Food Traceability Market to Hit USD 48.5 Billion by 2035, Registering 9.2% CAGR

Food Traceability Market was valued at USD 18.4 billion in 2024 and is projected to reach USD 48.5 billion by 2035, growing at a CAGR of 9.2% from 2025 to 2035.

INDORE, INDIA, April 21, 2025 /EINPresswire.com/ -- The Food Traceability Market is driven by a combination of factors, including stringent government regulations aimed at ensuring food safety, growing concerns over foodborne illnesses, and increasing consumer demand for transparency in the food supply chain. As consumers become more aware of the importance of knowing where their food comes from, food producers and suppliers are adopting traceability systems to meet these demands. Technological advancements, such as blockchain, RFID, and IoT, have made it easier to implement these systems, enabling real-time tracking of food products from their origin to the consumer. The globalization of food trade has further complicated supply chains, making accurate traceability even more essential. These systems not only improve food safety and quality but also help optimize supply chains, reduce waste, and prevent fraud. Additionally, they support sustainability goals by minimizing food loss, promoting ethical sourcing, and ensuring efficient resource management. As businesses and consumers increasingly prioritize sustainability and accountability, the food traceability market continues to grow and play a vital role in the modern food industry.

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Market Restraint

Market Trends

Increasing Consumer Demand for Transparency and Responsibility

As consumers become more conscious of the food they consume, there is a growing demand for transparency regarding the origins, production processes, and safety standards of their food. This demand is primarily driven by concerns over food quality, sustainability, and ethical practices. Consumers want to know where their food comes from, how it is produced, and whether it adheres to safety regulations. In response, companies are increasingly investing in advanced food traceability systems that allow them to track products from farm to table. These systems provide detailed information about the food supply chain, ensuring that companies can verify and demonstrate the safety, quality, and ethical standards of their products. As a result, food traceability has become a key factor in building consumer trust, and companies that implement these systems are gaining a competitive edge in the market. This shift towards greater accountability not only promotes consumer confidence but also supports sustainability efforts and compliance with regulatory standards, driving the growth of the global food traceability market. For instance, in November 2024, tthe FDA plans to extend the compliance date for the Food Traceability Rule by 30 months, with the new date set for January 2026. This rule, part of the FDA’s New Era of Smarter Food Safety Blueprint, mandates additional traceability record-keeping for foods on the Food Traceability List (FTL). It requires manufacturers, processors, packers, or holders of these foods to maintain records of Key Data Elements (KDEs) related to Critical Tracking Events (CTEs) and share information with the FDA within 24 hours in case of food safety concerns. The rule aims to enhance traceability across the entire food supply chain, helping to quickly identify and remove contaminated products, thereby reducing foodborne illnesses.

Necessity for Ensuring Food Safety and Safeguarding Consumer Health

The need for food safety and consumer protection has become increasingly critical due to the growing number of foodborne illness outbreaks, contamination incidents, and product recalls globally. These challenges highlight vulnerabilities in the food supply chain and underscore the importance of robust traceability systems. Implementing such systems enables companies to quickly identify the source of a problem, isolate affected batches, and remove contaminated products from shelves with minimal delay. This rapid response not only prevents further harm to consumers but also helps maintain public trust and brand reputation. Furthermore, regulatory authorities worldwide are imposing stricter food safety standards, making traceability a vital compliance tool. As a result, the growing focus on consumer health, transparency, and regulatory adherence is accelerating the adoption of advanced traceability technologies, significantly contributing to the growth of the global food traceability market. According to the Food and Agriculture Organization Org., in May 2024, foodborne infections, resulting from bacteria, viruses, parasites, or toxins, influence 600 million individuals globally, accounting for 10% of diseases and 420,000 fatalities each year. It impairs trade, tourism, economies, healthcare systems, and socioeconomic growth.

• High Implementation Costs: High implementation costs pose a significant barrier to the growth of the food traceability market. Integrating advanced technologies such as blockchain, RFID, and IoT requires considerable investment in software, infrastructure, and workforce training. For small and medium-sized enterprises (SMEs), these expenses are often unaffordable, making it challenging to adopt and implement traceability systems effectively. This financial strain leads to delayed or limited adoption, particularly among smaller players, resulting in inconsistent traceability practices across the supply chain. Consequently, the overall effectiveness of food traceability efforts is reduced, slowing market growth and limiting broader industry acceptance.

• Complex and Fragmented Supply Chains: The global nature of food supply chains involves multiple intermediaries, each utilizing different systems and standards. This fragmentation complicates the seamless integration of traceability systems, leading to potential data gaps and inefficiencies.
Opportunities

• Technological Advancements: The integration of technologies such as blockchain, Internet of Things (IoT), Radio Frequency Identification (RFID), and artificial intelligence (AI) is revolutionizing food traceability. These technologies enhance tracking and monitoring capabilities, ensuring authenticity and quality. For instance, AI combined with satellite data is being utilized to monitor deforestation linked to food production, aiding compliance with regulations like the European Union’s Deforestation Regulation (EUDR).

Market Segmentation and Growth Areas

The RFID segment is expected to dominate the market, holding the largest share

The Radio-Frequency Identification (RFID) segment is projected to hold the largest share in the global food traceability market due to its superior ability to streamline tracking processes across the entire supply chain. RFID technology allows for real-time data collection and automatic identification of products without direct line-of-sight, which significantly enhances operational efficiency compared to traditional barcoding systems. Its ability to store and transmit detailed product information such as origin, storage conditions, and handling history enables greater transparency, accuracy, and accountability. For instance, in October 2022, Avery Dennison is partnering with Kroger to enhance inventory management through RFID technology. By embedding RFID labels on bakery items, the collaboration will improve inventory accuracy, maximize freshness, reduce waste, and optimize associates' time. This initiative aims to improve both the customer and associate experience, with plans to expand it across all fresh categories in the future. The partnership underscores Avery Dennison's commitment to leveraging RFID to provide better data accuracy and operational efficiency in the retail sector.

The beverages segment is expected to capture a significant share of the market

Consumers are increasingly demanding transparency in food production, handling, and transportation. They seek real-time data on shipments to build trust and ensure safe handling, which is driving the growth of the market. This demand is reshaping the food supply chain, with technology playing a central role. Advancements like blockchain, IoT devices, and GPS tracking systems are enabling real-time tracking of shipments and ensuring the safety and quality of food products. For instance, in March 2024, Sojo Industries launched Sojo Shield, an innovative track-and-trace platform designed to help food and beverage brands comply with the FDA’s Food Safety Modernization Act (FSMA). This blockchain-based, geo-location tracking software provides real-time data on critical events such as shipping, receiving, and transport. Sojo Shield allows brands to track product information, quality, and location, ensuring quick responses to issues like foodborne illnesses or safety concerns.

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Regional Outlook

The global food traceability market is further divided by geography, including North America (the US and Canada), Asia-Pacific (India, China, Japan, South Korea, Australia and New Zealand, ASEAN Countries, and the Rest of Asia-Pacific), Europe (the UK, Germany, France, Italy, Spain, Russia, and the Rest of Europe), and the Rest of the World (the Middle East & Africa, and Latin America).
Regulatory Compliance and Government Initiatives in North America

The FDA's Food Safety Modernization Act (FSMA) and global food safety standards are significantly influencing U.S. companies to enhance their traceability systems. The FSMA, which emphasizes proactive measures to prevent foodborne illnesses, encourages companies to implement robust tracking mechanisms that ensure food safety and quality throughout the supply chain. As food safety regulations become stricter, businesses are increasingly required to demonstrate the ability to trace products back to their source, allowing for quick identification and resolution of any potential risks. On a global scale, food safety standards are driving market growth by promoting uniformity and compliance across international markets, urging companies to adopt traceability solutions that meet multiple regulatory requirements. For instance, in January 2024, SpartanNash launched the ReposiTrak Traceability Network to enhance food safety and transparency across its global supply chain. This new program allows real-time exchange of traceability data between suppliers, distribution centers, company stores, and independent grocer customers. By requiring hundreds of suppliers to share traceability data, SpartanNash ensures that each product's journey is tracked, improving recall efficiency and reducing food waste. The program also supports the company's broader environmental, social, and governance (ESG) initiatives, and it is part of the world’s largest compliance network with over 110,000 facility connections in more than 100 countries.

Asia-Pacific Holds Major Market Share

The rapid growth of e-commerce in food supply chains is significantly reshaping the food industry as consumers increasingly demand higher standards for food safety and transparency. With growing awareness about the origins, quality, and handling of the food they purchase, consumers now expect detailed information about sourcing and transportation, especially when buying food online. This shift is driving the need for advanced traceability systems that allow companies to track food products in real-time from farm to table, ensuring quick identification and resolution of safety concerns like contamination or recalls. Real-time tracking not only helps mitigate risks but also enhances consumer trust and product credibility, as transparency in sourcing and handling becomes a key competitive advantage. To meet these demands and comply with global regulations, businesses are investing in cutting-edge technologies such as blockchain, RFID, and IoT to maintain accurate records and demonstrate their commitment to food safety, quality, and sustainability. As a result, traceability systems are playing an essential role in transforming how food is produced, distributed, and consumed, contributing to the overall growth of the food traceability market. According to the India Brand Equity Foundation (IBEF), the Indian e-commerce industry is projected to reach $325 billion by 2030, with third-party logistics providers managing 17 billion shipments. The e-retail market is expected to surpass $160 billion by 2028, with online spending accounting for 5-6% of total retail spending. Additionally, the India quick e-commerce market is set to reach $19,932.5 million.

Market Players Outlook

The major companies operating in the global food traceability market include Bio-Rad Laboratories, Inc., Cognex Corp, Honeywell International Inc., IBM Corp., Zebra Technologies Corp, and among others. Market players are leveraging partnerships, collaborations, mergers, and acquisition strategies for business expansion and innovative product development to maintain their market positioning.

Recent Developments

• In September 2024, the food industry formed a public-private traceability partnership to improve food traceability. The partnership aims to address the gap in the Food Traceability Rule, which requires coordination across sectors and business models. The partnership, which includes the FDA, and state, and local officials, aims to bring industry and regulators together to make critical implementation decisions and define a shared vision for food traceability.

• In October 2023, CAI Software and Trace Register partnered to improve traceability in the food industry, focused on integrated software solutions for enterprise resource planning (ERP), manufacturing execution systems (MES), eCommerce EDI (electronic data interchange), and warehouse management software (WMS). This partnership aims to enhance traceability in the food industry.

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Some of the Key Companies in the Global Food Traceability Market Include:

• C.H. Robinson Worldwide, Inc.
• Cision US Inc.
• Cognex Corp.
• Covectra, Inc.
• Datalogic S.p.A.
• Elsevier B.V.
• Intertek Group plc
• Mitsubishi Electric Engineering Co., Ltd.
• Optel Vision Inc.
• SDG Systems, LLC
• SYSPRO
• Trimble Inc.
• Trustwell
• Zebra Technologies Corp.
• Bar Code Integrators, Inc.
• SGS Société Générale de Surveillance SA.
• Zest Labs, Inc.

Food Traceability Market Segmentation Analysis

Global Food Traceability Market by Technology Type

• Radio-Frequency Identification (RFID)
• Barcodes
• Infrared
• Biometrics
• Global Positioning System (GPS)

Global Food Traceability Market by Software
• Enterprise Resource Planning (ERP)
• Laboratory Information Management Software (LIMS)
• Warehouse Software
• Friction Welding
• Others (Blockchain, RFID (Radio Frequency Identification))

Global Food Traceability Market by Application
• Meat & Livestock
• Fresh Produce Seeds
• Dairy Products
• Beverages Products
• Others (Fisheries, Grains, Nuts)

Global Food Traceability Market by End-User
• Food Manufactures
• Warehouse
• Food Retailers
• Others (Defense & Security, Government Departments)

Regional Analysis
• North America
o United States
o Canada
• Europe
o UK
o Germany
o Italy
o Spain
o France
o Rest of Europe
• Asia-Pacific
o China
o India
o Japan
o South Korea
o ASEAN Economies (Singapore, Thailand, Vietnam, Indonesia, and Other)
o Australia and New Zealand
o Rest of Asia-Pacific
• Rest of the World
o Latin America
o Middle East and Africa

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Anurag Tiwari
Orion Market Research Pvt Ltd
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