The Global "Food Traceability Market" is expected to grow at a high CAGR of 9.5% during the forecasting period (2022-2029).
Tracking materials is an integral part of any manufacturing industry signifies the contents, origin, and nature of the product. Usually, the industries combine plain text as a product/lot code for this purpose. However, the technological advancements and the need for effective tracking solutions that enable fast and accurate results led to the integration of 2-D traceability technology. Food Traceability is defined as the ability to track any food product through its value chain, including production, processing, storage and transportation, and final distribution. Effective traceability helps food manufacturers in ensuring product safety and efficient recalls.
Source: DataM Intelligence Analysis
The growing need for quick identification of potentially faulty food products to ensure the supply of the right quality product to the consumers motivates food manufacturers to integrate traceability solutions—the use of an effective traceability solution al improves process control and aids in brand protection of the company. Moreover, several food safety associations,s including the FDA, USDA Food Safety and Inspection Service, and European Food Safety Authority, have commissioned regulations for integrating traceability solutions in food supply chains. This is motivating the growth of the global food traceability market.
Besides the end value chain, the rising focus towards sustainable procurement and end products' safety increased the need for tracking the source of food inputs. In the food and beverage industry's current state, traceability solutions are extended to raw materials, ingredients, additives, and packaging solutions.
Food traceability is performed through various technologies such as RFID, barcode, NFC, and infrared modules. RFID evolved as the most lucrative segment of the global food traceability market owing to its potential benefits over all other counterparts. It can track complex parameters, including humidity and temperature of the food product, making it suitable both in warehousing and retail chains. Moreover, it offers high throughput in reading tags and does not require any effort of line-of-sight contact.
The North American region is leading the global food traceability market due to its wide utilization in the United States by geography. The U.S. is considered the leader of the overall food and beverage industry, with a market size of $1.8 trillion. Stringent food safety regulations and consumer concerns resulted in the adoption of food traceability by food manufacturers.
**Source: DataM Intelligence Analysis
The global food traceability market is consolidated, with very few companies holding a significant share globally. Cognex Corporation, Honeywell International Inc, Motorola Solutions, Inc., and Zebra Technologies Corporation are some marketer's lead players. These companies offer high reliable scanners, labels, and also effective platforms for the food industry. Most of these companies are finding growth opportunities in Asia and the Middle East owing to the growing food retail industry in these regions.
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