Track and trace (T&T) solutions essentially help organizations manage their supply chain and alleviate risks associated with counterfeit products. In the current scenario, the track & trace solutions market is gaining significant traction for supply chain monitoring across various end-user applications, including food & beverage.
The widespread use of traceability solutions in the food & beverage sector is primarily fuelled by the following factors:
- Initiatives by regulatory bodies to improve food safety
- Increase in food product recalls
- Rise in contamination and adulteration rates
- Consumer concerns about food safety
As a result, these factors have contributed to the global track & trace in food & beverage market emerging into a multi-million dollar avenue, progressing with a CAGR of 19.97% during the forecast years of 2022 to 2030.
Major players in the food & beverage industry also use advanced technology such as blockchain and artificial intelligence (AI) to gain added advantages like improved safety and traceability. For example, Cargill piloted a secure blockchain solution in 2017, enabling consumers to track the turkeys purchased for Thanksgiving. Similarly, there has also been an increasing demand for food supply documentation and tracking equipment among consumers, thereby fueling the global market’s growth.
The Bigger Picture: Regional Prospects Stimulate Global Market Trends
With the global population projected to reach 9.1 billion by 2050, food supply chains are expected to become more complex, creating a need to make production processes more transparent. Also, as per the estimations issued by Food and Agriculture Organization (FAO), 70% more food will be required over the next three decades to meet the growing population’s needs.
However, the increase in food demand will also result in a greater need for its safety, given the outbreaks of foodborne diseases and food adulteration. Track & trace is one of the most efficient solutions to such challenges, as it enhances transparency and helps understand the movement of goods across the supply chain.
In order to ensure the quality of products, identifying and authenticating them within the supply chain is pivotal. Hence, the printing and marking solutions segment is anticipated to capture the highest market share under the hardware systems category. In this regard, developing nations like China, Japan, and India mainly contribute to the Asia-Pacific track & trace in food & beverage market, given the increasing need for food safety and product details among consumers.
Asia-Pacific to Lead with a 21.96% CAGR
- India is set to be the fastest-growing regional market with a CAGR of 22.33%. Besides, with the advancement of new food traceability systems in the country, companies are developing innovative software for tracking & tracing systems in the food industry.
- For instance, GrapeNet offers traceability software for table grapes exported from India to the European Union. This factor further contributes to software solutions being the dominating product over the forecast period, owing to the high adoption rate of food traceability solutions among manufacturers and retailers.
- The consumption of meat, eggs, and dairy products has significantly increased in China, given the rising economic development and consumer purchasing power. Hence, China is expected to dominate the Asia-Pacific market, with a significant share in the meat, poultry & seafood sector.
- The increasing government investment and strategic management of the dairy sector in the region are also expected to create lucrative opportunities for the market, positioning dairy products as the largest end-user over the forecast years.
Concluding Analysis | Players Counter Limitations through Innovation
Companies operating in major regions, including North America, are also establishing traceability systems for increasing food safety, quality control, and the improvement of supply-side management. For instance, United States-based HarvestMark and IFoodDS partnered to deliver an integrated supply chain solution for food traceability and quality management in 2018. This factor also plays an essential role in ranking North America as the dominating region, capturing a share of 35.34% by 2030.
The track & trace in food & beverage market is dominated by key players such as Siemens AG, CH Robinson, and Zebra Technologies Corporation, accounting for the majority of the revenue. Players also employ extensive growth strategies to facilitate innovation and increase product differentiation, which is pivotal for countering the challenges of data collection and the need for highly accurate information.
Moreover, in view of the limitation of higher requirements for food traceability systems, regulatory bodies’ initiatives ensure supply-chain consistency and deliver essential resources at subsidized rates. In this regard, OPTEL’s Intelligent Supply Chain (ISC) Platform helps resolve critical traceability issues, thereby establishing sustainable supply chains and further contributing to the global track & trace in food & beverage market.
Which is the fastest-growing application in the market?
Serialization solutions is the fastest-growing application.
What are the key software analyzed in the report?
Plant manager software, line controller software, bundle tracking software, and other software solutions are analyzed in the report.