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The digital food management solutions market size is projected to increase by USD 3.64 billion at a CAGR of 16.75% between 2023 and 2028. Market growth is contingent upon numerous factors, with the surge in demand for efficient management systems, the emphasis on multi-channel customer engagement, and the burgeoning utilization of digital payment solutions in the meals service industry standing out prominently. As businesses strive for enhanced operational efficiency, the need for streamlined management systems becomes paramount, driving market growth. Moreover, the evolving landscape of customer preferences necessitates a robust presence across various engagement channels, prompting businesses to prioritize multi-channel customer interaction strategies. Additionally, the rapid adoption of digital payment solutions reflects a broader trend towards convenience and efficiency in transactions within the meals service sector. These factors collectively contribute to shaping the trajectory of market growth, indicating a landscape where technological advancements and evolving consumer behaviors play pivotal roles in driving industry dynamics.
The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 20 market companies, including 365 RM UK Ltd., Agilysys Inc., Apicbase NV, Booking Holdings Inc., Chetu Inc., FlexiBake Ltd., iNECTA LLC, JAMIX Oy, jiWebTech Technologies LLP, Kellton Tech Solutions Ltd., Kitchen Brains, Omega Softwares, Oracle Corp., SmartSuite Holdings LLC, SweetWARE, Toast Inc., TouchBistro Inc., Zoho Corp. Pvt. Ltd., Roper Technologies Inc., and Vision Software Technologies Inc.. Additionally,365 RM UK Ltdcompany offers digital food management solutions such as Spoonfed, which features online ordering, group ordering, client management, and production planning.
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Innovative AI-powered digital food management solutions are revolutionizing the industry, addressing challenges like food waste and quality assurance. They empower restaurant owners to make data-driven decisions, leading to waste deductions and promoting sustainability amidst concerns of climate change. Leveraging precision agriculture and gene editing, these solutions support small farmers in enhancing food security and combating extreme poverty. Technologies such as virtual reality and contactless payment methods further streamline operations, while enterprise resource planning (ERP) and sales force automation (SFA) ensure efficient resource allocation and improved customer experiences.
Emphasis on multi-channel customer engagement is notably driving market growth. Digital solutions that seamlessly combine online and offline interactions improve the entire consumer experience by delivering a consistent and tailored trip across several touchpoints. For example, mobile apps, websites, and in-store kiosks can be linked to provide a uniform experience, allowing customers to browse, order, and interact with food goods with ease. These solutions use data analytics and customer insights to create suggestions, promotions, and loyalty programs based on individual interests and habits. The combination of social media platforms, loyalty apps, and physical shop experiences results in a comprehensive approach that promotes brand loyalty and customer pleasure.
Moreover, the ability to communicate with consumers across many channels not only enhances accessibility but also deepens the brand-consumer relationship, increasing the adoption of such digital solutions in the fast-changing the sector. Hence, the increasing emphasis on multi-channel customer engagement is a driver that will have a significant potential to boost the growth of the market during the forecast period.
The growing use of data analytics for analyzing customer insights is an emerging trend shaping market growth. Data analytics allows businesses to gather and analyze customer data, including preferences, ordering behavior, and feedback. This information enables personalized experiences, such as targeted promotions, menu recommendations, and special offers, enhancing customer satisfaction and loyalty. It leverages predictive analytics to forecast demand based on historical data, seasonal trends, and other relevant factors. Data analytics helps in optimizing operational processes within it. Insights into peak hours, order patterns, and customer flow allow businesses to allocate resources efficiently, ensuring that staff, inventory, and kitchen operations are well-aligned with demand.
In addition to that, data analytics plays a role in identifying unusual patterns or potential fraudulent activities, especially in the context of online ordering and payments. Analyzing transaction data helps enhance security measures and protect both customers and businesses. Advanced analytics tools enable real-time monitoring and decision-making. Businesses can respond promptly to changing customer preferences, market conditions, or unexpected events, ensuring agility in adapting to dynamic situations. Thus, the growing use of data analytics for analyzing customer insights will drive the growth of the market during the forecast period.
Resistance from staff while introducing new digital tools is a significant challenge hindering market growth. Traditional or established nourishment establishments may have engrained operating routines, and employees may be resistant to change because of unfamiliarity or job security concerns. Transitioning from traditional methods to digital platforms necessitates a paradigm shift in work processes, and some employees may find it difficult to adapt to these changes. Employees in legacy restaurants with manual order systems, for instance, may be resistant to the transition to digital order management systems due to concerns about a learning curve or job displacement.
Moreover, overcoming this challenge requires deliberate and empathic training and communication strategies that ensure personnel feel supported and empowered during the change. Resistance to new digital tools can restrict the seamless integration of novel solutions, limiting operational efficiency and consumer experiences in the market in focus. This, in turn, is expected to hinder the growth of the market during the forecast period.
The market is thriving, driven by the convergence of hospitality, IoT, and blockchain technologies. Utilizing mobile application tools and supply chain management systems, businesses streamline restaurant management, enhance inventory control, and optimize menu planning. Farmers benefit from improved visibility into demand, while service solutions integrate hardware and software for efficient food management. With the advent of IoT-enabled devices, the industry is witnessing a shift towards more sustainable and transparent supply chains, ensuring fresher ingredients and higher customer satisfaction.
The market share growth by the food safety segment will be significant during the forecast period. This is due to rising concerns about foodborne illnesses and increasing government regulations to ensure food safety. Food safety is a crucial aspect of the food industry, and with the advancements in technology, digital solutions are being developed to enhance meals safety practices.
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The food safety segment was the largest and was valued at USD 843.17 million in 2018. Digital food management solutions offer innovative tools and techniques to prevent contamination, track food ingredients, and monitor food storage and transportation conditions. These solutions enable real-time monitoring of food safety parameters, such as temperature, humidity, and cleanliness, throughout the supply chain. By providing real-time data and analytics, it improves the traceability of products and enables prompt detection and response to potential food safety issues. Thus, such factors are expected to increase the adoption of digital food management solutions in the food safety segment, which will propel the growth of the market during the forecast period.
The restaurant segment is a crucial and rapidly growing sector in the market. With the advancement of technology and the increasing popularity of online food delivery platforms, restaurants are seeking innovative digital solutions to streamline their operations, enhance customer experience, and boost their revenue. I also play a vital role in enhancing the overall customer experience. With features such as customized menus, online payment options, and loyalty programs, restaurants can provide a convenient and personalized ordering experience for their customers. Moreover, these solutions facilitate effective communication between the restaurant and the customer, allowing updates on order status and delivery timings. By offering a seamless digital experience, restaurants can build customer loyalty and drive repeat business. Thus, the abovementioned factor is expected to increase the demand in the restaurant end-user segment, which will propel the overall growth of the market during the forecast period
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North America is estimated to contribute 48% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. One of the key factors driving the growth of the market in North America is the increasing demand for efficiency and convenience in the food industry. Consumers are increasingly turning to digital platforms for their food management needs, such as ordering food online, tracking deliveries, and managing their dietary preferences. In response, food service providers have been quick to adopt digital solutions to streamline their operations and enhance customer experience. Furthermore, North America boasts a robust infrastructure for digital technologies, which has facilitated the growth of the market. The region has a well-developed internet infrastructure and a high penetration of smartphones and connected devices, enabling seamless access to digital platforms.
In addition, North America is also home to several leading players in the market. Large companies and startups have emerged in the region, offering innovative solutions to address the evolving needs of the industry. This competitive landscape has fostered a culture of innovation and advancement, contributing to the overall growth of the regional market. Thus, such factors are expected to increase the demand, which will propel the growth of the regional market during the forecast period.
The market forecasting 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 trends strategies.
Global Market 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.
Market analysis and report of 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 Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
The market is experiencing a rapid evolution, driven by the integration of cutting-edge technologies such as AI, biologically based crop safety, and advanced food safety measures. From computer-aided design (CAD) to cloud-based solutions, software is transforming restaurant and food service industry operations, enhancing customer service and food quality while addressing challenges like digital inequality and technical barriers. Further, in-house delivery apps and food delivery services are becoming ubiquitous, complemented by AI-powered recommendation systems and virtual restaurant concepts. Contactless dining experiences, facilitated by digital menus and mobile payments, cater to changing consumer preferences in the post-pandemic era.
Moreover, the emergence of cloud kitchens and smart kitchens is reshaping the food supply chain and boosting efficiency. Technologies like inventory management tools and AI-powered algorithms optimize food management systems while reducing waste and improving sustainability. Further, in the realm of events and catering, digital ordering systems and online reservation platforms streamline event logistics for corporate gatherings, weddings, and private parties. From menu choices to table management, digital solutions enhance every aspect of the dining experience, offering unparalleled convenience and customization for both consumers and independent food service businesses.
Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 16.75% |
Market growth 2024-2028 |
USD 3.64 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
16.28 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 48% |
Key countries |
US, China, Germany, France, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
365 RM UK Ltd., Agilysys Inc., Apicbase NV, Booking Holdings Inc., Chetu Inc., FlexiBake Ltd., iNECTA LLC, JAMIX Oy, jiWebTech Technologies LLP, Kellton Tech Solutions Ltd., Kitchen Brains, Omega Softwares, Oracle Corp., SmartSuite Holdings LLC, SweetWARE, Toast Inc., TouchBistro Inc., Zoho Corp. Pvt. Ltd., Roper Technologies Inc., and Vision Software Technologies Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
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
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