Global AI in Food Processing Market By Type of Food (Dairy, Meat and Poultry, Convenience Food and Snacks, Fruits and Vegetables, and Other Types), By Application, By Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

In 2022, The Global AI in Food Processing Market was valued at USD 10.3 Billion and will reach USD 22.3 Billion by 2032. Between 2023 and 2032, this market is estimated to register the highest CAGR of 8.3%.

Artificial intelligence (AI) technology is used for solutions in food processing for many purposes like sorting the food, checking the quality of food for dispatching, packaging the food material, maintenance of the machines and operating systems used in food processing, and many other uses.

Artificial intelligence (AI) allows the systems to identify the problems and difficulties faced by the machines during food processing and provide the solution for it. It helps companies in the food processing industry to reduce the time of operation during food processing. Artificial intelligence (AI) helps food processing companies to reduce production and processing costs in the market by decreasing the quality check timing and improving the quality of products. All these factors are increasing the demand for artificial intelligence in food processing market.

Note: Actual Numbers Might Vary In The Final Report

Artificial intelligence (AI) is integrated into many machines used for solutions in the food processing industry which allows the machines to sense the flavor and odor of the food according to standard limits and differentiate the food accordingly. This increases the food quality and reduces the wastage of time and food in processing. Also, it allows for monitoring and evaluating the quality of food on a daily basis. All these factors are boosting the growth of AI in the food processing market.

Key Takeaways

• Market Growth Projection: The AI in Food Processing Market is projected to grow from US$ 10.3 Billion in 2022 to US$ 22.3 Billion by 2032, with an expected CAGR of 8.3% from 2023 to 2032.
• Applications of AI in Food Processing: AI technology is employed in various aspects of food processing, including food sorting, maintenance, production and packaging, quality control, safety compliance, and customer engagement.
• Drivers of Market Growth: Improved quality, high profits, increased efficiency, and reduced operational costs are driving the adoption of AI in food processing. The integration of AI has enabled companies to streamline operations, optimize production, and minimize wastage.
• Challenges Faced: High installation and maintenance costs, vulnerability to cyberattacks, displacement of labor, and the requirement for skilled operators are some of the challenges hampering the widespread adoption of AI in food processing.
• Dominant Market Segments: The fruits and vegetables segment leads in the utilization of AI, followed by convenience food and snacks. Quality control and compliance remain the primary application for AI in food processing operations.
• Market Opportunities: Government initiatives and the growing demand for efficient solutions have created lucrative opportunities for AI integration in the food processing industry, allowing for improved product quality and reduced processing time.
• Regional Dominance: North America currently dominates the global AI in Food Processing Market, accounting for a significant revenue share, attributed to the presence of major companies and well-developed food processing industries in the region.
• Key Players: Major companies driving advancements in AI technology for food processing include Rockwell Automation Inc., TOMRA, Key Technology Inc., Sight Machine Inc., Honeywell International Inc., ABB Ltd., and others.

Drivers

Improved Quality and High Profits are Driving the Growth of AI in Food Processing Market.

The integration of AI in food processing has advanced the food processing operations by doing the work in less time, cutting the labor cost, improving quality, being highly efficient, less operating costs, and reducing food waste. All these factors are driving the growth of the AI in food processing market. By using the artificial intelligence (AI) in food processing, companies are able to secure more profits in less time than in traditional food processing methods. This is attracting manufacturers to integrate the artificial intelligence (AI) in their food processing facilities. This is boosting the growth of the AI in food processing market.

Food processing is a lengthy process. Right from the segregation of food products to the delivery of the food products, it takes a lot of time in the process. Generally, many food products have less time for process and delivery, or else they can degrade, decrease the quality of food, and causes wastage of food products. To avoid such problems and save the time, many companies are combining artificial intelligence (AI) in their food processing operations to avoid the loss in business. This is driving the growth of AI in food processing market.

Restraints

High Cost of Installation and Maintenance with Increasing Cyberattacks Can Restrict the Growth of AI in Food Processing Market.

Despite all the advantages of AI in food processing, the restraints for the growth of artificial intelligence (AI) in food processing market due to factors like high cost, cyberattacks, exploitation of labor, and high skill requirement for operating. The integration of artificial intelligence (AI) in the food processing operations is a very costly method.

Many companies offer artificial intelligence (AI) for food processing at a very high cost. Due to these key challenges, small-scale food processing facilities are not able to introduce the AI in their food processing operations. The use of artificial intelligence (AI) in food processing comes with the threat of cyberattacks.

The artificial intelligence (AI) based food processing operations can be halted or stopped by cyberattacks. This can lead to business losses and food wastage. Also, by integrating the artificial intelligence (AI) in food processing, the labor would be of no use in the food processing facilities. And it can draw their only source of income. All these factors are restraints for the growth of AI in food processing market.

Type of Food Analysis

The Fruits and Vegetables Segment Majorly Uses the AI for Food Processing.

Based on the type of food, AI in food processing is classified into fruits & vegetables, convenience food & snacks, meat & poultry, dairy, and other types. From all the types, the fruits and vegetables segment leads the market by accounting for a major revenue share in the market.

The growth of the fruit and vegetables segment is owing to the increasing demand for artificial intelligence (AI) based equipment’s and machines for sorting and evaluating the quality of the fruits and vegetables in the processing plants. AI monitor and evaluate the fruits and vegetables according to the standard parameters. This helps to reduce the time. This is raising the demand for artificial intelligence (AI) in fruits and vegetable processing and thereby boosting the food processing market.

After fruit and vegetables, the convenience food and snacks segment is anticipated to grow significantly during the forecast period. The growth of this segment is due to the increasing demand for convenience food and snacks across the globe. The increasing demand for convenience food and snacks is owing to the changing habits of eating among individuals. With fast forwarding world, the demand for convenience food and snacks is also increasing, and to meet this demand, companies are adopting artificial intelligence (AI) in processing of convenience food and snacks to reduce the time and increase the quality of products. This is boosting the growth of AI in food processing market.

Application Analysis

Artificial Intelligence is Mostly Used for Quality Control and Compliance in Food Processing

Artificial intelligence (AI) has many applications in food processing market, like maintenance, food sorting, quality control and compliance, customer engagement, and other applications. Out of these applications, quality control and compliance mostly uses artificial intelligence (AI) for its operations owing to its massive importance in food processing industry. It is anticipated to continue its domination in the market during the forecast period.

The growth of this segment is due to the rising demand for AI in food processing plants for quality checks and safety compliance. The mass production of food items in the production facility under human monitoring can ignore the quality defects and safety protocols. But using artificial intelligence (AI) for these operations can minimize errors, save time, and it can comply with the safety protocols according to company standards. These factors are driving the growth of AI in food processing for quality checks and compliance.

Note: Actual Numbers Might Vary In The Final Report

The customer engagement segment is anticipated to grow significantly during the forecast period. The growth of this segment is due to artificial intelligence (AI) integration in customer engagement for food products. With the help of artificial intelligence (AI), manufacturers are able to know the reviews in the market and give feedback and customize products as per the demand of the market. Due to this, manufacturers are able to fulfill the demand of customers in market. These factors are expected to drive the growth of the customer engagement segment in the AI in food processing market.

Key Market Segments

Type of Food

• Dairy
• Meat & Poultry
• Convenience food & Snacks
• Fruits & Vegetables
• Other Types

Application

• Food Sorting
• Maintenance
• Production and Packaging
• Quality Control & Safety Compliance
• Customer Engagement
• Other application

Opportunity

Government Initiatives and Rising Demand for Efficient Solutions have Created Lucrative Opportunities in the Market.

Artificial intelligence (AI) is able to improve the quality of food products, Lower the time of food processing operations and comply with accurate food quality and food safety standards. These factors are driving the growth of the artificial intelligence (AI) in the food processing market. While driving the growth of the food processing market, the introduction of artificial intelligence (AI) is also creating many opportunities for new market players in the market.

The rising demand for time-consuming solutions for the food processing market has created opportunities for artificial intelligence (AI) offering companies in the food processing market. Many governments across the world are providing various schemes and policies for manufacturers to adopt advanced food processing technologies like intelligent machines, machine learning, and artificial intelligence in their industries to improve the production rate and quality of products and decrease the time for processing. These key factors are creating lucrative opportunities in the AI in food processing market.

Trending Factors

The Product Customization Trend is Driving the Growth of the AI in Food Processing Market.

The ongoing trend of product customization is driving the growth of AI in food processing market. The introduction of AI in food processing has allowed customers to review and customize their products according to their needs and desire.

Many companies offer the AI chatbot to assist and help customers with ordering food products according to their needs and also customize it with the suggestions from the chatbot. This is attracting more customers to customize their products and also boosting the growth of AI technology in the food processing industry.

Regional Analysis

North America Dominates the Global AI in Food Processing Market with Major Share in the Market.

North America leads the AI in food processing market by accounting for a major revenue share of 36.4%. The domination of the North America region is attributed to the presence of major companies offering AI for food processing in the region. North America is home to many well-developed food processing industries. The wide range of food products like fruits & vegetables, meat & poultry, and dairy products helps the companies to expand their food processing facilities across the region.

Many companies in the region are investing and funding in the development of advanced technology like AI for the food processing operations. Moreover, the increasing demand for the ready to eat food products in the region has forced people to fulfill the demands in less time. To meet the market demand and save time, companies are adopting AI in their food processing operations. All these factors are driving the growth of the AI in food processing industry.

Note: Actual Numbers Might Vary In The Final Report

Asia Pacific region is expected to see the highest growth during the forecast period. The growth of the Asia Pacific region is due to the increasing adoption of artificial intelligence (AI) based food processing facilities across the region.

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Player Analysis

Many key players in the AI in food processing market are investing in the development of advanced technology for the food processing. Major players in the market are adopting the strategies like mergers, collaboration, and acquisitions to increase their profits and expand their share in the market.

Market Key Players

• Rockwell Automation Inc.
• Key Technology Inc.
• Sight Machine Inc.
• Honeywell International Inc.
• Raytec Vision SpA
• ABB ltd.
• Sesotec GmbH
• Martec of Whitell Ltd.
• Bratney Companies
• Agco Corporation
• TOMRA
• Other Key Players

Recent Developments

• In December 2020, TOMRA launched their newly upgraded optical food sorting system named TOMRA 5C. TOMRA 5C is used in the processing of dried fruits by removing the foreign material from the batch more efficiently. This is anticipated to transform the food processing industry.
• In June 2021, Satake launched their biggest optical sorter under their “NIRAMI series.” NIRAMI allows to prevent contamination in the food processing and provides efficient maintenance and cleaning for the machines.

Report Scope