Food Traceability Market To Hit Value $30.52 Billion By 2030 |Grand View Research, Inc.

Author : Mrudula Karmarkar | Published On : 15 Jan 2024

San Francisco, 15 January 2024: The Report Food Traceability Market Size, Share & Trends Analysis Report by Technology Type (RFID, Barcodes, Infrared, Biometrics, GPS), By Software, By End User, By Region, And Segment Forecasts, 2023 - 2030

The global food traceability market is expected to reach USD 30.52 billion by 2030, registering CAGR of 8.8% from 2023 to 2030, according to a new report by Grand View Research, Inc. The market for food traceability is dynamic and rapidly evolving sector that involves the tracking and monitoring of food products throughout the entire supply chain. This process enables the identification and documentation of the journey of food items from production and processing to distribution and retail. The market continues to evolve as technological advancements, regulatory landscapes, and consumer expectations shape the strategies and solutions employed by stakeholders across the food supply chain.

Growing trends in e-commerce and direct-to-consumer sales lead to increased demand for traceability solutions that provide transparency and assurance about the safety and quality of food products purchased online. Various technologies contribute to traceability, including barcoding, Radio-Frequency Identification (RFID), and blockchain. These technologies enable the recording and retrieval of information related to the origin, production, and distribution of food products. Stringent regulations and standards related to food safety and traceability drive the adoption of traceability solutions. Companies in the food industry strive to comply with these regulations to ensure the safety of their products and maintain consumer trust.

On the basis of technology type, the market is divided into radio frequency identification (RFID), barcodes, infrared, biometrics, global positioning systems (GPS), and others. The segment's growth can be attributed to the cost-effectiveness of the barcode technology to implement compared to some other traceability technologies. The simplicity of barcodes makes them accessible to a wide range of businesses, including small and medium-sized enterprises in the food industry.

Companies are launching new products to cater to the growing demand for food traceability. For instance, in September 2023, the iFoodDS and IBM Corporation unveiled a technology-driven traceability solution designed to assist businesses throughout the food supply chain in meeting the requirements of the FDA's Food Traceability Rule, FSMA 204(d). Drawing upon extensive expertise in food traceability software over the years, the innovative solution, known as iFoodDS Trace Exchange (powered by IBM Food Trust), is tailored to meet the scalability demands of enterprises and address the specific needs of suppliers.

Key market players are adopting strategies such as product launches to gain a competitive edge. For instance, in May 2022, OPTEL Group, a global frontrunner in supply chain traceability solutions across various industries, unveiled Optchain, a collection of modular intelligent supply chain (ISC) solutions designed for the food and beverage sector. Optchain is purposefully crafted to meet the imminent food traceability requirements of all participants in the supply chain, ensuring compliance with the Food and Drug Administration's crucial update to the Food Safety Modernization Act (FSMA) - specifically Section 204.

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Stringent regulations and standards set by government bodies and international organizations regarding food safety and traceability are key drivers for the adoption of traceability solutions. Compliance with these regulations is essential for producers to ensure the safety of their products and maintain consumer trust. Increasing consumer awareness and a growing demand for transparency in food sourcing are significant drivers for the adoption of traceability systems. Consumers want to know the origin of the products they consume, and companies are responding by implementing traceability solutions to provide detailed information about the journey of products from farm to table.

Food Traceability Market Report Highlights

• The market is expected to grow significantly due to the growing adoption of traceability technologies, growing regulatory compliances and the growing adoption of food traceability solutions across the globe
• The RFID segment is projected to grow at the fastest CAGR over the forecast period
• The supply chain management (SCM) segment is expected to dominate the market in 2022 with a market share of more than 25.0% and is expanding at a CAGR of 8.1% from 2023 to 2030
• The fish, meat, and seafood segment held the largest revenue share in market globally in 2022 and is expected to expand at a CAGR of 7.5% from 2023 to 2030

The global market refers to the industry that focuses on implementing systems and technologies to track and trace the movement of food products throughout the supply chain. This market has gained significant attention and importance in recent years due to various factors, including concerns about food safety, regulatory requirements, and the need for transparency in the supply chain.

The industry has witnessed a notable strategic initiative from major participants, such as partnerships, product launches, mergers, acquisitions, geographical expansion, and an increasing trend towards automated and intelligent decision-making. For instance, in March 2021, Honeywell International Inc. has successfully secured a controlling stake in Fiplex Communications Inc., a company headquartered in Miami with expertise in the development of in-building communication systems. This deliberate acquisition strategically aims to augment Honeywell's portfolio of in-building connectivity and communication solutions. The products offered by Fiplex are poised to play a pivotal role as a foundational element for Honeywell's wireless technologies, thereby catalyzing innovation within the organization.

Food Traceability Market Report Scope

COVID-19 Impact on the Food Traceability Market

The pandemic triggered disruptions in global supply chains, affecting the production, processing, and distribution of food products. These disruptions highlighted the need for robust traceability systems to identify and address issues promptly. The pandemic led to changes in regulatory priorities and requirements to address emerging challenges. Companies in the industry faced the dual challenge and opportunity of adapting to these changes while ensuring compliance through effective traceability measures. The need for remote monitoring, data analytics, and efficient communication in a socially distanced environment accelerated the digital transformation of the sector. This has led to the adoption of more advanced and integrated traceability technologies.

The COVID-19 pandemic has reshaped the landscape of the market by highlighting the critical role of traceability in ensuring food safety and resilience in supply chains and meeting the evolving expectations of consumers and regulatory bodies. The challenges posed by the pandemic have prompted industry stakeholders to embrace innovative solutions and accelerate the adoption of advanced traceability technologies.

List of Key Players in the Food Traceability Market

• C.H. Robinson
• Cognex
• Honeywell International Inc
• SGS SA
• Zebra Technologies
• Carlisle
• Merit-Trax
• FoodLogiQ
• Safe Traces
• Food Forensics
• Bext360