Food Technology Market Size to Surpass USD 475.43 Bn by 2033

Prathamesh

11 months ago

The global food technology market size surpassed USD 184.30 billion in 2023 and is anticipated to hit around USD 475.43 billion by 2033, growing at a CAGR of 9.94% from 2024 to 2033.

Key Points

Asia-Pacific has contributed more than 33% of market share in 2023.
North America is estimated to expand the fastest CAGR between 2024 and 2033.
By component, the hardware segment held the largest market share of 43% in 2023.
By component, the software segment is anticipated to grow at a remarkable CAGR of 11.13% between 2024 and 2033.
By industry, the fish, meat, and seafood segment has accounted over 20% of market share in 2023.
By industry, the dairy products segment is expected to expand at the fastest CAGR over the projected period.
By application, the food science management segment has recorded over 27% of market share in 2023.
By application, the delivery segment is expected to expand at the fastest CAGR over the projected period.

The food technology market is a dynamic and rapidly evolving sector that encompasses a wide range of innovations aimed at enhancing various aspects of food production, processing, preservation, and distribution. As the global population continues to grow and consumer preferences shift towards healthier, more sustainable, and convenient food options, the demand for innovative food technologies has surged. This market encompasses a diverse array of technologies, including but not limited to biotechnology, nanotechnology, food processing equipment, food packaging solutions, and digital platforms for food traceability and quality control.

Food Technology Market Data and Statistics

In April 2023, Aniai, Inc., a South Korea-based company specializing in robotic kitchen technology, unveiled the Alpha Grill, an innovative cooking robot tailored specifically for preparing burgers, leveraging automation and AI capabilities.
The Good Food Institute reported that investments in plant-based meat, egg, and dairy companies reached a total of USD 2.1 billion in 2020, with Impossible Foods, a prominent player in the plant-based meat sector, securing over USD 1.9 billion in funding to date.
According to McKinsey & Company’s data as of May 2021, DoorDash held a dominant position in various markets, including San Jose with 77% market share, Houston with 56%, Philadelphia with 51%, and San Antonio with 51%. Meanwhile, Uber Eats and Postmates jointly led in Los Angeles with a 50% market share and in New York City with 41%.
In 2021, the USDA’s Economic Research Service (ERS) found that 10.2% of the entire U.S. population, equating to approximately 13.5 billion households, faced food insecurity.
The World Bank noted that the United States has been among the pioneering nations in industrialization, experiencing significant urbanization rates over the past two centuries.
The Food Safety Modernization Act (FSMA) in the United States and similar regulations worldwide have prompted companies to invest in technologies like blockchain and IoT for traceability and transparency.
With approximately 1.3 billion tons of food wasted globally each year, according to the Food and Agriculture Organization (FAO), technologies like predictive analytics and cold chain management are being increasingly adopted to minimize waste along the supply chain.

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Growth Factors:

Several key factors are driving the growth of the food technology market. Firstly, increasing global population coupled with rising urbanization has led to greater demand for efficient food production and distribution systems to meet the growing needs of urban consumers. Additionally, heightened awareness of health and wellness among consumers has spurred demand for functional foods, fortified products, and ingredients with specific health benefits. Furthermore, advancements in food processing technologies have enabled manufacturers to improve the shelf life, safety, and nutritional content of food products, thereby enhancing their appeal to consumers.

Region Insights:

The food technology market exhibits varying dynamics across different regions of the world. In North America, technological advancements, robust R&D infrastructure, and strong consumer demand for convenience foods have propelled market growth. Europe, on the other hand, has witnessed significant investments in sustainable food technologies, driven by stringent regulations aimed at reducing environmental impact and promoting eco-friendly practices. In Asia-Pacific, rapid urbanization, changing dietary habits, and increasing disposable incomes are driving demand for innovative food technologies, particularly in emerging economies such as China and India.

Food Technology Market Scope

Report Coverage	Details
Growth Rate from 2024 to 2033	CAGR of 9.94%
Global Market Size in 2023	USD 184.30 Billion
Global Market Size by 2033	USD 475.43 Billion
Largest Market	Asia Pacific
Base Year	2023
Forecast Period	2024 to 2033
Segments Covered	By Component, By Industry, and By Application
Regions Covered	North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Food Technology Market Dynamics

Drivers:

Several drivers are fueling the expansion of the food technology market. One major driver is the increasing adoption of automation and digitization in food production and processing facilities, which enhances efficiency, reduces labor costs, and improves product consistency. Moreover, growing concerns regarding food safety and quality have led to greater investments in technologies such as blockchain and IoT for enhanced traceability and transparency throughout the supply chain. Additionally, the rise of alternative proteins, such as plant-based and cell-cultured meat, is driving innovation in food technology as companies seek to develop sustainable and scalable production methods to meet the growing demand for protein-rich foods.

Opportunities:

The food technology market presents numerous opportunities for growth and innovation. One such opportunity lies in the development of novel food ingredients and formulations to cater to specific dietary preferences and nutritional requirements, such as gluten-free, dairy-free, or vegan products. Furthermore, the integration of artificial intelligence and machine learning technologies holds promise for optimizing food production processes, predictive maintenance of equipment, and personalized nutrition solutions. Moreover, expanding into emerging markets with untapped potential, particularly in regions with rising middle-class populations and changing consumer preferences, presents lucrative opportunities for market players.

Challenges:

Despite the promising growth prospects, the food technology market faces several challenges. One key challenge is the high initial capital investment required for implementing advanced food processing technologies and infrastructure upgrades, which may pose barriers to entry for small and medium-sized enterprises. Additionally, navigating regulatory complexities and compliance requirements, especially in highly regulated markets such as the EU and the US, can be a daunting task for companies operating in the food technology space. Furthermore, consumer skepticism and resistance towards novel food technologies, particularly genetically modified organisms (GMOs) and artificial additives, pose challenges to market acceptance and adoption. Overcoming these challenges will require collaboration among industry stakeholders, policymakers, and consumers to foster innovation and build trust in the safety and efficacy of food technologies.

Recent Developments

In July 2023, FarMart, an advanced food supply network, introduced Saudabook, India’s inaugural technological solution for the food processing industry. This groundbreaking platform extended its ERP system, FarMartOS, to all food processors across India, to modernize the nation’s food sector and streamline supply chain processes intelligently.
In March 2023, CUBIQ FOODS and Cargill, Incorporated, a U.S.-based company, revealed a collaboration to supply innovative fats for plant-based foods. Through this partnership, the companies sought to address the growing demand for healthier ingredients in the market.