AI in Food & Beverages Market Size (2024 - 2029)

The market size of AI in the Food and Beverages industry is projected to grow significantly in the coming years as consumer demands shift towards fast, affordable, and easily accessible food options. The industry is leveraging advanced technologies such as artificial intelligence and machine learning to scale operations and stay relevant in a dynamic market environment. AI is being extensively used for supply chain management, predictive analytics, and transparency. Despite the high cost of large-scale deployment, AI is helping businesses to innovate rapidly by reducing the time to market and establishing an agile supply chain capable of foreseeing and dealing with uncertainties. This is driving growth in the food and beverage sector. However, companies without established data analytics capabilities and competent developers are seeking solutions and providers with clearly defined goals, needs, and budgets.

Market Size of AI in Food & Beverages Industry

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AI in Food & Beverages Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 9.68 Billion
Market Size (2029) USD 48.99 Billion
CAGR (2024 - 2029) 38.30 %
Fastest Growing Market Asia Pacific
Largest Market North America

Major Players

AI in Food & Beverages Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Artificial Intelligence (AI) in Food & Beverage Market Analysis

The AI in Food & Beverages Market size is estimated at USD 9.68 billion in 2024, and is expected to reach USD 48.99 billion by 2029, growing at a CAGR of 38.30% during the forecast period (2024-2029).

Changes in consumer demands toward preferring fast, affordable, and easily accessible food options have transformed the food and beverage industry. Market leaders leverage advanced technologies, such as artificial intelligence and machine learning, to scale operations and help companies stay relevant in a dynamic market environment.

  • AI has gained prominence over the last few years, with many companies actively investing in exploring the technology potential in the industry. This emerging AI technology is helping F&B companies with supply chain management through logistics, predictive analytics, and transparency.
  • For instance, in August 2022, Rockwell Automation released cost-effective photoelectric sensors ideal for material handling, packaging, and assembly applications to address industries' small form factor needs like food and beverage and household. The 42EA RightSight S18 line of sensors offers the performance of more comprehensive solutions in a smaller, more versatile package to deliver excellent detection capabilities where size and shape matter.
  • Organizations are rapidly digitizing their supply chain to differentiate and drive revenue growth, improving efficiency across the supply chain. Supply chains are generating massive amounts of data, and AI is helping organizations to analyze this data and better understand variables in the supply chain by anticipating future scenarios.
  • AI in supply chains is helping businesses to innovate rapidly by reducing the time to market and establishing an agile supply chain capable of foreseeing and dealing with uncertainties. It is driving AI growth in the food and beverage sector.
  • AI provides many benefits to the F&B industry, but the high cost of large-scale deployment in the sector restricts the market growth. One of the challenges of the food processing industry is its feedstock, which can only be found to be uniform. It is seen that food storage is done with the help of manual labor. But with AI, this sorting process can be automated, ultimately reducing labor costs, increasing speed, and improving yields.
  • For instance, in July last year, SORTEX A GlowVision launched in London and is available in three to five chute models on a five-module frame. It features a custom-built inspection system explicitly designed for PET sorting. It will greatly interest PET processors looking to reduce contamination levels on key color and polymer defects, providing one of the most comprehensive solutions on the market.
  • Companies with the fortune of established data analytics capabilities and a team of competent developers can safely build their AI platforms. F&B players without such resources seek solutions and providers with clearly defined goals, needs, and budgets.

Artificial Intelligence (AI) in Food & Beverage Industry Segmentation

Artificial Intelligence (AI) is a process of making intelligent machines that work and react like humans. The aim is to teach machines to think intelligently, as humans do. The machines have been doing what they were told to do till today. But with AI, machines will think and behave like human beings. The food processing industry is leveraging AI to enhance various offerings, optimize operations, and deliver better customer experience.

The artificial intelligence (AI) in the food and beverage market is segmented by application (food sorting, consumer engagement, quality control, and safety compliance, production and packaging, maintenance, and other applications), end user (hotels and restaurants, the food processing industry, and other end users), and geography (North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa).

The market sizes and forecasts are in terms of value in USD for all the above segments.

By Application
Food Sorting
Consumer Engagement
Quality Control and Safety Compliance
Production and Packaging
Maintenance
Other Applications
By End User
Hotels and Restaurants
Food Processing Industry
Beverage Industry
By Geography
North America
Europe
Asia-Pacific
Rest of the World

AI in Food & Beverages Market Size Summary

The Artificial Intelligence (AI) in Food and Beverages market is growing rapidly, projected to increase significantly over the next few years. This growth is driven by changes in consumer demands for fast, affordable, and easily accessible food options. To meet these demands, industry leaders are leveraging advanced technologies such as AI and machine learning to scale operations and stay relevant in a dynamic market environment. AI technology is being utilized for supply chain management, including logistics, predictive analytics, and transparency, helping companies innovate rapidly and establish agile supply chains. Despite the benefits of AI to the food and beverage industry, the high cost of large-scale deployment can restrict market growth. However, AI can automate the sorting process in food storage, reducing labor costs, increasing speed, and improving yields. Additionally, AI is being used to understand consumer behavior, leading to more accurate predictions and personalized customer interactions. The technology can also analyze, monitor, and deduce customer behavior and sentiments across various social media channels, providing powerful insights that can enhance the customer experience and drive market growth.

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AI in Food & Beverages Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers/Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Analysis on the Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Application

      1. 2.1.1 Food Sorting

      2. 2.1.2 Consumer Engagement

      3. 2.1.3 Quality Control and Safety Compliance

      4. 2.1.4 Production and Packaging

      5. 2.1.5 Maintenance

      6. 2.1.6 Other Applications

    2. 2.2 By End User

      1. 2.2.1 Hotels and Restaurants

      2. 2.2.2 Food Processing Industry

      3. 2.2.3 Beverage Industry

    3. 2.3 By Geography

      1. 2.3.1 North America

      2. 2.3.2 Europe

      3. 2.3.3 Asia-Pacific

      4. 2.3.4 Rest of the World

AI in Food & Beverages Market Size FAQs

The AI in Food & Beverages Market size is expected to reach USD 9.68 billion in 2024 and grow at a CAGR of 38.30% to reach USD 48.99 billion by 2029.

In 2024, the AI in Food & Beverages Market size is expected to reach USD 9.68 billion.

AI in Food and Beverage Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)