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The Artificial Intelligence (AI) in Food and Beverage Market size is estimated to grow at a CAGR of 39.47% between 2024 and 2028. The market size is forecast to increase by USD 35.20 billion. The growth of the market depends on several factors, including the rising demand for automation to improve productivity, the regulations to improve food safety, and the evolving industrial IoT and big data integration. The report offers extensive research analysis on the Artificial Intelligence (AI) in Food and Beverage Market, with a categorization based on Type, including transportation and logistics, production planning, quality control, and others. It further segments the market by End-user, encompassing the food processing industry, hotels and restaurants, and the beverage industry. Additionally, the report provides geographical segmentation, covering APAC, Europe, North America, the Middle East and Africa, and South America. Market size, historical data (2018-2022), and future projections are presented in terms of value in USD million for all the mentioned segments. AI is a program that can adapt itself to execute tasks in real-time situations using cognitive processing like the human mind. As the program can analyze and adapt itself to real-time situations, it does not require constant supervision. AI is used in the food and beverage industry in applications such as transportation and production planning. The global AI market in the food and beverage industry is segmented based on application and geography. Based on application, the market is segmented into transportation, production planning, quality control, and others. Based on geography, the market is segmented into APAC, Europe, North America, MEA, and South America.
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One of the key factors driving the artificial intelligence (AI) market in food and beverage industry 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 artificial intelligence in food and beverage market. Therefore, it is expected to drive the market growth during the forecast period.
A key factor shaping the artificial intelligence (AI) market in food and beverage industry growth is the technology 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 artificial intelligence in food and beverage 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.
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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.
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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.
In 2020, during the COVID-19 pandemic, the growth of the global artificial intelligence (AI) market in food and beverage industry witnessed a significant high as the food and beverage industry saw a surge in the need for contactless solutions, with artificial intelligence-powered technologies in North America. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the reopening of various food and beverage outlets. Such factors are expected to drive the market during the forecast period.
The artificial intelligence (AI) market in food and beverage industry report includes the adoption lifecycle of the market, 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 growth strategies.
Global Artificial Intelligence (AI) Market in Food and Beverage Industry 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.
ABB Ltd: The company offers artificial intelligence in food and beverage industry that provides expertise in every segment, from sugar production to beverage bottling.
Aboard Software: The company offers artificial intelligence in food and beverage industry that includes enterprise resource planning, conceptual model based development, robotic components, and customer relationship management.
AGCO Corp: The company offers artificial intelligence in food and beverage industry under brands such as Valtra, Fella, and Fuse.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 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 artificial intelligence (AI) market in food and beverage industry report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 - 2022.
Artificial Intelligence (AI) Market In Food And Beverage Industry 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 35.2 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 analysis, 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 forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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 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
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