Artificial Intelligence (AI) technologies are being continuously developed in order to help human-beings in various ways. Innovations in automation industry have started impacting the other industrial processes. Food and beverages industry is also transforming rapidly and has improved the different ways in which foods are being packaged and delivered. The food industry has, despite facing several challenges in order to move towards automation, managed to put several automatic processes into place. Several ways are being explored by food manufacturers to improve productivity through automation, whether it is actual processing or packaging of food.
The growth of the global AI in food and beverages market is driven by factors such as dynamic changes in buying pattern of consumers who are opting to prefer for food that can be supplied fast, including food that can be available easily and at economical costs.
The global artificial intelligence in food and beverages market is anticipated to grow at a robust CAGR over the forecast period i.e. 2020-2027. The market is segmented by application, organization size and by end user. On the basis of application, the market is segmented into food sorting, quality control, consumer engagement, production & packaging, maintenance & others, out of which, the production and packaging segment is anticipated to occupy the largest market share, on account of increasing demand for a variety of modern and ready-made packaging as demand for food exports is picking up, necessity to comply with hygiene related regulations, higher chances for human errors, while human-beings are involved in the process of food packaging. CLICK TO DOWNLOAD SAMPLE REPORT
The growing number of customers that are to be handled by food and beverage companies are challenging with every passing day and it requires tremendous efforts to engage with customers. Artificial Intelligence uses data obtained from past records by processing it using AI-enabled algorithms, so that the results related to sales can be predicted for a specified time. AI mainly assists the food manufacturers and retailers by helping them to understand their customers better. The companies will be able to identify the customers’ tastes and preferences, which would help them to predict the possible sales pattern for their products. They would also be able to identify with those customers who repeatedly engage with them and predict their buying patterns. This would help them to pile up their inventories accordingly.
With supply chain continuing to be a major struggle to cope up with in many F&B enterprises, AI can help bring about transparency in the working of enterprises by effectively managing the supply chain. According to Food and Agriculture Organization (FAO) of the United Nations, nearly 1.3 billion tonnes of food produced which accounts for an estimated one-third of the food produced in the world for human consumption goes waste every year. Food losses and waste amounted to roughly USD 680 billion in industrialized countries, while in developing countries, food losses and waste amounted to an estimated USD 310 billion. On account of these factors, AI can play an important part in tracking food and beverages starting from the farmer, manufacturer, distributor till the end of the supply chain. AI can help in tracing the products and also help in ensuring food that is consumed is safe by recognizing any peculiarities.
There is considerable time taken up by companies in sorting out the food items and products. AI can help companies to perform sorting quickly and without much effort, as the sensor based optical sorting technique applied by it can save companies considerable time and effort on sorting. The companies will also be able to decrease labour costs through automated sorting. Thus, there is a considerable opportunity for companies to gain by reducing waste and improved yields, thereby ensuring better quality is obtained.
The food and beverages manufacturers are faced with the challenge of having to meet stringent regulatory compliances related to food and safety processes. Additionally, there is a need for checking on inventory and ensuring food quality at all times as these involve huge costs for organizations. Due to such factors, organizations run the risk of facing huge financial losses.
While automation in food processing and packaging is considered to improve productivity and efficiency, with machines performing the tasks repeatedly at a faster rate, these machines have to be constantly upgraded or new equipment purchases have to be made in order to meet the expectations of the consumers. The high costs associated with such machines that are engaged in processing and packaging of food would delay the decision-making process as to how to proceed further for organizations.
The profitability of an organization depends upon its productivity and cost efficiency. The machine that works on artificial intelligence (AI) would be able to perform repetitive tasks with greater degree of accuracy as compared to human-beings that may cause organizations to adopt automation to optimize their costs. This could lead to loss of jobs for human-beings. As per a report published by International Labour Organization (ILO) in the year 2016, approximately 56 per cent of all employment in the five ASEAN nations comprising of Cambodia, Indonesia, The Philippines, Thailand and Vietnam are at a high risk of displacement, due to technology over the next decade or two. Nearly three in five jobs are anticipated to face a higher risk of automation.
Our-in depth analysis of the global artificial intelligence in food and beverages market includes the following segments:
On the basis of regional analysis, the global artificial intelligence in food and beverages market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in North America is estimated to occupy the highest market share, owing to the general preference and enthusiasm shown by the general population in the region towards adopting AI in food and beverages. Agriculture and its allied industries that include food and beverages have created about 21.6 million jobs that covers nearly 11% of the employment in the United States of America. The market in Asia Pacific region especially in countries such as China and India is anticipated to grow at a high rate, owing to AI in Food and Beverages Industry being embraced by market players in the region at a faster rate.
The global Artificial Intelligence in Food and Beverages market is further classified on the basis of region as follows:
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