Global Food Traceability (tracking technologies) Market was valued at $10,086 million in 2016, and is expected to reach $18,528 million by 2023, registering a CAGR of 9.1% from 2017 to 2023. Food traceability (tracking technologies) comprises the ability to identify and validate various stages of the food chain from production to distribution. It involves recognizing the origin of the food and its destination, from where it will be distributed to different end users. This system is essential for food investigations and is crucial in global food trade as multi-ingredient food includes materials from variety of food chain & countries. This makes importers dependent upon traceability systems of other countries up to the point of import. The main applications of food traceability system include meat & livestock, fresh produce & seeds, dairy, beverages, fisheries, and others. The different equipment meant for supporting the system are PDA with GPS, thermal printers, 2D & 1D scanners, tags & labels, sensors, and others.
Legislative framework and certifications & standardizations are the key drivers for the global food traceability/tracking technologies market growth. This is due to the compulsion by different governments of several developed and developing countries to follow standards and laws related to food safety, which further support market expansion. Other factors that fuel the market are competitive edge & brand loyalty, tracing contamination & product recall, and flow of information upstream & downstream of supply chain.
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 for food safety. This has led to increase in consumer demand for food traceability (tracking technologies) in developing countries and growth opportunities to the food traceability companies for expansion. Associated costs and different needs for different food products are major factors that limit the market growth, which are expected to increase the price of related products, leading manufacturers to avoid food tracing to some extent.
The global food traceability (tracking technologies) market is analyzed based on equipment, technology, end user, application, and geography. Based on equipment, it is divided into PDA with GPS (Personal Digital Assistant with Global Positioning System), thermal printers, 2D & 1D scanners, tags & labels, sensors, and others. Technologies involved in this market are broadly categorized into radio frequency identification/real-time location system (RFID/RTLS), GPS, barcode, infrared, and biometrics. Applications included in this study are meat & livestock, fresh produce & seeds, dairy, beverages, fisheries, and others. The different end users of this market are food manufacturers, warehouse/pack farms, food retailers, defense & security departments, other government departments, and others. The market is analyzed based on four regions, namely, North America, Europe, Asia-Pacific, and LAMEA.
Top Investment Pocket
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 product recall, which incurs huge financial losses. The recall of a product also damages the brand image and product quality perception. Due to this reason, food manufacturers were among the earliest investors to adopt this technology. Moreover, the food traceability system holds high potential in the market due to perishable nature of its products and avoids unnecessary cost investment for extensive investigation to locate source of contamination. A warehouse facility possesses a decent growth rate along with highest chances of food contamination in the overall supply chain, thus being one of the most lucrative segments in the market. Food retailers are taking initiatives to ensure that each product is recorded on the food traceability system by partnering with technology providers. Thus, food retailer application is one of the lucrative segments that connects the consumers with the production and processing sectors.
Porter’s Five Forces Analysis
High Bargaining Power of Buyers
Food traceability concerns the health of consumers as consumption of contaminated food may lead to health issues. Therefore, consumers of the food market demand highly efficient traceability modules, and they are even ready to pay premium prices for it. Suppliers need to fulfill the rising demand of consumers. But suppliers of traceability technology or equipment do not directly deal with consumers; they have to deal with food producers, storage & transport companies, and retail stores. All these participants emphasize for a robust traceability as their processes affect the consumers. Government policies are also pro-consumer when it comes to food traceability. In the short term, buyers in emerging nations can have a low bargaining power due to lack of technological awareness and less pressure from governments in these regions. However, this continuous increase in demand for food traceability globally is expected to change in the long run, and suppliers will have to address the demands of buyers, thus increasing the buyers’ bargaining power. Therefore, the bargaining power of buyers in the food traceability (tracking technologies) market is high.
North America was the major contributor to global food traceability market in 2016, accounting for around 40% revenue share, and is expected to grow at a lucrative CAGR during the forecast period. Meat & livestock occupied almost 50% share of the market in 2016, followed by fresh produce & seeds. Major end users of the North American food traceability market are food manufacturers and food retailers
South Africa Food Traceability Market, 2015-2023 ($Million)
South Africa accounted for around 5% share of the LAMEA food traceability market, with $56 million in 2016, and is expected to reach $93 million by 2023, growing at a CAGR of 6.8%.
Key leading players operating in food traceability/tracking technologies industry are Honeywell International Inc., C.H. Robinson INC., DuPont Nutrition & Health, Intermec Inc., Motorola solutions, Inc., Cognex Corporation, MASS Group, Bio-Rad Laboratories, IBM Corp, and Zebra Technologies.
Other players in the value chain include HarvestMark-Trimble Navigation Ltd., FoodLogiQ, Verify Technologies, Fresh Surety, Verigo, Nima Labs, Inc., AstRoNA Biotechnologies, Controlant, and Helium.
- This report provides an extensive analysis of the current trends and emerging estimations & dynamics of the global food traceability market (tracking technologies) market.
- Comprehensive analysis of factors that drive and restrict the market growth is provided, along with future opportunities.
- Detailed analyses of food traceability in terms of equipment, technology, application, and end user assist in understanding the trending and potential key investment pockets in the market.
- Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to take profit-oriented business decisions and strengthen their supplier-buyer network.
- Extensive analysis of the market is conducted by following key product positioning and monitoring the top players within the market framework.
Food Traceability Market Key Segments:
- PDA with GPS
- Thermal Printers
- 2D & 1D Scanners
- Tags & Labels
- Food Manufacturers
- Warehouse/Pack Farms
- Food Retailers
- Defense & Security Departments
- Other Government Departments
- Meat & Livestock
- Fresh Produce & Seeds
- North America
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA