Dev Pro Journal
TSPs with expertise in track-and-trace technologies have the opportunity to grow their businesses in the field of food traceability.
Food traceability is garnering attention – and all that attention is resulting in IT spend. ResearchAndMarkets reports that the global market, valued at 16.46 billion in 2021, will grow to USD 29.22 billion by 2027, a 10.04 percent CAGR.
A close look at what’s driving the market will convince you that it’s a business opportunity worthy of technology solutions providers’ (TSPs’) attention.
Food Traceability Market Drivers
- Regulation
One of the primary drivers for increased food traceability is government regulation. For example, the General Food Law, which the EU began enforcing in 2022, requires traceability for all food and feed businesses. They need to be able to report where these products originated and where they went. Furthermore, they need the ability to provide this information to authorities on demand. - Consumer Demand
Consumers seek openness and transparency from food suppliers. In a recent FMI Trends report, 86 percent of consumers reported that food manufacturers could gain more trust by providing access to complete and easy-to-understand definitions for all ingredients. Also, 80 percent went on to say that more transparency leads to great loyalty to that brand. Meeting consumer demands for food traceability information can be critical to a healthy revenue stream for your clients. - Supply Chain Efficiency and Cost-Savings
Tracking solutions that locate shipments and monitor their condition during transport will translate to substantial savings, especially for cold chain and perishables shipments. Additionally, businesses can manage recalls more effectively, pinpointing the lots or shipments impacted and avoiding the costs and negative press of a general recall. - Security and Fraud Prevention
Food supply chains can be targets for counterfeiters or tampering. An effective food traceability solution can confirm the authenticity and safety of products.
Advanced Solutions that Enable Real-Time Food Traceability
Food traceability’s importance is apparent, but historically, it’s been challenging to execute. The sheer number of ingredients combined in an ever-growing number of products shipped to multiple locations make food traceability a significant challenge. Fortunately, technologies have emerged that enable you to create traceability solutions that provide precise and accurate information about the food in every step from farm to factory to fork.
- Internet of Things (IoT)
IoT systems offer visibility into links in the supply chain that have previously been unmeasurable. IoT systems can collect temperature, humidity, and other vital information to keep food fresh during transportation and storage. Devices connected to an IoT network can even monitor soil conditions for growers.
By connecting sensors and IoT devices to systems that producers can access, they can track food down to individual batches, from the soil where it was grown to the store or restaurant that sold it. - Machine Vision and AI
Artificial intelligence (AI) can automate inspections of mass quantities of food items to flag problems for human review or eliminate diseased or damaged produce.
Machine vision can be harnessed to deploy smart pallets that increase efficiency and accuracy in warehouses, automate recordkeeping and ensure that shipments go to the correct destinations. - Blockchain
Because data in a blockchain cannot be altered without every participant seeing the change, blockchain technology can add integrity to food traceability and recordkeeping while reducing counterfeiting and fraud.
These technologies, combined with barcode scanning, RFID, label printing, and management software, provide vital tools to enable access to food traceability information for which food retailers, consumers, and regulators are looking.
A Profitable Opportunity to Solve Big Problems
Technology solution providers have the opportunity to solve real problems and meet the growing demand by providing food traceability solutions. Helping your clients manage increased regulation, consumers’ expectations for transparency, and safe transport and storage, can result in business growth. You’ll also establish your business as a leader that has the solution to this challenge to the benefit of everyone.
How could your business meet the demand for food traceability solutions?