Food Traceability Technology Market Shows Positive Signs for Investors
Food traceability refers to maintaining a system that has the capability to provide information and locate the path of food product or food ingredient throughout food supply chain.
A recent market study by Allied Market Research predicted that the market for food traceability will reach a mark of $14.1 billion by 2020, growing at a CAGR of 8.7% during 2013-2020. RFID is studied to grow at rate of 19.4%, irrespective of place of weather conditions due to real-time locating of food, , which will be highest among all food traceability technologies. Additionally, its read-write accuracy in complex environment gives it an edge over other technologies.
With the rising consumer demand for food safety, coupled with stringent government regulations, food traceability is becoming a norm for all food producers across the globe. Due to early adoption of food traceability technology, there is an increase in revenue for it in Australia, U.S and Japan. However, due to globalization of food market, there lies greater opportunity for food traceability in developing countries.
High investment on this technology is deterring its growth, however experts state that with technological strides, low investment cost, conditions will be better.
As per study made by lead analyst, Lita Pearson, there is less deployment of food traceability technology in developing countries. Also, lack of standards in its integration and utility is impacting its growth. However as per the research report, increasing awareness among food producers of such countries along with stringent laws in U.S and Europe are forcing food exporters for developing countries to maintain high standards.
Analysts have studied one segment of this market which is of end user. It consists of food producers, retailers, warehouses, transportation companies, etc. Food manufacturers are expected to generate maximum revenue of $5.4 billion by 2020, at a CAGR of 11.5% between 2013 and 2020. Sensors market is projected to grow at the highest growth rate of 10.5%.
As per the geographical locations studied by the report, food traceability market consists of Europe, Asia Pacific, North America and Rest of the World (RoW). North America is expected to generate $4.4 billion by 2020, growing at a CAGR of 4.6%. Asia Pacific is projected to have the highest revenue at a CAGR of 16.7% between 2013 and 2020.
The study provides with an up-to-date review on the major market players such as Honeywell, C.H. Robinson, DuPont, Intermec, Motorola Solutions, Cognex, Mass Group, Bio-Rad Laboratories, IBM Corp and Zebra Technologies.
Research Analyst at Allied Market Research
Ranjan has over 4 years of experience in market research and consulting across multiple domains which include technology, FMCG and durable consumer goods, heavy machinery, and automotive. He has hands on expertise in predictive and exploratory research projects for studying regional and global demand potential, market estimation & forecast, perceptions; analyzing macro and micro markets in terms of key gaps and opportunities. Ranjan is part of multiple consulting as well as syndicated report assignments and is actively involved in all the stages of project completion from planning, execution to delivery as per clients satisfaction.
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