Does your food production solution offer comprehensive cover from Farm to Retail? What are the 4 segments in digital supply chain traceability?
With our food reaching our tables from different sources, multiple vendors, diverse countries, comprehensive food traceability solutions help the consumers stay informed of each food’s origin. Food traceability tracks the food products and the various food inputs right from the farming stage to the final processing and packaging stage. Tracking critical events in the food supply chain is the first step to ensure food safety and enables a robust digital production system.
What we read is not necessarily what we buy. Reading the labels on food packets is not enough. More than ever, Food Producers are now being subjected to increased scrutiny for ingredients, processing house environments, fair labor and sustainable practices. Increasing health threats, lack of transparency in certain food items, and a growing demand to improve traceability for end-users are some of the growth drivers for the food traceability market.
Food traceability is a vast, complex and dynamic domain. Tracking the food from production to processing, while also tracking the food inputs to ensure safety and transparency can truly be a task in itself.
The food traceability market is estimated to reach a size of 20 billion dollars by 2025. The market is divided into four segments
● By equipment
● By technology employed
● By end-user base
● By application
These segments help experts understand the growth of the food traceability market in total, and enable them to forecast future trends with accuracy.
This food traceability market segment is based on the equipment used in implementing food traceability solutions across the industry. It is further divided into PDA with GPS, 2D scanners, 1D scanners, thermal printers, sensors, labels, tags, and other equipment.
Scanners and sensors continue to be a popular choice in the food traceability market as it is easy to use and accessible for most small business owners and manufacturers.
2020 saw a shift towards using 2D QR codes and made the 2D scanners a popular choice in the pharmaceutical and grocery industry.
IoT-led-food traceability solutions have brought a major boom in sensor-based food tech by employing sensors to monitor food manufacturing processes and quality control parameters.
Now you can record temperature, moisture, salinity and many such parameters using sensors with non-clonable QR codes. Many supermarkets in the US and Canada have already implemented these for efficient inventory management, reducing spoilage and wastage especially in the case of volatile foods such as seafood and fresh leafy greens.
The sensor-based food traceability market segment is expected to grow at a CAGR of 10.9% by 2025.
Technology is a vital part of the food traceability market. Every day, we see new innovative technology-based solutions that help to trace the food product back to its source easily.
Blockchain, IoT, barcodes, QR codes, and RFID tags are some of the popular technologies employed in the food traceability market.
While barcodes, QR codes, and RFID look to be the evergreen solutions due to their easy adaptability and simplicity, newer technologies such as DNA barcoding, blockchain, and IoT-based solutions also seem to be taking off quite well in recent years.
A simple, well-put comparison of these technologies can be reviewed in a Sciendo paper published in 2019.
Since barcodes and QR codes are easy to scan without additional training and expensive equipment, barcodes are the popular choice all around. The barcode technology has an estimated growth rate of 7.5% CAGR.
Food retailers are using barcoded inventory for easy management and quality control. Nonetheless, these accurate QR codes are non-clonable, have data to reach to source in an event of food recall when we need to truncate the supply chain and withhold only relevant stock of, say, broccoli or lettuce.
This is inadvertently the most important market segment for food traceability. Eventually, the customers are the king, while they are ready to make their purchase decision they can be influenced by using technology to highlight quick facts for their favorite packet of sweet potato chips with organically grown flashing over the bag. Yes indeed, all that the customer needs to do is scan the QR code and get to know the product better – the ingredients, the farmer who grew it, where were the sweet potatoes harvested, and if it has any unclassified preservatives. Feels empowering, doesn’t it?
Based on end-user, the food traceability market segment is divided into food manufacturers, warehouses, packaging centers, food retailers, food distributors, and government departments.
After the pandemic, food traceability solutions are being driven by food manufacturers, retailers, distributors, and consumers as well. Studies show that less than one in four consumers trust the food labels. This has pushed for a major change in the food industry.
While food retailers accounted for more than 30% of the market in 2017, food manufacturing has taken the lead now and is expected to be a major player by 2025.
The food traceability market segment is divided based on various food products being traced across the global network. The market is classified into fresh produce, seeds, dairy products, livestock, meat, fisheries, and beverages, etc.
The growing awareness of the need to reduce meat consumption and the apprehensions brought on by the pandemic has turned many people into eating healthy. Consumers have moved to fresh produce consumption and even look for transparency on how their meat and dairy products are manufactured.
Since fresh produce in the US is mostly imported with the need to track inputs and recalls, the fresh produce market is set to be the dominating field in the food traceability market by 2025.
Food traceability will remain a prime concern across the globe due to consumer demand and various stringent government policies. The COVID pandemic has given the entire food and beverage producers, CPG industry and food supply chain players enough shocks to come in cognisance with using digital tools to monitor and better our supply chains from farm-to-retail. AI-based Rapid Quality Testing at the farm and Blockchain-enabled Traceability for the complete product cycle of food is the new normal in Agri-Food Technology.
Food traceability has enabled consumers and government agencies to track food from farm to table and ensure contamination issues are kept at a minimum. Food recall processes are also made easier with food traceability.
Worldwide food safety standards and the stringent rules for obtaining quality certifications have enabled the growth of food traceability in the past few years, in addition to its many benefits.
While food manufacturers, retailers, and distribution centers are working on implementing comprehensive food traceability solutions – they are hindered by technology challenges in small towns and privacy issues in data handling. Maintaining excel sheets and tiresome ERP’s for tracking food production data is tricky and also prone to errors, automation of data integrated with Traceability at each step of processing from harvest to shipment is safer and fool-proof.
Stay ahead of the curve in food traceability with SourceTrace’s automated and non-cloneable QR codes for all food products. Our data-driven agricultural solutions bring the farmers close to customers and enable ethical supply chains to flourish.
Contact us to see how we can help you improve traceability for your products.
SourceTrace's software solutions have been deployed across 32 countries and 4 continents already. We are on a mission to make agriculture and food systems more sustainable. Get in touch and we will extend our expertise and commitment to you.
Today, at SourceTrace we’re happy to share our moment of pride and fulfillment, having made it as the cover story in the Food and Beverage Tech Review.
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'Traceability in 2020: Global Scenario with a focus on India'