The food industry, the cornerstone of global consumption, is undergoing a seismic shift. With the rising complexities of supply chains and increasing consumer demand for transparency, food safety, and authenticity, technology has emerged as a transformative force.

The growing complexity of the food industry

The global food industry is valued above $3,236 billion, but its size and complexity come at a cost. Increasingly globalized supply chains have made it difficult to trace products’ origins, creating gaps that counterfeiters exploit.

The counterfeit market, projected to reach $4 trillion in 2024, poses significant challenges for industries worldwide, including food. Alarmingly, in India alone, the counterfeit market is estimated at $31 billion, with 28% of it involving FMCG products. These fake goods undermine consumer trust, reduce market share for genuine players, and present serious health risks.

Consumers are no longer just concerned about price—they demand transparency, traceability, and trust. A lack of these elements leads to dissatisfaction, with 42% of consumers opting for fake products due to lower prices and product unavailability.

Counterfeiting in the food industry: A hidden threat

Counterfeiting is not limited to luxury goods—it’s a hidden but growing problem in the food industry. Food fraud, which costs the industry $40 billion annually, spans a wide range of issues, from diluting products to substituting premium ingredients with subpar alternatives.

Common counterfeit methods include dilution, misdescription and document forgery. Alcohol, which accounts for 18.13% of food fraud cases, is a prime example of the risks counterfeit products pose. Grain-based foods, cereals, and bakery products follow, making up 11.69% of cases, highlighting the everyday items vulnerable to counterfeiting.

Adding to the concern, 35% of customers are unaware they purchase counterfeit products, which can lead to health issues and erode confidence in trusted brands.

The food industry and EUDR: The traceability imperative

Not just counterfeiting, sustainability is also a pressing issue in 2025. The European Union Deforestation Regulation (EUDR) has introduced stringent requirements for supply chain transparency. The regulation mandates that imports of seven product categories into the EU must prove they are free from links to deforestation and comply with sustainable practices. While this initiative promotes environmental stewardship, it significantly pressures small-scale coffee farmers to meet compliance standards.

In Karnataka, India’s largest coffee-producing state, Acviss is helping farmers tackle these challenges. By implementing blockchain-powered supply chain traceability solutions, Acviss enables coffee farmers to document every step of their process—from cultivation to export—ensuring EUDR compliance while boosting trust and sustainability.

How technology is revolutionizing the food supply chain

• Blockchain for Traceability

Blockchain technology is a beacon of hope in combating food fraud. Offering an immutable and transparent record of transactions allows stakeholders to trace every step of a product’s journey from raw materials to end product.

Acviss has successfully integrated blockchain to monitor the coffee products for the Coffee Board of India. This has drastically reduced pilferage and associated fraud in the supply chain and helps to trace vulnerabilities in the process, enhancing consumer safety and reducing waste.

• AI and Machine Learning for fraud detection

Artificial intelligence (AI) and machine learning (ML) have revolutionized fraud detection in the food supply chain. These technologies analyze vast datasets to identify patterns and anomalies that human inspectors might miss.

AI-powered sensors can identify inconsistencies in food texture, color, or quality during processing. Machine learning models can predict potential counterfeiting hotspots, allowing companies to address vulnerabilities proactively.

• Smart Packaging Solutions

Smart packaging is another frontier in combating food counterfeiting. QR codes, RFID chips, and NFC tags enable consumers to verify the authenticity of products instantly. Acviss have developed AI-powered non-cloneable labels which, implemented on a product will enable customers to easily scan using a mobile app. This secures the product and combined with blockchain-powered track and trace provides a seamless verification and traceability experience for brands and consumers.

These technologies empower brands to restore consumer trust while protecting their market share.

Indus Food Event: Showcasing innovation in food technology

The Indus Food Manufacturing Expo has become a hub for innovators, industry leaders, and policymakers to address the pressing challenges facing the food industry. This annual event highlights cutting-edge solutions in areas such as traceability, counterfeit prevention, and food safety.

At the forefront of discussions is the role of technology in reshaping the food supply chain. Blockchain, AI, and IoT solutions have taken center stage, demonstrating their potential to safeguard consumers and revolutionize operations.

Consumer demands for transparency and authenticity

Today’s consumers demand more than quality; they expect brands to provide transparency about product origins, manufacturing practices, and sustainability. This has led to an industry-wide push for technologies that can offer end-to-end traceability.

Blockchain-based traceability solutions are helping brands meet these expectations. A simple QR code on a product’s packaging can offer detailed insights, such as the farm where it was grown, the harvesting process, and the carbon footprint of transportation.

For brands, meeting these demands is not just about compliance but also about maintaining a competitive edge.

The road ahead: challenges and opportunities

Despite the rapid advancements in technology, adoption remains uneven. High costs, resistance from traditional stakeholders, and a lack of standardized regulations hinder widespread implementation.

However, governments and industry associations are stepping up efforts to bridge these gaps. Collaborative platforms like the Indus Food Event serve as catalysts, accelerating the adoption of new solutions.

The predominant methods of food fraud, including substitution, unapproved enhancement, and document forgery, need immediate attention. Companies must leverage a combination of blockchain, AI, and IoT to tackle these challenges effectively. 

Protecting the future of food

The food industry is at a crossroads. On one side, there are significant risks posed by counterfeiting, fraud, and opaque supply chains. On the other, there is an unprecedented opportunity to leverage technology to create a safer, more transparent food supply chain.

The counterfeit plague is real, but solutions are within reach. Adopting cutting-edge technologies like blockchain, AI, and IoT can protect their reputation, build trust, and secure consumer loyalty.

Let’s not wait for another food scandal to take action. Together, we can create a safer tomorrow for the food industry, where every bite is authentic, safe, and trustworthy.