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Tracking and tracing food products along the supply chain has become a necessity for the global food industry. This arises from the need to improve the quality control systems and reduce the risks of contamination and foodborne illnesses. Instances of consumers being exposed to contaminated products have led brands to invest in food traceability systems that ensure food safety and a good market image.
In 2022, the global food traceability market was valued at US$ 18.3 Billion. Consumers’ concerns over meal safety, widespread food adulteration, food recalls, and food safety regulations are driving the market growth of the food traceability industry.
Market division
In terms of geography, the food traceability market is divided into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. In 2021, North America occupied the largest market share. This is due to government regulations to analyze and purify the food industry’s components, hence leading to the demand for food traceability systems in the region.
Based on technology, the market is segmented into GPS, infrared, RFID (Radio Frequency Identification)/RTLS (Real-Time Locating Systems), barcode, and biometrics. In 2020, the barcode segment accounted for the largest revenue share in the market. The use of barcodes is on the rise because of easy installation and integration with advanced technologies like DNA barcodes and IoT-based solutions.
According to equipment, the market is bifurcated into sensors, thermal printers, PDA (Personal Digital Assistant) with GPS (Global Positioning System), tags and labels, and 2D and 1D scanners. Owing to the decreasing prices and the importance of PDAs with GPS for traceability, they are expected to lead the market share.
Considering the software used, the market is divided into Laboratory Information Management (LIM), warehouse software, and Enterprise Resource Planning (ERP). Out of these, the warehouse software handles the movement of goods most cost-effectively and hence is expected to account for the largest market share.
Based on application, the food traceability market is segmented into fisheries, dairy, beverages, fresh produce and seeds, meat and livestock, and others. The fisheries division is expected to lead the market growth as the transparency in the sector ensures the quality and safety of products, leading to increased use of traceability.
The end-use divides the market into food manufacturers, defense, food retailers, government, warehouses, and others. Among these, the food retailer segment is projected to account for the highest market share as there is an increased demand from food retailers for food supplies for consumers.
Market analysis
Innovative food traceability technologies are one of the major factors influencing the food traceability market.
Countries such as the United States, the United Kingdom, Japan, and others are technologically sound and are pushing the food traceability technology industry. Due to awareness, end users from developing countries are also catching up.
The World Health Organization states that about 600 million cases of foodborne diseases are caused each year due to contaminated food. This leads to food safety becoming a major concern. This is likely to raise the demand for food traceability, backing the market growth.
The utilization of advanced technologies like blockchain to improve the validation and authentication of food origin has propelled the food traceability market growth.
Commercial food services have grown in the past three decades. This increases the number of people handling the food, which multiplies the chances of transmitting foodborne illnesses. Hence, the demand for food traceability systems is rising.
Food traceability has promoted international trade by bringing domestic food products to the global market and creating a demand for them, further driving market growth.
Food traceability systems are increasingly becoming a part of overall cost-effective quality management systems that help reduce the consequences of safety hazards.
The implementation of traceability is riding on the wave of increased consumer demand for local, organic, and sustainable foods as it helps provide authenticity information to the consumers for products that make claims.
View from the top
The food traceability market has several medium and large-sized players that occupy the majority revenue share. Some of the top names include Bar Code Integrators Inc., C.H. Robinson Worldwide Inc., Carlisle Technology, Cognex Corporation, FoodLogiQ, Honeywell International Inc., Impinj Inc., International Business Machines Corporation, MASS Group, OPTEL Group, SGS S.A. and Zebra Technologies Corporation.
What the future holds
The global food traceability market is set to grow at a CAGR of 9.0% during 2022-2029. It, however, faces some challenges. A major hurdle in the mass adoption of advanced traceability systems is their cost. The silver lining remains that with their rising adoption, the prices are set to decline. The fact that food traceability systems help prevent fraud, improve the capacity to tackle outbreaks, reduce food testing expenses, and increase margins, is projected to propel the market in the coming years. This, along with the surge in the number of cases of product recalls and trace contamination makes the prospects of the food traceability market promising.
References-
https://www.polarismarketresearch.com/industry-analysis/food-traceability-market
https://www.emergenresearch.com/industry-report/food-traceability-market
https://www.imarcgroup.com/food-traceability-market
https://www.imarcgroup.com/global-food-traceability-market#:~:text=IMARC%20Group%E2%80%99s%20latest%20report%2C%20titled%20%E2%80%9CFood%20Traceability%20Market%3A,market%20size%20reached%20US%24%2018.3%20Billion%20in%202022.
https://www.marketsandmarkets.com/Market-Reports/food-traceability-market-103288069.html
https://www.fnfresearch.com/food-traceability-market
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