Enjoy complimentary customisation on priority with our Enterprise License!
The Artificial Intelligence in Food and Beverage Market size is forecast to increase by USD 35.21 billion, at a CAGR of 39.47% between 2023 and 2028. The market's growth hinges on several pivotal factors. There's an increasing demand for automation aimed at enhancing productivity across industries. Concurrently, stringent regulations are driving advancements in food safety practices, ensuring compliance and consumer trust. The integration of industrial IoT and big data solutions is reshaping operations, optimizing efficiency and decision-making processes. These technological advancements not only streamline operations but also enable real-time monitoring and predictive maintenance, reducing downtime and enhancing overall productivity. As industries adapt to these transformative trends, they are poised to leverage data-driven insights for strategic growth and operational excellence. Embracing these innovations underscores a commitment to quality, safety, and efficiency, positioning businesses to thrive in a competitive market landscape.
For More Highlights About this Report, Download Free Sample in a Minute
The market is rapidly evolving with the integration of predictive analytics, chatbot, and social media channels. AI-driven solutions are addressing challenges such as labor shortage and optimizing supply chain efficiency through advanced algorithms. From farm to table, AI enhances supply chain dynamics by tracing products, detecting anomalies, and enabling large-scale implementation of innovations. Farmers, manufacturers, and distributors benefit from AI's ability to streamline operations, reducing reliance on manual labor and controlling labor costs while improving speed and accuracy in processes. AI algorithms analyze data to forecast demand, enhance food safety measures, and personalize consumer experiences with recipe recommendations and interactive chatbots. As the industry embraces AI technologies, it paves the way for transformative changes, ensuring sustainability and competitiveness in the food and beverages market.
One of the key factors driving the market growth is the regulations to improve food safety. There is an increasing adoption of automation by manufacturers in the food and beverage industry to meet regulations and guidelines set by industry associations for ensuring the maintenance of the quality of products offered. For example, the Food and Drug Administration Food Safety Modernization Act (FSMA) introduced regulations that necessitate large food manufacturers to meet preventive controls and Current Good Manufacturing Practice (CGMPS) requirements.
Moreover, food and beverage manufacturers are required to have a safety system in place for the analysis of hazards and risk-based preventive controls. In addition, to meet these requirements, food companies are expected to set up systems for thorough documentation of the processes implemented to demonstrate that they are meeting the legal criteria. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
A key factor shaping the market growth is the technological innovations in the food and beverage industry. There has been an increase in new product launches that capitalize on technologies such as cloud computing and spectroscopy. In addition, with the emergence of food quality standards, manufacturers in the food and beverage industry are increasingly investing in innovations that can help them adhere to regulations and attain a strong market position.
Moreover, a major player that is expected to revolutionize food testing and quality control is Tellspec, which offers cloud-based solutions that can help players in the supply chain conduct food analysis in real-time. In addition, as manufacturers in the food and beverage industry become aware of such solutions for food quality control and fraud detection, the sales of such offerings are expected to gain traction. Hence, such factors positively impact the market. Therefore, it is expected to drive the market growth during the forecast period.
Security issues related to sensitive company information are one of the key challenges hindering the artificial intelligence (AI) market in food and beverage industry growth. AI software processes a huge amount of data extracted from different software applications. In addition, as the data collected is sensitive, data ownership, sharing, and security are of high importance.
Furthermore, this implies that it is essential for vendors to incorporate proper authorization techniques to ensure that the privacy and security of the information uploaded remain intact. In addition, end-users want to be assured of proper security measures to avoid breaches of privacy or data theft. Furthermore, end-users are wary of using AI systems, as breaches are carried out by well-resourced and highly motivated attackers who are often accomplished engineers working for cybercrime syndicates. Hence, such factors are negatively impacting the AI in food and beverage market. Therefore, it is expected to hinder the market growth during the forecast period.
The transportation and logistics segment is estimated to witness significant growth during the forecast period. There has been an increase in demand from players, such as beverage wholesalers, manufacturers, breweries, and bottling plants, for automated solutions that optimize their operations. which is the primary trend in the market. In addition, these players are increasingly facing tremendous pricing pressure and automating their intralogistics operations at warehouses and distribution centers. Furthermore, the demand for flexibility and swift returns processing is also a major trend in the segment.
Get a glance at the market contribution of various segments Download the PDF Sample
The transportation and logistics segment was the largest segment and was valued at USD 564.30 million in 2018. Moreover, the logistics and transportation segment of the AI in food and beverage market is fuelled by the revenue contribution from manufacturers employing advanced technologies in their manufacturing plants. In addition, manufacturers in the food and beverage industry are experiencing a paradigm change with the emergence of digitization as well as new market entrants and business models. Furthermore, the AI market in the food and beverage industry market has gained traction with the emergence of platforms that use AI algorithms to ensure automatic procurement and creation of purchase orders and work orders. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
The numerous advantages offered by AI in the food processing industry segment will increase the market growth. There have been significant developments in AI in the food and beverage industry in the global food and beverage sector. For instance, AI is being used to increase productivity, improve quality, and meet the increasing need for sustainable solutions. In addition, the use of artificial intelligence (AI) in the food processing sector is based on the integration of machine learning, data analytics, and robotics to automate a variety of processes associated with the production of food. Furthermore, this technology facilitates the optimization of processes such as sorting, classification, packaging, and product inspection, as well as supply chain management, which reduces waste and optimizes distribution. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
North America is estimated to contribute 44% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The increase in the adoption of automation in the manufacturing sector to improve output and change business models in the scenario of increasing competition fuels the AI in food and beverage market in North America.
In addition, in the US, manufacturers are laying great emphasis on food safety by ensuring that there are process controls to maintain consistency in different batches in terms of product quality, smell, and taste. In addition, the region has seen the emergence of large manufacturers as well as SMEs that are involved in food manufacturing. Furthermore, several major manufacturers of globally branded products fully automating their new manufacturing plants. Hence, such factors are driving the market growth in North America during the forecast period.
The market research report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
You may also interested in below market reports:
In the market, Artificial Intelligence (AI) is revolutionizing operations across various sectors. AI-powered chatbots and data analytics platforms enhance customer engagement by analyzing consumer purchasing behavior, tastes, and preferences. For farmer, manufacturer, and distributor, AI streamlines processes such as product tracing, automated sorting, and inventory management, optimizing supply chain efficiency and ensuring uniformity in food storage and sorting processes. Advanced AI technologies like photoelectric sensors and custom-built inspection systems detect contamination levels and defects in materials, improving quality control. AI's role extends to large scale implementation in assembly applications and material handling, addressing uncertainties through future scenario analysis. Competent developers leverage AI platforms to develop innovative solutions that meet small form factor needs and drive benefits through data-driven decision-making. As AI continues to evolve, its integration promises to reshape the food and beverage industry by enhancing productivity, quality, and operational insights.
In addition, artificial Intelligence (AI) is revolutionizing the food and beverage industry through innovative applications. AI-powered chatbots enhance customer interaction by providing personalized recommendations on recipes and products. For farmers, manufacturers, and distributors, AI facilitates large-scale implementation by optimizing feedstock management and monitoring inventory levels. It analyzes sales results and purchasing behaviors to predict trends and improve decision-making processes. AI technologies also enhance farming practices with advanced detection capabilities and data analysis, enabling proactive management and scenario planning. Custom-built inspection systems powered by AI ensure high yields by sorting and identifying PET, color, and polymer defects with precision. The integration of AI enhances data analytics capabilities, supporting large-scale deployment across the industry.
Market Scope |
|
Report Coverage |
Details |
Page number |
179 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 39.47% |
Market Growth 2024-2028 |
USD 35.21 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
39.15 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 44% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Aboard Software, AGCO Corp., Ailytic Holdings Pty Ltd., Analytical Flavor Systems Inc., Buhler AG, De Greefs Wagen Carrosserie en Machinebouw BV, Duravant LLC, Foodable Network LLC, Honeywell International Inc., Key Technology Inc., Martec Of Whitwell Ltd., Ravenwood Packaging Ltd., Raytec Vision S.p.A., Rockwell Automation Inc., Sesotec GmbH, Siemens AG, Sight Machine, The Not Co. Inc., and Tomra Systems ASA |
Market dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.