Food traceability market to reach $14.1bn by 2020

PORTLAND, Oregon, USA - Food traceability is becoming a standard for food producers across the globe as a result of consumer demands and government regulations concerning food safety. It is even more critical with the globalisation of the food market. Opportunities for suppliers of tracking technologies lie especially in developing countries.

Allied Market Research, in its latest report, Food Traceability Market (Tracking Technologies) Global Industry Analysis, Size, Share, Trends, Opportunities and Forecast, 2012 – 2020, expects the global food traceability market (tracking technologies) to grow at a CAGR of 8.7% during the analysis period, to reach $14.1 billion in revenue by 2020.

Of all tracking technologies, RFID technology is forecast to grow at the highest rate of 19.4%. The reason for the high growth rate of RFID is real-time tracking of food items irrespective of weather conditions or location. Accurate read-write ability in complex environment is also a significant advantage of this technology.

Installation of food traceability system requires huge upfront investment, and this may put small players at a disadvantage. But growing awareness and technological advancements leading to lesser investments will overcome this restraint, thus reducing impact on the market in the future. One of the segments discussed in the market research is the end-users of the market such as food producers, retailers, warehouses, transportation companies, etc. Food manufacturers are expected to generate maximum revenue of $5.4 billion by 2020 at a CAGR of 11.5% during the analysis period. Another segment of the report discusses the equipment market of food traceability such as 1D and 2D scanners, sensors, tags and labels and PDAs with GPS. The sensors are expected to grow at the highest rate among all the equipment at a CAGR of 10.5% from 2012 to 2020.

The geographic segment of the food traceability market covers North America, Europe, Asia Pacific, and Rest of the World (RoW). North America is expected to generate maximum revenue by 2018 however; Asia Pacific will take over the North American market by 2020. North America is expected to generate $4.4 billion by 2020 at a CAGR of 4.6% during the analysis period. Asia Pacific is expected to have the highest revenues by 2020 as it is expected to grow at a CAGR of 16.7% during 2013-2020.

The market research also offers an updated review on the present major market players such as Honeywell, C.H. Robinson, DuPont, Intermec, Motorola Solutions, Cognex, Mass Group, Bio-Rad Laboratories, IBM Corp and Zebra Technologies.