Artificial Intelligence (AI) in Food and Beverage Market to Surpass USD 179.8 Billion by 2032, at 38.65% CAGR: Astute Analytica
AI is transforming the food & beverage market, boosting sales and efficiency. From optimized supply chains to personalized recommendations, AI is driving a $4.5 billion annual growth in North America alone.
New Delhi, March 21, 2024 (GLOBE NEWSWIRE) -- As per the latest analysis by Astute Analytica, the global artificial intelligence (AI) in the food and beverage market was valued at US$ 9.5 billion in 2023 and is projected to surpass US$ 179.8 billion by 2032, with a robust CAGR of 38.65% during the forecast period 2024–2032.
The food and beverage industry has been quick to adopt AI. This adoption is fueled by the demand for personalization, increasing competition, and the need for efficiency. By the end of 2023, over a whopping 3.5 million restaurants worldwide will use artificial intelligence in one form or another. And more than 700,000 cafes around the world are using AI-based systems to track customer preferences and recommend products based on them. AI technology is not only transforming customer experiences but also production processes too. Machines with artificial intelligence can now manage over 80 million tons of food every year! Using advanced visual recognition, these machines sort out food items according to their quality standards. With more than 1.2 million farms worldwide currently using AI in their operations - mainly through drone-based crop monitoring and yield prediction analytics - it's clear that farmers are also embracing this technology.
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Approximately 15% of breweries and wineries in the global artificial intelligence (AI) in food and beverage market have already integrated AI into their brewing and winemaking process to optimize them, while around 10,000 cafes leverage AI for their personalized product recommendations. The result? Over a billion liters of high-quality craft beer produced using precise, AI-driven methods. Apart from this, AI’s integration into supply chains across the beverage sector has also been quite impressive as well as efficient: leading to $50 billion savings in just two years from route optimization algorithms which are powered by artificial intelligence (AI), accurate demand forecasting models, and food waste reduction programs.
In addition, nearly 10,000 food apps have been developed that run on various algorithms trained with machine learning techniques so they can tell consumers what decisions to make about their meals – at least 5 million consumers benefit from this service daily.
*Key Findings in the Artificial Intelligence (AI) in Food and Beverage Market *
Market Forecast (2032) US$ 179.8 billion
CAGR 38.65%
Largest Region (2023) North America (38.4%)
By Application Production Optimization (38.5%)
By Offering Software (74.3%)
By End Users Food Processing Industry (49.8%)
By Enterprise Size Large Enterprise Size (75.2%)
By Deployment Cloud (63.6%)
Top Trends · Hyper-personalization of food and beverage experiences
· AI-driven optimization throughout the supply chain
· Enhanced food safety and quality control through AI
Top Drivers · Consumer demand for tailored recommendations and convenience
· Rising pressure to increase efficiency and reduce costs
· Growing focus on sustainability and waste reduction
Top Challenges · Concerns about data privacy and security
· Potential job displacement due to automation
· High initial investment costs for AI implementation
*Food Processing Industry is Largest Consumer in AI in Food and Beverage Market, Contribute Over 49.8% Market Share *
Food manufacturing is an industry that’s quickly making a change with the help of AI. It’s improving food safety, quality control, and operational efficiency at rapid rates. Companies are beginning to use AI to automate tasks like sorting and packaging which in return reduces labor costs for them. AI systems analyze large sets of data to give businesses insights on how they can optimize their production schedules and supply chains. Moreover, AI is quickly becoming the go-to for companies in the artificial intelligence (AI) in food and beverage market looking to get ahead of the curve when it comes to innovation in the food industry as well. For example, Nestlé and other startups are using AI to create personalized food experiences that customers will love by analyzing ingredient data along with consumer preferences. Its predictive capabilities also allow companies like Coca-Cola and Starbucks to anticipate market trends when developing new products.
Though it may not be something we think about everyday - sustainability and waste reduction has always been an issue in this industry. However, thanks to AI, manufacturers are able to use resources more efficiently than ever before throughout every stage of production from equipment cleaning all the way through precision agriculture. This ultimately maximizes crop yields while minimizing environmental impact along the way.
*Stronger Demand for AI Services Over Software, Controls Over 74.3% Revenue Share*
Food and beverage businesses in the global artificial intelligence (AI) in food and beverage market prefer AI services more than software. This is because of how useful AI can be in developing new products, predicting flavors and textures, and helping to deliver on consumer demands quickly. Bigger companies are the leaders in the market right now, but smaller-sized enterprises are starting to adopt AI tools. They want to improve their ability to compete with larger enterprises. People like AI services because they allow for real-time monitoring, better-quality control, and a more personal experience for every customer. In this market, product quality and safety are super important so it’s no wonder that segments like quality control & inspection and food & beverage manufacturers dominate the market right now. But, there is also a lot of focus being put into improving supply chain management by using artificial intelligence programs that help with inventory forecasting and logistics efficiency.
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*Large Enterprises as Key Consumers of AI in the Food & Beverage Market*
Large enterprises have been the primary consumers of artificial intelligence (AI) in food and beverage market, holding a significant market share. In 2023, they dominated the AI market with more than a 75% share. This dominance is attributed to their substantial resources and capabilities, which allow them to invest in and implement AI-driven solutions across various aspects of the industry. A study by Astute Analytica found that these companies are beginning to notice the potential growth from working together with smaller businesses. Plenty of other industry trends show an emphasis on using technology to streamline certain aspects of business too.
However, while large enterprises still dominate artificial intelligence in the food and beverage sector, small and medium-sized enterprises (SMEs) are increasingly adopting cheaper AI tools. This lets them optimize their own operations, make better decisions on their own, grow within the market, and establish themselves faster as well. As AI continues to evolve and become easier for everyone to access, this imbalance between large-scale adoption rates will decrease substantially.
*North America is Leading Charge of the Global AI in Food and Beverage Market, Holds Over 38% Market Share*
North America is a leading consumer of artificial intelligence (AI) in food and beverage market, with large enterprises being the key adopters. The market is growing rapidly and the United States has played a big part in it. Just last year, AI advancements caused massive growth for the country's food and beverage industry. Supply chain optimizations that run on AI made it so sales increased by $3 billion. Additionally, Non-alcoholic drinks saw a 25% boost from AI-optimized ones which added another $1.5 billion to the industry as well. As of 2022, around 2,000 AI-driven food startups were initiated in the U.S. in 2022 alone. On the other hand, about 120 restaurants in Toronto now employ AI-based customer feedback systems.
North America has a big impact on artificial intelligence (AI) in food and beverage market and is expected to continue growing at breakneck speeds over the next decade. A study done by Astute Analytica says that “AI technology is rapidly being embraced by North American consumers.” 15 million people across this region had taken advantage of personalized food recommendations just earlier this year.. And U.S continues to be a driving force in making new ‘cutting-edge’ solutions specifically designed for food and drink markets.
*Global AI in Food & Beverage Market Key Players*
· ABB Ltd.
· Honeywell International Inc.
· INTELLIGENTX Brewing Co.
· Key Technology Inc.
· Milltec Clarfai, Inc.
· Raytec Vision SpA
· Rockwell Automation Inc
· Sight Machine Inc.
· TOMRA Sorting Solutions AS
· Other Prominent Players
*Key Segmentation:*
*By Application*
· Flavor Development
· Liquid Flavor
· Dry Flavor
· Food Market Analysis
· Brand Analysis
· Consumer Engagement
· Market Analysis
· Production Optimization
· Quality Control
· Waste Reduction
· Maintenance
· Supply Chain Management
· Storing
· Food Sorting
· Packaging
*By Offering*
· Software
· Services
*By Deployment*
· Cloud
· On-Premises
*By Enterprise Size*
· Large Enterprises
· Small and Medium Enterprises
*By End User*
· Food Processing Industry
· Food Retail
· Beverage Industry
· Agritech
*By Region*
· North America
· Europe
· Asia Pacific
· Middle East & Africa
· South America
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*About Astute Analytica*
Astute Analytica is a global analytics and advisory company which has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in depth and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising of business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost-effective, value-added package from us, should you decide to engage with us.
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Website: https://www.astuteanalytica.com/*
CONTACT: Vipin Singh
BSI Business Park, H-15,Sector-63, Noida- 201301- India
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
Email: sales@astuteanalytica.com
Website: https://www.astuteanalytica.com/