Food traceability comprises the ability to identify and validate various stages of the food chain from production to distribution. It involves recognizing the origin of food and its destination from where it is expected to be distributed to different end users. This system is essential for food investigations and is crucial in global food trade as multi-ingredient food includes materials from variety of food chain & countries. This makes importers dependent upon traceability systems of other countries up to the point of import.
Owing to globalization and integration, food production and distribution system are becoming more interdependent. In order to reduce the wastage of food and maintain a proper value chain ranging from production to consumption, a technologically advanced traceability is required. Traceability helps to manage the possible risk in the supply chain. Currently, by law in Japan, European Union (EU), and the United States, specific standards for food traceability are mandated internationally.
The global food traceability market size is predicted to reach over USD 27.4 billion by 2028. This can be ascribed to the increase in the number of people handling food and various other changes such as new methods of producing and distributing food, which has led to a potential increase in the possibility of transmission of foodborne infections from handlers to consumers, thereby driving the demand for food traceability systems. Besides, increase in foodborne diseases and food adulteration incidents cause serious health-related issues, which is also the key factor driving the market growth for food traceability.
However, privacy issues in data sharing, and additional cost for traceability technology are the factors hampering the market growth. Traceability is related to tracing and tracking food products throughout the supply chain, from raw material to end consumer. Advanced technology-based solutions are available for tracking products through supply chains such as barcodes and RFID. In addition to supporting product traceability, the equipment also supports data capture, recording, storage, and sharing of traceability attributes on processing, genetics, inputs, disease tracking, and measurement of environmental variables. However, the implementation of these technologies includes concerns, such as protecting the privacy and security of data stored on the RFID tag by unauthorized access and tampering. Furthermore, government contribution to offer opportunities for the adoption of food traceability systems is likely to provide lucrative development opportunities for the food traceability market in the forthcoming years. Stringent regulations set by the government in developed regions, such as Europe, are projected to further highlight the importance of food safety across all stages of the supply chain.
Food Traceability Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 27.4 billion|
|Growth Rate||CAGR of 8.6% during 2021-2028|
|Segment Covered||Equipment, Technology, Application, End User, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||C.H. Robinson, Bio-Rad Laboratories, Inc., OPTEL GROUP, Cognex, Honeywell International Inc., SGS SA, Zebra Technologies, Bar Code Integrators, Carlisle, Merit-Trax, FoodLogiq, Safe Traces, Food Forensics, Bext360, rfxcel, Covectra, SMAG, TE-Food, Mass Group, Source Trace, Trace One, and Crest Solutions.|
Key Segments of the Global Food Traceability Market
Equipment Overview, 2019-2028 (USD Million)
- PDA with GPS
- Thermal Printers
- 2D & 1D Scanners
- Tags & Labels
Technology Overview, 2019-2028 (USD Million)
Application Overview, 2019-2028 (USD Million)
- Meat & Livestock
- Fresh Produce & Seeds
End User Overview, 2019-2028 (USD Million)
- Food Manufacturers
- Warehouse/Pack Farms
- Food Retailers
- Defense & Security Departments
- Other Government Departments
Regional Overview, 2019-2028 (USD Million)
- Rest of Europe
- Rest of Asia-Pacific
Middle East and Africa
- South Africa
- Rest of Middle East and Africa
- Rest of South America
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the global food traceability market. Benchmark yourself against the rest of the market.
- Ensure you remain competitive as innovations by existing key players to boost the market.
What does the report include?
- The study on the global food traceability market includes qualitative factors such as drivers, restraints, and opportunities
- The study covers the competitive landscape of existing/prospective players in the food traceability industry and their strategic initiatives for product development.
- The study covers a qualitative and quantitative analysis of the market segmented based on Equipment, Technology, Application, and End-user. Moreover, the study provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for all the above-mentioned segments.
Who should buy this report?
- This study is suitable for industry participants and stakeholders in the global food traceability market. The report will benefit Every stakeholder involved in the food traceability market.
- Managers within the food traceability industry looking to publish recent and forecasted statistics about the global food traceability market.
- Government organizations, regulatory authorities, policymakers, and organizations looking for investments in trends of the global food traceability market.
- Analysts, researchers, educators, strategy managers, and government institutions looking for insights into the market to determine future strategies.
Food traceability is related to the tracking and monitoring of food products being in transit to reach its potential customer or retailer. Technology used in this process traces the exact location, thus, preventing mixing of contaminated or discarded food with the consumable food. A number of technologies exist in the food traceability market with varying applications, which focus on enabling quick and effective corrective actions if something goes out of control, and thereby helps isolate the contaminated food from reaching the customers.
High-end technologies, such as RFID and block chain, used for effective food traceability, are associated with high costs. Furthermore, an increased focus on system upgrades and the necessity for accuracy and reliability of data further results in an increase in the cost of these traceability systems. The cost of procuring these technologies is high for food manufacturers, particularly in low and middle-income economies.
Furthermore, Radio frequency identification technology (RFID) is used to track real-time information with the help of a tag, which identifies and tracks the food products by radio waves. RFID technology is advantageous as it tracks information and complex parameters such as temperature, air pressure, and humidity. It is also advantageous over its counterparts as it does not require user-initiated, line-of-sight efforts and efficiency of simultaneously reading & writing hundreds of tags, and thus, reducing labor resource and associated costs. RFID assists organizations to acquire data with minimum chances of error.
The market is consolidated as several major market players currently hold the major market share. However, the market is expected to become fragmented in the forthcoming years as several new market players are emerging from developing countries such as India, Japan, China, and other countries.
Based on the Equipment segment, the market is bifurcated into PDA with GPS, Thermal Printers, 2D & 1D Scanners, Tags & Labels, Sensors, and Others. In 2020, the scanners and sensors segment accumulated the maximum market share and it is likely to continue its dominance with over two-fifths share throughout the forecast years. Scanners and sensors continue to be a popular choice in the food traceability market as it is easy to use and accessible for most of the small business owners and manufacturers.
Based on the Technology, the market is segmented into RFID/RTLS, GPS, Barcode, Infrared, and Biometrics. While barcodes, QR codes, and RFID look to be the evergreen solutions due to their easy adaptability and simplicity, newer technologies such as DNA barcoding, block chain, and IoT-based solutions also seem to be taking off quite well in recent years.
Based on the Application, the market is segmented into Meat & Livestock, Fresh Produce & Seeds, Dairy, Beverages, Fisheries, and Others. The Fisheries segment seized the maximum market share in 2020 and it is likely to maintain its place throughout the forecast years. The growth of this segment is largely ascribed to the mandate for all the companies operating in the seafood and fisheries market to follow traceability. The growing awareness of the need to reduce meat consumption and the apprehensions brought on by the pandemic has turned many people into eating healthy. Consumers have moved to fresh produce consumption and even look for transparency on how their meat and dairy products are manufactured.
End User Segment
Based on the End-user, the market is segmented into Warehouse/Pack Farms, Food Manufacturers, Food Retailers, Defense & Security Departments, Other Government Departments, and Others. The Food retailers and food manufacturers segment gathered the major market share in 2020 and it is likely to continue its dominance throughout the forecast years. The growing demand for food traceability and the changing consumer preference are boosting the market growth. The primary goal of any food manufacturer is to prevent contamination and deliver safe quality products to consumers, which is followed by the above segment.
The North America is likely to account for the maximum market contribution during the forecast years. The domination of this region is largely ascribed to the increasing millennial population for clean and safe food & beverages across the region. However, the Asia-Pacific is likely to gather noteworthy growth through the forecast years 2021-2028. The growth of the Food Traceability market in this region is mostly ascribed to the high population in the region and the high purchasing capacity, consumers are looking for high quality of safe food to consume. The shift in the consumption habits of the population due to an increase in the awareness regarding healthy food and beverages is fueling the growth of global food traceability market in countries such as India, Japan, and China to compete against other regional players. Consumers in these developing nations have an increased awareness for food safety. This has led to increase in consumer demand for food traceability (tracking technologies) in developing countries and growth opportunities to the food traceability companies for expansion. Associated costs and different needs for different food products are major factors that limit the food traceability market growth.
The major players of the global food traceability market are C.H. Robinson, Bio-Rad Laboratories, Inc., OPTEL GROUP, Cognex, Honeywell International Inc., SGS SA, Zebra Technologies, Bar Code Integrators, Carlisle, Merit-Trax, FoodLogiq, Safe Traces, Food Forensics, Bext360, rfxcel, Covectra, SMAG, TE-Food, Mass Group, Source Trace, Trace One, and Crest Solutions. Moreover, the additional prospective market players in the food traceability market are Traceall Global and VeeMee. Renowned companies are offering new and modern food traceability services. Besides, the previously recognized as well as new market players are approaching the market with advanced and new strategic services and solutions and to remain competitive in the global market.