VANCOUVER — The global food traceability market size reached $4.54 billion in 2020 and is expected to register a significantly steady revenue compound annual growth rate by 2028, according to latest analysis by Emergen Research. The global food traceability market is expected to register a CAGR of 10.2% and revenue is expected to increase to $9.75 billion in 2028. Global food traceability market growth is steady as a result of the food industry maintaining a solid framework for optimal inventory levels and seamless operations. The legislative framework and certification of standardization are key factors supporting growth of the global food traceability market.
Market revenue growth is expected to be driven by rising demand for food traceability systems to identify necessary documentation and tracking for each stage of food processing. Increase in demand for important tools in the agri-food sector represents a very useful tool for analyzing, monitoring and managing the flow of products. Food safety concerns have become critical in some countries, especially those with lack of standards, regulations and stringent stipulations governing quality and safety of food and edible products in recent years. This has provided many food producers and operators, and even distributors, some extent of leniency in some countries with regard to following specific norms along the supply chain.
However, post the COVID-19 pandemic, a sizable number of consumers developed some level of fear related to what they eat and who has been in contact with what they consume. This has been playing a major role in a number of companies deploying additional safety measures in order to support brand value, increase consumer trust and drive revenues. This in turn has been adding a significant boost to demand across certain supply chains that have deployed the right measures and have built trust and enabled better traceability of food products.
Production and distribution of counterfeit products has become a major issue in the supply chain process of food traceability. Product falsification has raised issues which are affecting sales and profits of different food industries, and this along with need for high additional costs for adopting traceability solutions and systems are key factors restraining growth of the global food traceability market. Rapid shifts in consumer preferences and lack of technical systems are other factors expected to hamper growth of the global food traceability market to some extent.
COVID-19 Impact Analysis:
The COVID-19 pandemic had a significant impact on the food cold chain. Restrictions had a direct influence on the food supply chain, causing transport and seaport capacities to constrict, as well as an increase in freight shipping prices and also led to food supply shortage. Adoption of Electronic Data Exchange (EDI), Radio Frequency Identification (RFID) and blockchain has significantly impacted deployment of traceability systems as a result of the pandemic. Application of these solutions along the supply chain has had significantly positive impact on the performance of the food cold-chain and the trend is expected to continue going ahead.
Current Trends and Innovations:
Enhancement of quality control as well as food product monitoring in the cold chain with the help of Internet of Things (IoT) and analytical indicators that are being successfully deployed to ensure delivery of high-quality food products are key trends supporting revenue growth of the global food traceability market.
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