An updated edition of the July 9, 2025, article.

The agricultural and food industries are going through a new phase of transformation, driven by technology, sustainability and changing consumer preferences. With the global population expanding and climate volatility challenging food production, innovation has become a key competitive advantage. From the farm to the factory floor, digital tools, biotechnology and automation are redefining how food is produced, processed and consumed.

Agricultural technology (AgTech) is at the core of this transition. Artificial intelligence, robotics and precision-farming systems are helping farmers optimize yields while reducing water and input use. Companies like Deere & Company (DE Quick QuoteDE - Free Report) demonstrate this trend. Moving from traditional machinery manufacturing to a full-fledged precision-agriculture platform, Deere combines connected equipment, analytics and automation to create smarter, more efficient farming systems.

Meanwhile, food innovation is reshaping how consumers approach nutrition and sustainability. Demand for plant-based, fermented and lab-grown proteins continues to grow as health and environmental priorities gain prominence. Beyond Meat (BYND Quick QuoteBYND - Free Report) remains one of the most visible players in this space. Despite challenges from cost pressures and slower category momentum, its ongoing investments in R&D, product reformulation and international expansion have helped it maintain market relevance.

Technological integration is also modernizing the food supply chain. Blockchain and IoT tracking are improving transparency and safety, while automation in processing and logistics is helping cut costs and reduce waste. These efficiencies are vital as food companies work to meet sustainability goals while keeping prices under control in a high-cost environment. 

Against this backdrop, several players are positioning themselves to benefit from the convergence of agriculture and technology. In this context, three notable names from our Ag Tech & Food Innovation screen — Tyson Foods, Inc. (TSN Quick QuoteTSN - Free Report) , Ingredion Incorporated (INGR Quick QuoteINGR - Free Report) and Hydrofarm Holdings Group, Inc. (HYFM Quick QuoteHYFM - Free Report) stand out for their strategic focus and potential to benefit from these long-term structural shifts.

Explore 30 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.

3 Ag Tech & Food Innovation Stocks to Watch

Tyson Foods continues to strengthen its leadership in food and agricultural technology through a dual focus on innovation and sustainability. The Zacks Rank #3 (Hold) company’s digital transformation efforts, including automation, smart manufacturing and data analytics, are reshaping its production systems to improve efficiency, yield and traceability across protein categories. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

These technology-driven upgrades are complemented by Tyson Foods’ investment in sustainability-focused ag tech ventures such as Future Meat Technologies and Memphis Meats, both pioneers in cellular agriculture. By backing lab-grown and alternative proteins, Tyson Foods is preparing for a future where traditional meat production coexists with cleaner, resource-efficient food systems that align with evolving consumer expectations.

At the same time, Tyson Foods continues to evolve its product lineup. Its Raised & Rooted brand shows early commitment to plant-based proteins, while household names such as Jimmy Dean and Hillshire Farm are being refreshed with cleaner ingredients and improved nutrition. Complementing these portfolio upgrades, Tyson Foods’ $100-million modernization program within its Chicken business emphasizes automation, robotics and smart plant integration.

Together, these efforts highlight Tyson Foods’ broader push to blend food innovation with ag tech, reinforcing its position as a global protein leader building a more efficient and sustainable food system.

Ingredion is carving out a strong position where agriculture meets food science. The company’s clean-label and plant-based ingredients are helping food manufacturers respond to the growing demand for healthier, more sustainable options. Its Healthful Solutions division continues to expand through advances in starches, sweeteners and plant proteins.

Collaborations are also central to the Zacks Rank #3 company’s innovation strategy. Partnerships with startups such as InnovoPro (chickpea protein) and Better Juice (natural sugar reduction) show how it is investing in the next wave of ingredient technology. Through its global Ingredion Idea Labs, scientists and customers work side by side, accelerating the development of solutions for dairy alternatives, meat equivalents and clean-label processed foods, bridging agricultural science with consumer-driven product design.

Sustainability and regenerative agriculture remain core pillars of Ingredion’s strategy. The company works closely with farmers to enhance soil health, crop yield and resource efficiency while lowering the environmental footprint of raw material sourcing. By combining ag tech precision, regenerative practices and advanced food formulation, INGR is not only reshaping ingredient technology but also helping lead the transition toward a healthier, more sustainable global food system.

Hydrofarm has established itself as a leader in controlled environment agriculture (CEA) — a field where technology, sustainability and productivity converge. In the second quarter of 2025, the company implemented a major restructuring plan to sharpen its focus on high-margin, innovation-led consumables such as nutrients, grow media and lighting systems. This streamlined approach, involving the rationalization of more than one-third of its SKUs, positions Hydrofarm to capitalize on long-term trends in precision cultivation, vertical farming and sustainable food production.

Hydrofarm’s SunBlaster line, known for Nano and Halo LED plant lights, demonstrates energy-efficient lighting designed for both commercial growers and small-scale food and floral producers. Meanwhile, its nutrient and grow media solutions continue to gain traction among indoor cultivators seeking performance and consistency. These advancements reflect Hydrofarm’s goal to enable data-driven, year-round crop production — an essential component of modern food resilience.

Beyond product technology, HYFM is leveraging digital tools to enhance operational efficiency and financial flexibility. Its integrated ERP system and refined CRM capabilities have improved inventory management, data visibility and customer engagement. The company’s diversification beyond cannabis into food, floral, garden center and e-commerce channels marks a strategic evolution toward broader food innovation applications. Through its ag tech-driven ecosystem, this Zacks Rank #3 company is helping redefine how sustainable food can be grown, efficiently and locally.