The global food traceability market (tracking technologies) is expected to grow at a CAGR of 8.7 percent, reaching expected revenue of $14.1 billion by 2020. That's according to a new market research report, Food Traceability Market (Tracking Technologies) Global Industry Analysis, Size, Share, Trends, Opportunities and Forecast, 2012 - 2020, published by Allied Market Research.
Radio-frequency identification (RFID) technology is expected to grow at the highest rate of 19.4 percent among all technologies of food traceability market. The reason for the high growth rate of RFID is real-time tracking of food items irrespective of weather conditions or location. Accurate read-write ability in complex environment is also a significant advantage of this technology.
Food traceability is becoming a norm for all food producers across the globe as a result of consumer demands and government regulations concerning food safety. Early adoption of food tracking technologies in developed nations such as the U.S., Japan and Australia has led to good market revenues. However, globalization of the food market has increased the importance of a traceability system even in developing nations that offer opportunities for food traceability suppliers to enhance their market position.
Installation of food traceability system requires huge upfront investment, which proves to be a restraint for the market, as small players are not ready to make the extra investments. However, growing awareness and technological advancements leading to lesser investments will overcome this restraint, thus reducing impact on the market in the future. One of the segments discussed in the report is the end-users of the market such as food producers, retailers, warehouses, transportation companies, etc.
Sensors to see highest growth among equipment
Food manufacturers are expected to generate maximum revenue of $5.4 billion by 2020 at a CAGR of 11.5 pecent during the analysis period. Another segment of the report discusses the equipment market of food traceability such as 1D and 2D scanners, sensors, tags and labels and PDAs with GPS. The sensors are expected to grow at the highest rate among all the equipment at a CAGR of 10.5% from 2012 to 2020.
The geographic segment of the food traceability market covers North America, Europe, Asia Pacific, and Rest of the World (RoW). North America is expected to generate maximum revenue by 2018, however Asia Pacific will take over the North American market by 2020. North America is expected to generate $4.4 billion by 2020 at a CAGR of 4.6 percent during the analysis period. Asia Pacific is expected to have the highest revenues by 2020 as it is expected to grow at a CAGR of 16.7 percent during 2013-2020.
The study also offers an updated review on the present major market players such as Honeywell, C.H. Robinson, DuPont, Intermec, Motorola Solutions, Cognex, Mass Group, Bio-Rad Laboratories, IBM Corp and Zebra Technologies.
SOURCE: Allied Market Research