Food Traceability Market size See Incredible Growth during 2030



The global food traceability market size is expected to grow from USD 14,185 million in 2020 to USD 24185.2 million by 2027, at a CAGR of 9.3% from 2021 to 2027. Food traceability is a risk-management device used to check potential harm associated with food, food-producing animals, substance, and feed. This is meant to ensure food safety completes all the food manufacture, distribution, and processing stages. Food traceability involves food business authority to recall or drop out products considered unsafe and allows accurate data to the public. Food traceability avoids the transmission of disease from animals to humans. It controls the presence of certain chemicals above fixed limits, which would threaten the quality of products related to feeding & food if in excess.

Moreover, growth in globalization enhances the complexity of the supply chain process (from harvest to final sale), leading to high chances of food contamination. This is expected to grow the demand for food traceability and tracking technologies. It ensures the quality and safety of the food supplied, enhances rapid and precise product recall, and accurately tracks contamination causes. Additionally, the adoption of traceability systems is expected to improve supply chain efficiency by providing detailed historical data about conditions, the flow of goods, handling, and timings.

Traditionally, the food traceability (tracking technologies) market has been governed by retailers, but soon food manufacturers are expected to overtake them in terms of growth rate in revenue. The food traceability system holds a significant position in the food industry, as this industry possesses the highest risk of a product recall, which incurs substantial financial losses. The recall of a product also damages the brand image and product quality perception.

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Global Food Traceability Market Dynamics

Drivers: Traces contamination and assists product recalls

Food safety is of prime concern in the food industry, as it directly affects consumers’ health. Demand for food traceability has increased owing to the high incidence of food-borne diseases in the recent past. For instance, as per the World Health Organization estimates, one out of 10 people falls ill due to contaminated food, and 420,000 deaths occur due to food-borne diseases every year. Food production involves various stages, and there are multiple players involved in the food chain, belonging to any region or country due to the globalization of the food market. It is therefore essential to trace the source of contamination, which will assist in food recall events. Food recalling is a costly exercise for producers, and thus they also stress implementing traceability, which makes it a key driver for the food traceability (tracking technologies) market.

Restraints: Associated cost

Traceability system adoption requires capital investment, which is a major hindrance for all supply chain participants, especially small players. The system requires financial resources and physical infrastructure for implementation, which small players lack. This is a major restraint for big food producers, as the system does not show the return on investment (ROI) in quantifiable terms. Companies need to foresee the returns for any investments, which is a major limitation in traceability unless there is a food recall situation.

Opportunities: High demand for tracking technologies in emerging economies

Unlike North America and Europe, the adoption rate of food traceability systems is low in emerging economies. Still, consumers in these developing nations have an increased awareness of food safety due to access to information through the internet and open communication systems. This has led to increased customer demand for food traceability (tracking technologies) in these countries. China, India, Brazil, Japan, and others have formulated food traceability regulations, such as Food Safety Law of the People’s Republic of China (2009), Food Sanitation Law in Japan (2003), and more, wherein few have formulated laws pertaining to a specific food category. India has implemented traceability for its dairy products market as it is a high turnover category. It looks forward to including other food products in the food traceability chain, leading to a spillover effect on other food products. The demand for food traceability will increase. The emerging nations offer numerous growth opportunities to the food traceability companies for expansion.

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Scope of the Report

The study categorizes the food traceability market based on equipment, technology, application, end-users, and region.

By Equipment Outlook (Sales, USD Million, 2017-2027)

  • PDA with GPS
  • Thermal Printers
  • 2D & 1D Scanners
  • Tags & Labels
  • Sensors
  • Others

By Technology Outlook (Sales, USD Million, 2017-2027)

  • GPS
  • Barcode
  • Infrared
  • Biometrics

By Application Outlook (Sales, USD Million, 2017-2027)

  • Meat & Livestock
  • Fresh Produce & Seeds
  • Dairy
  • Beverages
  • Fisheries
  • Others

By End-Users Outlook (Sales, USD Million, 2017-2027)

  • Food Manufacturers
  • Warehouse/Pack Farms
  • Food Retailers
  • Defense & Security Departments
  • Other Government Departments
  • Others

By Region Outlook (Sales, USD Million, 2017-2027)

  • North America (US, Canada, Mexico)
  • South America (Brazil, Argentina, Colombia, Peru, Rest of Latin America)
  • Europe (Germany, Italy, France, UK, Spain, Poland, Russia, Slovenia, Slovakia, Hungary, Czech Republic, Belgium, the Netherlands, Norway, Sweden, Denmark, Rest of Europe)
  • Asia Pacific (China, Japan, India, South Korea, Indonesia, Malaysia, Thailand, Vietnam, Myanmar, Cambodia, the Philippines, Singapore, Australia & New Zealand, Rest of Asia Pacific)
  • The Middle East & Africa (Saudi Arabia, UAE, South Africa, Northern Africa, Rest of MEA)

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2D & 1D scanners segment, by equipment, is accounted for the highest market revenue share in 2020

The global food traceability market has been segmented into personal digital assistance (PDA) with GPS, thermal printer, two-dimensional (2D) & one-dimensional scanners, tags & labels, sensors, and others, by equipment. 2D & 1D scanners accounted for the highest market revenue share of 36.1% in 2020. The use of barcodes, data-matrix codes, QR codes, and dot codes is mandatory on packaging used in food, beverage, pharmaceutical, personal care, and other industries. This has led to an increase in demand for the implementation of traceable solutions, such as barcode scanners across various sectors, which display information in a format that can be read electronically. Thus, 2D & 1D scanners must read the data on barcodes, data-matrix codes, QR codes, and dot codes and retrieve information about the item. The information received by the scanner from these codes includes the date of manufacturing, expiry date, package quantity, name of product, unit of measure, and others. The scanners help to maintain track of the inventory level and control over stock and food contamination. 2D & 1D scanners for food traceability are more prevalent in the retail segment of the food market.

Asia Pacific accounts for the highest CAGR during the forecast period

Based on the regions, the global food traceability market has been segmented into North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. Asia-Pacific is a dynamic and diversified region exhibiting the fastest growth of the food traceability (tracking technologies) market. It is expected to grow at a CAGR of 14.9% during the forecast period. This is attributed to booming application industries, including fisheries, fresh produce & seeds, and meat & livestock. The strong demand for food traceability (tracking technologies) in Asia-Pacific has led to the entry of various companies, especially in China, India, and other emerging economies. Food retailers, food manufacturers, and warehouse/pack farms are the leading end-users, with 35.6%, 35.3%, and 13.4% shares, respectively, in the Asia-Pacific food traceability (tracking technologies) market in 2017. 2D & 1D scanners and tags & labels were the key equipment used in the region, while barcode & RFID/RTLS are the core technologies presently used and expected to be used during the forecast period. Recent advancements in information & communication technology have led to significant enhancements in food safety and related activities in the Asia-Pacific region.

For instance, QR codes on food items help customers monitor food safety by tracking products from farm to supermarket check-out, thereby facilitating better food traceability. Asia was a late entrant into the food traceability (tracking technologies) market, but the demand for food traceability has increased due to increasing awareness about food safety. In addition, the government of China and Japan have implemented stringent norms for food traceability. However, the market growth is affected due to the lack of expertise relating to the processes and techniques used in the food traceability (tracking technologies) market.

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Key Market Players

Comprehensive competitive analyses of leading market players, including Bio-Rad Laboratories, Inc., Cognex Corporation, CH Robinson Worldwide Inc., Motorola Solutions, Inc., Honeywell International Inc., SGS SA, Zebra Technologies Corporation, MASS Group Inc., International Business Machines Corporation, and E. I. Du Pont de Nemours and Company (DuPont).

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