Global Food Traceability Market 2024-2031

Food Traceability Market Size, Share & Trends Analysis Report by Technology Type (Radio-Frequency Identification (RFID), Barcodes, Infrared, Biometrics, and Global Positioning System (GPS)), by Software (Enterprise Resource Planning (ERP), Laboratory Information Management Software (LIMS), Warehouse Software, Friction Welding, and Others), and by Application (Meat & Livestock, Fresh Produce Seeds, Dairy Products, Beverages Products, and Others), by End-User (Food, Manufactures, Warehouse, Food Retailers, and Others) Forecast Period (2024-2031)

Food traceability market is anticipated to grow at a significant CAGR of 8.8% during the forecast period (2024-2031). The food traceability market is driven by government regulations, rising foodborne illnesses, consumer demand for transparency, technological advancements, and globalization of food trade. Traceability systems prevent food loss, optimize supply chains, and align with sustainability goals.

Market Dynamics

Need for Food Safety & Consumer Protection

Food safety is essential owing to rising infections and recalls, necessitating traceability systems for swift product identification and removal, thereby driving market growth. According to the Food and Agriculture Organization Org., in May 2024, foodborne infections, resulting from bacteria, viruses, parasites, or toxins, influence 600 million individuals globally, accounting for 10% of diseases and 420,000 fatalities each year. It impairs trade, tourism, economies, healthcare systems, and socioeconomic growth.

Rising Consumer Demand for Transparency and Accountability

Consumer demand for transparency and accountability in food origins and safety is driving companies to invest in food traceability systems, boosting market growth. For instance, in August 2024, Sysco planned to comply with the Food Safety Modernization Act (FSMA)'s Food Traceability Rule. The plan includes partnering with iFoodDS to share data requirements, enhancing digital tracking systems to streamline product tracking, collaborating with suppliers to align processes with FSMA standards, providing customer support, and establishing an internal task force to monitor compliance and improve traceability processes. The initiative aims to ensure food safety, quality, and transparency from farm to table.

Market Segmentation

• Based on the technology type, the market is segmented into radio-frequency identification (RFID), barcodes, infrared, biometrics, and global positioning systems (GPS).
• Based on the software, the market is segmented into enterprise resource planning (ERP), laboratory information management software (LIMS), warehouse software, friction welding, and others (blockchain, RFID (radio frequency identification)).
• Based on the application, the market is segmented into meat & livestock, fresh produce seeds, dairy products, beverages products, and others (fisheries, grains, nuts).
• Based on the end user, the market is segmented into food manufacturers, warehouses, food retailers, and others (defense & security, government departments).

The Radio-Frequency Identification (RFID) Segment is projected to Hold the Largest Market Share.

RFID technology uses electromagnetic fields to track tags on objects, enabling real-time tracking and data analysis. It benefits the global food traceability market by providing real-time product tracking, enhanced food safety, inventory management, counterfeit prevention, supply chain efficiency, cold chain monitoring, and consumer trust. RFID helps in monitoring temperature and environmental factors, preventing spoilage, and reducing food waste. It additionally improves supply chain efficiency by reducing manual labor and maintaining cold chain integrity.

Beverages Products Segment to Hold a Considerable Market Share

Consumers are demanding transparency in food production, handling, and transportation, requiring real-time data on shipments to build trust and ensure safe handling, driving market growth. For instance, in May 2024, Sojo Industries launched Sojo Shield, a real-time tracking platform for food and beverage brands, providing accurate reporting on essential events such as shipping, receiving, and transport.

Regional Outlook

The global food traceability market is further segmented based on geography including North America (the US, and Canada), Europe (the UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).

Regulatory Compliance and Government Initiatives In the North America Region

The FDA's Food Safety Modernization Act (FSMA) and global food safety standards are influencing US companies to enhance traceability systems, while global regulations and major market regulations drive market growth. For instance, in January 2024, SpartanNash launched the ReposiTrak Traceability Network, a food traceability program aimed at creating a safer, more transparent supply chain. The program requires suppliers on the US Food and Drug Administration's Food Traceability List to exchange traceability data with SpartanNash and its retailers. The program aims to reduce food waste.

Asia-Pacific Holds Major Market Share

Growing e-commerce in food supply chains is increasing customer demands for food safety, increasing demand for effective traceability systems and real-time tracking, and enhancing consumer reliability and credibility identification. According to the India Brand Equity Foundation (IBEF), in August 2024, the Indian e-commerce industry is expected to reach $325 billion by 2030, with third-party logistics providers managing 17 billion shipments. The e-retail market is expected to exceed $160 billion by 2028, with online spending accounting for 5-6% of total retail spending. The India quick e-commerce market is expected to reach $19,932.5 million.

Market Players Outlook

The major companies serving the food traceability market include Bio-Rad Laboratories, Inc., Cognex Corp, Honeywell International Inc., IBM Corp., Zebra Technologies Corp, and others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers and acquisitions to stay competitive in the market.

Recent Developments

• In September 2024, the food industry formed a public-private traceability partnership to improve food traceability. The partnership aims to address the gap in the Food Traceability Rule, which requires coordination across sectors and business models. The partnership, which includes the FDA, state, and local officials, aims to bring industry and regulators together to make critical implementation decisions and define a shared vision for food traceability.
• In October 2023, CAI Software and Trace Register partnered to improve traceability in the food industry, focused on integrated software solutions for enterprise resource planning (ERP), manufacturing execution systems (MES), eCommerce EDI (electronic data interchange), and warehouse management software (WMS). This partnership aims to enhance traceability in the food industry.