Food Traceability Market

Global Food Traceability Market:

The global food traceability market size reached US$ 20.0 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 41.4 Billion by 2032, exhibiting a growth rate (CAGR) of 8.3% during 2024-2032. The rising food safety concerns, along with the expanding global food supply chain, are augmenting the market growth.

Food Traceability Market Analysis:

• Major Market Drivers: The escalating demand for an overall cost-effective quality management system that can aid in the continuous minimization of the impact of safety hazards is propelling the market.
• Key Market Trends: One of the emerging trends bolstering the market is the increasing requirement for transparent information about the entire food chain, supported by modern tracking and tracing methods.
• Competitive Landscape: Some of the prominent companies in the global market 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, among many others.
• Geographical Trends: Europe exhibits a clear dominance in the market, owing to the widespread popularity of blockchain technologies, as they enhance the ability to authenticate food origin and improve brand credibility.
• Challenges and Opportunities: One of the primary challenges hindering the market is the lack of standardized data sharing among diverse stakeholders. However, the introduction of transparent methods that assist in preventing fraud is anticipated to fuel the market over the forecasted period.
   

Food Traceability Market Trends:

Rising Integration of Blockchain

Blockchain technology is revolutionizing the market by offering a secure and immutable way to record and share data across the supply chain. Moreover, major retailers, like Carrefour and Walmart, are using blockchain to trace the origins of fresh produce and meat, thereby enabling quick response to contamination recalls and issues. The technology also helps in combating food fraud by verifying the authenticity of organic and high-value products, which is positively influencing the food traceability market outlook. For example, in June 2024, Bunge, a leading food and agribusiness company, and Bangkok Produce Merchandising Public Company Limited (BKP), a subsidiary of Charoen Pokphand Foods Public Company Limited, jointly tested a traceability platform using blockchain technology for sustainable soy. 

Growing Adoption of IoT

The escalating demand for IoT-based sensors to enhance food traceability is a significant growth-inducing factor. They can record and monitor environmental conditions, such as humidity, temperature, and location. Apart from this, the increasing use of RFID tags and GPS trackers that provide real-time data on the status and location of perishable goods is further bolstering the food traceability market demand. This technology not only improves traceability but also helps in reducing food wastage by ensuring that products are handled correctly from farm to table, thereby maintaining their quality. For example, in May 2024, Wiliot introduced a new ambient IoT food safety initiative to help the food industry create safer and more traceable supply chains.

Regulatory Compliance

International and government bodies are implementing stringent regulations to ensure food quality and safety. For instance, the European Union's General Food Law requires comprehensive traceability from farm to fork. Compliance with such regulations necessitates robust traceability systems that can document every stage of the supply chain. In June 2024, the FDA partnered with the Food Safety Preventive Controls Alliance (FSPCA) to develop training for food manufacturers on food traceability. Companies are investing in advanced technologies and processes to meet these standards, which will continue to fuel the market in the coming years.

Global Food Traceability Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with the food traceability market forecast at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on the technology, equipment, application, and end user.

Breakup by Technology:

• RFID/RTLS
• Global Positioning System (GPS)
• Barcode
• Infrared
• Biometrics
   

Barcode currently exhibits a clear dominance in the market

The report has provided a detailed breakup and analysis of the market based on the technology. This includes RFID/RTLS, global positioning system (GPS), barcode, infrared, and biometrics. According to the report, barcode represented the largest market segmentation.

Barcode is gaining traction primarily due to its widespread adoption, cost-effectiveness, and ease of implementation. It provides a simple yet efficient method for tracking and managing products through every stage of the supply chain. For example, in June 2024, GS1 introduced 2D barcodes on product packaging that can provide a single gateway to help consumers understand product composition.

Breakup by Equipment:

• PDA with GPS
• Thermal Printers
• 2D and 1D Scanners
• Tags and Labels
• Sensors
• Others
   

Currently, 2D and 1D scanners hold the largest food traceability market share

The report has provided a detailed breakup and analysis of the market based on the equipment. This includes PDA with GPS, thermal printers, 2D and 1D scanners, tags and labels, sensors, and others. According to the report, 2D and 1D scanners represented the largest market segmentation.

2D and 1D scanners are essential tools in the food industry for reading both linear (1D) and matrix (2D) barcodes, which store detailed information about the product's origin, processing, and distribution history. For instance, a dairy processing plant can use 1D scanners to read standard barcodes on milk cartons for inventory management. In contrast, 2D scanners can read QR codes that contain more complex data, such as batch numbers, expiration dates, and traceability links back to the farm. In January 2024, Austrian food-tech company Revo Foods launched the Food Fabricator X2, a new high-throughput food 3D printer. This, in turn, is one of the food traceability technologies catalyzing the market.

Breakup by Application:

• Meat and Livestock
• Fresh Produce and Seeds
• Dairy Products
• Beverage Products
• Fisheries
• Others
   

Meat and livestock currently exhibit a clear dominance in the market

The report has provided a detailed breakup and analysis of the market based on the application. This includes meat and livestock, fresh produce and seeds, dairy products, beverage products, fisheries, and others. According to the report, meat and livestock represented the largest market segmentation.

The escalating demand for stringent safety standards and the complexity of the supply chain in this sector are augmenting the segment's growth. By maintaining robust traceability practices, companies can ensure compliance with regulatory requirements, build consumer trust, and enhance their brand reputation, which is elevating the food traceability market statistics. For instance, in September 2023, the Brazilian Agriculture and Livestock Confederation (CNA) implemented new rules for releasing credit to meatpackers in Amazonian states in which their clients must have traceability and monitoring systems by 2025 to show that their cattle didn't come from illegal deforestation.

Breakup by End User:

• Food Manufacturers
• Warehouse/Pack Farms
• Food Retailers
• Government Departments
• Others
   

Food manufacturers account for the majority of the total market share

The report has provided a detailed breakup and analysis of the market based on the end user. This includes food manufacturers, warehouse/pack farms, food retailers, government departments, and others. According to the report, food manufacturers represented the largest market segmentation.

Food manufacturers must adhere to stringent regulatory standards and meet consumer demands for transparency about product origins and processing methods. Each step requires precise tracking to monitor ingredient sources, production batches, and processing conditions. Implementing robust traceability systems, such as barcode scanning and RFID tagging, allows manufacturers to quickly trace any quality issues back to specific batches, manage recalls efficiently, and provide consumers with detailed product information. This is increasing the food traceability market revenue. For example, in June 2024, the FDA partnered with the Food Safety Preventive Controls Alliance (FSPCA) to develop training for food manufacturers on food traceability.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Europe currently dominates the market

The food traceability market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Europe accounted for the largest market share. 

The market in Europe is experiencing significant growth, driven by increasing regulatory demands and consumer expectations for transparency and safety in the food supply chain. Recent product launches in this market highlight the region's commitment to enhancing traceability. For instance, IBM Food Trust, a blockchain-based traceability platform, has been adopted by several European food companies to ensure transparency from farm to table. In September 2023, Carrefour expanded its blockchain traceability system to include more product lines, allowing customers to scan QR codes on packaging to access detailed information about the product's journey. Additionally, Danish Crown, a major meat processing company, launched a new traceability initiative using DNA testing to verify the origin of pork products, ensuring authenticity and quality. These innovations demonstrate Europe's proactive approach to leveraging advanced technologies to strengthen food traceability, thereby ensuring food safety, enhancing supply chain efficiency, and building consumer trust.

Competitive Landscape:

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major market food traceability companies have also been provided. Some of the key players in the market 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.
• Zebra Technologies Corporation
   

 (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

 Food Traceability Market Recent Developments:

• July 2024: BFC Software, an Illinois-based food software company, acquired Herlitz Inventory Management, a system for tracking food products.
• May 2024: Chipotle implemented radio frequency identification (RFID) tags across its supply chain that automatically identify and track inventory.
• January 2024: SpartanNash partnered with ReposiTrak to introduce a food traceability program to create a safer and more transparent supply chain.

Food Traceability Market Report Scope:

Key Benefits for Stakeholders:

• IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the food traceability market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global food traceability market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the food traceability industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.