FOOD TRACEABILITY MARKET Challenges and Opportunities

There is a significant challenge faced by food manufacturers and suppliers in implementing food traceability systems due to the associated high costs. Setting up robust and efficient traceability systems requires sizable investments in infrastructure such as hardware, software, equipment, and personnel training. Small and medium enterprises in particular find it difficult to bear the heavy expenditure requirements. Moreover, maintaining and upgrading the systems over time calls for continuous monetary commitments. The costs scale up further with increasing complexity and scope of traceability needs across wide and fragmented supply networks. This poses a serious barrier against the wider adoption of traceability solutions especially in developing markets.

Food Traceability Market Opportunity - Advancements in technology improving traceability solutions

This market is witnessing major opportunities arising from rapid technological enhancements. Advanced software and IT systems with capabilities such as Blockchain, IoT, big data, and AI are making traceability solutions more affordable, effective, and user-friendly. The newest systems require minimal capital investments and offer pay-as-you-go operational models. This has boosted the appeal for technology-enabled traceability even among low budget firms. Furthermore, cloud computing is a boon as it shifts infrastructure ownership and maintenance costs from companies to technology providers. Novel technology solutions are also excelling at streamlining traceability processes, generating actionable insights and plugging supply chain inefficiencies.