AI in Food and Beverages Market Will Grow at CAGR of 39% By 2033

19 Jul 2024

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Table of Content

1. Market Overview 2. Regional Snapshot 3. AI in Food and Beverages Market Report Scope 4. Market Dynamics 5. Recent Developments 6. Key Market Players

The global AI in food and beverages market size was exhibited at USD 8 billion in 2023 and is anticipated to touch around USD 214.62 billion by 2033, expanding at a CAGR of 39% from 2024 to 2033.

Market Overview

The AI in food and beverages market comprises food manufacturing operations, catering businesses, fast-food joints, restaurants, cafes, cafeterias, pubs, delis, food transportation services, and more. The work starts with the production, preparation, packaging, transporting, and serving of food and beverages. Food is necessary; hence, this market will continuously grow except in war-like situations.

Continuous development occurs in every market to improve products and services to increase efficiency and customer satisfaction while reducing cost and time. Technology plays a crucial role in achieving these targets. Artificial Intelligence (AI) is a technology utilized in the food and beverage market to make positive developments. Currently, AI in food and beverages market is used in supply chain management, manufacturing processes, food and beverage restaurants, kitchen appliances, and more. The integration of AI in food and beverages market has already proved its importance, and in the future, with new advancements, it will increase the market revenue.

• In January 2024, Himalaya Technologies engaged with BigfootMarketing.ai LLC, an advertising and marketing company. The company will use ChatGPT4, other AI tools, DAPPS, and smart contracts to promote health and wellness or a sports powder or drink named ‘FOMO.
• In November 2023, “Unlocking the Power of Artificial Intelligence in Food,” a new and short virtual course launched by the Institute of Food Technologists. It is divided into four sessions of 90 minutes that will help industry professionals, governments, and academia to use AI to innovate and excel with the help of insights, hands-on exercises, and personalized use cases.
• In November 2023, a research article was published by Plant Phenomics. A new approach was presented by the researchers that can help estimate the nutritional value of harvesting seed mixes with the help of AI. The research will be able to help farmers in promoting sustainable cultivation and managing crop yields.

Regional Snapshot

In 2023, AI in food and beverages market was dominated by North America. As per the estimation done in the forecasting period of 2024 to 2033, North America will dominate AI in food and beverage market. North America is one of the largest food industries, generating around USD 1.0 trillion annually. Being among the top producers of processed food and drinks, the market has great potential to integrate AI for cost-cutting and improving efficiency.

When it comes to the import and export of processed foods and drinks, the United States ranks at the top worldwide. Also, the maximum number of food companies are in the U.S. These companies are considered the backbone of the food industry. Nestle, PepsiCo, Coca-Cola, Tyson Foods, and JBS USA are some of the examples. The diverse population of the U.S. is willing to experiment and engage with new food and beverages. The population is highly focused on innovative and unique products, sustainability, and technology, due to which integration of AI in food and beverages market is promoted in the U.S.

Europe is the second largest market for AI in the food and beverages sector, driven by a strong focus on innovation and automation. Key countries such as Germany, France, and the UK are leading adopters, utilizing AI for supply chain optimization, quality control, and personalized consumer experiences. The region's advanced technological infrastructure and supportive regulatory environment further accelerate market growth.

AI in Food and Beverages Market Report Scope

Market Dynamics

Drivers

Consumer Demands

The food and beverage market is based mainly on fulfilling consumers' demands. Consumers need convenience, affordability, quality, brand loyalty, commitment to social causes, health and wellness, and eco-consciousness. These demands are continuously fulfilled by the companies, but the integration of AI in food and beverages market can enhance the requirements.

A worldwide renowned fast-food joint, McDonald’s partnered with Google to integrate generative AI in 2024. Google will update all the hardware and software of McDonald’s and integrate generative AI to optimize operations.  The updated systems will be able to help managers in spotting and enacting solutions to reduce business disruptions.

Food Safety and Quality Control

Food safety and quality control are among the top priorities of businesses and consumers. Every country has legislation, guidelines, and protocols for food safety and quality control, which are mandatory to follow. According to the World Health Organization, 600 million people get sick, and 420,000 deaths occur every year due to the consumption of contaminated food. Due to unsafe food, USD 110 billion is lost yearly in medical expenses and productivity. Although there are procedures and various technologies to assess food safety and quality, integrating AI in food and beveragea market will enhance the process by continuously monitoring, providing accurate results, and analyzing system gaps.

Amazon India launched a new shelf monitoring solution called Johari. Johari is machine learning-powered that aims to ensure the quality of fresh produce from farm to fridge. It will help Amazon to fulfill consumers' demand for high-quality fresh vegetables and fruits. The system can do manual monitoring as well as monitoring through mobile apps. An image-based system monitors images clicked through cameras installed on shelves, analyzes defects, and grades the products accordingly.

Restraint

Data Safety and Privacy

One of the major concerns about AI in food and beverages market is the threat to data and privacy. AI can infer sensitive information like habits, geographical location, preferences, and more. It poses the risk of unauthorized data dissemination, unwarranted surveillance, and identity theft. This presents a unique set of challenges for restaurants and all food catering services that focus on integrating AI in menu optimization and chatbots, which use customers' data to suggest menus based on their preferences and food ordering habits and communicate with the customers to resolve their queries. Posing ethical guidelines will help in reducing risks related to data privacy.

Opportunity

Integration of generative AI

Generative AI in food and beverages market has great potential. It can transform ingredient sourcing, streamline supply chains, improve regulatory compliance, provide innovative recipes, and personalize and enhance consumer experience. In the future, generative AI can create entirely new categories of food, revolutionize agriculture, and develop sustainable food solutions.

Chef Watson, a generative AI-based application developed by IBM, is capable of creating and suggesting recipes and food combinations that humans would have never considered. It is beneficial for professional chefs who want to revolutionize their menu to provide a unique experience to the customers.

Recent Developments

• In January 2024, the retail giant Unilever partnered with Be My Eyes AI technology, an accessibility app specialist. There will be on-pack accessible QR codes developed by Zapper, a computer vision specialist. Upon scanning the QR codes, the shoppers will be directed to a virtual AI chat capable of reading and explaining cooking instructions or recipes. It will tell usage directions, recycling information, product details, nutritional value, and a list of ingredients.
• In December 2023, researchers developed an AI tool capable of detecting low-quality and premium wine. The tool can trace the origin of wine with the help of chemical analyses. Researchers trained the AI tool with machine learning, which identifies minute variations in the concentrations of various compounds that are present in different wines. Based on the analyses, the AI tool identifies the vine-growing region along with the exact estate where the production of wine occurred.
• In November 2023, Pizza Hut, a fast-food chain, integrated AI into its delivery system to tackle inflation. Dragontrail Solutions is a kitchen management system that is based on AI. It is helpful in managing the production and dispatch of products by providing information about the delivery partner’s whereabouts. This analysis enables the delivery of hot and fresh pizza to customers.

Key Market Players

• INTELLIGENT Brewing Co.
• NVIDIA Corporation
• Milltec Clarfai, Inc.
• Google LLC
• Microsoft Corporation
• Raytec Vision SpA
• Honeywell International Inc.
• ABB Ltd.
• Rockwell Automation Inc.
• Sight Machine Inc.
• Impact Vision
• IBM Corporation
• TOMRA Sorting Solutions AS
• SAP SE
• Buhler Group
• Key Technology Inc.

Market Segmentation

By Technology

• Machine Learning
• Computer Vision
• Robotics and Automation

By End-user

• Food Manufacturers
• Farmers and Growers
• Restaurants
• Others

By Application

• Precision Agriculture
• Food Processing
• Supply Chain Management
• Retail Services

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