial-scale food manufacturing facility in Wilson, N.C., investing $123 million and creating 100 new jobs, in an effort to launch its product in the U.S. Believer Meats is headquartered in Israel.

All this growth and investment is no accident. Thanks to its tax structure, low cost of doing business and robust infrastructure, CNBC ranked North Carolina No. 1 for business climate in 2022 and 2023.

For example, North Carolina aims to reduce its corporate income tax rate to 0 percent by 2030. The state’s construction costs are 17 percent below the national average, while industrial electricity costs are 26 percent lower. These elements — and a 5 percent lower cost of living than the national average — create a welcoming environment for food and beverage companies and their employees.

Some 170 million customers are within a day’s drive of the state’s strategic location, and it boasts two deep-water seaports, four international airports, and an extensive highway and rail network, ensuring companies’ products can efficiently reach their target markets.

But the state’s greatest asset is its people. With a labor force of 5.2 million out of a population of over 10.8 million, the state has a diverse and skilled talent pool. North Carolina’s top-tier universities, including three Tier-1 research institutions, produce over 156,000 graduates annually, creating a pipeline of highly educated professionals that adds to the largest manufacturing workforce in the Southeast, a science and technical workforce of 320,000, and an engineering workforce of 62,000. In its 2023 America’s Top State for Business survey, CNBC cited North Carolina’s workforce as No. 1 in the country.

The state’s community college system, the country’s third largest, plays a crucial role in this workforce development. Through training programs and apprenticeship programs like NCWorks and ApprenticeshipNC, North Carolina ensures that food and beverage companies can hire the skilled labor they need.

And finally, North Carolina actively focuses on sustainability, clean energy, and cutting-edge research when attracting companies. Its leadership understands that embracing these priorities benefits the environment and attracts forward-thinking organizations that share these values.

As the industry races for the future of food, North Carolina embraces new challenges and opportunities, taking its place as a global leader in food innovation.

About the Author
In 2015, Christopher Chung joined the Economic Development Partnership of North Carolina (EDPNC) as Chief Executive Officer and brings more than 25 years of state-level economic development experience to the role.

As a public-private partnership, the EDPNC is responsible for a number of economic development functions on behalf of the State of North Carolina, including new business recruitment, existing business support, international trade and export assistance, small business start-up counseling, and tourism, sports, and film promotion. With a staff of 70 professionals and an annual operating budget of more than $25 million, the EDPNC is focused on improving the economic well-being and quality of life for North Carolina’s more than 10 million residents.

Since 2015, the EDPNC has helped North Carolina win nearly 1,100 corporate expansion projects, resulting in more than 154,000 announced new jobs and $44 billion in announced new investment across the state.

Chris previously held various executive and management responsibilities at the Missouri Partnership (2007-2014) and the Ohio Department of Development, now known as JobsOhio (1997-2007).

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