Food Traceability Market Size, Share & Industry Analysis, By Technology Type (Barcodes, Radio-frequency identification, Infrared, Biometrics, Global positioning system), By Software Type (Friction Welding, Enterprise Resource Planning, Warehouse Software, Laboratory Information Management Software (LIMS), Others), By Application (Fresh Produce food products, Ready-to-eat Food Products, Dairy Products, Meat & Seafood Products, Beverages, Others) And Regional Forecast, 2024-2032

Food traceability is the capacity to track the movement of a food product and its ingredients through all stages of the supply chain, both backward and forward. Traceability involves profiling and linking the production, processing, and distribution of food products and ingredients.

Regulations set by the governments in the region, such as North America, are predicted to highlight the importance of food safety across all supply chain stages. For instance, on July 13, 2020, the Food and Drug Administration (FDA) released the Blueprint for a New Era of Smarter Food Safety. The plan outlines the FDA's vision to improve traceability, improve predictive analytics, respond faster to outbreaks, address new business models, reduce food contamination, and promote stronger food safety cultures.

Foodborne illness is often caused by food contaminated with pathogens and mycotoxins. The presence of pathogens in food inevitably affects food quality and microbiological safety, leading to foodborne illness. In 2020, the World Health Organization (WHO) estimated that 600 million individuals suffer from a foodborne disease globally due to consuming contaminated food products. Hence, food safety has become a major concern and is expected to drive the demand for the food traceability market.

Trade-in agri-food and commodities are foreseen to see a continued increase. Modifications in the trading environment have led to growth in the global production network. The supply chain structure has evolved towards increased fragmentation and complexity across multiple enterprises and the global reach of agri-food supply chains. Implementation of effective traceability systems improves the ability to implement verifiable safety and quality compliance programs. The resulting visibility of relevant information enables agri-food businesses to manage risks better and quickly react to emergencies, recalls, and withdrawals. Thus, it is further estimated to drive the growth of the food traceability market.

Traceability requirements are burdensome for producers, particularly those in developing countries, where the production of small operators is often mixed before exportation. Traceability-related costs include services, technology and software expenses, changes in processes, training, and ongoing operating costs. These costs can significantly burden. Thus, these factors can restraint the growth of food traceability in developing countries.

Key Market Driver -

Increase in Food Borne Diseases and Food Adulteration Incidents

Key Market Restraint -

High Costs for Small Operators in Developing Countries

Key Players Covered:

Some of the leading companies operating in the global food traceability market are Honeywell International Inc., SGS S.A., Cognex Corporation, Zebra Technologies Corporation, Safe Traces, Inc., OPTEL Group, Bio-Rad Laboratories, Inc., C.H. Robinson, Inc., Clarkston Consulting, Inc., Food Forensics Ltd, and others.

By technology type, barcodes are expected to hold the largest share in the market. Barcodes are easy to scan without additional training and expensive equipment; barcodes are a popular choice worldwide. Food retailers use barcoded inventory for easy management and quality control. The error rate of barcode scanning is only one time out of a million, and the first reading rate accuracy is over 98%. It is flexible and practical; barcode symbols as a means of identification can be used alone or together with related equipment to achieve the automatic identification. Radio-frequency identification is also anticipated to see considerable growth as RFID is a non-contact automatic identification technology. It automatically identifies the target by the radio frequency and access to relevant data. RFID allows the identification to work without human intervention, and it can work in a variety of bad environments.

By software type, enterprise resource planning is anticipated to hold a significant share. It provides essential visibility into food safety, quality control, and traceability. Enterprise resource planning solutions can also be cost-effective in forecasting and planning or inventory, logistics, manufacturing, or waste organization.

By application, fresh produce food products are expected to hold the largest share. Growing awareness to reduce meat consumption and concerns brought on by the pandemic have spurred many people to eat healthily. Consumers have switched to consuming fresh produce and are even looking for transparency in producing their meat and dairy products. Ready-to-eat food products are also predicted to see dynamic growth. Consumers are getting curious about what they are consuming, and they want to ensure that their food is ethically sourced. Ready-to-eat foods are gaining popularity because of their convenience, which demands their traceability to ensure consumers' safety.

Regional Analysis:

Europe is anticipated to experience significant growth, owing to an increase in demand for transparency in food. Within the European Union, consumers, businesses, and organizations increasingly demand more direct and transparent information about where and how food is processed, produced, packaged, transported, and distributed. 

North America is predicted to see growth during the forecast period, owing to the growing demand for food traceability in countries such as the U.S. and Canada. Regulatory bodies, such as the United States Food and Drug Administration, Centers for Disease Control and Prevention (CDC), and USDA's Food Safety and Inspection Service (FSIS), work closely at the federal level to promote food safety in the United States. These organizations build capacity and improve surveillance and investigation of foodborne infections through PulseNet, the Integrated Food Safety Centre of Excellence, and other programs.

Asia Pacific is predicted to be the fastest-growing market, owing to the region's population density and high purchasing power. Consumers are looking for safe, high-quality food to consume. The change in people's consumption habits due to the growing awareness of healthy food and drink is also growing the demand for food traceability services. The millennials are increasingly demanding clean and safe food and beverages, which can act as a driving force behind the food traceability market across the region.

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Segmentation

Key Industry developments:

• In December, 2020, Honeywell International Inc., a U.S. based conglomerate company acquires Rebellion Photonics, a Houston-based provider of innovative, intelligent, and intuitive gas monitoring solutions that maximize safety, operational efficiency, and minimize emissions.


• In June 2019, BioRad Laboratories, a U.S. based manufacturer of technological products, signed an agreement with Bruker (India) to bring foodborne pathogen detection and workflow solutions to the food safety industry.