Global AI in Food & Beverage Market Forecast and Trends

The global market of AI in Food & Beverage projected a CAGR rise of 42.5% to reach USD 12.58 billion by 2026. Changes in consumer demand to favor easy, inexpensive and easily accessible food options have resulted in a transformation in the food and beverage industry, with market leaders leveraging advanced technologies such as artificial intelligence and machine learning to scale up operations and helping businesses remain relevant in a challenging market environment. To distinguish and also to fuel revenue growth, companies are increasingly digitizing their supply chain, which improves efficiency across the supply chain. Supply chains produce massive amounts of data, in which AI helps the company analyze these data and gain a better understanding of supply chain variables by predicting future scenarios.

Global AI in Food & Beverage Market: Overview

Artificial Intelligence (AI) is a process of producing smart machines that function and react like humans. The aim is to teach the machines just the way humans think intelligently. The computers have done what they were told to do so up to now. But they'll think and behave like a human with AI machines. The food processing industry leverages the AI to improve different offers, automate processes and deliver better customer experience. Innovations in the automation industry have started to affect the other industrial processes. Food and beverage industries are also rapidly transforming and have improved the various ways food is packaged and delivered. Despite facing several challenges to move towards automation, the food industry has managed to put in place a number of automatic processes. Food manufacturers are exploring various ways of improving efficiency through automation, whether it is actual food production or packaging.

Growth drivers

Growing Need for Analysis of Consumer Buying Behavior and Prediction of Inventory Levels to Reduce Food Wastage

With every passing day, the rising number of customers to be addressed by food and beverage companies is overwhelming and it needs enormous efforts to engage with customers. Using AI-enabled algorithms, Artificial Intelligence uses data derived from past records, so that sales-related outcomes can be predicted for a specified time. AI mainly helps food producers and retailers understand their customers better. The companies will be able to recognize the tastes and preferences of the consumers, which would help them anticipate potential sales trends for their goods. They would also be able to identify with those clients who engage with them repeatedly and predict their buying patterns. This would help them stock up on their inventories. 

Growing Demand for Implementation of AI for Improving Supply Chain Processes

With supply chain continuing to be a major struggle to cope with in many F&B enterprises, AI can help bring about transparency in enterprise operations by managing the supply chain effectively. According to the United Nations Food and Agriculture Organization (FAO), nearly 1.3 billion tons of food produced, which accounts for an estimated one-third of the world's food produced for human consumption, goes waste each year. Food losses and waste were high in industrialized countries while food losses and waste were estimated at USD XXX billion in developing countries. Because of these reasons, AI may play an important role in monitoring food and beverages from the farmer, producer, and distributor until the supply chain ends. AI will help track the goods and also help to ensure that the food consumed is healthy by recognizing any particularities.

Requirement for Automated Sorting Of Food Products

Industries take considerable time to figure out the food items and materials. AI will help companies conduct fast and effortless sorting, as the sensor-based optical sorting technique that it applies can save companies significant time and effort on sorting. By automated sorting, the businesses will also be able to reduce labor costs. Therefore, businesses have a huge opportunity to make money by reducing waste and increasing yields, therefore ensuring better quality.

Restraint

Stringent Regulatory Compliances related to Food and Safety Processes

Food and beverage manufacturers face the challenge of meeting strict food and safety-related regulatory compliances. In fact, there is a need to monitor the inventory and ensure the quality of food at all times, as these entail significant operational costs. Because of these factors, companies run the risk of huge financial losses.

Higher Costs of Upgradations of Machines/Equipment

Thus automation in food processing and packaging is considered to increase productivity and efficiency, with machines performing the tasks continuously at a faster rate, these machines must be continually upgraded or new acquisitions of equipment must be made to meet customers ' demands. The high cost of such machines engaged in food processing and packaging will prolong the decision-making process as to how to proceed further for organizations.  

Global AI in Food & Beverage Market: Application

On the basis of its application, the market is segmented into food processing, quality control, customer interaction, production & packaging, maintenance and so on, from which the production and packaging segment is expected to hold the largest market share, due to the increasing demand for a variety of modern and ready-made packaging as demand for food exports is picked up, need to be achieved.

Global AI in Food & Beverage Market: Regional Insights

On the basis of regional analysis, the global artificial intelligence in food and beverages market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in North America is estimated to occupy the highest market share, owing to the general preference and enthusiasm shown by the general population in the region towards adopting AI in food and beverages. Agriculture and its allied industries that include food and beverages have created about 21.6 billion jobs that covers nearly 11% of the employment in the United States of America. The market in Asia Pacific region especially in countries such as China and India is anticipated to grow at a high rate, owing to AI in Food and Beverages Industry being embraced by market players in the region at a faster rate.

Competitive Landscape

Artificial intelligence in Food & Beverage market is fragmented owing to the presence of number of large-sized companies, mid-sized & small-sized companies, and many start-ups that provide artificial intelligence in Food & Beverage industry. However, the companies that hold the majority share of artificial intelligence in Food & Beverage market are Raytec Vision SpA, Rockwell Automation Inc., ABB Ltd, Honeywell International Inc., Key Technology Inc., TOMRA Sorting Solutions AS, GREEFA, Sesotec GmbH, Martec of Whitell Ltd, Sight Machine Inc. and Other Prominent Players.

Recent Development

·      March 2019 - TOMRA Sorting Recycling has released TOMRA Insight, a cloud-based data application that opens new opportunities  for users of equipment to be sorted. This can turn the sorting from an automated method into a fact-based decision-making management tool at every stage of the value and supply chain.

·     August 2018 - VERYX wireless sorters for fresh-cut leafy greens were introduced at Key Technology. VERYX is the only belt-fed  sorter in the world capable of inspecting fully in-air product with top and bottom sensors to detect and remove both foreign materials (FM) and product defects. These integrated VERYX systems are specifically designed to deal with the challenges of sorting leafy greens by incorporating Key's experience in sorting and conveying.

Scope of the Report

By Application

·         Food Sorting

·         Quality Control and Safety Compliance

·         Consumer Engagement

·         Production & Packaging

·         Maintenance

·         Other Application

By End-User

·         Food Processing Industry

·         Hotel & Restaurant

·         Beverages Industry

By Region: 

·         North America

·         Europe

·         Asia Pacific

·         Latin America

·         Middle East & Africa

The objective of the Study:

·         To analyze and forecast the global AI in Food & Beverage market size of the market in terms of value.

·         To examine the careful market segmentation and forecast the market size, in terms of value, based on the region by segmenting.

·         The Global AI in Food & Beverage market segmented into five regions, namely, North America, Europe, Asia Pacific, Middle East,       South America, and their leading countries.

·         To outline, categorized, and forecast the global AI in Food & Beverage market based on the application, and end-user coupled with     the region.

·         To examine competitive developments like technological advancement, services, and regulative framework within the global AI in       Food & Beverage market.

·         To highlight the impact analysis of the factors affecting the market dynamics such as drivers, restraints, opportunities, and               challenges.

·         To strategically profile the key players and comprehensively analyze their market shares along with detailing the competitive             landscape for market leaders.