FOOD TRACEABILITY MARKET Size and trends

Food Traceability Market Size and Trends

The global food traceability market is estimated to be valued at USD 18.82 Bn in 2025 and is expected to reach USD 32.43 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 8.1% from 2025 to 2032.

Key Takeaways of the Food Traceability Market:

• The radio frequency identification segment is expected to capture 32.4% of the market share by 2025.
• The enterprise resource planning (ERP) segment is projected to hold 27.6% of the market share by 2025.
• The food manufacturers segment is forecast to capture 38.7% of the market share in 2025.
• North America is projected to lead the global market with a 32.2% share in 2025, followed by the Asia Pacific region, which is expected to hold a 21.5% share in 2025.

Market Overview:

Growing international trade of food items and rising importance of food safety are some of the key factors driving the demand for food traceability systems. Various government bodies such as Food and Agriculture Organization (FAO) worldwide are imposing stringent norms to ensure transparency in food supply chain and prevent distribution of contaminated food products. This is further expected to positively influence the market. Strict regulations coupled with increasing demand for safety and quality of food products is boosting the adoption of traceability systems in the food industry.

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Key Developments:

• In May 2022, OPTEL Group, a global leader in supply chain traceability solutions across multiple industries, introduced Optchain—a suite of modular Intelligent Supply Chain (ISC) solutions tailored for the food and beverage industry. Optchain is specifically designed to address the upcoming food traceability mandates for all supply chain stakeholders, ensuring compliance with the U.S. Food and Drug Administration's key update to the Food Safety Modernization Act (FSMA), particularly Section 204.
• In December 2020, Honeywell International Inc. acquired Rebellion Photonics (USA), a U.S. based company specializing in advanced visual gas monitoring solutions. These innovative systems enhance safety, optimize operational performance, reduce emissions, and ensure compliance across the oil and gas, petrochemical, and power industries. Honeywell International Inc. operates in various industries, including aerospace, building technologies, performance materials, safety solutions, and industrial automation. Honeywell is recognized for its innovation and commitment to sustainability, providing solutions that improve efficiency, safety, and reliability in a range of applications.

Top Strategies Followed by Global Food Traceability Market Players

• Established Players: Leading companies in the market focus heavily on research and development to innovate advanced traceability solutions
• For instance, companies like Thermo Fisher Scientific, C.H. Robinson, and SAP invest over 5% of their annual revenues in R&D activities. This allows them to develop real-time data integration platforms, IoT-enabled sensors, and Blockchain technologies to enhance food safety and supply chain transparency.
• Mid-level Players: Mid-sized companies look to target price-sensitive customer segments by delivering cost-effective traceability offerings. They leverage less expensive technologies and optimize production processes to provide quality systems at competitive rates. For example, companies such as Zebra Technologies work with local technology startups and manufacturers to build low-cost radio frequency identification (RFID) tags and QR code scanners for their solutions.
• Small-scale Players: Emerging entrants focus on specific industry niches or geographical markets where large corporations have limited presence. They specialize in verticals like organic foods, seafood, or certain regional cuisines. This allows niche expertise and customized solutions tailored to the demands of their target audiences. Some also leverage mobile and cloud-based platforms to penetrate markets with limited access to advanced on-premise infrastructure.

Emerging Startups - Food Traceability Industry Ecosystem

• Innovative Technologies: Startups in the food traceability sector are deploying advanced technologies such as Blockchain, IoT, and artificial intelligence (AI) to revolutionize how food is tracked and monitored. For instance, Provenance, a U.K.-based company, utilizes Blockchain to provide real-time tracking of products from origin to consumption. Similarly, U.S.-based company, IBM Food Trust, integrates IoT and AI to ensure the reliability of food supply chains, enhancing trust between producers and consumers. These technologies not only improve efficiency but also help combat food fraud and contamination by providing immutable records and predictive analytics.
• Sustainable Solutions: Sustainability is at the heart of many emerging startups in the food traceability market. Companies are prioritizing eco-friendly practices that reduce waste, lower carbon footprints, and promote responsible sourcing. For example, startup, Mimica, based in the U.K., has developed smart labels that indicate food freshness, reducing unnecessary food waste. Another innovative player, Connecting Food, based in France, enables transparency through Blockchain, ensuring that consumers can trace their food to sustainably managed sources. By integrating traceability with sustainability, these startups address both consumer demands and environmental concerns.