Food Traceability Market Size To Reach $30.52 Billion By 2030

December 2023 | Report Format: Electronic (PDF)

Food Traceability Market Growth & Trends

The global food traceability market is expected to reach USD 30.52 billion by 2030, registering CAGR of 8.8% from 2023 to 2030, according to a new report by Grand View Research, Inc. The market for food traceability is dynamic and rapidly evolving sector that involves the tracking and monitoring of food products throughout the entire supply chain. This process enables the identification and documentation of the journey of food items from production and processing to distribution and retail. The market continues to evolve as technological advancements, regulatory landscapes, and consumer expectations shape the strategies and solutions employed by stakeholders across the food supply chain.

Growing trends in e-commerce and direct-to-consumer sales lead to increased demand for traceability solutions that provide transparency and assurance about the safety and quality of food products purchased online. Various technologies contribute to traceability, including barcoding, Radio-Frequency Identification (RFID), and blockchain. These technologies enable the recording and retrieval of information related to the origin, production, and distribution of food products. Stringent regulations and standards related to food safety and traceability drive the adoption of traceability solutions. Companies in the food industry strive to comply with these regulations to ensure the safety of their products and maintain consumer trust.

On the basis of technology type, the market is divided into radio frequency identification (RFID), barcodes, infrared, biometrics, global positioning systems (GPS), and others. The segment's growth can be attributed to the cost-effectiveness of the barcode technology to implement compared to some other traceability technologies. The simplicity of barcodes makes them accessible to a wide range of businesses, including small and medium-sized enterprises in the food industry.

Companies are launching new products to cater to the growing demand for food traceability. For instance, in September 2023, the iFoodDS and IBM Corporation unveiled a technology-driven traceability solution designed to assist businesses throughout the food supply chain in meeting the requirements of the FDA's Food Traceability Rule, FSMA 204(d). Drawing upon extensive expertise in food traceability software over the years, the innovative solution, known as iFoodDS Trace Exchange (powered by IBM Food Trust), is tailored to meet the scalability demands of enterprises and address the specific needs of suppliers.

Key market players are adopting strategies such as product launches to gain a competitive edge. For instance, in May 2022, OPTEL Group, a global frontrunner in supply chain traceability solutions across various industries, unveiled Optchain, a collection of modular intelligent supply chain (ISC) solutions designed for the food and beverage sector. Optchain is purposefully crafted to meet the imminent food traceability requirements of all participants in the supply chain, ensuring compliance with the Food and Drug Administration's crucial update to the Food Safety Modernization Act (FSMA) - specifically Section 204.

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Food Traceability Market Report Highlights

The market is expected to grow significantly due to the growing adoption of traceability technologies, growing regulatory compliances and the growing adoption of food traceability solutions across the globe
The RFID segment is projected to grow at the fastest CAGR over the forecast period
The supply chain management (SCM) segment is expected to dominate the market in 2022 with a market share of more than 25.0% and is expanding at a CAGR of 8.1% from 2023 to 2030
The fish, meat, and seafood segment held the largest revenue share in market globally in 2022 and is expected to expand at a CAGR of 7.5% from 2023 to 2030